Warm weather wreaks havoc with winter outerwear lines
- November 8, 2006 8:14 AM
- By Commodities
With forecasts of a mild winter, retailers in Europe are reporting slow winter wear sales as shoppers bypass parkas for T-shirts.
"All my analysis and all our data within the business is saying that it's a weather thing," Rob Templeman, the chief executive of Debenhams, told Reuters. The British-based retailer said it has suffered a four per cent drop in sales since September.
"The issue we all face is: Do we buy for later on in the season? Do I buy stocks hoping it is going to snow in April, May?" he asked.
While weather in Canada has been seasonally chilly and wet, Environment Canada has forecast a warm, dry winter thanks to the warming effect of El Nino. But Canadian retailers are still watching the trends in Europe closely.
"I empathize with what's going on in Europe and we follow that very closely in terms of a global concern about generally the warming of the climate," said Sean McSweeney, an assistant manager at the camping and outerwear store Mountain Equipment Co-op (MEC).
"We're quite worried about the overall, what this may mean to our business, and certainly as a business, we take it to heart in terms of the impact and control."
McSweeney said MEC has not made any serious adjustments to their product line in terms of ordering.
But retailers in Europe continue to scramble with their overstocked winter items. Vittorio Radice, the chief executive of the Italian department store La Rinascente, said sales will have to be delayed to recoup losses.
"The commercial seasons have to be lengthened," he told Reuters. "Rinascente is the most important player here so we could just independently delay the sales by a few days, that's a possibility we have to consider."
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