Rain, cool weather dampen U.S. June retail sales

Mon Jun 22, 2009 11:12pm BST
 
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By Aarthi Sivaraman - Analysis

NEW YORK (Reuters) - Rain and cooler-than-usual weather so far in June may have dampened demand for summer items such as sandals, swimwear and beer for retailers already hard put to counter sales declines during the recession.

The effect may be most pronounced in the U.S. Northeast, where June so far has been the coldest in 27 years and is on track to become one of the wettest Junes on record, according to weather research firm Planalytics, which has tracked such data since the 1930s.

June in the Midwest so far is the coldest in six years and has been wetter than normal, but still not close to last year when it was the second wettest in 50 years.

It is the wettest in 4 years in the U.S. Southeast and U.S. Southwest and the coldest in 42 years in the Southwest, the weather tracking firm said.

The summer season typically drives demand for merchandise such as bathing suits, shorts and summer dresses on the apparel side, and pool and garden-related merchandise on the home end.

Items such as bottled water and beer -- and conveniences such as air conditioning -- also usually see more demand in summer.

But this time, already penny-pinching consumers may not be motivated to brave the less-than-ideal weather to shop, said Wendy Liebmann, chief executive of consulting firm WSL Strategic Retail.

"When the weather is like this, the inclination to (shop) is absolutely not there," Liebmann said. "It feels like we are going to go straight from spring to autumn or we'll just wait for the big sales and buy then."  Continued...

 

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