Newswise — Unusually Warm Weather Contributes to Negative Retail Outlook
The National Retail Federation had forecasted an optimistic rise in retail sales of nearly four percent. It now looks like those projections will fall short due in part to the unusually warm weather so far this winter season in the United States. Syracuse University's Martin J. Whitman School of Management Professor of Retail Practice Amanda Nicholson offers some insight into the current retail industry outlook.
“Retailers are seeing a continuation of sluggish sales due to consumers buying close to need, early holiday promotional efforts that began in October plus, and perhaps most importantly, the unusually warm weather for several weeks running up to the holiday season. “This weather pattern has been particularly devastating for retailers, such as Macy’s whose seasonal sales of cold weather apparel and accessories form an integral part of its holiday offerings in terms of both sales and margins.
The moves to layoff workers, are part of Macy's ongoing campaign to make its operations nimbler in order to compete in a world where increasingly demanding shoppers are going back and forth between stores and their mobile devices.
“Macy’s is not alone in this strategy - analysts expect more retailers to reduce their store counts after the holiday season. This after a surge in online holiday spending that resulted in lower traffic counts to physical stores.”
Professor Nicholson is available for interview by contacting Kerri Howell, director of communications and media relations at the Whitman School, at 315-443-3671 or [email protected].
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