January 22 February 4 Weekly Weather Flash US This Week: Cold Weather Continues in the West; Storm Brings Rain to the East Coast A Look Ahead: The East Chills; Western Storms Return Europe This Week: Cold Temperatures Hold On; Snow and Rain Visit Southern Europe A Look Ahead: Temperatures Climb Above Normal; More Wet Weather in the West
US Week of January 22 28 Retail implications: temperatures in the eastern and interior regions of the US will result in overall weak demand for seasonal products across much of the country, while colder temperatures in the West will continue to support robust sales of outerwear in the region. Last year this week, temperatures in the US were the warmest since 2012: Rainfall was below normal and snowfall was the least to end January since 1992. The wintry West: Bouts of cold and stormy weather will continue in the West, helping keep demand robust for outerwear, heaters, ice melt and soup. conditions by midweek should aid cleanup efforts for those impacted by flooding and mudslides. 34% Heaters Warm winter in the East: A considerably warmer pattern is expected to continue in the eastern and interior regions. Temperature anomalies of 10 F to 20 F warmer than normal will be common for much of the week. readings are likely late in the week, and colder air will push west to east, hitting the East Coast by the weekend. Overall, it is expected to be a difficult week for seasonal demand. Wet and white: A coastal storm early in the week will bring periods of heavy rain along the East Coast, with snow and ice in interior areas. Meanwhile, a storm exiting the West will bring the potential for snow and ice from the Northern Plains to the interior Northeast. 2
US Week of January 29 February 4 Retail implications: A sudden chill in the East will boost sales of winter items. Last year this week, the weather was warm: It was the warmest first week of February since 2008, with the warmth focused in the East. Rainfall was above normal, while snowfall was the least since 2012. A fabulous start to February: Temperatures across most regions will be considerably colder than they were during the same week last year. The coldest anomalies are expected in the eastern third of the US, driving demand for cold-weather categories. readings are expected to return late in the week. 21% Electric Blankets Still cold in the West: Much colder temperatures will also be found in the Pacific Northwest, extending what has been a strong winter season for retailers in the region. Western storms return: Early in the week, a drier trend is expected to continue in the West, aiding cleanup in storm-ravaged California. However, the return of the Pacific Pipeline is expected later in the week, bringing more heavy rain and snow to the area. While the precipitation will help ease drought conditions, more flooding and mudslides are possible. 3
Europe Week of January 22 28 Cold Drinks Duvets Germany Portugal Retail implications: Across Europe, retailers are expected to see a strong week for end-ofseason clearance on winter lines. Cold air starts to let up: Very cold temperatures will hold on across the Southeast through the week. -than-normal conditions will continue over the Northwest and spread across Western Europe at the end of the week. Wet South: Moist air from the Mediterranean will continue to overrun colder air to the north, causing more snow and rain for Southern Europe while onshore flow brings rain and snow to Norway. The rest of Europe will be mostly dry. 4
Europe Week of January 29 February 4 Rainwear Knitwear Spain Croatia Retail implications: Conditions will remain positive for sales of winter products. Warming into February: Temperatures will climb above normal for much of Europe, although they will still fall short of last year s milder trend. weather from the West: The upper-level pattern will begin to open up, pushing more rain in from the Atlantic as the week progresses. The leading edge of the precipitation will come in the form of snow as warmer air overruns cooler conditions to the east. 5
Deborah Weinswig, CPA Managing Director Fung Global Retail & Technology New York: 917.655.6790 Hong Kong: 852.6119.1779 China: 86.186.1420.3016 deborahweinswig@fung1937.com Zane Yang Research Assistant Hong Kong: 8th Floor, LiFung Tower 888 Cheung Sha Wan Road, Kowloon Hong Kong Tel: 852 2300 4406 London: 242-246 Marylebone Road London, NW1 6JQ United Kingdom Tel: 44 (0)20 7616 8988 New York: 1359 Broadway, 9th Floor New York, NY 10018 Tel: 646 839 7017 FungGlobalRetailTech.com 6