Weekly Weather Flash Feb.28 Mar. 12 United States THIS WEEK: Seasonal Demand Blossoms Before a Midweek Cooldown in the East. Severe Weather Threatens the South. A LOOK AHEAD: Seasonal Demand Strongest Across the Central US as Temperatures Trend Much Warmer than Normal in the East. Wet Weather for Most Regions in North America. Europe THIS WEEK: A Wintry End to February. A Wet Week Expected. A LOOK AHEAD: West-East Split Continues. Rain and Snow Focused in Central Europe.
March 3, 2016 United States Week of February 28 March 5 Temperature vs. L ast Year Pest Control +28% Short- Sleeve Shirts +12% Soft Drinks +7% Source: Planalytics Retail implications: Spring weather begins three weeks sooner than the season officially starts, boosting purchases of spring apparel and seasonal categories. Last year, this week was the coldest since 1996: Snowfall was the highest recorded since 2005. Rainfall was above normal and the most seen since 2011. Winter returns to the East: By midweek, colder air will drop back into the Eastern US. Storm systems will bring snow to the Northern Plains, Great Lakes, Northeast and Mid- Atlantic regions. Rain for some: Severe weather is possible early in the week across the Mid- South to the Southeast, which will drive demand for emergency- preparedness items. Midweek, rain and thunderstorms are expected from the Southern Plains to the Mid- South. DEBORAH WEINSWIG, EXECUTIVE DIRECTOR HEAD OF GLOBAL RETAIL & TECHNOLOGY DEBORAHWEINSWIG@FUNG1937.COM US: 917.655.6790 H K: 852.6119.1779 CN: 86.186.1420.3016 Copyright 2016 The Fung Group. All rights reserved. 2
March 3, 2016 United States Week of March 6-March 12 Temperature vs. Last Year Allergy Relief - 1% Source: Planalytics Retail implications: Warm temperatures are expected to encourage demand for spring softlines and consumables. Last year, this week was warmer than normal: Rainfall was also well above normal. Snowfall was the lowest it had been in over 55 years. March mildness: Temperatures across much of the country are expected to be warmer than normal. Temperature anomalies of 15 F 20 F are expected from the Midwest to the Northeast for most of the week. Central regions and the Great Lakes can expect the warmest temperatures compared to last year. A wet West: Rain and mountain snow finally return to the West. Precipitation will be heaviest in the Pacific Northwest, following an extended lull. For the second half of the week, rain and thunderstorms will move into the Plains. DEBORAH WEINSWIG, EXECUTIVE DIRECTOR HEAD OF GLOBAL RETAIL & TECHNOLOGY DEBORAHWEINSWIG@FUNG1937.COM US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 Copyright 2016 The Fung Group. All rights reserved. 3
March 3, 2016 Europe Week of February 28 March 5 Temperature vs. Last Year Tea (Sweden) Ice Cream (Portugal) Source: Planalytics Retail implications: It will be a challenging week for all of Western Europe, with temperatures that are cooler than both last year and normal. A wintry end to February: Colder- than- normal conditions will continue across the West, warming to near- seasonable levels as the calendar moves into March. Warmer conditions will persist in the Southeast and expand northward as the week progresses. Remaining wet: Low pressure will track northeast across Central Europe, producing heavy rain and snow early in the week. The second half of the week will see a front move in off the Atlantic with more moderate- to- heavy rain. DEBORAH WEINSWIG, EXECUTIVE DIRECTOR HEAD OF GLOBAL RETAIL & TECHNOLOGY DEBORAHWEINSWIG@FUNG1937.COM US: 917.655.6790 H K: 852.6119.1779 CN: 86.186.1420.3016 Copyright 2016 The Fung Group. All rights reserved. 4
March 3, 2016 Europe Week of March 6 March 12 Temperature vs. Last Year Cold Drinks (Turkey) Sandals (Belgium) Source: Planalytics Retail implications: It will be another challenging week for much of Western Europe as cool conditions keep consumers in a winter mindset. West- East split continues: The western half of Europe will remain cool, and colder than last year; in the East, the opposite will generally be the case. Rain and snow focus on Central Europe: More rain and snow are expected as another storm lifts northward across central Europe. DEBORAH WEINSWIG, EXECUTIVE DIRECTOR HEAD OF GLOBAL RETAIL & TECHNOLOGY DEBORAHWEINSWIG@FUNG1937.COM US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 Copyright 2016 The Fung Group. All rights reserved. 5
March 3, 2016 Deborah Weinswig, CPA Fung Business Intelligence Centre New York: 917.655.6790 Hong Kong: 852.6119.1779 China: 86.186.1420.3016 deborahweinswig@fung1937.com Filippo Battaini filippobattaini@fung1937.com Chim Sau Wai chimsauwai@fung1937.com Rachael Dimit rachaeldimit@fung1937.com Marie Driscoll, CFA mariedriscoll@fung1937.com John Harmon, CFA johnharmon@fung1937.com Aragorn Ho aragornho@fung1937.com John Mercer johnmercer@fung1937.com Shoshana Pollack shoshanapollack@fung1937.com Kiril Popov kirilpopov@fung1937.com Jing Wang jingwang@fung1937.com Steven Winnick stevenwinnick@fung1937.com HONG KONG: 10th Floor, LiFung Tower 888 Cheung Sha Wan Road, Kowloon Hong Kong Tel: 852 2300 2470 NEW YORK: 1359 Broadway, 9 th Floor New York, NY 10018 Tel: 646 839 7017 LONDON: 242 246 Marylebone Road London, NW1 6JQ United Kingdom Tel: 44 (0)20 7616 8988 FBICGROUP.COM DEBORAH WEINSWIG, EXECUTIVE DIRECTOR HEAD OF GLOBAL RETAIL & TECHNOLOGY DEBORAHWEINSWIG@FUNG1937.COM US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 Copyright 2016 The Fung Group. All rights reserved. 6