Weekly Weather July 10 July 23 Flash US THIS WEEK: Southwest Sees Heat, While Northwest and West Coast Experience Cooler Conditions; East Gets Warm Later in the Week; Rain and Thunderstorms for Many Regions A LOOK AHEAD: Temperatures Will Rise; Central US Will Sizzle, While West Will Be Cooler; Dry in West and Plains Europe THIS WEEK: Most Regions Experience Warmth Before Cooling Off; Light Showers in the West, Heavier Rain in Central and Eastern Europe A LOOK AHEAD: Europe Will Start Cool, Then Get Warm; Wet Weather Will Hit the Central Region
July 12, 2016 US WEEK OF JULY 10 16 Frozen Treats +5% Retail implications: Demand for air conditioners, water toys and summer apparel will soar across the Southwest due to hot weather in the region. Last year, this week was the driest second week of July since 2011: Temperatures were warmer than normal due to extreme heat in the Southeast, while rainfall totals were near normal. It was the driest second week of July since 2011. Sweltering conditions: The Southwest will see typical summer heat throughout the week. The East sees heat later in the week: The Plains will see above-normal temperatures early in the week, while the East will experience the heat later in the week. The West keeps cool: The Northwest and Coastal California will see temperatures below normal and below last year s levels. Storms from North to South: Early in the week, the Northern Tier will see rain, and the Deep South will also see some showers. Drier weather will extend from the Southwest into the Central and Southern Plains. By midweek, a band of thunderstorms will move southeast across the Plains to the East Coast and Deep South. 2
July 12, 2016 US WEEK OF JULY 17 23 Air Conditioners +6% Retail implications: In the Central region, demand for heat relief items such as cold drinks, frozen treats and fans will be strong due to hot weather. Cool weather in the Northwest and South will challenge yearover-year demand for summer products in those regions. Dry conditions in the West and the Plains will promote outdoor activities such as biking and golfing. Last year this week, the US saw the warmest third week of July since 2012: Temperatures were warmer than normal. It was the wettest third week of July since 2013, although rainfall was below normal. Hot in the Central region: The Central US will experience intense warmth throughout the week, with temperatures warmer than normal and last year. Cool in the Northwest and South: Temperatures in the Northwest will continue to stay below normal and last year for most of the week. Southern regions can also expect a slightly cooler trend compared with last year. Showery in the North and East: Periods of showers and storms will track across the Northern Tier, moving into eastern regions later in the week. The West and the Plains will see drier weather most of the week. 3
July 12, 2016 Europe WEEK OF JULY 10 16 Cold Drinks (Turkey) Retail Traffic (Switzerland) Retail implications: Demand for summer products will remain suppressed in central and western Europe, as temperatures will be cooler than both last year and normal. This will make way for colder weather products, such as knitwear and soup, in Germany and Romania. First warm, then cool: Earlier in the week, Europe will feel summery, with much warmer air surging in. By midweek, though, a strong cold front will drop temperatures back below normal and last year again. Increasing rain: The cold front will cause light showers in the West. Portions of Central and Eastern Europe will see heavier rain due to moisture carried by a front from the Mediterranean. 4
July 12, 2016 Europe WEEK OF JULY 17 23 Interior Paint (Croatia) T-Shirts (Ukraine) Retail implications: Demand for summery products will slip in Eastern and Central regions due to cool weather moving in from West to East. In the West, retail traffic is expected to pick up in the UK as temperatures warm in the region. First cool, then warm: Most of Central and Eastern Europe will stay much cooler than normal early in the week, then become warm to near normal over the second half of the week. The cooler areas will see stubborn cloudiness and showers. Sunny and warm in the South later in the week: Italy and the Balkans will be cool earlier in the week, and then embrace sunny and warmer weather along with the rest of the Mediterranean Basin later in the week. 5
July 12, 2016 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 Ivy Huang Research Assistant HONG KONG: 10th Floor, LiFung Tower 888 Cheung Sha Wan Road, Kowloon Hong Kong Tel: 852 2300 2470 LONDON: 242-246 Marylebone Road London, NW1 6JQ United Kingdom Tel: 44 (0)20 7616 8988 NEW YORK: 1359 Broadway, 9 th Floor New York, NY 10018 Tel: 646 839 7017 FBICGROUP.COM 6