Added by Monique Robinson on February 3, 2011
Retailers are expected to report only low boosts in this month’s sales, since the weather has kept many shoppers from stores and malls in January.
Since early spring merchandise has not been so sought after due to heavy snow, the number for the end of the holiday sales are to be lower than expected.
The decrease in sales numbers comes after retailers enjoyed the most positive outcome in November and December 2010 than they did in the last six years. Thus, the weather’s intervention does seem to have meddled with their plans.
As the end of the fourth quarter in retail is approaching, numerous retail chains such as Saks and Target are to reveal their reports for this month’s sales later this week, on Wednesday and Thursday.
Forecasts expect boosts in sales of about 2.8 per cent, whereas last year’s rise amounted 3.3 per cent, according to Reuters.
“It looks like kind of a lackluster month. It is a clearance month typically. Usually we like to see some cooperation from the weather to sell some full-price spring merchandise,” said Paul Lejuez, analyst at Nomura.
Since the weather was not on the retailers’ side, customers decided to stay inside, away from the snowstorms, and leave the trips to the mall for sunnier days.