All the unseasonably warm weather that’s bringing us closer and closer to Earth’s demise is also making it tough for department stores to unload their winter stock, and that could have long-lasting implications for the retail industry. Aw shucks.
The problem is that no one’s checking for bubble coats when it’s 60 degrees outside. WWD reports:
JPMorgan analyst Matthew Boss warned that too much warm weather is keeping stores full of winter inventory. This weighed on the sectors stocks Monday with Macy’s dropping more than 5 percent to $46.19, Kohl’s also down more than 5 percent to $43.99, Nordstrom sliding almost 5 percent to $62.49 and Dillards slumping near 3 percent to $86.74.
The warm weather system has wreaked confusion across the Northeast and Midwest and will likely continue through to Thanksgiving, according to forecasts, making the month of November 7 degrees cozier than normal.
That’s bad news for retailers that depend on shoppers that wait until it gets cold to buy new sweaters and jackets.
Stores like Macy’s and Kohl’s have upped their promotional sales in response, while “off price” brands like TJ Maxx and Burlington remain unaffected.
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