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Cool weather may turn positive for retailers

Big Data Download

Cool weather dampened apparel sales this spring and early summer, but going forward the cooler weather will be a positive force for the sector, according to Paul Walsh of The Weather Channel.

“I think the retailers’ long, national spring nightmare is just about over. This relatively cool weather now is going to start driving very strong early demand for fall which, of course, for retailers means higher margin sales,” Walsh told Big Data Download,

Merchandise with fall colors and fall-weighted clothing will be sold at full price as it’s appropriate for the lower temperatures, he said.

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As the third quarter begins, retailers are up against Hurricane Sandy comparisons, Walsh said. Department stores and apparel retailers will gain over the prior-year period because of store closings during the hurricane; yet the opposite holds true for home center stores, he said.

Home Depot and Lowe’s will not get the same sales pop as last year, when people prepared for and then repaired the hurricane damage, Walsh said .

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