Why Back-to-School Spending Could Be Hurt By Heat Wave
The summer heat wave in several parts of the country has given those subject to record temperatures plenty of reasons to complain. Soon, that list may include back-to-school retailers.
Natalie Zmuda, retail reporter for Advertising Age, explains in the above video that record temperatures were reported in July in the Northeast, Midwest and Mid-Atlantic. And while people felt the heat firsthand in July, they'll feel it again come August when they receive higher-than-usual electric bills. (Check out the video above to see how high those bills could be compared to last year.)
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Those electric bills are expected to hit when back-to-school shopping begins -- the second biggest shopping season of the year (after the December holidays).
“That’s a big impact especially when you’ve already got a huge portion of consumers saying they’re going to be impacted by the economy when it comes to back-to-school spending,” says Zmuda, citing a National Retail Federation survey that shows almost 40% of BTS shoppers planning to cut back this year.
Zmuda says the heat isn't the only factor hurting retailers: a cooler than average March and April means retailers are moving more of their summer inventory at discounted prices.
Does weather really impact a retailer's bottom line? Watch the video to find out.
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