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.)
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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