I have been in retail longer than I can remember, and as long as I can remember we were never ever to blame the weather on the loss of sales. EVER!
We we're told it doesn't matter how many people came into your store, 1 person could spend the same amount as 20 total If we had torrential rains, power outages, snow storms we were still expected to make the days sales goals and well even beat them. And this was during the days when business was good. The eighties!
As I read WWD, every CEO quoted blamed the weather right after Christmas for the loss of sales. Mmm, sales should have come prior to Christmas.
At Saks, they even opened late, concerned about their people getting to work in NYC, subways (underground)
Don't get me wrong, I was always one to understand that weather affected the buying patterns of shoppers, but no matter the case presented to corporate ..we needed to make and beat sales! Bottom line!
But this is really where the retailers went wrong, MARKDOWNS on winter merchandise and putting out spring.
This cold , snowy weather drives sales. Now there is a need not a want for a new winter coat, or new boots and cold weather accessories. This is what the retailers need to focus on THE NEED!
Instead of leaving the majority of product at full price they panicked and marked it all down, losing valuable profit. They marked and marked until they could not mark any more. Stores like Ann Taylor Loft, had 50% off your entire purchase and this was on top of everything being markdown 50 to 75 % already. I of course took advantage and bought a $100 sweater for $10, so who can blame me. but there's no profit in that sale, because the stores were empty, it was 29 degrees and i didn't want the new(not so lovely spring line that was already on 50% of the selling floor.
This weather hit retail at the right time but they didn't see it, they panicked. Why because all of the CEO's ha to make rash decisions before they left for their warm vacations.
And BTW, I would just like to see one year company's giving the hard working managers the week off after Christmas and the CEO's running the stores for them.
Running a retail store by no means is rocket science, although retail in itself is a science (another topic) but getting it right is well actually right before their noses. Cold weather warrants cold weather goods, warm weather warrants warm weather goods, Do you see the connection. As I stated on Sunday Sunrise with Frank Coletta, January is not the time to buy. Everything that you see is pre-spring, Its a test for what the consumer actually likes. And by the looks of the nautical theme in every pastel color under the rainbow(YUCK) it doesn't look too good.
If you buy a warm weather garment in January are you really going to wear it? NO!
you'll put it away and forget that you had it. then 2 things will happen, 1, after 30 days it will get marked down, you'll lose the rec. and you won't be able to get the price adjustment or 2, even worse when it's time to actually wear it you'll think what was I thinking!
Been there, done that lesson learned.
So to my point, the CEO's are claiming if they don't make sales it's because of the bad weather that hit, I guess very similar to the blizzard of 78, i don't think so. So, if your in retail, grab WWD, Dec 28th edition and hang on to it, FOREVER! So the next time you have bad weather and want to blame it on sales, pull out this issue and quote one of the famous CEO's. I mean after all if it's OK for them why isn't it OK for you?
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