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June is the first month of the summer, and apparel retailers, hardware stores, restaurants, golf courses, and many other businesses hope for favorable weather to generate big sales. In addition, Father’s Day sales, which reached $14.3 billion this year according to the NRF, are also impacted by the weather. So what did the weather look like in June for the various regions of the country, and what did this mean for apparel retailers, hardware stores, and other businesses looking for big sales to carry over into the rest of summer? Here are several points of note that were published in our June WeatherCall report. You can download the complete report here.
It Was a Hot and Dry June
June 2016 was one of the warmest on record. The first week of June was the warmest in the United States in more than 55 years boosted by near-record highs in New England and the Pacific. This carried over into the second week of June where St. Louis experienced its warmest temperatures for the week since before 1960. The West North Central Region also trended warmest since 1987. The East South Central region recorded a top 3 warmest second week in June in over 55 years.
The third week of June nationally was the second warmest in over 55 years. This was driven by near-record highs in the Mountain and Pacific regions. Finally, the fourth and final week of July was the warmest nationally in three years. LA experienced its warmest temperatures for the week since 1976. There were a few regions that did experience cooler overall temperatures than in years’ past, but, as a whole, June was very warm when compared to prior years.
It was also relatively dry in much of the United States. New England had its driest June since 2007. The East South Central Region was its driest since 2011. The Mid-Atlantic, East North Central, and Mountain regions experienced their lowest precipitation levels since 2012. Major cities in these regions, including New York City, Boston, Cincinnati, St. Louis, and Buffalo all had drier than normal conditions throughout the month of June. Overall, rainfall was the least since 2012.
The weather left no doubt in the minds of consumers about the arrival of summer. They responded in kind by purchasing a variety of seasonal goods. Air conditioner weather driven demand (WDD) was up 33%. Sun care products were up 9%. Shorts were up 5%. In addition, retail traffic was up in several segments, including restaurants, sporting goods, home centers, and more. Not surprisingly, the indoor entertainment industry experienced less foot traffic than in year’s past.
Overall, Planalytics’ weather-driven demand analytics calculated a significant weather impact on sales in June 2016 alone compared to the same period last year:
- Apparel Chains: $249,000,000
- Hardware & DIY: $65,000,000
- Restaurants: $554,000,000
June 2016 Was a Warm One. That Doesn’t Mean June 2017 Will Be Warm as Well
June 2016 saw mostly favorable weather, which helped many businesses see increased sales from consumers taking advantage of the favorable conditions. However, June 2017 could be a completely different story. Weather only repeats itself about 15-20% of the time. Rather than wait and see what happens, businesses do have the opportunity to invest in weather risk management, which can help minimize adverse effects from the weather and maximize on weather-related opportunities. Contact us today to speak with a Planalytics representative and learn more about the benefits of using our weather analytics services.