Heavy winter sweaters, coats pile up at stores as warm weather threatens holiday shopping season
By Ananya Mariam Rajesh
(Reuters) — Unseasonably warm autumn weather from the United States to Europe is denting sales of heavy sweaters and coats as the critical holiday shopping period approaches, executives at major retailers including H&M (ST:HMb) said, and some stores are already slashing prices to avoid piles of unsold inventory.
In the past year, clothing retailers have sought to clear excess stock that had piled up due to a shift in consumer demand to essentials from discretionary items like clothing.
But with fourth-quarter temperatures expected to start off warm, according to weather tracking firm Weather Trends International, stores carrying winter styles and gear could find themselves loaded with inventory at the end of the season.
H&M's upmarket brand Cos has started to offer a 20% off sale online and in stores for knitwear and outerwear clothing including merino wool sweaters and long puffer coats. H&M CEO Helena Helmersson told Reuters on Wednesday that shoppers are putting off purchases of «heavy» autumnal items amid the warmer than usual weather.
European company Pepco Group also noted that the landing of its autumn and winter clothing inventory had coincided with persistent record-warm weather in its core Central and Eastern European markets. «When it's 26 degrees (Celsius, 79 F) you don't tend to sell coats,» Pepco's executive chairman, Andy Bond, told analysts on a call on Thursday.
In the last couple of years, the so-called holiday shopping season has been starting as early as October as many retailers offer deals and discounts through the month and until December. Amazon.com (NASDAQ:AMZN) is set to host a second Prime Day on Oct. 10-11, while Best Buy (NYSE:BBY) is offering 48-hour flash sale on
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