New York City’s brutal winter storms have left many local retailers out in the cold on sales.
Spring clothes are hitting the shelves. But nobody wants to shop for skin-baring styles when it feels like the city has plunged into one polar vortex after another.
The extreme weather is hitting retailers where it hurts. Last week, Census Bureau data showed that overall retail sales have missed expectations for three months straight, with apparel dropping 0.9 percent in January. The trends are so poor, BNP Paribas analyst Alexandra Estiot said in a research note last week that “it seems rather obvious that … consumption spending is losing steam.”
When the going gets tough, retailers cut prices. But merchants already piled on extra discounts last month to battle the snow’s chilling effects on shopping. Now retailers are slashing prices again. They must also cope with decisions made months ago about what will be on the shelves today — and sometimes scramble to bring in wear-now items shoppers want.
“This is definitely hurting us,” Lexy Funk, CEO of hipster fashion chain Brooklyn Industries, which operates 14 stores in the city. “Winters are normally tough, but this is worse, with more snow days and much colder weather.”
Pressure is mounting to make up for lost revenue. But January and February are typically low-sales-volume months anyway, which means there’s still time to play catch-up.
“[More snow] is not going to help retailers, but it’s not like they can’t recover at some point during the year,” said Jim Rice, senior analyst at retail consultant Creditntell.
Funk purchases outerwear for Brooklyn Industries six or seven months in advance. Last year, bright colors were a flop, so she focused on black and gray jackets for 2014, which are selling well.
In past years, the store has run out of winter coats in February, so she ordered more for this winter — little knowing just how many wintry storms were coming.
“We were prepared, but not because we had forecasting,” said Funk.
Despite the snow, tourists are shopping at Bloomingdale’s’ 59th Street store. Wear-now merchandise — including Hunter boots, a fashionista favorite — is strong. Reorders are tough to come by, but any that Bloomingdale’s brings in are selling out.
At Queens’ LIC: living, co-founder Rebekah Witzke added a 15 percent “polar vortex discount” to the 40 percent-off sale already under way. Revenues at the store, which sells clothes, gifts and jewelry, are down from projections. The heating bill is up, however, and Witzke has had to ask her landlord to better insulate the drafty boutique.
“I’m looking forward to spring and clear sidewalks,” Witzke said.