1 Fung Business Intelligence Centre Global Retail & Technology Flash Report: Weekly Weather Flash Copyright © 2015 The Fung Group. All rights reserved.
Temperature vs. Last Year
Source: Planalytics
June 17, 2015
US Weekly Weather Flash
Week of June 14–June 20
Retail implications: Although max temperatures will struggle to be warmer than last year, warmer than normal temperatures will support demand for summer consumables. Strongest warmth will be in the Southeast with heat indices above 100°F. This will drive demand for heat relief items like cold drinks and ACs.
• This week last year, warmest 3rd week since 2012: The US had its warmest 3rd week of June since 2012, while rainfall was near normal.
• Here comes the rain again: Thunderstorms are expected throughout the week in the Southern Plains, Midwest, Ohio valley, Mid-‐Atlantic, and Northeast regions. A tropical system currently in the Gulf of Mexico will bring heavy rain and flood threats to eastern Texas, Oklahoma, Arkansas, and Louisiana.
• Father’s Day weekend: Warmer than last year and normal temperatures can be expected along both coasts with scattered thunderstorms likely in the Northern Tier.
Impact on Retail Sport Drinks +4%
• Week of June 14–June 20: The East and West Coasts remain warmer than normal, lifting demand for heat relief items. Warmth and showers for Father’s Day.
• Week of June 21–June 27: Summer officially arrives with warmth persisting in the East and West, supporting summer categories.
2 Fung Business Intelligence Centre Global Retail & Technology Flash Report: Weekly Weather Flash Copyright © 2015 The Fung Group. All rights reserved.
Week of June 21–27
Retail implications: The East continues with warmth. Most of the West Coast will continue to see temperatures well above last year and normal throughout the week. The Pacific Northwest can expect a brief mid-‐week respite from the heat. Overall, demand for summer categories will experience a strong lift over last year.
• Last year’s coolest and wettest since 2011: The US had its coolest and wettest 4th week of June since 2011.
• Cool in the Great Lakes: Most markets around the Great Lakes will remain cooler than normal and last year. The Southern Plains will warm up compared to last year, but remain below normal throughout the week.
• Typical summer-‐like precipitation pattern: An early week system brings showers and thunderstorms from the Palins to the Mid-‐Atlantic region with a slight cool down expected in the East mid-‐week. Expect evening thunderstorms to end the week through the Northern Plains and Midwest. A few summer showers and thunderstorms can be expected in the Desert Southwest.
Impact on Retail Pools +10%
Temperature vs. Last Year
Source: Planalytics
3 Fung Business Intelligence Centre Global Retail & Technology Flash Report: Weekly Weather Flash Copyright © 2015 The Fung Group. All rights reserved.
Temperature vs. Last Year Temperature vs. Last Year
Source: Planalytics
JUNE 17, 2015
Europe Weekly Weather Flash
Week of June 14–June 20
Retail implications: Though with higher than last year temperature, rains across South-‐Central Europe are expected to reduce demand for seasonal products like suncare, beach towels and swimwear..
• Warm start, cool finish: Much of central and eastern Europe start warmer than normal and last year, but a cold front brings cooler than normal temperatures to end the week. Temperatures will be comparable to last year. The UK, and western Europe remain near normal, with a brief warm-‐up mid-‐week.
• Rainy across South-‐Central Europe: Rain showers (likely to be heavy with flooding expected) and thunderstorms across South-‐Central Europe are expected early week. Scattered showers are expected in central and eastern Europe mid-‐week.
Impact on Retail
• Week of June 14–June 20: Rainy across South-‐Central Europe hinders demand.
• Week of June 21–June 27: Warmer than last year temperature boosts seasonal demand.
Suncare (Greece) ↓ | Beach Towels (Spain) ↓
4 Fung Business Intelligence Centre Global Retail & Technology Flash Report: Weekly Weather Flash Copyright © 2015 The Fung Group. All rights reserved.
Week of June 21–June 27
Retail implications: Much of Europe sees stronger than last year demand for seasonal products after a very challenging season. More difficult for the UK.
• Warmer than last year throughout: Much of Europe is warmer than last year, expect for the UK and Ireland which remain near normal and similar to last year. Central Europe starts to warm back up as the week comes to a close.
• Unsettled across Southern Europe: Early in the week, rain (possibly heavy) and thunderstorms are expected north and east of the Mediterranean, pushing east by mid-‐week. More showers are expected in western Europe to end the week..
Impact on Retail
Temperature vs. Last Year
Shorts (Switzerland) ↑ | Soft Drinks (Germany) ↑
Source: Planalytics
5 Fung Business Intelligence Centre Global Retail & Technology Flash Report: Weekly Weather Flash Copyright © 2015 The Fung Group. All rights reserved.
Deborah Weinswig, CPA Executive Director—Head of Global Retail & Technology Fung Business Intelligence Centre New York: 917.655.6790 Hong Kong: +852 6119 1779 [email protected] Cam Bolden [email protected] Sunny Chan [email protected] Marie Driscoll, CFA [email protected] John Harmon, CFA [email protected] Aragorn Ho [email protected] John Mercer [email protected] Charlie Poon [email protected] Kiril Popov [email protected] Stephanie Reilly [email protected] Lan Rosengard [email protected] Jing Wang [email protected]
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