Deep Freeze Weather: Good or Bad for US Retailers?
Cold Arctic air is covering the northern part of the USA, demand for Nat Gas to heat US homes is expected to spike, plus a lot of US retailers are hoping that demand for cold-weather gear will spike too.
Retailers want enough cold weather to put consumers in a Holiday frame of mind and to remind them that they need go out and buy more warm clothes.
Too much cold and especially snow may keep consumers snug safe, warm and dry at home, tapping away at keyboards and mobile devices as they buy Holiday gifts in comfort.
That would be OK, but 1 giant retailer gathers up most of the online spending.
Amazon.com (NASDAQ:AMZN) took 40% of all online sales in November and December of Y 2015.
What is good for apparel retailers is not necessarily good for other businesses. Restaurants, in particular, face a downturn this Holiday Season.
Restaurant business analysts say business drop by $1.1-B compared with last December. Consumers do not eat 2 restaurant meals to make up for 1 they missed on account of bad weather.
One last effect from this year’s colder weather is likely to be a lot fewer inventory markdowns in January and February on Winter clothing.
|NASDAQ:AMZN||757.77||16 December 2016||-3.23||765||765.13||754||4,848,200|
|HeffX-LTN Analysis for AMZN:||Overall||Short||Intermediate||Long|
|Bearish (-0.31)||Bearish (-0.26)||Bearish (-0.38)||Bearish (-0.31)|
|NYSEArca:UNG||8.55||16 December 2016||-0.09||8.45||8.63||8.44||15,515,600|
|HeffX-LTN Analysis for UNG:||Overall||Short||Intermediate||Long|
|Neutral (0.19)||Neutral (0.21)||Neutral (0.04)||Bullish (0.31)|
Have a terrific weekend