Autumn Heat Shakes Up Retail’s Winter Sales Forecast

By: Anneken Tappe · October 02, 2023 · Reading Time: 2 minutes

Sweater Slump

Retail is feeling the heat once again. This time, literally. The holiday shopping season is a crucial shopping period, but unusually warm fall temperatures across the U.S. and Europe are causing a dip in sales of heavy winter apparel.

Forecasting Fashion

The start to the fourth quarter will be warmer than usual, according to predictions from Weather Trends International. For retailers that means a sweater season that may require fewer actual sweaters.

Major retailers are reporting decreased sales figures. To combat the accumulating unsold stock, some stores are already slashing prices on winter items, a move typically reserved for post-holiday sales.

The early bird discounts — including a 20% sale on knitwear and outerwear by H&M’s (HNNMY) Cos brand — are indicative of the industry’s attempt to manage its inventory.

Warm Deals Ahead

The holiday shopping season is starting earlier and earlier, with retail giants like Amazon (AMZN), and Target (TGT) already gearing up for sales events in October. If winter apparel continues to underperform, the sector could face inventory challenges throughout the season, potentially leading to even more markdowns on winter items come early 2024.

While unpredictable weather poses challenges for retailers, it might just mean better deals on sweaters and jackets for you — as long as you’re willing to wait until next year to use them.

Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!

Check it out

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

TLS 1.2 Encrypted
Equal Housing Lender