DECEMBER 2007 BUSINESS WEATHER SYNOPSIS: It was a wholesale change in the weather pattern compared to last year when the month ranked 3rd warmest in 112 years. This year December was the 3rd coldest of the past 15 years with 90% of the U.S. trending colder than last year and 53% of U.S. trending colder than the 30-year average. The coldest periods were the weekend of the 15th-16th and again late on January 2nd and 3rd. Sub-freezing temperatures occurred in Central Florida late in the retail month. Snowfall was exceptional with a 315% increase over last year for the snowiest December in 7 years. Combined with a severe ice storm in the Central U.S. this was a very disruptive pattern to the holiday shopping season. Some drought relief occurred in the Southeast with 4-6” of rain as well as 2”-5” in California.
(Click Image to View Full Size Temperature and Precipitation Charts)
WEATHER INFLUENCED BUSINESS TRENDS: The snow resulted in 500%+ sales gains for must have Winter seasonal items like ice melt, antifreeze, auto batteries and strong double digit gains for must have apparel items. The negative was the disruptions to holiday store traffic and gift categories but on-line sales certainly benefited. Stormy weather is a plus for food delivery chains like Pizza Hut but a negative for restaurants overall. The other big negatives for retail sales continued to be gasoline prices trending 34% higher than last year and home heating bills up 40%+ in many areas in the Midwest and Northeast. Overall retail industry same-store sales are expected to be around 1% making this the 2nd worst gains in over 22 years. Clearly the recessionary trends continued after a better than expected November.