No Snow Frolicking for Northeast Apparel Retailers

NEW YORK — So much for new spring shorts and T-shirts. As cold weather lingered across most of the country, Americans shopped modestly in March. U.S. retailers reported a key revenue figure rose slightly during the month, as shoppers held back on spending because of the cold weather across the nation, particularly the Midwest and East Coast, and continued fears about the economy. Economists monitor consumer spending because it accounts for more than 70 percent of economic activity.

In comparison to the sudden arrival of summer-like weather last year, the transition in 2013 should be a lot more gradual. And this isn’t necessarily a bad thing. “Last year we got a summer that came in a thud and it got us into a lot of problems,” said Environment Canada’s senior climatologist David Phillips. “Like frost destroying apple, vegetable and other fruit crops.” Phillips said that although we might want weather that permits us to lounge on patios with a cold drink, a slow-motion warm up is better for the environment.

As a potentially historic Nor'Easter is bearing down on the Northeast, the National Weather Service has issued a Blizzard Warning for Manhattan today, through Saturday at 1:00 p.m. New York's Metropolitan Transit Authority has warned that they will shut down bus service before the worst of the storm hits, and work on the subway for this weekend has been canceled.

How many 'dips' before a recession cycle becomes a depression structure? That is likely the question on Carney's mind as he enters his role as top man at the BoE shortly. As The Guardian reports, an unprecedented third slump in four years looms for the UK as shoppers stay at home and vital transport links grind to a halt amid paralyzing weather. As snow blankets much of the nation, it would appear the next round of central bank easing will be to print 'sunshine'.

I am always suspicious of early holiday season reports of glowing sales around Thanksgiving and especially Black Friday. Then, right after Christmas I always wonder if retailers lowball estimates so they can beat-the-street on same-store-sales reports. That said, because of the souring economy I am not surprised by reports of Lackluster Holiday Sales.

Wall Street Strategies submits: By Brian Sozzi

Retail Geeks submits: Most retailers reported comp store sales results for January 2011 that were generally -100 Bps to -200 Bps less than December 2010. There are no excuses in February 2011. In February 2010, essentially every retailer complained about weather negatively impacting sales.

Wall Street Strategies submits:by Brian Sozzi