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How the Swedish retail sector suffered from the effects of the cold weather

The cold weather in Sweden has killed the Swedish retail sales and shopping enthusiasm. Easter is usually the start of the gardening season - but it seems the weather has made that to freeze in.

Severe weather has continued to cause disruption across parts of Sweden, as forecasters warn the cold temperatures will continue to persist until mid-April. This has weakened the traditional rush for spending on outdoor products as Swedes are supposed to be enthusiastic about the emergence of the warm weather.

This year the unexpectedly long cold and long wintery snowfall has meant that people remain doubtful about their out door activities this year. As such it has been translated to the retail sector which has started stocking on spring and summer products. Sales are not taking off as a result.

One evidence for this has been blamed on H&M which saw sales slump recently. Partly, the cold is said to be responsible for lowered H & M's profits last quarter with a half billion, from the expected 3.7 to Skr3.2 billion.

With temperatures around 5 degrees below normal, electricity price rose to stand around Skr 0.37 and Skr 0.38 / kW to just Skr 0.26 / kw last March, it cost hundreds million, which is not going for the clothing, flowers and things that are supposed to be spend on now.

The good seeing the worse sales now are products within the building and construction sector, sporting goods, clothing and footwear, gardening, and individual products such as for grilling among others according to analysts.
by Scancomark.com Team

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