The relationship between temperature and sales

Abstract

Purpose The influence of weather on business activities and human behaviour has been explored in several fields (e.g. finance and psychology), but little research about weather and retail sales is found in the retail or fashion literature. The purpose of the study is to analyse the relationship between temperature, one aspect of weather, and retail sales of seasonal garments. Design/methodology/approach The researchers collected sales data from a retailer of branded women's business wear in the Seoul‐Kyunggi area in South Korea. Along with the sales data for seasonal basic styles, corresponding daily and weekly average temperature data were collected and evaluated. The analysis for the study was drawn using descriptive statistics including graphical evaluations, correlation analysis and paired samples t‐test. Interviews with the retailer's merchandisers were used to supplement interpretation of the statistical data. Findings Results of this study provide strong evidence that fluctuations in temperature can impact sales of seasonal garments. During sales periods when drastic temperature changes occurred, more seasonal garments were sold. However, the temperature changes from day to day or week to week did not affect the number of garments sold for the whole season. Of the seasonal garments expected to sell within the same season, the selling periods of each product category differed depending on type of fabric and design. For some seasonal garments, the actual sales dates were one week to two weeks in variance from the merchandisers' forecasts. Research limitations/implications Limitations in the sample (i.e. product category) and location of stores (i.e. geographic region) prevent the generalization of results to all seasonal garments or retailers. In spite of these limitations, this study can be a pilot study that supports the significant relationship between temperature and sales of seasonal basic products by quantifying the temperature effects on sales of particular products. Therefore, future studies are needed to establish generalized conclusions with a larger sample. Originality/value As little academic research is available about weather's effect on sales of garments, the present study contributes to the field of clothing and retail distribution by providing evidence of significant relationships between temperature and sales of seasonal clothing.

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