Sunday, February 19, 2012

The effect of weather on consumer spending

During my early days as a store manager, my sales manager expected a sales report each Monday, and an explanation of any deviation from the sales budget. Once I only wrote the weather conditions as it was a simple way of explaining floor traffic in the store (it was situated in a mall). Rain meant many customers whereas sun meant few customers. My boss did´nt seem to think this was good enough as he sent the report back with a note: "I did´nt ask for a weather report!!!"
Recent research, however states that weather conditions do have effects on customers interest in spending their money, apart from the fact that sunshine means more interest in spending time outside.
The research of Kyle B. Murray at School of Business, University of Alberta  "The results of the studies reported in this paper provide evidence of how weather can impact consumer spending. We find that temperature, humidity, snow fall, and, especially sunlight, can affect retail sales."
Download the research paper by clicking here.o