Heat wave: a good time to be selling pool supplies and sunscreen
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| New York
In a heat wave, you need a shade tree, ice, perhaps a new swim suit. And, how about buying the toddler a kiddie pool?
You probably don鈥檛 need hot soup, a new lawn mower, or some patio furniture.
Indeed, as the eastern part of the nation bakes for another day, there are winners and losers in the economy the same way some companies benefit during a winter of blizzards while others lose sales.
IN PICTURES: Beating the summer heat
According to an analysis by Planalytics, a business weather research company in Berwin, Pa., the winners include such products as pool supplies, air-conditioners, sun care products, and fitness drinks. The company thinks the losers will be producers of lawn mowers, outdoor furniture and fertilizer.
鈥淐onsumer behavior is less active, they stay indoors more,鈥 says Evan Gold, senior vice president of Planalytics. 鈥淚t鈥檚 great for all kinds of indoor entertainment.鈥
But, the total affect on the economy may not be great, says Mark Zandi, chief economist at Moody鈥檚 Economy.com.
鈥淚f the heat wave is just a few days, there will be no effect as long as there are not brownouts and blackouts,鈥 says Mr. Zandi. 鈥淚t has to be extremely disruptive to even show up in the monthly stats.鈥
Death Valley temperatures in New Jersey
Of course, there is hot and then there is the type of weather that produces Death Valley readings in places like New Brunswick, N.J. (105 degrees). It鈥檚 the kind of weather that sends consumers to indoor malls.
Indeed, for the week ending July 3, the International Council of Shopping Centers-Goldman Sachs weekly chain store index rose 3.9 percent compared to a year ago, the strongest pace since May 8th. The prior week (up 3 percent from last year) was strong as well, which ICSC attributed to the hot weather.
Some places, such as Harmony Mind Body Fitness, a Pilates studio in Lincoln Park, Ill. are twittering people to 鈥渃ome work out in the comfort of our air-conditioned studio.鈥 Jim Hanley鈥檚 Universe, a comic book store in New York is advertising 鈥渃ool air-conditioning and cool deals.鈥 And, the Congregational Church in Wakefield, Mass., on its signage tells potential churchgoers they can dress casual and enjoy the sermon in air-conditioned comfort.
With so much heat, it makes sense that people selling air-conditioners are happily shipping them out the door as fast as they can. According to a projection from Planalytics, AC sales this week will be up 167 percent in the Northeast, including 189 percent in New York and 200 percent in Boston compared to a year ago.
People are buying ACs so fast, stores are running out of them. In its official blog, P.C. Richard & Son apologizes that it can no longer sell the units on the Internet but only in its stores. 鈥淪upply is limited,鈥 it warns. At Manny鈥檚 TV & Appliances in West Springfield, Mass. a salesman says he only has a few 8,000 BTU units left 鈥渁nd that鈥檚 it.鈥
The extreme temperature ought to be good for the producers of bottled water. According to Mr. Gold鈥檚 group, this week the sales of fitness drinks, such as Gatorade, will rise 35 percent in the Northeast, including a 43 percent rise in Boston compared to year ago.
But the extremely hot weather is not entirely good, says Jane Lazgin, a spokeswoman for Nestle Waters North America in Greenwich, Conn.
鈥淲hen it鈥檚 super hot people retreat inside,鈥 she says. 鈥淏ut, when it鈥檚 more temperate people are out riding bikes and looking for refreshment on the go.鈥
Forget about the lawn
The warm weather is not particularly good for the companies that sell fertilizer, says Gold who projects a drop in sales this week of 74 percent in the Northeast after a drop of 12 percent last week.
A drop in sales might not be a surprise. According to Keri Butler, a spokeswoman for ScottsMiracle-Gro in Marysville, Ohio, the fertilizer season is in the fall before grass starts its winter hibernation. And she assures consumers those brown lawns will come back as soon as it rains.
The grass may be brown in the front lawn, but that鈥檚 not stopping the golfers.
At the North Kingston Golf Course in Davisville, R.I., the temperature was 102 degrees on Tuesday. But, the Municipal Golf Course reports it has had virtually no cancellations.
鈥淕olfers are die hard,鈥 says Mike Gould, a clerk at the course.
IN PICTURES: Beating the summer heat
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