Planalytics U.S. WeatherCall Report: Retail Sector Challenged by the Month of May

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Planalytics U.S. WeatherCall Report: Retail Sector Challenged by the Month of May

8th June, 2008

Planalytics Inc., the global leader in Business Weather Intelligence(R), released its May WeatherCall(SM) report detailing the difficult environment retailers faced due to cooler temperatures and frequent storms across the mid-section of the country. The less than ideal conditions did nothing to help the many companies facing difficult comps on the back of warm and favorable weather last May. Home centers, restaurants and softline chains all experienced negative year-on-year indices for weather impacted seasonal products. Dick's Sporting Goods (DKS), The Dress Barn (DBRN), Aeropostale (ARO), Ruby Tuesday (RT) and Home Depot (HD) were just some of the companies that suffered from unfavorable weather conditions in May.

The coolest temperature variances were seen in the Eastern North Central to the Middle Atlantic Region. Both areas were over 6 degrees cooler than last year. This was a major impediment to retailers looking to move hot weather items such as air conditioners, short sleeve shirts and capri pants. New York City had its 3rd coolest May since 1997 and Philadelphia had its 5th coldest since 1973. Warm temperatures were hard to come by, however, much of the South and parts of the West Coast did experience a warm May.

2008 is shaping up to be one of the worst severe weather seasons in decades, and May was no exception. The Midwest and Plains in particular were pummeled by harsh storms, accompanied by tornadoes, hail and damaging winds. These weather conditions hurt demand for seasonal items, but increased demand for severe-weather related items including batteries, bottled water and canned goods.

"After building some sales momentum in April, businesses were presented with more challenges in May. A fantastic Memorial Day weekend was one bright spot to note for a month that simply did not have a lot to offer from a weather perspective", said Frederic Fox, Planalytics President & CEO.

Looking forward, Planalytics expects the month of June to start positively for retailers. The Eastern part of the U.S. in particular will experience the first blast of summer weather starting the weekend of June 6 which will stimulate consumer demand for summer items that were slow to move off the shelves in May.

About Planalytics

Planalytics Inc. (http://www.planalytics.com) is the singular global source of Business Weather Intelligence(R) -- the actionable information retail, manufacturing, life sciences and energy companies need to understand and optimize the impact of weather on their business. Weather is the most volatile of all external factors affecting business performance and Planalytics helps companies proactively manage this risk. Powered by an unparalleled database of weather's financial and volumetric impacts, proprietary modeling technologies and market-specific expertise, Planalytics' Business Weather Intelligence is essential to any company, in any industry, looking to effectively shape strategies, pinpoint opportunities and make more profitable decisions.

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