Weather affects consumers’ moods, what products they choose and how they shop. Some of these impacts are obvious—coats and tea will sell better on cold days—but research has found other fascinating ways that weather impacts consumer spending.
- The Sun
Sunlight increases the brain’s release of the hormone serotonin, which makes a person feel calm, happy and focused. Consumers are more likely to purchase items and spend more money per item on sunny days. This is one of the reasons some stores use bright halogen lighting, which mimics the effect of sunlight.
In fact, a study from MassMutual finds that more than half of all Americans tend to overspend in the summertime. Two-thirds of respondents said it was because of their desire to “make the most of summer.”
At night, consumers will be less inhibited with their online spending. One study showed that as self-control decreases during the evening, consumers tend to purchase less healthy products. In a 2021 survey, over 60% of respondents said they have made a purchase between the hours of midnight and 4 a.m.
- The Rain
Rainy weather increases online spending, according to an analysis from Adobe. Interestingly, the impact of rain on consumer spending far outweighed the impact of other weather events, like snow. The force of rain also matters. A light to moderate rain boosts online spending by over four percent, but this drops significantly when there are at least two inches of rain.
Rain also affects the type of products people buy. One study found that on wet or cold days, website traffic increased 12% for retailers in home, furniture, wholesale and clothing.
Notably, in places where rain is consistent, consumers’ in-store shopping habits aren’t typically affected.
- Big-ticket Items
Consumers tend to overvalue big-ticket items like convertibles and pools in the summer and SUVs in the winter. For example, research found that people paid an average of $1,600 more in the summer. And a 20-degree increase in temperature translated to an 8.5% increase in convertibles sold. This is because it’s much harder to visualize yourself taking advantage of these items in the off-season.
- Seasonal Impact
The time of year also has an impact on what and how people buy. In January and February, health and clearance products are more likely to sell. In the spring, cleaning products and items for home repair tend to sell better. In the summer, consumers will buy more books and sporting goods. And in the fall, people will invest in school items and new clothing as the weather changes.
Based on this data, retailers should consider 5 tips:
- Personalize ads.
Many retailers adjust digital marketing to target factors like a person’s gender, age and shopping habits. But weather should also be a consideration. WeatherAds, for example, personalizes digital ads based on the weather a consumer is experiencing at that moment. When outerwear brand Burton integrated a weather tile on their homepage based on the user’s location and linked it to a product recommendation, the retailer saw an 11.6% increase in website conversions. And when an apparel retailer featured by the National Retail Federation took advantage of warm weather to promote certain products, those product sales increased by 267%.
- Invest in omnichannel.
When the weather is warm, people tend to shop in-store because they want to get out of the house. When it’s cold, they’re more likely to shop online or have products delivered. If a store has both a physical and an online presence, it is more likely to maintain overall revenue, no matter the weather.
- Make weather-related in-store investments.
Stores can decrease the negative impact of weather changes on their revenue by investing in small but meaningful changes like adding umbrella holders and coat racks, and even creating a solution for storing purchases in rainy weather. Even more importantly, stores that invest in drive-up order pickup options will appeal to shoppers who are typically deterred from purchasing things they desire in poor weather.
- Customize the lighting solutions.
Warm lighting evokes a sense of intimacy and calm, which benefits stores selling clothing, linens and furniture. Cooler light evokes the feelings of cleanliness and spaciousness. Bright and targeted lighting can also draw attention to discounts and offers; research has shown customers select twice as many items from shelving with integrated lighting than those with none.
- Consider the temperature of the store.
HVAC experts recommend raising the temperature in the summer to 74-76 degrees, and lowering it to 68-70 degrees in winter. Comfortably warm environments can enhance positive emotions when shopping.
Weather affects the retail industry in many ways, from consumer demand to people’s ability to physically get to stores. According to the National Retail Federation, “Over 90 percent of a business’s annual weather-driven sales come from day-to-day changes in temperature and precipitation that influence consumer shopping patterns and behaviors.”
Many businesses—especially those that don’t rely mainly on seasonal items—believe they can’t or don’t need to plan for weather impact. However, predictive analytics based on previous weather history can aid a retailer’s inventory and pricing strategy. Retailers should use both analytics tools and knowledge of spending patterns to better understand their customers.
Image generated by NetChoice using ChatGPT’s DALL-E.