1 DEBORAH WEINSWIG, MANAGING DIRECTOR–HEAD OF GLOBAL RETAIL & TECHNOLOGY [email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 Copyright © 2016 The Fung Group. All rights reserved. April 7, 2016 US WEEKLY WEATHER OUTLOOK • April 3–9: Cold Temperatures Cause a Lag in Demand for Seasonal Products in the East. Warmer Plains and West. • April 10–16: Cooler Temperatures than Last Year Will Challenge Seasonal Demand for Most in North America. The West Will Be the Warmest. Expect a Stormy Week. US: WEEK OF APRIL 3–9 Retail implications: Temperatures will be significantly below last year ’s, which means a challenging week for warm weather apparel categories. • Last year, this week was warmer than normal: The warmest conditions were focused in the South. Rainfall was above normal. Severe weather was widespread, with over 30 tornadoes impacting the Midwest. • Spring lost its way in the East: Early in the week, temperatures will average well below last year and normal. Expect strong winds and periods of late-season snow for the interior Northeast, New England and Great Lakes regions. There will be some warming midweek, followed by another cooler surge later in the week, with periods of rain and snow. • The West is getting warmer: Western regions will see above-normal warmth, with temperatures settling into the 60s, 70s and 80s, along with a drier trend for much of the week. Demand for barbeque grills, auto appearance, cold drinks and patio sets can be expected. US: WEEK OF APRIL 10–16 Retail implications: Demand for seasonal categories such as cold drinks, lawn care, fans, sun care and tees will continue to lag, given cooler temperatures. • Last year, this week was the warmest since 2012: Rainfall was above normal, driven by the South, while a late- season snowstorm brought snow to Utah and Colorado. • April “blues” to continue: The blue temperature shadings reflect what retailers will be expecting. Demand for seasonal categories will remain weak. The week will be stormy, with Pacific systems traversing west to east across the country. Severe weather episodes are likely across the Mid-South region. • The West remains the best: The best weather-driven environment will be in the western states, which will remain warmer than normal. Storms are possible early in the week, but the week will end drier. IMPACT ON RETAIL: Short-Sleeve Shirts -2% Exterior Paint -3% Lawn Fertilizer -8% IMPACT ON RETAIL: Allergy Relief -5% Source: Planalytics Inc Source: Planalytics Inc