Amazon, H&M, Walmart shares: climate change winners and losers
Unpredictable weather due to climate change is forcing retailers to change tack.
IGTV financial analyst, Angeline Ong looks at global retailers including Amazon, H&M, and Walmart to see which brands are more likely to better adapt to the changing temperatures.
(AI Video Summary)
How climate change is affecting retailers
The world is getting warmer, and this is affecting the way retailers sell their products. As the autumn of 2023 started off unusually warm, big brands like H&M had to cut prices on heavy winter clothing like coats and knits because people were not buying them. They even reduced their online prices by 20% to sell warmer clothes. This change in weather could cause problems for retailers like Walmart and Dick's Sporting Goods, as they might have trouble selling their leftover cold weather inventory before spring arrives.
However, this changing weather also brings opportunities for retailers like Costco Wholesale and TJX. These retailers are good at quickly adapting to different seasons, so they can adjust their inventory to match the changing weather and what consumers want. While some retailers may struggle, others can thrive in this new climate.
Minimising risks with retail stocks
If you're thinking about investing in retail stocks, it's smart to look at companies like Abercrombie & Fitch that offer "seasonless" products. These are clothes that can be worn and layered up no matter the weather. By investing in these companies, you can minimise the risks that come with unpredictable weather patterns and ensure a steady demand for their products all year round.
So, it's really important for retailers to understand and adapt to the impact of climate change on what consumers want to buy. By keeping up with the changing preferences and behaviors of buyers, retailers can stay successful in this evolving market.
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