End of holiday season, bitter cold causes shakeups at retailers

In+the+wake+of+holiday+shopping%2C+companies+and+their+lenders+are+tallying+sales%2C+calculating+returns+and+weighing+prospects+for+the+year+ahead.+%0A%0A%28Photo+courtesy+of+Dreamstime+TNS%29

In the wake of holiday shopping, companies and their lenders are tallying sales, calculating returns and weighing prospects for the year ahead. (Photo courtesy of Dreamstime TNS)

Caitlyn Bilow, Contributing Writer

Single-digit temperatures are keeping shoppers in their homes and out of stores, causing cuts to retail employees’ shifts, and in extreme situations, termination. As expected after the holiday rush, brick-and-mortar retail stores typically see a dramatic drop in sales. Throw bone-chilling temperatures into the consumers’ shopped-out mindset and Michigan Ave. resembles a ghost town.

Unfortunately, employee shift cuts are just the beginning. Athleta, a Gap subsidiary, experienced such an unforeseeable drop in sales this season at their Southport Avenue location that they terminated three employees, according to DePaul student Marisa Barnett, who was also let go.

Barnett, who has worked at the location since July and had been employed with the Gap for over two years, was terminated on the grounds that she was a “seasonal holiday” hire. Barnett is now left unemployed with no help wanted signs to be seen.

“I came into work yesterday as if it was just another shift, not knowing it would be my last,” Barnett said. “The whole thing was so unexpected because I was hired as part-time, not seasonal. Last week I was only scheduled for three hours, but at least I had a job.”

Southport Avenue has been recently revitalized for its residents. As a store marketed toward and in a perfect location for mothers, Athleta’s major sales decline is no shock when most mothers do not want to brave the cold themselves, let alone with children.

“The negative temperatures definitely had an impact on us,” said Lakeview mother Kristina Wolfe. “My son was on a winter break all week, so I had planned to get out of the house, but instead stayed in all week and ordered groceries and toiletries from Instacart. The temperature was not just miserable, but dangerous.”

Online shopping is the perfect antidote for not wanting to venture into cold temperatures for the necessities.

“Post-Christmas shopping is always a slow time for retail,” Barnett continued. “I think the really cold temperatures was just the straw that broke the camel’s back for Athleta Southport.”

“I suspect it probably won’t have too much of a lingering impact,” said senior US economist at Societe Generale Omair Sharif. He said retail sales data could take a small blow, but that should get made up quickly.

Madewell sales associate Sarah Crain says, “While the front of the store may be slow and empty, there are always a ton of back of house is projects like processing shipment and online orders that keeps the store profitable and fully staffed.”

Realizing just how much cold weather affects retail, giant winter-wear outfitter Canada Goose has pulled away from its traditional sales platform of relying solely on sales through retailers like Macy’s and have moved to a direct-to-consumer structure. With only four stores, the majority of sales come from online. This e-commerce focus helped increase margins so much so that in November 2017, the Toronto-based company raised its earnings prediction for the year after quarterly sales beat estimates.

Luckily, tolerable temperatures aren’t too far in the future. A shopping experience where customers can see, feel and try on clothes before purchasing will never go out style, maybe just out of season.