What: Warm and dry weather in August boosted retail sales volumes and shifted consumer demand toward seasonal categories.

Why it is important: The growing influence of climate on retail performance highlights the need for agile merchandising and promotional planning.

The impact of weather on retail sales has become increasingly pronounced, with recent warm and dry conditions in August driving notable shifts in consumer behaviour and sales performance. In July 2025, Korean department stores experienced a surge in foot traffic and sales as heatwaves and monsoon rains pushed shoppers indoors, leading to double-digit increases in visitor numbers and strong growth in seasonal categories such as swimwear and bedding. Retailers responded with targeted promotions and experiential offerings, transforming their spaces into climate-controlled destinations and demonstrating the sector’s agility in adapting to environmental challenges. Globally, the fashion industry is rethinking store networks in response to extreme weather events, as highlighted in January 2025, with operational disruptions and financial losses prompting a fundamental reassessment of physical retail strategies. In the US, severe weather in May 2024 directly reduced consumer mobility and spending, underscoring the broader volatility and resilience required in retail operations. These developments collectively illustrate how weather-driven fluctuations are shaping sales metrics, consumer demand, and strategic adaptation across the retail sector.

IADS Notes: Recent warm and dry weather patterns have reinforced the critical link between climate and retail performance. In July 2025, Inside Retail reported that Korean department stores saw a 10–14% rise in visitors and robust sales growth in seasonal categories, as retailers leveraged promotions and experiential concepts to attract weather-driven footfall. Vogue Business in January 2025 emphasised the need for global retailers to redesign store networks in response to operational disruptions and financial losses from extreme weather, while Visa’s May 2024 analysis highlighted the direct impact of storms and tornadoes on US consumer spending and confidence. These sources collectively confirm that weather volatility is prompting retailers to adapt their merchandising, inventory, and promotional strategies to maintain resilience and capitalise on shifting consumer behaviour.

UK retail sales buoyed by warm and dry weather in August