Heat to melt fashion retailers' profits

Fashion retailers are expected to suffer a hit to sales and profits as Australia's prolonged summer clashes with the arrival of pre-winter stock.

A man walks past a Country Road store.

Fashion retailers are expected to suffer as the prolonged summer clashes with pre-winter stock. (AAP)

As Australians swelter through a run of record-breaking hot days, retailers are bringing out the jumpers, jeans, boots and flannelette sheets.

Autumn is the time clothing retailers squeeze whatever leftover summer stock they have onto the sales rack and bring out the pre-winter clothes and accessories.

But given most of Australia is in the grip of a prolonged summer, most are going to find it hard to sell their latest wave of clothes and shoes and run the risk of ending up with excess stock, the Australian Retailers Association warns.

"The light winter jumpers, electric blankets, heaters, flannelette sheets and pyjamas will be arriving now," ARA executive director Russell Zimmerman said.

"As for footwear, they will be moving away from sandals and towards more covered shoes, including boots.

"Even the supermarket would be starting to stock more cooler weather food like soups."

He said fashion retailers were at greatest risk of ending up with excess winter stock, which will ultimately weigh on their profits.

The major department stores Myer and David Jones, The Reject Shop, Kathmandu and other retailers blamed unseasonably warm winter weather for hurting their profits in 2014.

But while some retailers are bracing themselves, others are basking in the sun.

Gelatissimo chief executive Filipe Barbosa said Sydney's extended summer has made for a marked turnaround in sales.

"I'm not going to lie, gelato and sunshine go very well together," Mr Barbosa said.

"January was a tough month with extended rain, but the end of February and beginning of March have been very positive."

Andrew Foard, seasonal expert for electronics chain The Good Guys, said sales of fans and air-conditioners were soaring.

"We have experienced noticeably increased sales of fans and air conditioners in our NSW stores due to the unseasonably warm weather experienced in Sydney recently," Mr Foard said.

"Sales are significantly higher when compared to this time last year and we expect them to continue to increase this month."

Sydney has had 35 consecutive days of 26 degrees or above, smashing the previous record of 19 straight days in 2014.

Melbourne has been sweating out temps of 33 degrees and above in the past four days, including a maximum of 38.9 degrees.

The mercury has hit record highs in inland northern Australia, while Victoria-NSW border town Echuca, temps have topped 38 for eight consecutive days; an all time record for any month.

Bureau of Meteorology senior climatologist Blair Trewin said the nation was experiencing an unusually intense and long heat spell.

"(As for) the prolonged warm spell on the NSW coast, there's no immediate sign of that ending," Dr Trewin said.


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Source: AAP



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