Minneapolis-based investment bank and financial services firm Piper Sandler released its initial report for Black…
Retailers were looking forward to Memorial Day Weekend sales as a barometer of the industry and in April, financial services and investment firm Piper Sandler forecasted sales to be “+3%/4% year over year.” So, how did the industry fare?
According to the company, Memorial Day Weekend appears to be the strongest holiday weekend performance for the space for more than one year. Although the industry is still seeing its fair share of challenges, “sales continue to trend toward ‘less negative,’” a recent report from Piper Sandler stated.
Weekend results varied dramatically due to weather outcomes. “In short, cloudy/cold weather is favorable to drive consumers to shop. And sunny/warm weather keeps people focused on outdoor activities,” Piper Sandler says. The company reported a correlation, noting that the Midwest and West Coast led the way in sales, followed by a positive trend in the Northeast thanks to a rainy Monday, while the Southeast was weak due to warm weather. Too much bad weather, however, became a deterrent, with strong storms disrupting sales in Texas and causing the South Central United States to be an area of weakness.
In Piper Sandler’s survey, retailers in geographies with good sales over Memorial Day Weekend now feel positive about overall sales results for May, while those who saw sluggish results expect May to be flat or down. “All in, the second quarter appears to be tracking better than the first quarter.”
Piper Sandler’s preliminary checks suggest that high-end brands outperformed mid-range price points. Tempur was cited as the top-performing brand, boosted by its new Tempur Adapt line. According to Piper Sandler, financing helped drive high-end sales but “promos didn’t seem to be a swing factor.” A reduction in advertising has been a trend in the industry as many companies have refocused their ad spend to only target consumers already in the market for a mattress.
