Weekly Weather

| Flash

October 23–November 5

US

THIS WEEK: Cold Conditions on the East and West

Coasts; Snow Threatens the Northeast; Warmth Continues in Interior

A LOOK AHEAD:

Colder than Last Year in the East; Warmer than Last Year in the West;

Storms Across the Country

Europe

THIS WEEK: Warmth Returns to the Western and

Central Regions; Cool in the East; Rain Across the Continent

A LOOK AHEAD:

Cooler than Normal Across the Continent; Wet in the West and East

2

OCTOBER 28, 2016

DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&TECHNOLOGYDEBORAHWEINSWIG@FUNG1937.COMUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.

Impact on Retail

Retail implications:Areasalong theEastCoastwillsee increasing demand for fall categories due tocoldertemperatures,while Interiorregionswillseelimiteddemandduetowarmweather.

• Last year this week, the weather was warmandwet:TheUSsawthewarmestlastweekofOctober since 2010. It was also the wettestendofOctober inmore than 55 years due totheremnantsofHurricanePatricia.

• Colder in theEast:Locations intheNortheastwillseetemperaturesdroppingbelownormalandlastyear,broughtbyastrongcoldfrontfromEasternCanada.HigherelevationsfromupstateNewYorkthroughNewEnglandmayseesnowduetothecolderairpouringin.WeeklytemperatureswilltrendcolderthanlastyearalongmostoftheEastCoast.

• SummerwarmthcontinuesinInteriorregions:LocationsinthePlainsandSouthwestwillhaveweekly temperatures trending above normal and last year. High temperatureswillrunfromthe50sintheNorthtothe80sacrosstheSouth.

• Rain andmountain snow in theWest:Apairof stormsystemswill comeashore in theWest,bringingheavyrain,mountainsnowandstrongwinds.ThesestormswillmoveintothePlains,bringingthethreatoflate-seasonsevereweather.

US WEEK OF OCTOBER 23-29

Heaters 15%

Source:Planalytics

Temperature vs. Last Year

Precipitation vs. Last Year

Warmer

Colder

Wetter

Drier

3

OCTOBER 28, 2016

DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&TECHNOLOGYDEBORAHWEINSWIG@FUNG1937.COMUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.

Impact on Retail

Retail implications: In the East, year-over-yeardemand for fall categories will be favorable dueto temperatures that are colder than last year.Locations in theWestwill see increaseddemandforrainwearduetowetweather.

• Last year this week, the weather was warmand wet: The US had its warmest start toNovember since1975. Itwasalso thewettestfirstweekofNovembersince2004.

• Colderthanlastyear intheEast:AreasintheEastwill be colder than last year,whenmanyareas in the region saw extreme warmth.However,temperatureswillstilltrendwarmerthannormal.

• WarmerthanlastyearintheWest:Seasonaltocolder-than-normalairwillmoveonshoreintheWest.However,temperatureswillstilltrendwarmerthanlastyear.

• Storms continue: Early in theweek, the stormy patternwill continue across theWest.Later in the week, showers and thunderstorms will move from the Plains to the EastCoast.

US WEEK OF OCTOBER 30–NOVEMBER 5

Fleece15%

Source:Planalytics

Warmer

Colder

Temperature vs. Last Year

Precipitation vs. Last Year

Wetter

Drier

4

OCTOBER 28, 2016

DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&TECHNOLOGYDEBORAHWEINSWIG@FUNG1937.COMUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.

Impact on Retail

Norway Poland

Retail implications:Manyareasacrossthecontinentwillseeashiftfromretailstoretraffictoonline purchasing due towetter conditions. Also, a return of warmer temperatures inmanyregionswillonceagainsuppressdemandforautumnandwinterranges.

• Warmagain in theWesternandCentral regions:Early intheweek,cooler-than-normaltemperatureswillbetheruleacrossthecontinent.However,startingonTuesday,warmertemperatureswilloverspreadWesternandCentralEurope.CoolairwillpushintoEasternEurope.

• Rain tracks West to East: A front will track across the continent from Monday toThursday,bringingrainandgustywindswithit.

Europe WEEK OF OCTOBER 23-29

Coffee

Retail Traffic

Warmer

Colder

Source:Planalytics

Wetter

Temperature vs. Last Year

Precipitation vs. Last Year

Drier

5

OCTOBER 28, 2016

DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&TECHNOLOGYDEBORAHWEINSWIG@FUNG1937.COMUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.

Impact on Retail

Sweden

Hungary

Retail implications: Cooler temperatures across the continent will boost demand for fallcategories.LocationsintheWestandEastwillseeincreasingdemandforrainwearduetowetweather.

• Fallingtemperaturesacrossthecontinent:Earlyintheweek,temperatureswillslowlyfallacrossmostofthecontinent.Bymidweek,theseareaswillbemuchcoolerthannormal.

• Wetter in theWestandEast:ApairoffrontswillmoveacrossEurope.Asaresult,mostareasacrossthecontinentwillseeweatherthatiswetterthannormal.

Europe WEEK OF OCTOBER 30–NOVEMBER 5

Tea

Retail Traffic

Warmer

Colder

Wetter

Drier

Source:Planalytics

Temperature vs. Last Year

Precipitation vs. Last Year

6

OCTOBER 28, 2016

DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&TECHNOLOGYDEBORAHWEINSWIG@FUNG1937.COMUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.

DeborahWeinswig,CPAManagingDirectorFungGlobalRetail&TechnologyNewYork:917.655.6790HongKong:852.6119.1779China:86.186.1420.3016deborahweinswig@fung1937.comCharliePoonResearchAssistant

IvyHuangResearchAssistant

HONGKONG:8thFloor,LiFungTower888CheungShaWanRoad,KowloonHongKongTel:85223004406LONDON:242-246MaryleboneRoadLondon,NW16JQUnitedKingdomTel:44(0)2076168988NEWYORK:1359Broadway,9thFloorNewYork,NY10018Tel:6468397017

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