Last week, the unexpected warm weather had a number of economic impacts; some people and businesses were winners, whereas others lost out. Beneficiaries of the weather include ice cream sellers and supermarkets as people have been keen to buy picnic supplies. For example, Tesco sold 3.5 million sausages and 10 million bottles of beer during the heat wave. In addition, hotels benefitted as people made last minute bookings as they wanted to take a short break to enjoy the weather. Travel Lodge had increased bookings of 43% for mini-breaks. However, one centre for Economics and Business research estimates that the retail sector could have suffered by as much as £1.7 million per day, as shoppers have bought less winter clothing which is currently in stock. Also, rail operating companies were forced to cancel some trains due to problems with the tracks caused by the heat. Although, on the other hand, rail companies that were able to operate reported that they had carried up to 25% more passengers as people took day trips, for example to seaside locations. Therefore, the weather brought unexpected upturns for some; however it also brought problems to those who were stocking products for autumn and winter.
We were winners through and through and so very grateful for the sunshine!
By Malika Goswami and Emma Stevens of The Economics Society