BMO Nesbitt Burns, a senior economist with CIBC World Markets, said the global clothing market has been driven by consumers and retailers seeking a more stable environment for business and investment.
But with the weather-related droughts in the U.S. and China, which are expected to worsen this year, retailers are also looking for ways to cut costs and lower prices, he said.
“It is going to take a while for the supply chain to come back to normal,” he said in an interview.
The weather will keep consumers out of the market, but they will also likely be able to shop for the products they want at the lowest prices, Mr. Burns said.
The Canadian dollar is also expected to weaken in the weeks ahead as the Canadian government takes steps to cut interest rates and ease some of the pressure on the currency.
While the country’s GDP grew by 2.1 per cent in the fourth quarter, the government expects to grow only 1.2 per cent next year.
“The economy is already growing, but the weather conditions have not yet settled down,” said Mr. Bozarth.
“We are expecting the weather to stay pretty warm for a while longer, but it is still a pretty mild year.”