Climate change put a dent in Levi’s sales. It’s likely to do the same for other products.
Climate change put a dent in Levi’s sales. It’s likely to do the same for other products.
This year, it’s been hard to ignore all of the ways that the climate crisis is already affecting the economy. Natural disasters, wildfires and extreme heat have been disrupting supply chains and impairing the ability of companies and people to get to the business of doing business.
The effects are also starting to show up in our individual lives too. And, in some cases, even in our wardrobes.
I have this pair of light-colored blue jeans that are in bad shape and have been for a while. I should replace them, but I haven’t, because I didn’t really wear jeans much this summer.
And as Levi Strauss CEO Chip Bergh told CNBC, I wasn’t the only one.
“It’s hard to sell a pair of Levi’s blue jean bottoms when it’s 110 degrees outside, and I think that did kind of contribute to the softness that we saw in wholesale,” he said.
As the planet gets hotter, we’ll likely hear more companies blaming climate change not just for supply chain disruptions, but also for changing consumer needs, said Ken Pucker at Tufts University’s Fletcher School.
“The fashion industry is one that has long lead times,” he said. “And so if in fact there is a major shift that’s weather related or trend related, brands end up selling less and getting caught with lots of inventory.”
But major shifts in weather are going to become more common, and it’s not just our clothes we’ll need to adjust.
The Treasury Department recently released a report on how climate change will hit individual households. For example, utility bills and food prices might grow.
“And there are even ways that might be a little bit more unexpected, like disruptions and access to child care,” said Suzanna Fritzberg, a deputy assistant secretary at the Treasury. “That might mean a household has to scramble to find a new provider, maybe spend more, even forego earned income.”
The Treasury is warning families to get ready, especially those in areas with the greatest risk of severe weather and those with limited financial safety nets.
Stories You Might Like
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.
