As Superstorm Sandy swept along the US East Coast on Monday, US retailers were forced to close the shutters on 10 per cent of their stores, according to latest figures. As shops begin to reopen forecasters are now assessing the long-term impact of the storm on footwear and clothing sales.
The New York Stock Exchange reopened for business on 31 October after being forced to close for two days after Hurricane Sandy flooded Lower Manhattan.
However the economic impact of the hurricane, which is estimated to have caused US$20bn worth of destruction and has been dubbed ‘Frankenstorm,’ will take longer to evaluate.
According to research firm Planalytics, speciality clothing retailers and department stores all experienced net-losses, after consumer traffic over the weekend was hit by preparations for the hurricane.
Some 500 of Ascena Retail Group’s stores were closed for a day, according to research firm Retail Metrics. Sportswear chain Footlocker was forced to shut 200 of its stores, while department retailer Sears closed 112 stores.
Macy’s stores in New York, including its flagship store, were forced to close. The department store group closed 130 Bloomingdale’s while 65 others had to shut up shop early.
However, the retailer’s stores on the east coast, including those in the Washington DC area, began to reopen towards the end of the week.
A spokesman told just style: “The determining factor is if the store and shopping centre have electricity, and if associates are able to get work.”
He further added: “We continue to closely monitor the situation location-by-location, with the safety of customers and associates being the top priority. We have no reports of any significant damage nor of any injuries to associates.”
He said it is “impossible” to estimate lost sales until the corporation knows how many of its stores will be opened or closed as a result of the hurricane.
Meanwhile, discount retailer Target Corp revealed it has reopened over 140 stores across the east coast. The retailer said it expects to reopen more shops in the next few days.
Wal-Mart reported 70 closed stores in Maryland, Connecticut, New Jersey, New Hampshire, New York, Ohio, Virginia, Pennsylvania and West Virginia.
The disruption has also hit clothing retailers including True Religion, Ralph Lauren and Iconix Brand Group who have all postponed the release of their quarterly results because of the hurricane.
Ralph Lauren said it has suspended its second quarter earnings call “due to extraordinary transit and communications challenges caused by Hurricane Sandy, in addition to continuing efforts to ensure the safety of its New York area employees.”
While, Iconix Brand Group said its date alteration “will avoid the possibility of disruption from Hurricane Sandy to the earnings call”.
However retailers should be able to bounce back quickly and reclaim a “good portion” of lost sales, according to Ken Perkins, president of Retail Metrics.
He added: “The fact that this storm hit well before Black Friday allows retailers plenty of time ahead of this key holiday selling weekend to prepare and add additional promotions if need be to garner lost sales.
“Had the storm occurred right in front of Black Friday, the impact would have been far more deleterious to retailers.”
However, Planalytics believes there are likely to be lasting impacts for retailers. Considerable spending this week on “must-have” items is likely to cause more shoppers to “revisit their holiday shopping budgets” and as a result impact sales forecasts.
Clothing retailers, which are already losing sales because of shop closures and falling foot traffic, may have to “reduce prices and promote more heavily” to entice customers into stores especially in impacted areas.
