Will hurricane Irene bulldoze US apparel sales?

'Irene', a Greek word meaning peace, has brought uproar among US retailers of the East Coast. A major weekend sales in one of the most populated cities of the U.S. did not happen. What is the aftermath, and how are retailers going to tackle this?

Hurricane Irene hit the Eastern coast of the US, keeping millions of shoppers away from stores. Residents enjoying the last two weekends of the summer beach weather were troubled. Most areas from North Carolina to Vermont were struck, inflicting considerable damage on retail sales. Estimates state that more than $1.3 billion is lost in the deadly flash of rains. Damage to retail sales is particularly high in New York, popularly known as the fashion hub. A report by Thomson Reuters states that the hurricane will hurt retailer's profit margins, especially the apparel retailers.

Clothing retailers were significantly affected by the storm as many stores were closed for days to handle the impending weather conditions. Apparel retailers and departmental stores saw their sales drop, as stores were closed during the prime time of shopping. Millions of dollars in revenue were lost. Shoppers stayed inside their homes, and many back-to-school shopping trips were postponed. Generally, 10% of the retailer's income is from New York City. The storm has affected 15% of the total U.S. population. Neiman Marcus Group in the city of New York closed for the entire weekend. Macy's Inc and TJMaxx in New York were closed as people were not shopping. Gap and Aeropostale's sales are also predicted to slide down.

As an aftermath, Irene is likely to affect September sales as well. With outages and flooding, customers are not expected to go for shopping. Possibilities exist that the storm may force retailers to employ steep discounts, which would ultimately affect their profit margins. Retailers who are selling back-to-school items will suffer loss, as stores are shut in the crucial month and during the weekend when parents normally shop for school uniforms and other accessories.

As an odd twist of fate, the hurricane which affected the lives of apparel retailers had spelt fortune for some sellers who state their sales raised 50-70%. More people had the tendency to buy generators, plywood, and batteries before the hurricane, and materials like chain saws, trash bags, and humidifiers after the tempest. Retailers who sell games and toys also had good sales as people stayed indoors.