Gold: Sandy’s Economic Impact on Shopping
All of these retailers are likely to see increased traffic after Sandy departs, with consumers looking for various clean-up items such as chainsaws, house repair materials, and general cleaning materials. Successful retailers view this as a time to be a valued resource in the communities in which they operate, and have products readily available before, during, and after the storm to the best extent possible.
When Sandy moves away next week and media coverage subsides, there is a longer term economic impact to think through as well. As the all-important holiday shopping season approaches, general projections are that consumers will spend approximately 4% more than they did last year. That projection is likely is to see some pressure as consumer spending related to Sandy – both pre- and post-storm, will likely cause many consumers to revisit their holiday shopping budgets.
While the total economic impact from Sandy will play out over time, it has already begun, and is poised to leave a significant mark that that will be referenced for years to come.
Evan Gold is Senior Vice President of Client Services at Planalytics, Inc. – a business weather intelligence company which enables businesses to understand, quantify, and manage the impact of weather on consumer behavior to improve both strategic and tactical decisions.