Retail Angst Over Port Strike Grows
By DAVID MOIN
Many retailers accelerated merchandise receipts anticipating the strike and planning early holiday campaigns but see possible disruptions receiving reorders and early spring styles.
With the East and Gulf Coasts port strike continuing, U.S. retailers are getting increasingly anxious about their holiday season.
They already had low expectations for sales gains in the 2 to 3 percent range, but now with container ports shut down from Maine to Texas, there’s a growing undercurrent of concern, in particular about the back end of the season, when they could experience a dearth of replenishment and early spring goods. Those orders typically arrive in stores around December and will be floating on water rather than sitting on shelves and in warehouses, if the strike persists.
“Right now, my clients don’t seem to be bothered by the strike,” said Balika Sonthalia, senior partner and head of Kearney’s strategic operations practice for the Americas. “But as we get further into December, there could be an imbalance in supply and demand.” . . .
Hurricane Losses
As of Tuesday, the estimated total insured losses from Hurricane Helene were expected to be up to $34 billion, according to Moodys Analytics. And the estimated immediate retail sales impacts were a $603 million gain for DIY/home center sales and a $652 million decline for apparel retail sales, according to Planalytics. AccuWeather has increased its estimate of the total damage and economic loss from Hurricane Helene to $145 billion to $160 billion.
The most catastrophic flooding occurred in the southern Appalachians including Asheville, N.C., and surrounding areas, and west coast sections of Florida, such as Tampa Bay, hit by huge water surges. Hundreds of individuals as of Wednesday were still unaccounted for and the death toll was approaching 200. “The hope is that the strike doesn’t last more than five days but anything longer will have a long impact on holiday,” said Wise. Also, he expects a glut of goods arriving late to retailers, leading to extreme discounting to move the merchandise quickly to make room for more seasonal goods. . . .