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Deloitte retail analyst Alison Paul doesn't think the Hurricane Sandy excuse being trotted out...

Deloitte retail analyst Alison Paul doesn't think the Hurricane Sandy excuse being trotted out by major retailers is too far off base. After accounting for a significant pre-storm slowdown and major power outages in the Northeast, she thinks the numbers as a whole are actually quite good. In that same vein, other analysts point to layaway sales and online sales yet to ship as two categories that will help December compensate for the light November.
Comments (2)
  • samsptl
    , contributor
    Comments (27) | Send Message
     
    One thing I haven't heard mentioned much regarding the storm is the impact of damaged/lost inventory. Closed and inoperative sales floors are only one aspect of lost retail sales.
    Yes - losses should be covered by insurance, but no inventory to sell means no sales. Lack of merchandise volume from suppliers is going to result in higher costs that lead to either higher prices pushing sales down further or reduced margins in order to keep sell prices down enough to keep sales volume.
    30 Nov 2012, 02:42 AM Reply Like
  • tshih3
    , contributor
    Comments (8) | Send Message
     
    Don't try to make negative results positive. For DLTR the poor results are for Q3 Which has nothing to do with the storm.
    30 Nov 2012, 03:30 PM Reply Like
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