With the devastation in Texas from Hurricane Harvey comes help from the two home improvement center giants. The Home Depot Foundation donated $300,000 to the Red Cross, and in its corporate home of Atlanta, the retailer opened its Disaster Response Command Center. Their merchandising, operations and supply chain teams are continuously sending products to stores on the Texas coast. Lowe’s also made a donation to the Red Cross in the amount of $500,000, and customers in the state of Texas can make Red Cross donations in their Lowe’s stores.
Harvey is the first category 4 hurricane to make landfall in the US since 2004. Houston has been hit hard before – In 2001, Tropical Storm Allison hit and dropped 28 inches of rain in less than 24 hours, with a $5B impact to the city.
Initial estimates to lost retail sales alone, unable to be recovered, is $1B. Home Depot, Lowe’s and other home centers tend to see an increase in traffic prior to the storm as people prepare, and after the storm as repairs need to be made. However, during the storm there is lost sales and traffic as stores are closed and people are unable to get to them. Malls and apparel stores will get hit hard, as stores are closed and traffic slows. People also focus their spending on need-based purchases.
Retailers with a large presence in Texas include Dillard’s, Stage Stores, Fred’s Stores and Hibbett Sports.
Sources: Mediapost.com, Planalytics.com