Federated feels hurricane impact
Department store chain counts $20m cost
US retail group Federated Department Stores has warned that the impact of Hurricane Frances will cost it $20m in sales.
Federated, owner of the Macy’s and Bloomingdale’s chains said the lost sales in its Florida stores after the hurricane swept across the state at the weekend will reduce its September same-store sales by 1.5 per cent.
The company said that it still is too early to gauge the total impact of the storm, but it did not believe any of its Burdines-Macy’s or Bloomingdale’s stores suffered major structural damage from the hurricane.
The impact began to be felt from Wednesday as people prepared for the storm,and stores began closing on Thursday. A handful of stores remain closed due to power outages.
Federated said it expects it to be several weeks before its can make a complete assessment of the impact on business in terms of lost sales, as well as any potential sales rebound in the days to come.
[img r]walmartcopy.jpg[/img]Wal-Mart has also said it expects sales in hurricane areas to be negatively impacted, but also expects a rebound in sales as customers clean up after the storm passes.
The company said Hurricane Frances also drove sales of emergency supplies such as batteries, matches, candles, games, canned goods, flashlights and cigarette lighters.
Overall, Wal-Mart is forecasting September same-store US sales to rise by 2 per cent to 4 per cent.
Meanwhile, Sears, Roebuck has donated $120,000 in gift cards for families most impacted by the two recent hurricanes.
