Fiji Time: 6:27 AM on Thursday 23 November

Fiji Times Logo

/ Front page / Business

Harvey, Irma hit hard

Reuters
Thursday, September 14, 2017

INDUSTRY-WIDE retail sales in August and September will fall in the wake of hurricanes Harvey and Irma, with apparel retailers such as Gap Inc (GPS.N) expected to take a longer-term hit than restaurant operators including Starbucks Corp (SBUX.O).

US same-store sales at apparel chains are expected to rise just 0.1 per cent in the third quarter ending October, compared with a 0.6 per cent increase seen before the hurricanes, according to Thomson Reuters data.

The two high-intensity hurricanes, which made landfall in the US over the past two weeks, have killed dozens and damaged thousands of homes in Texas and Florida.

As residents in these states begin to rebuild houses, home improvement chains including Home Depot Inc (HD.N) are well positioned to benefit.

But some retailers are not as fortunate.

Dunkin' Donuts (DNKN.O) could lose about $US17 million ($F34m) in sales if all its stores in the storm-ravaged states of Florida and Texas are shut for a week, according to Cowen & Co. That would amount to a little more than 10 per cent of the chain's quarterly US sales.

Bojangles Inc (BOJA.O), known for its Southern-styled recipes, could see a big drop in sales, according to Canaccord Genuity analyst Lynne Collier.

More than 80 per cent of the company's restaurants are in the storm-hit areas.

In contrast, Starbucks, with about 3 per cent store exposure to Texas and 5.6 per cent to Florida, could lose about $US35m ($F70m) in sales per week if all stores in those states were closed, Cowen said.

That is less than 1 per cent of the company's quarterly sales.

Overall, Hurricane Harvey had a muted 40 basis point negative impact on industry same-restaurant sales in August, according to data research firm MillerPulse.








Fiji Times Front Page Thumbnail

Kaila Front Page ThumbnailFiji Times & Kaila Frontpage PDF Downloads

Use the free Acrobat Reader to view.

Westpac
Code Inward TTs Outward TTs
CAD 0.62150.6025
JPY 55.262252.2622
GBP 0.36590.3579
EUR 0.41410.4021
NZD 0.71730.6843
AUD 0.64430.6193
USD 0.48800.4710

from

$0.00

Exchange Rate updated on 22nd, November, 2017

Today's Most Read Stories

  1. 'Operation Kill Bill'
  2. Line-up unchanged
  3. Teacher testifies in trial
  4. Sex crimes
  5. Rain brings floods
  6. Mind game
  7. 'Naiqama capable of captaining Tigers'
  8. iTLTB looks into land tenancy concerns
  9. Water source for 10,000
  10. Zimbabwe celebrates end of Mugabe era

Top Stories this Week

  1. Celebration planned to welcome COP23 delegates Tuesday (21 Nov)
  2. COP23: France invite for Timoci Friday (17 Nov)
  3. The Crying Rock Sunday (19 Nov)
  4. Where there's a will... Thursday (16 Nov)
  5. Bid to win Tuesday (21 Nov)
  6. Walker brothers' radar focuses on Fiji Bati kingpin Friday (17 Nov)
  7. 'God first' Sunday (19 Nov)
  8. Timoci opens COP23 Thursday (16 Nov)
  9. Fiji Bati requests for continued prayers Monday (20 Nov)
  10. Bati rest day Tuesday (21 Nov)