Word has it Hurricane Isabel could pack quite a punch, and the run on emergency supplies could mean serious business for retailers on the East Coast. That is, as long as they can keep up with the demand.
Isabel has already had an impact on the marketplace, having cast a cloud on insurance stocks yesterday, though Foolish commentary shed some light on that. However, hatch battening along the coast could result in a retail rush for storm necessities.
On Monday, FEMA issued an alert on the storm, saying that it could hit somewhere between North Carolina and New Jersey by Thursday. The difficulty in pinpointing a hurricane's landing point puts the entire coast on alert.
According to Reuters, Home Depot (NYSE:HD) and Wal-Mart (NYSE:WMT) reported heavy sales of plywood and other items for protection from storm damage; the same goes for other hardware retailers, particularly in North Carolina. Both Home Depot and competitor Lowe's (NYSE:LOW) said they have frozen prices on plywood, which have seen a recent surge.
Wal-Mart's added attraction is that its Supercenter locations also stock groceries, including canned goods. Discount warehouse firms such as Costco (NASDAQ:COST), BJ's Wholesale Club (NYSE:BJ), and Wal-Mart's Sam's Club should also see some brisk sales, since bulk goods are attractive when stockpiling for emergencies.
Sears (NYSE:S) doesn't want to be left out. On Monday evening, the department store said in a press release that last weekend saw increased demand for power generators. It also mentioned a list of helpful storm-related items like wet vacs, sump pumps, waterproof clothing, cordless power tools, and chainsaws.
Nobody's looking forward to this storm, but signs indicate that East Coast residents appear to be preparing for the worst while hoping for the best. Meanwhile, some retailers may post some robust sales from a stormy September.
You can reach Alyce Lomax at [email protected] .
