Hurricane Florence: Impact on Retailers and Food-Service Operators Estimated at $700 Million

Executive Summary

Hurricane Florence, a 340-mile-wide Category 1 storm, landed early September 14 near Wrightsville Beach, North Carolina, with hurricane-force winds extending outward up to 70 miles.

• Florence was downgraded to a tropical depression on September 16 and has led to more than 23 deaths since it made landfall. The center of the depression is moving west from central South Carolina and continued flooding from heavy rain is expected in North Carolina, according to The New York Times.
• The potential economic impact from lost consumer retail sales is forecast at $700 million, according to weather analytics firm Planalytics. However, businesses in certain categories will benefit from this unfortunate event as residents affected by Florence restore and renovate their homes once the waters recede.
• After Hurricane Irma hit Florida in September 2017, US comparable-store sales rose by 7.7% at Home Depot and by 5.7% at Lowe’s, according to Thomson Reuters. Both companies reported more than $200 million in hurricane-related sales.