By Tricia Carr
October 30, 2012
The hurricane brewing in the Northeast region of the United States has brought luxury retail and travel to a halt, but retailers are not likely to suffer as consumers shift purchases to ecommerce or are willing to wait it out for the in-store experience.
While luxury brand hotels in the affected regions could remain closed this week due to Hurricane Sandy’s arrival and after-effects, retailers can potentially sustain revenue during the storm through online and mobile commerce. However, affluent consumers and visitors to New York will likely postpone planned store visits and purchases in favor of storm preparation and only return to the in-store shopping environment that they prefer when they can.
“In terms of net, I do not think there will be much impact,” said Steven Dennis, president of SageBerry Consulting LLC, Dallas, TX. “Certainly, the next few days will be hit very hard, but that is likely just to delay purchases rather than eliminate them.
“I think we will see a minor shift toward ecommerce,” he said. “Most purchases will just be deferred several days or more depending upon how long stores are closed, but there will be some complete losses from the tourist business.”
Click the link to read the entire article which includes quotes from Milton Pedraza, CEO of Luxury Institute: