Money Matters, Simplified.
Massive snowstorm to hit East Coast, retailers panic
by Ayurdhi Dhar - December 19, 2009 - comments
The NCW has warned about 10 to 16 inches of snow in Washington D.C., 6 to 8 inches in Boston, and around 20 inches in Cape Cod
New York, December 19 -- The East of U.S. might be hit by a major snowstorm. As people adjust to the major drop in temperature, authorities predict that this winter storm is going to be the biggest one since February 2003.
According to the National Weather Service (NWC), the snowstorm was approaching the Atlantic coast on Friday, and more than one to two feet of snow in expected to cover the area by Saturday.
The possible affected states
While a blizzard warning has already been given in Long Island, and winter storm warnings are in effect in the state of Tennessee, North Carolina, to the states of Southern England states, other places expected to bear the brunt of the storm are Washington, Baltimore, and Philadelphia.
The conditions everywhere are expected to be bitter cold and biting winds. The storm will most probably move away from mid-Atlantic by Sunday, and cover New York on the Weekend. New York is expected to see snow by mid-afternoon on Saturday. The New Yorkers will wake up to a snow fall of 6 to 12 inches.
According to the NWC, the travel conditions in all these areas will be “extremely treacherous”, and people have been advised to stay indoors.
The NCW has warned of about 10 to 16 inches of snow in Washington D.C., 6 to 8 inches in Boston, and around 20 inches in Cape Cod.
The governor of Virginia, Tim Kaine, has declared a state of emergency, and has asked the citizens to be vigilant towards weather forecasts, and avoid travel.
Effects on retailers
The retailers who were thoroughly enjoying the benefits of holiday season and the Christmas, are now not so happy. They are worried about the effect the snow will have on sales.
This time is usually the busiest in shopping throughout the year, but bad travelling conditions and bitter cold will discourage people from stepping out of the comfort of their homes.
Stifel Nicolaus analyst Richard Jaffe said, “When you lose a day of sales between now and Dec. 25, you don’t make it up. If you’re closed for business on Saturday, you’re not going to do twice the business on Sunday.’’
He further said that the forecast is enough to keep people safely in their houses. According to him, “When the radio says, ‘Stay tuned, don’t leave your house, this is the storm of ’09,’ that’s bad for business.”
Predictions are that chain stores like Bon-Ton stores, DSW Shoe Warehouse, and Kohl’s Inc. will be hit the worst. The reason, according to Jaffe, is, “If consumers venture out in the storm, they will likely travel to malls, where they can shop indoors and have numerous retail options.”
Thus, smaller businesses are more likely to suffer. Geoff Stern, owner of The Toy Professor in Summit, N.J. said, “It’s the busiest day of the year. If it happens, it will cost me thousands of dollars."