Will Storms Across the Nation Hurt Retail Sales, With Sunny Skies on the Horizon?

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By Douglas A. McIntyre Published
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There are at least three theories about how the huge and destructive storms that have washed across the United States and will hit the East Coast tomorrow will affect retail sales. The first is that people will drive to malls because they have nothing to do when it is snowing and raining. The next is that they will stay home and watch TV because the weather is bad. The third is that people will stay home, warm and safe, and order their holiday gifts online.

Retail sales have been hurt in the past by nasty weather. This week in some parts of the United States, particularly the Plains States and Southwest, storms have already caused extensive damage. People may want to drive to stores, but snow-clogged roads would make that difficult, if they stay snow-clogged.

The people who sit at home and do next to nothing might realize that there are only 29 shopping days until Christmas. They could still rush to stores on Thanksgiving and Black Friday. By that time, almost all the storms will have passed. This means the case that in-store retail sales will be undermined by weather is weak. Shoppers will get the really big sales while the sun shines, or at least the weather is no more than partly cloudy.

That leaves e-commerce. Amazon.com Inc. (NASDAQ: AMZN) is an ideal place for shut-ins to shop. But for people to really become shut in during the balance of the holiday season, there will have to be at least one more significant wave of storms that washes across most of the country and shuts down large areas for days. Unless that weather catastrophe happens, e-commerce firms will get no more than the market share experts forecast.

The weather, some experts argue, would hurt store traffic at the end of this week. But it won’t. The United States will have dried out by the time people push back from the dinner table on Thanksgiving and start to shop in earnest.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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