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Impact of Blizzard on Northeast Holiday Shopping

Prof. Peter Morici - 12/22/2009

I have been receiving calls and emails about the likely impact of this weekend’s blizzard on holiday sales. As with everything it depends on where you are in the marketplace.

Mall traffic is curtailed but on-line shopping should get a big boost. That means fewer, but higher value, transactions.

Homebound shoppers have fewer choices, because deeply discounted items on sales racks at the brick and mortar stores are often not available on-line and supplies of on-line bargains will run out more quickly.

The deadline has passed for inexpensive shipping options. Shoppers forced to select express shipping will be a bonanza for on-line retailers, who often charge premiums for express services that don’t impose as much in additional cost as they charge.

More, late in the season on-line sales will benefit express shippers like UPS and FedEx.

Overall, fewer items will be purchased but the transactions prices will be higher both owing to a more limited scope of choices for shoppers and more on-line shipping and handling revenues.

Retail sales will be somewhat lower but the big story will be the migration to on-line outlets. Higher transactions prices will compensate, considerably, for smaller volumes.

Shipping costs will be captured by express carriers in their revenues instead of retailers.