As Tropical Storm Isaac barrels down on the Gulf Coast convenience and fuel retailers are working hard to meet consumer demand, all the while preparing for potential negative impacts of the storm.
On Monday morning, the eye of Tropical Storm Isaac was located about 300 miles Southeast of the Mississippi delta. The storm is expected to make landfall as a category 1 or category 2 hurricane around midnight tonight. The storm surge is expected to be anywhere from 3 to 6 feet, and some low lying areas of the Louisiana coast are already under mandatory evacuation orders. Although the storm is expected to be of lower strength than Hurricana Katrina, local residents of the Gulf Coast are busy stocking up on necessities, preparing themselves for a potential disaster.
Since the middle of last week when storm preparations began, retail stores across the Gulf Coast from Florida to Mississippi are seeing daily sales volumes usually reserved only for busy weekend days. With many residents choosing to wait out rather than evacuate from what is expected to be a relatively week storm, consumers are flocking to convenience stores and gas stations, stocking up on fuel, water, batteries and other emergency staples. However, retailers are also reporting increased sales of beer, snacks and cold drinks as many residents are hoping to have some fun or even throw parties while the storm passes through.
In the past, hurricanes have resulted in severe shortages of many products at Gulf Coast retailers. However, this time around many store owners appear to have learned their lesson, as they have stocked up on the items that consumers need most during times of natural disasters. Batteries and water are in particular demand, and convenience retailers are doing their best to keep these items in stock. However, these retailers are also actively responding to an increased consumer demand for nonperishable food, over-the-counter medicine, baby and pet supplies.
In addition to coping with potential flooding, loss of electricity and structural damage, Tropical Storm Isaac is also impacting convenience retailers in another way as well: rising fuel prices. Gas prices are already rising along the Gulf Coast due only to the potential threat of reduced supply. With area refineries shutting down as Isaac works its way through the region, and shortages sure to pop up, fuel prices are only going to rise further. This will impact the way fuel retailers reach out to their customers.
*photo by Alfonso Surroca
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