Superstorm Sandy likely to cut holiday spending
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- Created on Thursday, 01 November 2012 19:45
- Written by kurt
Imperial, California - Superstorm Sandy could put a major dent in what had been shaping up as a decent holiday season for retailers, a Purdue University expert says.Residents of the areas hardest hit by Sandy likely will be reluctant to spend much money, whether insurance payments or savings, on holiday gifts, says Richard Feinberg, a professor of consumer science and retailing.
"Even if things returned to normal before Thanksgiving, optimism and consumer confidence are likely to be lower, affecting spending on gifts," he says. "Consumers will be suffering from what we might call post-Sandy traumatic stress, which will lower their inclination to spend."
"People will spend for rebuilding, for replacement home furnishings, for replacement electronics," he says. "But it will be for their homes, not for gifts." "Uncertainty is the enemy of holiday shopping," Feinberg says. "What happens between now and Thanksgiving will determine if consumers can be confident that things are getting better and they are free to spend or that things may continue to get worse and they need to hold back."