Retailer Turns to Internet as Gas Shortage in Southeast Affect Sales

Alpharetta, GA, September 30, 2008 --(PR.com)-- Store closings have become more common place with over development of commercial and residential building. Now southern retailers have another series of economic woes that have them scrambling for alternative sources for revenue.

Hurricanes in the Gulf and the Atlantic have created havoc in places that were untouched by wind and rain. Long lines and empty pumps have become common in Nashville and Atlanta. A supply shortage and panic buying are combining to create the problem. Nine major refineries were still off-line Monday in the Texas Gulf Coast, leaving a long list of cities through out the southeast stranded at the pump.

As gas stations close, would be consumers are spending hours to locate an open station and wait in line. Few consumers are out shopping for anything but necessities, including gas. Retailers are being especially hard hit as the drive to shopping centers and the mall are low priorities for buyers. Julia Russo, who owns Stork and Veil, a baby gift store in Alpharetta, Ga. just north of Atlanta, now depends on her website www.StorkandVeil.com, for the bulk of her sales. Closing the retail location was a decision many of her local competitiors have already made. Ms. Russo says that local customers are more concerned with finding a gas station open than shopping for their family. Some are afraid there won’t be enough gas to drive home from work as some stations limit purchases to 10 gallons. The Atlanta area, long known for its traffic hassles and long commutes is also seeing parking space shortages at the MARTA transit stations and lines around the block at the few gas stations open.

With the economy in dire straits, retailers will be hit hard by the lack of physical activity of shopping and competition with gas prices. Internet sales will increase for those who have their stores online while those who don’t have a website will be greatly affected by the loss of walk in customers.

“With demand being down as much as it is”, says Ms. Russo, “stores will be oversupplied with inventory at a time when new, seasonal inventory must be purchased. Less replacement inventory means wholesale prices will rise. The high cost and shortage of gas will affect every one of us no matter where we live.”

###