Last week’s major earthquake and hurricane certainly put retail crisis planning and response to the test for many businesses. While the earthquake caught everyone off-guard, retailers were preparing for days prior to Hurricane Irene by analyzing store hours, keeping staff informed and boarding up vulnerable locations. Some organizations are still executing their business continuity plans even two days after Irene made landfall.
Retailers nationwide used information from news sources – along with local, state and federal authorities – to make decisions about which stores would close and when, all in an effort to keep store personnel safe. Prior to Irene making landfall, NRF was briefed by the U.S. Department of Homeland Security’s Critical Infrastructure Division and provided companies with information from the Homeland Security Information Network. This information included the Hurricane’s projected path, damage estimates, emergency response data such as access and credentialing information once the roads were safe to travel, and links to information about preparation steps.
At the Home Depot’s Hurricane Command Center in Atlanta, employees were trying to anticipate how Irene would affect its East Coast stores, determining which stores would remain open 24 hours a day, and monitoring supply levels and staging products such as batteries, tarps, generators, sand bags, plywood and other essentials.
At Walmart, company employees were using huge historical databases of sales information from each store to anticipate surges in demand during days leading up to Irene’s arrival. They even employ a staff meteorologist to provide real-time information at corporate and stores.
During my visits to local retail stores in DC, stores had plenty of food products but were completely out-of-stock on flashlights.
Retailers nationwide analyze and test their disaster preparedness plans based on small and large-scale events. An incident as minor as a power outage offers an opportunity to find out what works, what doesn’t and where changes need to be made. How a company responds to small storms, fires, supply chain interruptions and water outages can offer indications of how it will react to larger events, such as Irene.
What makes our industry special is the work we do to take care of family, friends, colleagues and members of the whole community, from providing food, water, clothing and shelter to financial aid for long-term assistance, our industry is responding in droves.