Retailers fear effects of Ebola epidemic on brick and mortar business

Brick and mortar retail stores are keeping a close watch on the spread of the Ebola virus.

The memory of the SARS epidemic of 2003, which caused multi-billion dollar revenue losses worldwide, is still fresh, as retailers, from locals to big department stores, are beginning to show signs of caution in their restocking trends, in the wake of the latest news reporting as many as 887 confirmed deaths from the Ebola virus.

The looming prospect of a meager shopping season for brick and mortar retail nationwide is likely to hit smaller department stores first, as the pandemic potentially increases, with the possibility of a crisis working its way up to larger chains, as public fear spreads out of control.

Online shopping is likely to see a significant rise, following the above scenario, with more shoppers avoiding crowded malls and stores, in favor of placing online orders on laptops and tablets, which could result in record numbers for stores able to ship merchandise through online ordering.

Target, Walmart and other major retail chains are likely to be affected the least, although future outbreaks could impact physical locations enough to produce a dent in revenues.

A larger impact on US economy at large comes from what economists and public health experts have learned about past epidemic outbreaks, such as the SARS virus in 2003, or the Swine Flu which affected Mexico in 2009. In both instances, local and international economies have suffered due to low sales, as well as a widespread decrease of productivity, as the result of lower attendance rates in the workplace.

A recent example directly linked with the Ebola virus, comes from Texas, where children are being pulled from schools, for fear of contamination. The direct result is a lower attendance rate in the workplace, as parents are required to spend more time with their children, which, in turns, affects business revenues, and wages as well in the long term.