DISCUSSION

Swine Flu to Hit Retail

April 28, 2009Written by George Anderson

There's little doubt that the outbreak of swine flu is going to have an effect on retailing in the U.S. Just how big an effect is anyone's guess.

Consider the average store employee's exposure to people (and their germs) on the job and it's a pretty good bet that some will find themselves missing workdays.

There's also likely to be a beneficial business aspect to the influenza outbreak as consumer demand for anti-viral prescription medicines, as well as personal hygiene items including face masks, disposable gloves, soaps/sanitizers and household cleaners grows.

CVS, which has a store near the St. Francis Preparatory School in Queens, where 20 have been diagnosed with the swine flu, has "seen a marked increase in prescriptions for Tamiflu in the New York area," according to an interview that company spokesperson Michael DeAngelis gave to Bloomberg News.

Both CVS and rival Walgreens are coordinating their response with their respective in-store health clinic providers.

Another potential consequence of a swine flu pandemic is a loss of tourist shoppers this summer. Andorra Vassiliou, the European Union's health commissioner, said people "should avoid traveling to Mexico or the USA unless it is very urgent for them."

U.S. government representatives including the acting director of the Centers for Disease Control and Prevention, Dr. Richard Besser, were recommending that people not overreact until there is a clearer picture of the situation.

As of this report, the World Health Organization had confirmed 149 deaths in Mexico but cases of the disease have not been as severe in the U.S. where only one of 40 stricken with the flu has needed to be hospitalized.

Discussion Questions: What are your thoughts on the swine flu outbreak and its potential effect on U.S. retailers? What can stores/websites be doing now to help consumers (and themselves) as this situation unfolds?

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