According to JPMorgan analysts, major retailers like Target are heavily impacted by the ongoing wildfires in the Los Angeles area. These wildfires have brought 66 of Target's stores, representing 3.3% of its total outlets, within the affected region, which includes Los Angeles, Pasadena, Glendale, and other areas. In addition, the fires have affected luxury furniture retailer RH with four stores, or 5% of its total outlets, and AutoZone with 85 stores, 1.3% of its total outlets, in the region as well.
JPMorgan points out that natural disasters typically cause an initial drop in sales, however, they also noted that home improvement retailers often see sales increase as the affected areas start to rebuild. Home Depot, with 25 stores or 1.2% of its total in the catastrophe zone, and Lowe's, with nine locations or 0.9% of its total, are subjected to this scenario.
Other companies with significant store presence in the wildfire area include Costco, with 14 stores or 2.3% of its total, Williams-Sonoma with 12 stores or 2.3% of its total, Best Buy with 20 stores or 2.1%, and O'Reilly Automotive with 53 stores or 0.9%.
The death toll from the wildfires has reached at least 10, according to Los Angeles County authorities. AccuWeather reports that the disaster may have cost up to $150 billion in damages.