Ingles Storm Impact: Power Outages and Cash-Only Transactions

Ingles faced significant challenges in the aftermath of Tropical Storm Helene. With 80 out of 198 stores losing power, the company had to resort to cash-only transactions for various periods of time. These outages were disruptive, with some stores experiencing up to 13 days without power. Unfortunately, four stores sustained damage, resulting in temporary closures. One store has since reopened, but the other three are expected to resume operations in 2025.

The storm also took a toll on Ingles’ distribution center and headquarters in Black Mountain, leading to internet service disruptions. Tragically, an employee lost his life due to floodwaters. The financial impact was substantial, with an estimated $14 million in lost sales immediately after the storm. Despite these challenges, the losses in inventory and property were actually less severe than initially projected. The storm caused $30.4 million in inventory losses and $4.5 million in property damage, falling within the company’s October estimates of $35 million to $55 million.

Insurance coverage is expected to offset approximately $11.5 million of the total losses. The storm’s effects are likely to be felt in the coming fiscal year, with more losses expected. The storm disrupted operations and impacted net sales and profits for the fiscal year ending September 30, 2024. The company reported lower net sales of $5.64 billion compared to $5.89 billion the previous year, with gross profit decreasing by 7.5% to $1.3 billion.

The storm’s aftermath presented significant challenges for Ingles, but the company is working to recover from the impact of Tropical Storm Helene.