Ike shuts down many Houston DVD retailers

Best Buy, Wal-Mart, Blockbuster close stores

By Danny King -- Video Business, 9/18/2008

SEPT. 18 | Dozens of DVD and electronic stores in the Houston area were closed or operating under limited hours because of either damage or power outages from Hurricane Ike as of last night, four days after the storm hit the Texas coastline.

The hurricane, which made landfall on Sept. 13 about 40 miles south of the city and contributed to the deaths of at least 17 people in Texas, caused general merchandisers including Wal-Mart, electronics retailers such as Best Buy and movie-rental chains including Blockbuster to either shut down or limit operations in southeastern Texas, according to statements from the companies and calls last night to the stores. As of last night, most of Houston, the fourth-largest U.S. city, was still without power, the Associated Press reported.

The storm, whose landfall followed that of Hurricane Gustav by 12 days, will likely put a damper on such companies as videogames leader GameStop, which expected higher third-quarter sales than a year earlier, and ensure a softer spending forecast by companies such as Best Buy.

Best Buy, the largest U.S. electronics retailer, said yesterday afternoon that three Houston-area stores were still shut down and an additional 14 were operating with limited hours.

Wal-Mart, the world’s largest retailer, said Tuesday that the storm damage and resulting power outages affected operations in 10 states and that two southeastern Texas stores wouldn’t be open by the end of next week, though the company wasn’t specific about its Houston stores. Of Wal-Mart’s 20 Houston-area stores, employees at nine stores said they were open as of last night while the rest were either still closed or didn’t answer calls.

Among chains that may have been harder hit are GameStop and Blockbuster, the No. 1 U.S. movie-rental chain. Of the 25 Houston stores operated by GameStop, which didn’t return a call yesterday seeking information, employees at six said they were open last night while calls to the remainder weren’t answered.

Meanwhile, Blockbuster had “a small number” of stores still closed due to power outages, company spokesman Randy Hargrove said yesterday, without identifying which stores had been shut down. Calls last night to 11 of Blockbuster’s 13 Houston stores either weren’t answered or didn’t go through, but employees at two stores said they were open.

Target, the No. 2 U.S. discount retailer, appeared to have fared better. Of calls to the retailer’s 14 stores last night, employees at 12 said they were open. A call yesterday to the corporate offices of Target wasn’t returned.

Movie Gallery, the No. 2 U.S. movie-rental chain, doesn’t have stores in Houston, though its two closest stores, both about 40 miles from the city, were open last night.