In a sign of the growing threat of a strike by the International Longshoremen’s Association at ports on the East and Gulf coasts, financial analysts asked two of the largest U.S. retailers how they are preparing for the possibility.
Dollar General said it would move more products through its West Coast consolidation center if the ILA and United States Maritime Alliance failed to forge a new contract by the end of the month. The current contract expires Sept. 30. Negotiations between the two groups broke down Aug. 22, and ILA President Harold Daggett has warned a strike is likely.
The discount retailer feels “pretty good that we have it covered” if East Coast import traffic is disrupted, David Tehle, chief financial officer at Dollar General, said in a Sept. 5 earnings call, according to a SeekingAlpha transcript.
Phillips-Van, maker of Calvin Klein and Tommy Hilfiger, also has a contingency plan in place in which more products would be filtered through the West Coast, Mike Shaffer, the retailer’s chief financial officer, told investors on Aug. 28. “So, we are absolutely looking and monitoring closely,” he said.
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