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Consequences of Water Damage in Retail Stores
By the RestorationSOS Educational Staff
A water leak or flooding in a retail store has various consequences, the specifics of which will vary depending on the type the store, whether the entire store was affected or just parts of it, and which areas, as well as the type of water, that entered the building.
For store owners, financial loss is the most obvious consequence of water damage with potential damage to the property itself, including store fixtures and equipment. Water damage from inside the building accounts for about 30-percent of insurance property claims by businesses.
Potential damage to the merchandise and all stock items inside the store is another concern for owners. If contaminated water enters the store, products and goods exposed to the contamination would have to be discarded, causing a major dent on the company's bottom line since there would be no return on those investments.
Water damage could also lead to significant disruption to store operations and would no doubt lead to a l oss of business. If the incident happened during the store's busiest season, then the profit loss would be greater. Adding insult to injury is the fact that during such a crisis, the cash is not flowing in but out with costs related to repair on top of the usual expenses of the business such as utility bills and loan repayments.
Also, there is a strong likelihood of losing market share when a store is forced to shut down temporarily due to extensive water damage. For practical reasons, customers would look somewhere else to make their purchase and they may find another store that actually like better.