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ReprintsGulf woes not hurting Group 1 -- yet
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More than three months after the Deepwater Horizon oil rig exploded in the Gulf of Mexico, businesses and residents in Gulf communities continue to suffer, worry and wait. We’ve heard reports from some dealerships in those communities, particularly the towns that rely on tourists, that business has taken a hit.
As travelers stay away, local workers are paying the price.
At Group 1 Automotive, executives are worrying, but haven’t seen the pain materialize at their stores in Gulf coast states -- at least not yet. Group 1, the nation’s fourth-largest retailer, has a number of dealerships stretching from Houston all the way to Pensacola, Fla.
“We have expected some real downward pressure on sales,” CEO Earl Hesterberg said Tuesday. But through the second quarter, the dealership group hasn’t seen any decline in its Gulf coast business.
Even so, Hesterberg doesn’t consider that the end of the story. He’s keeping his eyes open to the possibility that business eventually will weaken at those stores.
“That may be ahead,” the CEO said.
You can reach Amy Wilson at awilson@crain.com.
