January 30, 2013 at 5:54 p.m.
Tough times: Retail woes
Retailers cutting staff hours, prices to beat slowdown
The Department of Statistics has reported sales down $2.4 million for November on the previous year, at $83.6 million.
Retail sales dropped 2.8 per cent. But after adjusting for inflation, the real loss is 5.4 per cent.
To add to retailers’ woes, overseas spending is up, by 2.6 per cent on the previous year, at $7.9 million.
The fall in retail sales for the 31st consecutive month makes grim reading.
Suffering
Asked to mark the island’s retail industry on a scale of one to 10 in terms of crisis, Kristi Grayston of the Bermuda Chamber of Commerce said: “Retail is at a seven or eight right now, with 10 being a crisis.”
Mrs. Grayston, chairwoman of the Chamber’s retail division, said: “A lot of retailers are really suffering and people are nervous.
“How much longer can we stand these kinds of declines? Everyone is doing their best to get through it but there is the worry of, ‘What if we don’t get through it, what if this is the new reality?’.
“The fall was brutal to us and really jarred with a lot of people. You only have to go into a hardware store in Bermuda to see they are struggling.
“Some retailers are harder hit than others. Apparel (clothing) is having a very hard time and also furniture stores, as now is not the best time to be refurbishing your house.
“High-end retailers such as jewellers are struggling. I have the restaurants screaming lately too.
“But supermarkets are doing very well, as people can’t buy groceries overseas.”
Mrs. Grayston said many retailers have reduced their opening hours to reduce staffing costs. Discounts and sales are ubiquitous.
At her own business, Pulp & Circumstance, hours have been cut back to 10am to 5pm, Monday to Saturday.
Mrs. Grayston said the “steady decline” in sales over the last couple of years all added up.
“When you look at 2006, the numbers are 30 to 40 per cent off, so that’s extreme,” she said. “Even if we were to get a three per cent increase next month, we’ve still got a long way to go.”
She is also pessimistic about Christmas sales, which some retailers depend on for up to 40 per cent of their annual business.
“I believe retail sales for December will be down on last year, which is down on the year before, which is down on the year before that. Retailers can’t afford for this to continue. We have to make a profit, otherwise there’s no point being in business.
“It’s okay to go a few years losing money but there’s got to be that light at the end of the tunnel.”
Elaine Murray, a co-owner of the Irish Linen Shop, said: “These are certainly challenging times for retail. It’s very discouraging for most of the retailers in Bermuda.
“There are many businesses in crisis. It’s also discouraging to see the amount of money being spent overseas, especially when you think about the amount of money it costs to do business here.”
Ms Murray agreed with Mrs. Grayston that customer service needs to be improved as a whole.
“All you need is one person in a shop not to be at their very best and it spoils the entire experience for you, and may even turn you off from shopping there again.
“That is why raising the bar is always important.”
‘Lacklustre Christmas lights didn’t help’
Christmas brought more ‘Bah, Humbug!’ than cheer for some retail stores, due to complaints about the festive lighting — or lack thereof.
Kristi Grayston, Bermuda Chamber of Commerce retail division chairwoman, said businesses in Hamilton were “very upset” at the Corporation’s change in decorations.
In previous years, the city has been strung with rows of washing line-style coloured lights. But this year, snowflake, trumpet and bell decorations took their place.
“Just what have snowflakes got to do with Christmas in Bermuda?,” Mrs. Grayston asked.
She said retailers were told the Corporation would be changing the lighting but were not consulted on the new decorations.
“It was a cost-saving measure for them [the Corporation]. But [the old] lights were very effective and made Hamilton look very festive.
“The new lighting just didn’t make you feel, ‘I want to walk around Hamilton and explore’.
“In such a devastating retail year, we can’t afford this. We need people feeling festive at Christmas.
“Whereas some parts of Hamilton were well lit, Front Street and Reid Street weren’t as illuminated as in previous years.’
Lower Reid Street, from Burnaby to Queen Street, was in darkness for two weeks, and Washington Lane was bereft of lighting or decorations.
“If it was a question of money, surely we could have helped to raise it. It’s too late now — but not too late to make sure it doesn’t happen again next year. Everyone was disappointed.”
Charles Gosling, City mayor, said: “We made the decision to change the Christmas lights early last year.
“Over the Christmas period we received a couple of complaints directly from retailers and a few from members of the public, together with many compliments that the lights were indeed extremely attractive and in keeping with the character of our city.”
He added: “We had some unforeseen challenges with the lights, which delayed them being turned on in some areas during the first few weeks of season, but they were corrected.
“The washing line-style of lights that were previously used proved to be expensive to hang, light and maintain. We were able to erect the new decorations during normal business hours, reducing overtime expenses. And the new decorations consume much less electricity.
“We continue to look for and implement ways to support Hamilton retailers. The City scheduled numerous small events throughout the month of December on the streets of Hamilton to encourage residents to shop in the evenings.
“We gave away free parking in all City car parks for the three Saturdays leading up to Christmas, at a cost of tens of thousands of dollars in revenue.”
Special report: Tough times
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