January 30, 2013 at 5:54 p.m.
Tough times: Retail strife
Smile - or lose your job
That is the stark warning from employers as tough economic times put the squeeze on retail. If Bermuda is to thrive as a tourist and international business destination, we need to take a long, hard look at workers’ attitudes.
This from Kristi Grayston, Chamber of Commerce retail division chairwoman, who warns customer service has to improve.
At the same time, consumers must be prepared to shop locally if they want stores to remain viable and provide a wide choice of goods. With retail close to a “crisis” — sales are down for the 31st consecutive month in November, while overseas spending is up — Mrs. Grayston says a cultural shift is needed.
While tourism and international business remain the two main pillars of the economy, retail provides vital support.
“You can’t be an international business centre without vibrant retail and restaurants, so people will have to decide what it is they want,” Mrs. Grayston said.
“Can you imagine Hamilton with no retail?”
This week’s Retail Sales Index shows that while spending dropped by $2.4 million in November, overseas purchases were up $0.2 million.
Mrs. Grayston, the owner of Pulp & Circumstance, said the real figures could be even higher.
“One of the frightening things is, we don’t really have a handle on what is being spent overseas by Bermudians.
“The retail sales numbers only cover what is being declared by residents returning to the island, and if they are bringing the goods with them.
“A lot of people go away now and due to excess baggage, ship the goods back instead.
“The figures also don’t take into account internet shopping and mailed goods.”
Mrs. Grayston said: “We all shop on holiday. There is more selection overseas. But if retailers in Bermuda are losing money, their ability to purchase a wider selection of goods is going to suffer.
“We are losing money to overseas retailers. But if we earn in this community and spend in another (the U.S., for example), we are not helping ourselves.
“Bermudians don’t realize this. I’ve seen people going away to do all their Christmas shopping.”
She said: “I want it to become embarrassing and politically incorrect for you to do all your shopping overseas.
“Just as 10 years ago no one recycled and now everyone does — or if they don’t, they won’t admit it — so do I want to make it embarrassing for people to come back through the airport with three huge bags of shopping.”
She said Bermudian retail staff also had to get into the mindset of putting the customer first.
“The three things we have complaints about are customer service, price and selection,” said the Chamber of Commerce spokeswoman.
“We are working very hard to train our staff. In this kind of economy, if you’re not willing to smile and leave your baggage at the door, you’re going to be fired.
“For every job my own business has advertised, we’ve had 50 applicants, so there are a lot of people out there out of work.
“Gone are the days when there was no unemployment in Bermuda.”
Mrs. Grayston said despite dwindling sales, retailers still faced the challenge of “exorbitant” overheads and expenses.
In the U.S. the average cost of retail rental space is about $26 per square foot. But in Bermuda, space is premium.
“Your rent is effectively double,” Mrs. Grayston said. “People are paying between $60 and $70 per square foot in Hamilton.”
Staff also have to be paid more, due to the high cost of living.
Then there is the land tax and corporation tax, shipping, duty costs and wharfage fees.
“Electricity costs are also exorbitantly high,” Mrs. Grayston said. “The cost of doing business in Bermuda is extremely expensive.”
Despite the economic gloom, she said retailers were doing their best.
“For an industry suffering as much as retail, when you look around the stores, they still look great.
“There are some very talented entrepreneurs out there. Bermudian retailers have really upped their game and are listening to what the people want.”
Special report: Tough times
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