Bahamian retailers yesterday described early Christmas season sales as “slow” and “bleak”, but expressed optimism they will see a major pick-up over the next week.
Chinarae Pratt, managing director of fashion retailer Zarita, which has three locations at Bay Street, Old Fort Bay and Marina Village, told Tribune Business that while sales at the second store were steady, they were down at the other two.
“Christmas business has been slow. All locations. Nothing like other years. Hopefully we see a drastic increase next week. Old Fort Bay Store has been the same, but the two other stores are down,” said Ms Pratt.
Collette McKenzie, manager of the Charlotte Street-based leather goods retailer, Brass & Leather, told Tribune Business that sales this Christmas season have been “bleak”.
“Sales have been very bleak. Sales have been slow. So far, at this point in the month there hasn’t been much to say that Christmas is on the way. Hopefully, business will pick up next week,” she said.
One retailer, who wished not to be identified, told Tribune Business: “It’s definitely slower than last year for sure. If I were to take a guess I would say we’re off at least 25 per cent, conservatively speaking. I really hope things pick up soon. A lot of people usually wait to shop last minute, but it’s never been this slow.”
Charmaine Daley, manager at Johns Shoes and Accessories on Carmichael Road, told Tribune Business she had seen a significant uptick in business since last Thursday.
“It’s been very busy. The Christmas season has arrived. The customers are definitely coming in and sales are up. We are now waiting on the big surge as we get even closer to Christmas,” she said.
Christmas is vital to the financial health of most retailers, as it can account for up to 50 per cent of their annual sales and revenues.
Comments
John 8 years, 11 months ago
Even with a big upswing in business over the next week, many retailers will not be over the top of last years sales and fro some, who stocked up heavily on inventory, the next three months will be a major challenge. Locally there has been a number of negative influences in the market, like hurricane Joaquin and the major set backs and disappointments at Bah Mar. Consumers are wary and very cautious and are only shopping with money that is available and then only purchasing essentials. Many feel the introduction of VAT has pushed up the cost of living, food especially by at least 20 percent. The world markets are not much better due to the attacks and threats be terrorist. Then is has been an "extremely hot" winter thus far and many retailers have been unable to move winter merchandise. So new spring inventory is being pushed back at the factories and shipping ports as retailers scramble to make space. Even with oil prices down to around $35 a barrel and expected to go lower consumer confidence is down. So it's a buyers market. But even with deep discounting over the Thanksgiving holidays, retailers were not able to realize a significant increase in sales. This is not a picture of doom and gloom. It is a matter of a wiser consumer managing his spending better in uncertain economic times.
John 8 years, 11 months ago
When discounting does not work and increase profits by increasing volume, retailers may resort to increasing prices to cover overhead based on their current volume adjusted for increased prices. Some retailers may chose to exit some markets
SP 8 years, 11 months ago
......................................... The sky is not falling. Its already fell! ..................................
With an already weakened economy continuing to shrink in every sector, consumers across the board have less available disposable income.
Retailers will feel the pinch with dismal pre -Christmas sales, and better be prepared for the burden of unsold stock and overdrafts after Christmas!
Big sales everywhere predicted after the holidays.
John 8 years, 11 months ago
The fact is that the full effect of VAT is just being felt by some businesses. Despite government saying it is a 'pass thru' item that will not affect business operating expenses this is not the true case. There are some VAT payments that businesses cannot recover. Also because VAT is being collected 'up front', the cost of inventory has increased. So when there is pilferage, shrinkage or obsolete merchandise the write off to the business is greater, not just by 7.5% on the cost of goods, but on the landed cost of the goods. This can eat into a company's profits severely and make a difference between profit and loss o the financial statement.
birdiestrachan 8 years, 11 months ago
It is my hope that this is a sign that Bahamians are learning that they can get along with less. and put their funds to good use like paying their bills and not being broke and busted come January 2016 who live to see it the good Lord willing. This is my view and I am sticking with it, How many bed quilts, rugs and curtains does one really need. Not to mention designer bags and false hair. then when they can not pay their bills, They blame every body from the Government down.
ThisIsOurs 8 years, 11 months ago
In the past few years I've noticed a rise in the number of clothing stores selling cheaply constructed clothing. In this article I notice that the high end stores are complaining of a bleak Christmas while the low end store couldn't wish for a better season. Has some troubling parallels to the tale of the new car and used car dealers. Economic realities staring us in the face.
sheeprunner12 8 years, 11 months ago
.............. Christmas trailers soon reach ......... courtesy of Hurricane Joaquin ....................BOL
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