The Tribune

* Last-minute curb-side reprieve survival key

* Many retailers were set to close this week

* But 'loosen, tighten' cycle generating fears

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Prime Minister was last night urged to make his latest COVID-19 relaxation "permanent" after he gave retailers on the brink of closure a last-minute reprieve that may enable their survival.

Merchants and other businesses hard-hit by the curb-side restrictions imposed since early October, while grateful at being permitted to resume in-store sales from today, voiced fears to Tribune Business that some companies may have suffered "lasting damage" from the loss of revenues and cash flows that resulted.

And they warned that Dr Hubert Minnis's affirmation yesterday that the economy will "go through cycles of tightening and loosening restrictions" in response to the local COVID-19 infection rate threatens to inflict further uncertainty and harm on both business and consumer confidence.

Still, all private sector executives spoken to by Tribune Business yesterday hailed the end of 24-hour weekend lockdowns and curb-side selling as a "big boost" that will help companies re-open, bring staff back to work and generate additional revenue streams.

They added that the timing "could not have been better" with the Christmas holiday shopping season fast approaching, even though consumer spending this year may well be muted due to the high unemployment rate and income slashes still being endured by many Bahamians as the pandemic's fall-out continues to bite.

Tara Morley, the Bahamas Federation of Retailers' (BFR), who had just last week warned that curb-side restrictions were endangering the livelihoods and well-being of 20,000 retail sector workers and their families, said the easing unveiled by the Prime Minister may gave merchants who were on the verge of announcing their closure as early as this week a chance to survive.

"We are heartened and relieved that the Prime Minister, in conjunction with the Ministry of Health (MOH), has given permission to the retail sector for us to open our doors once again to our valuable customers in-store," Ms Morley said.

"The retail community is beyond thrilled to get back to work, but recognise we have a long road ahead. There were many business closures about to be announced this coming week if they were unable to resume regular operations. These businesses will now be given the chance to survive under extremely challenging times."

She added: “The health and safety protocols outlined by the Ministry of Health, and suggested by members of the BFR, are imperative to remaining open. We encourage our members to continue following these protocols and thank everyone for the tremendous support and feedback over the last several months.

"We certainly appreciate your commitment and compliance that ensures we remain sustainable and open for our employees and customers as we head into this critical holiday season. The BFR stands ready to assist with educational initiatives to facilitate safety measures for the retail sector in order to stay open safely, systematically and sustainably.”

Ms Morley had previously warned that the drop in retail revenues and cash flow caused by the curb-side restrictions, with some merchants reporting that sales were off by up to 80 percent compared to normal, combined with uncertainty over the commercial landscape they will face had left may unable or unwilling to purchase and/or clear Christmas inventory purchases.

It remains unclear whether the Prime Minister's easing will arrive in time for Christmas. Ben Albury, Bahamas Bus and Truck's general manager, whose industry has also been hit by the recent curb-side restrictions, said the end to curb-side restrictions and weekend lockdowns will be "a big boost" as it will allow employees to return to work and get back weekend hours.

Describing curb-side as "cumbersome" to pull-off, especially for consumers who wanted to search for, try and test product, Mr Albury urged the Prime Minister to avoid the "loosening and tightening" cycle he referred to yesterday due to the harm it inflicts on consumers and businesses.

"I hope it's permanent and not something he goes back on in a few weeks," he told Tribune Business. "That's what's damaging businesses the most. The constant up and down. I just don't think that's practical, and that hurts a lot of consumer confidence as well. People considering a purchase start to pull back and hold off as they lose confidence.

"Hopefully he [Dr Minnis] considers that a bit more. There'd have to be some extreme circumstances to justify that [going back to curb-side and lockdowns]. I know before, when we were allowed to do in-store and work at weekends, our business was drastically better than what it has been."

Mr Albury revealed that Bahamas Bus and Truck's vehicle sales were down 80 percent over the past month of curb-side restrictions and weekend lockdowns when compared to the prior month when there were no such limitations. He added that their October imposition seemed to cause "the bottom to fall-out" of the economy at a time when vehicles sales were back to 90 percent of pre-COVID levels.

"I'm hoping this last wave of restrictions does not do permanent damage," Mr Albury said. "If it continues the way he says, loosening and tightening, loosening and tightening, there's only so much that can happen. I see businesses closing every week, and some businesses that have closed have not re-opened because you cannot manage your business that way. It's not practical."

Andrew Wilson, the retail entrepreneur who operates Quality Business Centre (QBC), said the removal of curb-side restrictions and weekend lockdowns would be "a tremendous boost" for his formats - especially his Fashion on Broadway clothing boutique - as customers will be able to shop in-store and try product on.

Noting that Saturday shopping traditionally accounted for 30 percent of his group's sales, Mr Wilson added that the curb-side and other restrictions had caused his top-line to drop by the same amount. Pointing to the approaching Christmas season, he added that the easing "couldn't be better" in terms of the timing.