Population decline is ‘biggest challenge’ for retailers as sales slump

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Retail sales fell in April dashing hopes that four-year slump in the sector may finally be bottoming out. The numbers paint a gloomy picture for the clothing retailers, as sales revenue for apparel stores declined for the third time in four months, falling 5.8 percent.

The news follows a hopeful March where retail sales increased year on year for the second consecutive month in March.

The Department of Statistics reported the total retail sales in April 2012 fell 4.5 percent. Consumers spent $82.3 million on retail goods representing a decrease of $3.9 million year-over-year.

“I think the retail numbers are a reflection of the current economic situation,” said Paula Clarke, who chairs the Bermuda Chamber of Commerce retail division.

Asked if there was a light at the end of the tunnel for retailers, she said that the industry’s number one issue is that there aren’t enough people on the Island to sustain a robust retail sector.

“The numbers speak for themselves, Bermuda’s shrinking population is our biggest challenge and until that changes, we don’t see any great shift to the positive,” she said.

But, said Ms Clarke, that hasn’t stopped the retail community from looking for ways to entice customers through their doors.

A major initiative by the Chamber of Commerce has been to convince a number of Hamilton’s retailers, including stores within the Washington Mall, to move to more convenient shopping hours — staying open until 8pm on Fridays and opening on Sundays as well.

While more and more stores are opening on Sunday, current legislation stipulates that any retail space over 1,000 sq ft can open only between 1pm and 5pm on Sundays, although stores under 1,000 sq ft can name their own hours.

“It’s major shift for the majority of stores in Hamilton,” said Ms Clarke, of shops keeping their doors open to Sunday customers.

She added that retailers have been working hard to offer a variety of products for consumers.

“I’ve been walking around and see that there is fantastic value and a great assortment of merchandise available,” she added.

According to the Retail Sales Index, all sectors experienced year-over-year declines with the exception of building material stores which reported a marginal gain. The gain was attributed to the continued demand for building supplies from ongoing commercial construction projects, including the KEMH and the Waterloo House building sites.

After adjusting for the annual retail sales rate of inflation, measured at 3.5 percent in April 2012, the volume of retail sales fell by 6.8 percent.

Sales revenue fell by 9.7 percent for car and bike dealers, 1.1 percent for food stores and 5.1 percent for liquor stores.

Overseas purchases declared by travelling residents fell 1.6 percent to $6 million.

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