Shopkeepers urged to improve their attitude
Shopkeepers need a more “jump-to-it” approach to service to combat a growing trend of people shopping overseas or over the internet, business leaders say.
Bermudians spent $8.53 million abroad last November — an increase of more than 19 percent on November 2005.
It means 12.7 percent of money spent by Bermudians went overseas during the month, compared with 11.7 percent the previous year, according to the monthly Retail Sales Index.
The proportion would be even higher if the amount spent importing goods online was added into the equation. Currently, internet purchases are not reflected in the index. Chamber of Commerce officials say traders need to improve their attitude towards customers to show they are better off buying locally.
Department of Statistics figures show overall local retail sales were $58.6 million last November — a rise of 5.9 percent on 2005 once the rate of inflation is factored in.
However, Chamber representative Philip Barnett said shopkeepers still needed to work harder to keep customers in the country. “Any overseas purchase is a lost opportunity for someone to buy in Bermuda,” he said. “Increased overseas sales is a cause for concern. Being a small country with a limited number of retailers, it’s difficult to be everything and everybody. But I believe our goal is to try our hardest to offer that.
“It needs to be a daily battle to stay relevant, and for shops to reinvent themselves.
“People obviously have more choice overseas, but it’s an issue of service for some people. For whatever reason, we do find an indifferent attitude towards making the sale in Bermuda.
“A customer will walk into places of business and the shopkeeper will stay on the phone, and sometimes won’t even acknowledge the individual.
“The jump-to-it attitude prevalent in other countries like the US or the UK is not there.”
Mr. Barnett said the Chamber was running sales courses which encouraged traders to sharpen their act.
“Bermuda was a much more slow and relaxed place that was appealing to many tourists 20 years ago, because it forced them to slow themselves down,” he said.
“But there are people who live in Bermuda 365 days a year who need quick service here just as people would anywhere else.
“We as a country need to understand it’s an evolving market place. We have to respond to what the customer needs. If the customers can’t get what they need, they will shop elsewhere.
“We certainly hope that money sticks in the Island, but it comes down to us to take the time to give something back to the customer.”
Mr. Barnett said shopkeepers should make the most of the fact people can much more easily return locally purchased goods than those bought overseas. He added it was no surprise people in Bermuda spent more money overall last November than the previous year. He said it was a knock-on effect of 2006 being a good year for reinsurance companies due to the lack of catastrophic storms.
“Quite a few nice bonuses will have been rattling around,” he said. “These people can’t buy property, but they will have more money to buy nice couches, flat screen TVs or a good bottle of wine in the evening.”
The Government says it is not possible to include internet sales in the Retail Sales Index. A spokesman said: “Tracking goods and services purchased over the internet is a challenge for statistical agencies around the world.
“Buying goods and services through the internet often bypasses customs, for example, downloading a song from the internet or purchasing an airline ticket.
“Also, imported goods declared at the Bermuda Post Office with a value less than $200 are not tracked for commodity classification purposes.”
The Household Expenditure Survey, last carried out in 2004, showed nearly a third of all homes reported purchasing consumer products online.
According to the index, sales of clothing continued to show improved results. Sales climbed 13.7 percent from the figures for November 2005 — the fourth month in a row to show an improvement on the previous year.
It comes after a string of clothing sales slumps following the closure of Trimingham’s department store in 2005.
Grocery sales and construction-related sales also enjoyed increases, although gasoline sales at service stations and new car sales dropped.
