Somers Cooper takes over the reins of one of Bermuda's last famous department stores A.S. Cooper and Sons at what appears to be a pivotal moment for the retail industry on the Island.In line with a 110-year tradition that keeps the company in the hands of the Cooper family dynasty, he steps up to replace his father Peter who has decided to retire after 52 years.

Amongst the challenges facing Somers is the increasing amount of dollars being spent by Islanders during overseas shopping trips rather than in Island shops, and the prospect of Dockyard becoming a new - and possibly Bermuda's main - shopping hub as cruise ships are phased out of Hamilton.

Somers is prepared to meet those challenges.

Of the growing size of overseas shopping spends by Islanders, he said: "It is an ongoing problem and something all the retailers are looking at and talking about.

"It was one of the reasons why the Buy BDA campaign got going and it has become more important now Trimingham's and Smith's have gone.

"The loss of Bermuda's largest and most well known department store Trimingham's along with Smith's in 2005 had a notable impact on the level of purchases made in Island shops.

At the same time A.S. Cooper was in the process of rebuilding its own flagship Front Street store and had, ironically, opted to scale down the square footage of retail space available.

Had the company known before 2005 that rivals Trimingham's and Smith's were about to throw in the towel it would likely have put more floors of shopping in its new store.

But when Trimingham's and Smith's closed its doors for good, A.S. Cooper was committed to leasing out the upper floors of its rebuilt property.

"We made a decision that we would be a smaller retail store and eliminate categories of merchandise that were not profitable and concentrate our business on the new location," explained former company boss Peter Cooper.

"In March 2005 Trimingham's said it was going out of business. The whole ball game had changed but we had made our decision that we would only trade on two floors (of the new building) with office space above. That might not have been the decision had we known what was going to happen."

Of the demise of Trimingham's and Smith's, Somers said: "I think they expected some economies of scale by merging the companies but it took too long (for the benefits to happen) and they decided not to continue.

"The demise has not been a blessing for Bermuda. That space is going to be a bank and that square footage of retail will be part of the development."

Presently, A.S. Cooper has 17 outlets, spread across Hamilton, St. George's, Dockyard and within some of the Island's hotels.

When Dockyard becomes the main cruise ship destination, as from 2009, it is expected to have a notable impact on retailers in Hamilton. That, coupled with the trend for Islanders to spend more on shopping when they travel off-Island, will be major challenges in the coming years.

Somers said: "We will never be able to supply everything that people want to buy and people do look upon shopping overseas as something or a recreational pastime.

They go overseas, stay in a hotel, do their shopping and cart back to Bermuda what they have bought and pay the duty.

"If they sat down and worked it out they would not have saved that much in the end, but it is an enjoyable thing for them to do. We will continue to see that - as the economy has heated up people have more disposable income.

"Island retailers also feel disadvantaged because they are forced to pay duty upfront on merchandise, whereas overseas retailers only pay sales duty once an item is actually sold to a customer.

Regarding the loss of cruise ships to Hamilton, he said: "Only time will tell, but we think it will have an effect in the short-term and there are retailers looking at being in Dockyard. Many already have a store there and there is a lot of interest in looking at the opportunities.

"Hamilton is still going to be a destination for visitors coming to Bermuda. We have to make the place as attractive as possible. We are suffering with the construction boom in Hamilton, which does not make the place look attractive. But once it is all gone it's important we move forward and the waterfront plans go forward and make Hamilton more attractive."

As the mantle of leadership is passed from father to son, A.S. Cooper's is looking to continue its long tradition as a favourite store for Islanders and visitors alike. Both Peter and Somers believe the firm's success over the years could not have been achieved without the dedication and talents of its employees.

Somers said: "We have made some great strides, but there are 120 people behind us that make it happen - that makes it all a success."His father Peter added:

"We have some staff that have been with us for up to 40 years. When someone who is not even a member of the family has been with the business more than 40 years that is very commendable."

Personal profiles of Peter Cooper and Somers Cooper and their time at A.S. Cooper & Sons will appear in The Royal Gazette business section next week.