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Bermuda needs to pull together to pull through downturn says owner of 167-year-old Bluck’s

Business model has changed: Peter Darling of Bluck's (Photo by Akil Simmons)

Bermuda needs to pull together to get through the current economic crisis which has led to many people losing their jobs and homes and businesses going under.That is the view of Peter Darling, managing director of Bluck’s, which itself has experienced an overall 40 percent drop in sales volume since the financial market crash of September 2008.But there are some signs of optimism with sales up 15 percent since June this year the first rise in four years and Mr Darling said in an interview with The Royal Gazette that he was still bullish about Bermuda and its ability to reinvent itself in hard times.“Bermudians by their very nature are survivors,” he said.“They have always had this uncanny ability and persistence to come up with something that works whether it is agriculture, tourism or most recently international business.“And the real key going forward is to work together and embrace each other because that is what we depend on and never lose sight of the fact that we have a lot going for ourselves.”Bluck’s was founded by William Bluck of William Bluck & Co Ltd in 1844, beginning life as a hardware shop selling everything from tools and nuts and bolts to the kitchen sink.Realising the need for a top quality china and glass shop on the Island, Mr Darling’s grandfather Michael Darling, who was in partnership with Mr Bluck, switched the focus of the business to fine china and crystal and eventually bought out his partner in 1942.The business really took off with American tourists pouring into Bermuda to buy up the pieces until the late 1980s due to the big duties on British goods being imported into the US up to that time.“From the 1990s it’s been very difficult to sell at below US retail prices,” said Mr Darling.“Now we sell at or slightly below their prices and in recent years we have had to switch the focus of the company to adapt accordingly.”Going bigger on advertising through its ad firm AAC Saatchi & Saatchi, while staying close to his philosophy that quality sells, Mr Darling’s business has seen an upturn in traffic through the door of people who have seen the Christmas displays in the shop window or adverts in The Royal Gazette.As the recession began to bite, Bluck’s had to cut its cloth accordingly, downsizing from six stores to one and 35 employees to five all of whom are working shorter hours in the space of 10 years.And as more people have felt the economic pinch, the store has moved towards more moderately priced goods from placemats and tea towels to candles, cheese and cake knives, and small crystal cut glasses.Among the highlights during his 24 years in business, Mr Darling cites being commissioned in 2005 by a group of visitors to Bermuda to create a one of a kind 488-piece dinner service set in 22-carat gold overlay for their chateaux in Monte Carlo.The set was produced by Hungary-based Herend Porcelain Company and took two years to complete, with Mr Darling making five trips to Hungary to oversee all five stages of the process.A pool of 800 painters was whittled down to a team of 15 for the task and a dedicated workshop was set up for them in the factory with all of the pieces being painted from scratch.Less satisfying has been his witnessing of a fall in tourist air arrivals and reduction of hotel beds from 10,000 to 2,500 and the drop off in subsequent trade resulted in a number of big manufacturers taking the decision to no longer visit the Island as the market has shrunk.Indeed Bermuda has regressed far from being the No 1 retailer of Waterford Crystal outside the US in the 1980s when it sold $4 million worth of items collectively between Trimingham’s, Smiths, AS Cooper’s and Bluck’s. Then the CEOs and management teams used to be invited to watch the dropping of the ball in Times Square, New York on New Year’s Eve. In 2010, it took only $50,000 in sales.There has also been a drop-off in sales of Royal Copenhagen Christmas plates from over 8,000 per year over the 1950s, 1960s, 1970s and the first part of the 1980s to just three last year, much of which Mr Darling attributes to a lack of interest in collecting by the younger generation in their 20s and 30s and disposable income being spent on new fads like the latest electronic gadgets, computers, cell phones, TVs and DVDs with an increasing trend of impulse buys.“Long term I think that Bermuda’s retail sector will thrive but on a much smaller scale than it was 24 years ago when I first started out,” he said.“I think there is going to be more niche stores selling particular items that is really the way forward.”Adhering to the principle that 80 percent of your business comes from 20 percent of your customers, Mr Darling has targeted his loyal followers with phone calls, letters and e-mails with news on the latest products.Other key selling points have been free delivery Island-wide and a complimentary gift wrapping service, with every little bit counting, in addition to a bridal and gift registry service.In return, among the bonuses the company has received have been a welcome break on payroll tax during the winter months introduced by Premier Paula Cox last year and an understanding landlord which has come in particularly handy in the current economic climate.As a country, Mr Darling believes that Bermuda needs to encourage any potential hotel development in the mould of Tucker’s Point with any incentives that can be provided to attract high net worth visitors to spend their money in the local economy, boost jobs and enjoy such a good experience that it makes them want to keep coming back.“I look forward to the future because I think that Bermudians will pull together,” he said.“Politics aside, the grassroots in the community really wants to help each other in whatever way they can as evidenced by the Salvation Army’s Santa’s Anonymous Drive for needy families and the call to arms to help Mrs O.“All around Bermuda people have been losing their jobs but they are still helping each other out and I think that the Christmas spirit should be carried forward.”Mr Darling said the variety of stores available on such a small island were proof that Bermuda had a lot to offer and while his business had not been directly impacted by the number of people leaving the Island, it had been hit by those landlords and restaurant owners who relied on them as a source of income.To get some idea of the amount of departures, he said that his doctor had told him he had lost 1,000 patients over the past two years, stressing that guest workers were an integral part to the Bermuda economy and needed to be made as much a part of the community as possible and that a third pillar should be found which could be supported by the infrastructure and office space currently available in Hamilton.On the issue of customer service, Mr Darling said that while standards were improving there was still some way to go, however he said that often the root of the problem was the lack of support or respect from senior managers to the front line staff which ultimately resulted in resentment and apathy.He is also of the belief that retailers and couriers can exist side by side with a need for both and each serving to help each other, but cautioned that the latter should be careful about claims to be the cheaper option which in many instances they are not.

Business model has changed: Peter Darling of Bluck's (Photo by Akil Simmons)