Three Queen Street-area retailers - the Scottish Wool Shop, Smuggler's Reef and the Harbourmaster branch store - have closed their doors within the last fortnight.

President of the Chamber of Commerce Charles Gosling said of the closures: "What you are seeing is the beginning symptoms of the flu Bermuda is going to catch while America catches cold."

David Hamshere, managing director of the Tess Group which owns the Scottish Wool Shop, said closing the shop has been a sad event, adding that there has been a retail space there for up to 80 years.

Mr. Hamshere said the closure was prompted by the decline in tourism, and visitor spending: "It's no secret, with declining tourism, like all businesses, we are looking at every part of our operation and seeing where we can consolidate.

"It is a sign of what is happening, and frankly, a prudent retailer has to take action," Mr. Hamshere said. After factoring in land tax and Corporation of Hamilton tax, Mr. Hamshere concluded it did not make sense for the company to keep that space open. He did say that the group will continue to offer Scottish wool merchandise through its Archie Brown store.

Signs in the window of the Harbourmaster, Reid Street branch indicate it has moved stock to its Washington Mall store. Staff there referred questions to owner Sheilagh Robertson, although she is off the Island and could not be contacted.

At the Smuggler's Reef, which occupied a vast space just off of Queen Street, on Front Street, a staff member said the Sunglass Centre, Triangle dress shop and cigars have been consolidated in to the Daina Limited group's other stores, Buds, Beans and Books to the west and the former Bananas at the east end of Front Street.

Owner John Casling did not return calls from The Royal Gazette yesterday, but in an interview earlier this month Mr. Casling said he had closed his Dockyard shop and that more closures were to follow.

At that time Mr. Casling said: "We don't have enough shoppers to support overhead; it's useless." But, it is a problem that is affecting many retailers, he said, adding: "it is dead for everyone."

Mr. Casling predicted this could be the toughest winter ever for retailers or anyone with a tourist-related business.

Mr. Casling, speaking of the down turn in visitor arrivals, said it was a continuing trend over several years, and that the events of September 11 only made things worse.

"Our figures were down 20 percent before September 11 - that was just the nail in the coffin."

Chamber reacts Story, Page 33