Retailers have mixed feelings on Buy Bermuda campaign
Retailers - both large and small - and throughout Hamilton, this week cited the Buy Bermuda campaign as a success in terms of raising consumer awareness.
But, a number of shopkeepers questioned if the initiative would help their bottom lines.
Kent Outerbridge, owner of Dub City on Court Street, which sells both music and clothing, said September 11 was a blow, and that the fallout has been a more cautious consumer.
Of the Buy Bermuda initiative, Mr. Outerbridge said it had not made much of a difference, although his sales have shown some turn around, as Christmas draws closer.
And Mr. Outerbridge said of Buy Bermuda: “It is a good thing - if people follow it, as it could keep our economy strong.”
But, in terms of sales, Mr. Outerbridge predicted that he and other retailers will really feel a slump in sales, after Christmas. “I expect sales to be normal for Christmas, but it will be bad through the rest of the winter,” he said.
George Grundmuller, as head of the Chamber of Commerce's Retail Division said the feedback - on the Buy Bermuda campaign - has been positive: “Retailers love it, and there has been good acceptance from the consumer.”
But on whether or not enthusiasm for at-home-shopping was making a difference to retailer's bottom line, Mr. Grundmuller said it was still too early to tell.
“The feedback is that sales are still down for some companies, but that it could have been worse without Buy Bermuda.”
Ultimately, Mr. Grundmuller said it was still too early to tell where sales will be for Christmas. “We still have the two heaviest weeks to go. And in this sector, you don't know until December, 24.”
In general, Mr. Grundmuller said consumers are definitely more cautious this year, saying: “A lot of people are still looking, and making price comparisons. People are definitely more cautious this year.”
But, Mr. Grundmuller added that consumers do seem more aware of the positive impact of shopping locally, and are much more likely to spend their money here.
Mr. Grundmuller, who is also chief executive officer of the Phoenix stores, said sales are about even with last year. And as a retailer, he said he is optimistic: “We still have lots of shopping days to go.”
Terry Burgess, the owner of three Court Street boutiques, 2001, Sports 2000 and 2002, specialising in clothing for a cross-section of ages and sizes, said she would not really have an accurate picture of Christmas sales until the last week, when she does her biggest business.
Ms Burgess said she goes on frequent buying trips, and has seen that Bermudians are still travelling.
She added she had not been approached by anyone involved on the Buy Bermuda initiative, and felt it had had little impact on her sales.
Ms Burgess echoed the comments of Dub City's Mr. Outerbridge, in that she said she is preparing for a drop in sales during January, February and March. “We have to budget now for those bills. That is the right approach for this Christmas, as those months are slow anyhow, but it may be worse this year...a lot of people have lost their jobs,” she said.
Sharon Fenn of the Sportseller, in the Washington Mall, said she could not say if the campaign had made a difference, although she said it did appear that more Bermudians were shopping at home, but she said it was difficult to know whether to attribute that to a downturn in travel, or the Buy Bermuda initiative.
Joseph Lopes, at Sound Stage, said: “The awareness from Buy Bermuda is great. It is a good gesture, but I am not sure if it has made a difference yet. But, people must be aware that overseas sales do impact local business.”
Of how his business is doing, Mr. Lopes said his sales are off over the last year. “People don't have as much disposable income right now, and music is more of a luxury purchase,” he said.
Bermuda's larger retailers praised the campaign, and said sales were steady - or better - than last year.
Roger Davidson, director of HA&E Smith's, called the Buy Bermuda campaign a success: “What it has done is to raise consciousness to a major problem.”
Mr. Davidson added that a number of customers have pointedly said they are shopping locally.
Susan Bawn, general manager of Gibbons Company, said: “Our business has been up (over last year) but whether this could be attributed to the campaign, or people's reticence to fly, I cannot say,” she said.
Speaking of the store's customer base, Ms Bawn said marketing is targeted at a local base, and close to 100 percent of their sales come from locals. And she said that sales are up over last year. Ms Bawn added that Gibbons Company, over the last couple of years has ploughed a lot of money in to the store. And has changed its image “dramatically”. Ms Bawn reiterated that it is difficult to pinpoint exactly what to tie to increased sales - whether it be store improvements, Bermudians travelling less, or Buy Bermuda.
Peter Cooper, managing director of A.S. Cooper's, said: “I know there is a lot of talk from the public. And from that point of view it is paying dividends, which is positive.”
Mr. Cooper said sales at Cooper's were down in September and October, but last week showed the first signs of promise. He said he thought Buy Bermuda might have helped, and that sales right now, are just about even, week for week, over last year.
Mr. Cooper added that the last week before Christmas will be most important in terms of sales.
Overall, Mr. Cooper concluded that with raising consumer awareness had been “very worthwhile”. He also praised Government - who put $49,000 in to the project - for its support of the initiative.
