Even with a big upswing in business over the next week, many retailers will not be over the top of last years sales and fro some, who stocked up heavily on inventory, the next three months will be a major challenge. Locally there has been a number of negative influences in the market, like hurricane Joaquin and the major set backs and disappointments at Bah Mar. Consumers are wary and very cautious and are only shopping with money that is available and then only purchasing essentials. Many feel the introduction of VAT has pushed up the cost of living, food especially by at least 20 percent. The world markets are not much better due to the attacks and threats be terrorist. Then is has been an "extremely hot" winter thus far and many retailers have been unable to move winter merchandise. So new spring inventory is being pushed back at the factories and shipping ports as retailers scramble to make space. Even with oil prices down to around $35 a barrel and expected to go lower consumer confidence is down. So it's a buyers market. But even with deep discounting over the Thanksgiving holidays, retailers were not able to realize a significant increase in sales. This is not a picture of doom and gloom. It is a matter of a wiser consumer managing his spending better in uncertain economic times.

When discounting does not work and increase profits by increasing volume, retailers may resort to increasing prices to cover overhead based on their current volume adjusted for increased prices. Some retailers may chose to exit some markets

**......................................... The sky is not falling. *Its already fell!* ..................................**

With an already weakened economy continuing to shrink in every sector, consumers across the board have less available disposable income.

Retailers will feel the pinch with dismal pre -Christmas sales, and better be prepared for the burden of unsold stock and overdrafts after Christmas!

Big sales everywhere predicted after the holidays.

The fact is that the full effect of VAT is just being felt by some businesses. Despite government saying it is a 'pass thru' item that will not affect business operating expenses this is not the true case. There are some VAT payments that businesses cannot recover. Also because VAT is being collected 'up front', the cost of inventory has increased. So when there is pilferage, shrinkage or obsolete merchandise the write off to the business is greater, not just by 7.5% on the cost of goods, but on the ***landed cost of the goods***. This can eat into a company's profits severely and make a difference between profit and loss o the financial statement.

It is my hope that this is a sign that Bahamians are learning that they can get along with less. and put their funds to good use like paying their bills and not being broke and busted come January 2016 who live to see it the good Lord willing. This is my view and I am sticking with it, How many bed quilts, rugs and curtains does one really need. Not to mention designer bags and false hair. then when they can not pay their bills, They blame every body from the Government down.

In the past few years I've noticed a rise in the number of clothing stores selling cheaply constructed clothing. In this article I notice that the high end stores are complaining of a bleak Christmas while the low end store couldn't wish for a better season. Has some troubling parallels to the tale of the new car and used car dealers. Economic realities staring us in the face.

.............. Christmas trailers soon reach ......... courtesy of Hurricane Joaquin ....................BOL