PM 'disappointed' over retailers' online absence

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Prime Minister yesterday said he was "disappointed" that some major Bahamian retailers have not established an online presence as he pushed back against merchant complaints on curb-side sales.

Dr Hubert Minnis, in unveiling the Economic Recovery Committee's (ERC) executive summary report in the House of Assembly, said he hoped "most if not all" retailers will develop e-commerce platforms so that they can become more globally competitive.

"We are in the 21st century," the Prime Minister said, recalling how he hailed the potential of tele-medicine and digital healthcare when he was minister of health in the 2007-2012 Ingraham administration.

"It disappoints me that some of our major stores still do not have online functionality where one orders equipment, and orders materials, to have them delivered to their respective places or for pick-up," Dr Minnis added.

"I would hope that most, if not all, our stores will move to online purchases and online payments so they can truly compete in the global marketplace."

The Prime Minister's comments came in response to opposition voiced by many retailers to the Government's decision to force them back to curb-side sales only as part of the latest restrictions designed to suppress COVID-19's spread on New Providence.

Kelly's House & Home announced it was closing "until further notice" from 6pm on Friday, October 6, in response to the curb-side restriction, with other retailers predicting that their sales would fall by anywhere from 30 percent to 70 percent compared to in-store levels.

Brent Burrows, CBS Bahamas (Commonwealth Building Supplies) general manager, said in August that curb-side was equivalent to just 20 percent of his firm's normal sales and “not as easy” to pull-off as many think.

And Khrystle Rutherford-Ferguson, the Bahamas Chamber of Commerce and Employer's Confederation's (BCCEC) chairman, previously warned that "retail businesses will be impacted" by the latest lockdowns as there are practical issues regarding limiting their commercial activity to curbside pick-up only without including appointments.

"We also acknowledge that many of our members are not able to offer delivery and curbside pick-up due to the nature of the goods and services they offer," she added.

Dr Minnis is correct in that COVID-19's lockdowns and restrictions have reinforced the value for Bahamian retailers in developing online/e-commerce operations, together with digital payments and ordering systems, which allow customers to still transact business with them electronically for curb-side, pick-up and delivery.

However, several merchants earlier this week warned that they were mulling whether to follow Kelly's lead and close once again until in-store sales were allowed to resume by the Government.;

Egan Kemp, president of Eunison Company, the Shoe Depot's parent, told Tribune Business this may be the only way to stem the financial bleeding and conserve dwindling cash resources.

Referring to the present weekend lockdowns, he said: "Losing the Saturday is about 40 percent to 50 percent of our sales, and especially during the COVID-19 times because people really can only shop on Saturday as they have to work all week.

“We looked at the numbers last week. If you look at our operating expenses, we are losing money. Kelly’s made the right decision. If I had my own building I would shut down, too.” While he has to “keep some cash in the till, if this goes on indefinitely I may close down to conserve cash. Every retailer I have spoken to is in the same boat; they are either losing money or barely breaking even.

“I feel the Government is purposely targeting us, because they are obviously choosing winners and losers. They have not given us a medical reason why some can have persons inside and not us. There is none. I feel like a prisoner, and the Government only lets us out Monday to Friday to collect the taxes off of our backs, and puts us back into our houses on the weekend.”

Mr Kemp added: “I still question all of the medical reasons for the Government’s response to a disease that, statistically speaking, only negatively affects 1 percent of the population. I don’t see the sense in doing that to our country.

"The cure is much worse than the virus. The only people who are fine with lockdowns are the politicians and the Government workers. They are able to draw full salaries, so this shutdown doesn’t affect them.”

Clothing (apparel) retailers have been among the hardest hit because curb-side restrictions, which prevent customers from going in-store, are a major obstacle to trying garments on before they are purchased. And, especially for those without an online presence, there is a growing concern that the Government's measures are merely driving Bahamians to order products from abroad.

Margo Farrington, Lorene’s chief marketing officer, said: “We cannot keep this curb-side up. It is ridiculous. For one, customers like to come in and try on things. They like to touch and feel and look at things, especially for women who need bras. They may not know their size, so they have to be fitted. It’s not working for clothing at all. Our customers want to come inside, they want to look.”

Comments

The_Oracle says...

Obviously Minnis has no clue how that works, that the Banking system works against it,
that creating an online portal to inventory and payables is expensive and requires investment and costs beyond what most retail entities can bear, even pre Covid.
An online presence is an ongoing maintenance overhead/cost.
With the banks evading liability for fraudulent debit and credit card use at every turn and seriously lagging in the implementation of their own responsibility for facilitating that aspect.
Always the problem with Government, zero homework done, magic wand has dead batteries,
wand operator is clueless.

Posted 22 October 2020, 2:46 p.m. Suggest removal

DWW says...

its like me telling him how to perform a DNC without anesthetic. so disappointing

Posted 22 October 2020, 3:08 p.m. Suggest removal

Economist says...

PM please put in place a reliable (Hurricane resistant) 21st Century banking system that offers the same services as they do to businesses of all catagories in Canada and at the same cost as Canada.

Also make the bank provide the services with the same ease of application as they do for Canadian businesses.

Do you have any idea why it takes weeks and months to open a bank account in The Bahamas and the same bank opens accounts in Canada on the same day?

Solve the above and then make your statement.

Posted 22 October 2020, 3:55 p.m. Suggest removal

John says...

For a business to effectively set up a cost effective online shopping system it would be better to do so in a foreign country like the US or chins where goods can be dropped shipped to the retailer’ then forwarded on to the consumer. That way the retailer avoids all the additional shipping costs, warehousing costs, customs duties and vat. So then that retailer can now offer free shipping to his customers all around the world and the costs will be the same or less than operating in The Bahamas. And besides there being a problem with methods of payment where the retailer exposes themselves to fraud and possibly losses in the thousands. Many local consumers still don’t have a credit card or debit card. And that will be essential to a business that will be doing deliveries as the crime element now becomes a challenge and must be taken into the equation. But some small individual sellers are doing robust business online offering their products and services on platforms such as Facebook. Again the issue of trust comes into question as the horror stories abound about persons purchasing items such as cell phones or computers or even car parts only to find the item doesn’t work or is not in the condition that was described. In the US and on the Chinese platform, businesses like Amazon, Target, Walmart and others expect this holiday season to be the most busy, record breaking online selling period ever. And Fed Express, UPS, DHL and other couriers , despite hiring in excess of 100,000 temporary workers, are having doubts that they can get the millions of packages delivered on time. And so online sellers are encouraging shoppers to make their purchases now.

Posted 22 October 2020, 4:09 p.m. Suggest removal

whatsup says...

STOP THE FEAR!!!!! How many cases does The Bahamas have per capita? How many deaths does The Bahamas per capita? EXACTLY!!!

Posted 22 October 2020, 4:34 p.m. Suggest removal

Economist says...

330. WE are the 6th most deadly country in North America, Central America and the Caribbean,
That is 6th most dealy out of the 39 reporting in that group.

Seems to me we have something to worry about.

Posted 22 October 2020, 9:36 p.m. Suggest removal

HarryWyckoff says...

***Active Cases per 100k of Population*** - 617 (one of the highest int he world)

***Case Fatality Rate***: 2.12% (one of the highest in the world)

***Mortality rate per 100K Population***: 33 (one of the highest in the world)

Posted 23 October 2020, 5:56 a.m. Suggest removal

John says...

Retailers cater to consumers require convenience. A contractor cannot wait for a shipment online when he can dispatch a truck and pick up 30 sheets of plywood and some nails to keep his workers occupied, And retailers thrive of compulsive buying. Do they get you into the store to buy a can of paint and you end up buying a dozen other items, most of them you don’t really need and some you don’t need at all.

Posted 22 October 2020, 4:37 p.m. Suggest removal

joeblow says...

Every time this PM opens his mouth he shows just out of touch he is with the Bahamian people and the real life challenges they have and I can't believe we have been paying him for the past 7 months!

Posted 22 October 2020, 5:23 p.m. Suggest removal

thps says...

I agree with the PM.

Unlike retailers, the Govt has set a great example and has had 'most or all' of its services online and 'most or all' of its workers working remotely.

Just look at the

Posted 22 October 2020, 5:44 p.m. Suggest removal

ThymeOnline says...

Thyme Online, a local business, has been building out websites with full e-commerce integration, with local banks, for the past 10 years.

The costs are less than a months rent at even the smallest retail store.

For any forward thinking business, it’s a no-brainier.

Get in touch - we’ve got you covered!

Posted 22 October 2020, 5:46 p.m. Suggest removal

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