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.”