Retail suffering because of online shopping

Bermuda’s retail sector fight against goods bought overseas is not unique.

A report issued on Thursday by Island Analysis which focuses on 21 island economies said “ever increasing volumes of products and services purchased online are now adversely impacting on all island retail sectors (some more than others).

Some of the 21 other islands in the 2013 Island Monitor Report 2, include several in the Caribbean, including The Bahamas, Cayman, Jamaica, Barbados, British Virgin Island, Antigua & Barbuda, Trinidad & Tobago and Turks & Caicos.

Economic crisis

Others include places like Seychelles, Mauritius, Jersey, Isle of Man, and Guernsey.

One of the key features of the report is the effect the global financial and economic crisis has had on island communities and how island governments are seeking ways of developing their economies to handle any future events if there are future economic shocks.

The report lists the financial sector economic contribution of each of the islands and Bermuda ranks fourth overall at 36 per cent behind Guernsey, Jersey and Cayman.

The report said even though each jurisdiction has its own unique selling points and strengths, competition is increasing amongst places “as the market migrates to emerging economies. In addition, mainland countries are now far more aware of the need to generate taxation and increased scrutiny will inevitably put pressure on the financial services sector of island communities.

“This will make it challenging for island jurisdictions to diversify their financial services sector and continue to offer innovative products which meet with international standards in the future.”

The report was the second of four scheduled for 2013. The first one dealt with Government Income and Expenditure. The next one in the series will focus on Island Infrastructure.