Retailers slashing prices to attract customers

With just three shopping days left until Christmas, retailers are hopeful of hearing the sound of jingling cash tills.

After a dour year in the retail sector last-minute Christmas gifts could provide a much-needed boost to island businesses.

Many have already held pre-Christmas discounts in the hope of drumming up sales before the year end.

Kristi Grayston, chair of the Bermuda Chamber of Commerce retail division, said: “We’re definitely down this year and this rain isn’t helping at the moment.

“Retailers have been discounting and extending their opening hours.”

Mrs. Grayston, the owner of Pulp & Circumstance, said: “We’ve started discounting in our paper store, such as selling Christmas cards half-price.

“We’ve still got a few days to go but I think overall, we will be down this year.

“People are definitely more guarded with their spending. Hearing about layoffs, people are nervous and this is being expressed in their spending habits.”

She added: “But the good thing about this week is it’s too late to buy online now and so people have to buy locally.”

At Gorham’s hardware and appliance store, managers have discounted all stock by 10 per cent this week.

The storewide sale started on Monday, but the discount increases to 15 per cent for one day tomorrow (Thursday). The discount applies to cash sales only.

Christmas decorations however, will be half price.

Company director Rod Farrington said: “We’ve had discounts on decorations in previous years but usually it’s been after Christmas.

“Because of the economy and everyone watching their pennies this year, we decided to do this in advance.

“And we’ve never offered a store-wide discount ahead of Christmas before either.

“We are trying to help people make their pennies go farther this year.”

Last weekend, The Phoenix Stores ran a 25 per cent off sale at the company’s Annex Toy Store.

Shoppers also enjoyed 20 per cent discounts at Brown & Co’s bookshop and home store.

Nicole Warren, Phoenix Stores general manager, said: “We had favourable results, it was very busy.

“We also offered customers a ‘bounce-back’ coupon. If they spent more than $50 we gave them a coupon for a 20 per cent discount in January.”

At Daisy & Mac children’s store, customers also took advantage of a 25 per cent discount off toys on each Friday in December.

The sale coincided with in-store visits by Santa Claus, where children were given a toy and a further 10 per cent off coupon.

In telecommunications, retailers have also initiated discounted goods to drum up footfall.

CellularOne cut prices on its handsets, offering savings of between $50 and $400 on some models.

Rob McNabb, marketing director, said: “We’ve got every handset in the store on sale until December 29th.

First cut

“This has been running for a couple of weeks and coincides with our The Big One competition, where people signing up for a new contract are entered into a draw to win a year’s free cellphone service.

“Sales have been steady and we’ve sold a lot of BlackBerries, iPhones and Androids.

“It’s been pretty good from a retail perspective.

“In this economic climate, cell phone bills are one of the things people cut down on first, so this is an opportunity to also give back to clients.”

At AS Cooper’s department store, discounts have also been available.

Somers Cooper, company CEO, said: “We have sales of up to 50 per cent off certain items in each store right now.

“Business has not been very consistent. Some days we’re up several digits and the next, we’re down. “This week will be very important as it will be the real tell-tale of how we are doing this month. But up until now we have been slightly under on last year.”