Island Trading celebrates its 40th birthday this month in the midst of a challenging business environment.

Inflation is high. Electricity costs are going up, and customs duty is not working in their favour.

“It is 25 per cent,” owner Laura Farge-Lowe said. “Everybody is struggling with everything right now, from paying for electricity to clothes and food. Bermuda is in an inflationary environment.”

And yet the business of selling pool supplies, rain coats and indoor and outdoor furniture, is doing really well.

Their secret is strategy. “We endeavour to price really competitively,” she said.

That has meant sometimes taking bigger shipments to make sure they have a good inventory in stock.

“Sometimes that means getting a discount because we have paid early, or a discount because we have bought a certain amount,” she said. “We can pass that savings on to our customers.”

There are still labour and international shipping costs to deal with.

“Those are going up and up,” she said. “But I would say we work really hard to choose products at the right price. We go out of our way to do that right and to negotiate with our suppliers on shipping and on pricing.”

Like a lot of retailers they struggled with supply chain issues during the pandemic.

“We used to get our recycled Adirondack chairs from two different suppliers,” Ms Farge-Lowe said. “During the pandemic, one of them was letting us down and we were not able to get the product fast enough.

“I said to the other supplier, if we move all our business to you, would you give us free shipping? They did, so that saves money for us, which we can pass on to the customer.”

Her mother, Gillian Farge, started the business back in 1983 out of the back of her car.

She did so well, she was soon able to move into a shop, directly across the street from their current 10,000 sq ft showroom at 93 Reid Street, Hamilton.

After working in banking overseas for a few years, Ms Farge-Lowe took over the running of the business a decade ago. Her mother stayed involved until earlier this year when she fully retired.

“Taking over was an opportunity to take a successful operation and grow it,” Ms Farge-Lowe said.

Their long experience in the business is an asset. “We are never going to be like a huge US retailer, but we have had longstanding relationships with the suppliers we buy from,” Ms Farge-Lowe said.

For example, they have been with Gloster Furniture for 35 years.

Competition has waxed and waned since 1983. Earlier this year, a large furniture store moved in a few blocks away.

Ms Farge-Lowe is not bothered.

“They are servicing a different area of the market, which is great,” she said. “It is wonderful having them there.”

She said, historically, their part of Reid Street was a furniture hub for Hamilton.

“It is great to see that coming back,” she said.

Having more furniture stores in the area drives up the foot traffic for Island Trading.

Ms Farge-Lowe started helping out in the store when she was 10. “Retail is in the blood,” she said.

Her maternal grandmother ran a hat and shoe shop in Manchester, England. Her seven-year-old daughter, Freya, is now showing interest in the store.

To celebrate their four decades in operation, Island Trading will hold a 10 per cent off sale in the store tomorrow and Saturday.