To avoid new import taxes in the United States, Gibbons Company is sourcing fewer items from North America, its chief executive has revealed.

The head of Gibbons Company said import taxes enacted in the US in August had been the biggest challenge for him this year.

Executive director Tony Thompson said they were now importing fewer goods from the US in an effort to avoid increased prices from President Donald Trump’s new tariffs.

The firm’s luxury home goods store, Palm Lane on 17 Reid Street, Hamilton, features goods directly from countries such as India and China.

“Luckily, we have been diversifying our vendor mix more since Covid-19 and even a bit before that,” Mr Thompson said.

“So the issue has not been as big as it would have been if we had been completely dependent on the US for our products.”

Gibbons Company has logistics teams worldwide sourcing goods.

“This allows us to better control our pricing and return that to the customer,” Mr Thompson said.

The ability to pivot quickly has become increasingly important for local retailers, he said.

“You cannot put your head in the sand when you are faced with challenges,” he said. “You wake up in the morning with a plan and all of a sudden there is a strike on the docks, or a hurricane.”

Gibbons cuts the ribbon on Palm Lane today and hopes to open to the public later in the week, offering premium bedding, furniture, towels and other items.

The store is completely separate from Gibbons Home on Church Street.

The lowest-priced items at Palm Lane are about twice the price of the top-tier items at Gibbons Home.

“We have been mindful not to duplicate ourself and potentially cannibalise our own sales,” Mr Thompson said. “Palm Lane is something completely different. Gibbons Home has basics and is trend driven. This store offers products in neutral colours. The premium customer loves classics.”

Mr Thompson said many Bermudians imported items from overseas stores such as Pottery Barn, Restoration Hardware and Crate & Barrel because they could not find a similar product locally.

“We wanted to provide that level of product, style and quality,” he said.

“Some of these items, such as bedding are big and bulky. When you bring these things in, they often end up being twice as expensive by the time you pay for shipping.”

The store opens just in time for the start of the Christmas season.

“We have had a fairly good year,” Mr Thompson said. “We opened our storage solutions store, Contained, last autumn. That is now on Queen Street. That has done well throughout the year. People love home storage.”

He said sales across the board had gone fairly well for Gibbons Company, especially considering the continuing popularity of online overseas shopping.

“Bermuda’s population is smaller and different compared to what it was five to ten years ago,” he said.

Gibbons Company spent a year revamping the space at 17 Reid Street, which it owns.

It has expanded the floor space from around 1,400 square feet to 4,000 square feet.