The island?s only maternity store is closing its doors and the shop?s co-owner is sounding a caution that more businesses could shut if the public does not support Bermuda retailers.

Since opening on King Street in May 2004, New Additions Boutique has been outfitting mothers-to-be in everything from wedding dresses to trendy clothes. While the shop recorded ?exceptional? business during its first year-and-a-half, in November last year sales declined by 25 percent and have not improved since.

Increased Internet shopping coupled with the public?s increased knowledge about low duty rates charged on items imported via the couriers and post office are the only reason New Additions? co-owners Amanda Hamza and Tracy Paiva could find for the dramatic drop in business.

While the public pays 25 percent duty on any items they import at the airport, duty is only 6.5 percent on clothing shipped in by courier or mail and just ten percent for shoes.

?I?m not saying people aren?t entitled to choice, but retailers should pay less duty than a normal person because we have a huge overhead,? she said.

Ironically, retailers trying to encourage people to buy locally may have been the very people who spurred public awareness about the lower duty rates. In outlining the difficulties local retailers face, the Buy Bermuda campaign actually publicised the duty rates last November.

?What people don?t realise is that when they are looking on the Internet and see clothing for $20 they never factor in the 6.5 percent duty or the shipping costs so a $20 item will end up costing them $40 whereas our cheapest piece of clothing is just $21,? said Ms. Hamza. She adds that the store?s prices are less than those at big chain stores such as Motherhood and women were able to try before they bought to make sure the item fits.

Kristi Grayston, co-chair of the The Retail Sales Division of the Bermuda Chamber of Commerce was surprised and sorry to hear about New Additions, noting however that small specialty boutiques tend to have a hard time in Bermuda because it is such a small market.

Overall, she said that the feeling in the retail sector is pretty optimistic with many stores now revamping their shops and investing in their businesses.

?We had a hard year last year with long liquidation but things have turned the corner now and sales are going well,? she said.

Even so, retailers around the Island are concerned about Internet shopping which they say is growing as a result of the low duty rates. As such, the Retail Division has brought their concerns about the duty charged on items imported by courier or postal service to the attention of Minister Finance Paula Cox.

?The minister is very fair and appreciates that not much has been done for retail so I hope to see something in next year?s budget,? said Ms. Grayston.

The Retail Division also wants the Department of Statistics to include courier and postal items in their monthly figures for overseas spending. Currently, the overseas spending figures in the Retail Sales Index only reflect the amount that residents bring in by plane.

Ms. Grayston said this omission means they cannot get a clear picture on how much shopping residents are actually doing overseas each month.

Whatever happens on the government level, it will be too late for New Additions.

?We can?t stay open six months more until government makes its decision to change the duty. We have done everything in our power to stay open,? said Ms. Hamza said.

She was poised to begin liquidating the shop at a big loss this week but on Thursday evening, she got a last minute reprieve when the owner of Bears Children?s Boutique agreed to buy all of the stock.

Bears owner Dawn Zuill is also concerned about overseas shopping since all local retailers go to great expense to import and sell items.

However, she is optimistic that her move into maternity wear will be good for her business. Besides being in a location that sees more traffic, with an average of 800 pregnancies on Island per year maternity wear will be complimentary to her current business devoted to selling clothing, gifts and necessities for babies and children.

?People are getting pregnant every year so there are new clientele every year,? she said adding that it stands to reason that pregnant clientele will eventually evolve into customers seeking items for the babies and growing children

Her store has been constantly evolving to meet local needs and tastes.

?We started doing consignment and as the market changed we moved into new clothing and gift items for baby showers and birthday presents.

When Trimingham?s and Smith?s closed, it opened up a market for clothing and basics and everyday clothing.

Then ToysNStuff closed and again it opened another hole in the babycare, breast pumps and stroller market. Now New Additions is closing and we?re picking up their stock in hopes we will be able to provide options to the mommies out there,? she said.

New Additions only employed Ms. Hamza, Ms. Paiva and a part-time employees. Both business partners already have other prospects on the horizon while their employee is a retiree who said she only worked at the store to help her friends out.