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Smaller stores begin to feel the pinch

Bermuda's biggest shops have shied away from opening four days a week in the face of a major slump in sales because it would send the wrong message to the community, Chamber of Commerce president Charles Gosling said last night.

But larger retail stores are looking at moving to winter staffing hours - cutting the working week from 37.5 to 35 hours - rather than shutting down for an extra day each week.

Mr. Gosling revealed smaller stores which are almost totally dependent on tourism began yesterday to cut staffing hours or opening hours.

This is in response to a massive downturn in arrivals following the September 11 terrorist attacks in the United States.

The big Front Street stores will reassess the situation towards the end of the month when the cruise ship season ends, but a four day week is unlikely between now and New Year, said Mr. Gosling.

The retail sales division of the Chamber of Commerce met last week to decide how to respond to collapsing sales in the wake of the terrorist incidents.

Mr. Gosling said ten days ago that a four day week would be considered, but he said yesterday the suggestion had not been voted on at the meeting.

A four day week could undermine the `Buy Bermudian' campaign which shops are supporting to persuade locals to spend their dollars on the Island rather than the US.

Mr. Gosling told The Royal Gazette yesterday: "The larger retailers felt it would be sending out the wrong message to go to a four day week. One thing that came out very strongly was that we want to instigate this Buy Bermudian programme.

"The larger retailers are looking at other avenues like winter staffing hours. A lot of them were looking to wait until the end of the cruise ship season, towards the end of the month, and making a decision on how things are panning out.

"Some smaller stores which are almost 100 percent visitor related are, as of today, going to shorter staffing hours or hours of operation."

Bermuda Alliance for Tourism (BAT), the Department of Tourism and the Bermuda Hotel Association (BHA) are working out a package for an autumn promotion in the US which would see discounts for tourists across the Island - including hotels, shops, transportation and services.

Mr. Gosling said details of the plan were still being worked out, but it would probably involve a passport scheme or giving discounts for additional purchases of similar items.

"The retail-sales division of the chamber is looking at ways of creating revenue that will hopefully delay a number of staffing issues. I doubt very much that there will be a four day week between now and the New Year," he said.

"The Department of Tourism, BAT, and the BHA are looking at a programme with the help of the Chamber of Commerce that will hopefully bring visitors to the Island.

"Some shops will be doing a discount programme, but there is a general reluctance of retailers to give discounts because it creates a sale mentality if everything is on sale, and there is no such thing as a regular retail price. Some will be discounting, but the majority will be looking at a value added programme."

He hinted there could be good deals for residents as the shops try to stimulate sales through the Buy Bermudian programme.