By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
Retail sales are “off terribly from expectations”, a leading merchant telling Tribune Business they were down “at least 10 per cent” from forecast.
Rupert Roberts, Super Value’s owner and president, summed up the Bahamian retail economy’s current condition in one word: “Terrible.”
“I think the economy’s slowed down further, gone off further in the last three months,” he told this newspaper. “That could be this VAT tax having frightened the consumer, making them tighten up on the budget.
“Our sales are off terribly from expectations, most of the merchants are saying that. It’s at least 10 per cent, and we can’t stand that in business.”
Mr Roberts added: “The consumers are having it tough. It just seems that such a high percentage have their electricity turned off, medical bills they can’t meet, bills they can’t meet. They’re maxed out with the banks, and don’t know where to turn. Number one, their food budget gets hit. They just don’t have it.”
The Super Value president said these negative developments were occurring just as signs emerged that the world and US economies were starting to get back on their feet, with the latter having emerged from its latest brush with fiscal meltdown.
Expressing hope that the Bahamas could eventually meet its energy needs via the supply of liquefied natural gas (LNG) from the US, MrRoberts said his three Quality Supermarkets stores represented an investment in the future.
The three locations – Cable Beach, South Beach and Seagrapes Shopping Centre – which were acquired from the former rival City Markets chain for $3.5 million, have been hit by the downturn in consumer spending just like everyone else.
“They’re coming on good,” Mr Roberts said of his second supermarket brand’s stores, “but just like we thought, there wasn’t enough business for them.
“We took them on in hope for the future. When the economy starts to rebound, we’d have stores and floor space to take care of our customers. That is still the goal, and if there’s no furthe mitigation in the economy, we’re going to battle on until it turns around.”
Emphasising that there were no plans for staff cutbacks at either Super Value or Quality Supermarkets, Mr Roberts also expressed hope that the $2.6 billion Cable Beach redevelopment, and the 5,000-plus full-time jobs it is likely to create, would stimulate the Bahamian economy.
“Baha Mar’s opening in one year should be a great help, and hopefully the US economy will improve and Americans will start to go back to their normal mode of travel,” the Super Value president said.
Comments
John 10 years, 5 months ago
This is old news for those who read The Tribune comments section. In face this is the second serious dip the economy has taken this year. The first one was somewhat disguised by the millions that were spent on the web shop referendum. This dip is more serious and more far reaching and if it lasts through December, not only will many families have a bleak Christmas, but expect to see many more business closures come January, since there is nothing on the economic radar to indicate the current situation will improve or that the unemployment numbers will decrease.
John 10 years, 5 months ago
This is old news for those who read The Tribune comments section. In fact this is the second serious dip the economy has taken this year. The first one was somewhat disguised by the millions that were spent on the web shop referendum. This dip is more serious and more far reaching and if it lasts through December, not only will many families have a bleak Christmas, but expect to see many more business closures come January. There is nothing on the economic radar to indicate the current situation will improve or that the unemployment numbers will decrease. Then there is another showdown with Obama and the Republicans in February which will cast doubt in the US economy and cause another slow down.
bismark 10 years, 5 months ago
The cost of living is to damn high in this country!!!!!!!!!!!!!!!!!!!
user45 10 years, 5 months ago
Sales are low at Super Value because nobody wants to shop in his stinky crumbling stores with rude staff, when there is now a competent alternative in Fresh Market.
SP 10 years, 5 months ago
Perhaps Government should be made accountable enough to show us one (1) country in the region that had a margin of success after implementing a VAT taxation system.
If Government is unable to prove without doubt (with examples) that their VAT idea makes sense then the plan must be scrapped....Simple!
Sales or Income tax would probably be the easiest to implement. However, my guess is Government is reserving both for later introduction shortly after VAT.
The country has been badly mismanaged for 40 years, especially more so during the last 20 years with no end in sight as the PLP and FNM are six of one, half dozen of the other totaling the "sunshine boys" no matter how the dice fall.
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