By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
BAHAMIAN retailers are aiming to get "as close to US prices as possible" to encourage more local consumer spending and benefit the economy "tremendously".
Tara Morley-Nolan, the Bahamas Federation of Retailers (BFR) co-chair, told Tribune Business yesterday that the industry was taking advantage of the 25 percent customs duty elimination on shoe and clothing imports, although it was still "too early" for any noticeable impact on sales.
"I don't know if people are noticing a difference yet because it's probably going to take a while for people to replenish their floors," she said. "They wouldn't have brought in enough merchandise for a significant portion of their merchandise to be reduced yet.
"Everyone I know has been proactive in applying for the exemption. I'm now just sort of getting details on where there are hiccups clearing shipments and that sort of thing, so I think there are still some growing pains. I think that's because it's a new programme and, after a few months, that should become easier."
Mrs Morley-Nolan added: "I think people are just excited to have lower prices and to finally be able to compete with the US market. Customers ask how come this or that item is more expensive than the US.
"When we are finally able to say it's the exact same price as the US, then those customers that walk back out of the store will actually want to shop with us. The goal is to try and get as close to US prices as possible."
She acknowledged that there are other issues affecting retailers' competitiveness. "Obviously there are some other issues such as living on an island with the cost of shipping, which is impacted by duties, and the cost of doing business here in general," said Mrs Morley-Nolan, noting that the BFR represents over 100 retailers.
"I think the more you are able to encourage more reasonably priced consumer spending at home, rather than people trying to smuggle everything in their suitcase, the better it is for the economy. The economy would benefit tremendously. The Government would receive more tax dollars when people shop at home rather than abroad," said Mrs Nolan.
The Government made a provision in the 2018-2019 budget to "waive" import duties for retailers and importers of clothing and shoes in a bid to improve the sector's competitiveness against online and foreign rivals.
Comments
birdiestrachan 5 years, 7 months ago
In my view the Government and the merchants are in a conspiracy to keep poor people poor. This is my belief and I am sticking with it until I see different.
The_Oracle 5 years, 7 months ago
Pure spoon fed Garbage Birdie, but you eat/ believe what you want. Income from Retail ranking is overseas suppliers, Government (licenses, duty, VAT taxes) payroll, Power co, phone co, Insurances and repairs and renewals. Now if you don't pay the above and fill your pockets from the till...... but they don't last long.
Porcupine 5 years, 7 months ago
Most ridiculous statements ever. The economies of scale alone will never allow prices to be comparable with the US. Once you include shipping, duty, insurance, with VAT being charged on all of the above, and Customs brokers fees, the price will still likely be at least double. Just for shoes and clothes. All other prices will remain 3 times or more the prices you find away. Perhaps this is why some people claim we have fake news.
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