We’re approaching the second Christmas season since the incident which has become widely known as 9/11, and like retailers throughout the Americas, our leading retailers, here in The Bahamas are faced with the uncertainty of just how much the reclining position of our economy will affect sales during this Christmas season. The season they depend on to influence the outcome of the years bottom line.
Nine-eleven is the event carrying most of the blame for the economic downturn of the past 18 months, not only in the United States, but the world over.
While this economic boogie-thing continues to exist, some retailers are taking the view that there are simply a number of prevailing factors contributing to a stubbornly, staggering economy and are dealing with it as they would any other obstacle to progress, nipping it in the bud.
Nipping any problem in the bud, as some retailers are finding out, requires a strong determination to look deeply and intrinsically at the immediate cause or obstacle and then proceed to implement measures to overcome the negative or unwanted affects.
In dealing with the woes of producing a selling environment, under our present economic circumstances, some retailers have slowed down, some are maintaining last year’s position, while others are taking bold steps and making the extra effort to do banner business during this — Christmas 2002 — shopping season.
John Bull, Bay Street’s largest and possibly oldest store, has opened to-the-max, the throttle of its marketing engine, in terms of activities, designed to – not only boost sales, but – create in the mind of the consumer, a sense of well being; economic and otherwise. The “Peace On Earth’, theme of last Saturday’s launch, not only has a ring of Christmas bells, it also gives an air of relaxation in a seasonal sanctuary and a high for causing a ring at the cash register as well. With the biggest blitz in the store’s history held on Saturday, launching their Christmas holiday and shopping season, the company seem to have allowed its budget and sales forecasting to do the talking, as nothing has been spared in making the occasion (clearly media-inspiring event) a people-gathering affair.
Under the theme “Peace On Earth”, John Bull has decide to place some emphasis on people as well as profit, according the marketing manager; Inga Bowleg. “Of course from a business prospective you have to justify the money you spend, but this year, we thought we would bear in mind the people element and hope that it would also show up in our sales”, she told us.
Last Saturday’s event featured the country’s debonair Minister of Tourism, Obie Wilchombe, who gave opening remarks. But the real bang came from the Royal Bahamas Police Force Band.
Other attractions included the C.H. Reeves High School Hand Bell Ringers and a variety of selections by a number of local choirs and a jazz band.
Price Busters, known, primarily for excellent deals on toiletries and cleaning products is testing the seasonal waters this year; jumping in with both feet, placing greater emphasis on Christmas decorations.
According to Judith Carey, Price Busters’ principle buyer, the company’s mission is, as always, is to meet the consumer at the point of need, wherever that is.
“So, we’re placing emphasis at this time on Christmas decorations, figurines and certain gift selections,” Carey said.
There has been a slight increase in their budget this year, mainly to cover a new radio ad campaign which gives a weeks/days countdown to Christmas and to remind consumers of the items they can get at Price Busters for less money than they, normally can, any where else.
Michael Anthony Jewellers, the store which is usually heard the loudest heralding the coming of Christmas as a time to buy fine jewelry for loved ones, will be tuned at the same volume this year, except, management will be listening with a keener ear to the noise in the market, before making a sound, approaching the season with some caution, says Treven Darville, manager.
“We’ve noticed that activities, to date, is not what we’ve come to expect by this time of the year, ” Darville said. “People would normally be coming in to lay-away their selections and even make some purchases, but we don’t see that happening yet.”
And, so using the Lay-Away activity (or lack there of) as its barometre, Michael Anthony Jewellers will not be launching theire Christmas advertising and promotions campaign until eleven or ten days before Christmas Eve.
They promise that the volume will be just as high, the deals just as sweet, but management is aiming for impact… More bang for the advertising buck, perhaps.?
Roughly three weekends ago, the people at Kelly’s Home Centre in The Mall-At-Marathon, kicked-off their Christmas promotions campaign with the opening of Toyland and a ‘Trim-A-Tree sale, managernent’s equivalent to John Bull’s weekend blitz, which is expected to keep the crowds coming right up until Christmas Eve, in the estimation of Susan Glinton, a Senior Buyer at Kelly’s, who seem to be betting big that the crowds will come… “Even if its at the last minute,” Glinton said.
She said that Kelly’s is always very aggressive when it comes to keeping up with customer product demands services. “And Christmas at Kelly’s is no different, really”.
The role of management at the Mall-At-Marathon is to attract large numbers of shoppers to the mall and to that end, they held a float parade, last week, featuring Santa Claus and the Mahatma Rice Genie which, from all accounts was quite successful.
As for individual store owners? There are no indications of anyone breaking open the war chest, but indications from talks with advertising account executives at the various media suggests that they – like the people at Michael Anthony Jewelers – plan to get really aggressive, nearer to Christmas Eve.
Mike Shoe Stores threw, what manager, Nina Adderley, is calling “A Big Sale” last weekend, which she is confident will set up the country’s oldest shoe retailer for a good Christmas shopping season.
Like Kelly’s, Mikes maintains a certain level of marketing effort throughout the year. In the case of Mike, though, that level is not known to be very high, but very consistent.
There are other indicators for telling when and how a sluggish economy is likely to affect merchants, this Christmas season, which are activities at our banks, our airlines and our customs department.
However, the way these institutions fit into the mix, it difficult to tell what is happening until after the season is over, at least a month after.
But a scan of the environment suggest that, unless marketers get very aggressive over the next three weeks, January, 2003 – with a lot of inventory on their hands — may not find them in the best mood… Not to mention a monetary position.
Scotiabank, The Bahamas’ leader in consumer lending, reports most of it’s branches are showing considerable decreases in applications for Christmas shopping loans, compared to the same period of two yeas ago.
While an officer in the corporate vice-president’s office feels that, in part, the reason for this may be that Bahamians are becoming financially smarter and placing higher on our fist of priorities such things as mortgage, education and even investments, it is probably safer to assume that a fear of loosing a home or car that is causing a bit of belt tightening or sound reasoning.
Looking at the same screen, on First Caribbean International’s (formerly CIBC and Barclay’s Bank is showing that rather than take out loans, in the traditional fashion, many Bahamians are probably just taking their credit cards to the maximum limit, giving them more control over spending, what she wants, how and when they wants the use of their interest-bearing dollars… Not to mention the convenience of not having to look for U.S. dollars, a local bank or on the streets.
A casual observation of the airlines – Bahamasair, American Eagle and Continental Connection in particular — the load factors are not visibly less than previous year, but baggage per man doesn’t seem to be as heavy, but that could also be due to the high costs of excess baggage forcing shopping Bahamians to ship their purchases by freight boat.
Of course, when the activity is split in this, then it becomes somewhat difficult for Bahamas Custom to measure goods imported for personal consumption from that import6d’ as commercial distribution.
At the end of the day, there is probably no way around it, The slow down in our economy – due to 9/11 or not – will, adversely, affect marketers this Christmas season. The question is, how much so?
David A. Clarke is a practicing media consultant based in Nassau and can be contacted at kewturks(d)-yahoo.com
