JCC says some businesses reporting decline in Christmas sales

 

With Tuesday expected to be one of the biggest shopping days of the year, the Jamaica Chamber of Commerce says some food distributors, retail and hardware stores are reporting a decline in Christmas sales when compared with the last holiday season.

 

Phillip Ramson, President of the Jamaica Chamber of Commerce, says consumers are spending cautiously due to the high cost of living.

 

In an interview with Radio Jamaica News, Mr. Ramson said many shoppers who got Christmas bonuses on their salaries are using that money to pay bills and settle debts instead of splurging.

 

He said he conducted a telephone survey of businesses selling various products and they have been bemoaning the sluggish sales. 

 

"When you look at retail in terms of clothing and items like, for example, a lease, they said that they are slightly down over last year, almost 10% down below last year. They have had to do a lot to try and entice and encourage customers. They said the traffic or the flow of persons coming in and out is a little less. The baskets on some have been bigger, but because of the amount or the reduction in persons, they're seeing a little less."

 

He said business operators also highlighted an influx of pop-up or suitcase stores which have also affected their businesses. 

 

Meanwhile, Mr. Ramson believes the increased duty allowance from US$50 to US$100 has resulted in more Jamaicans importing goods.

 

He said this has negatively affected foot-traffic to stores. 

 

"The increase in the duty-free allowances that came into play has opened up a little bit of an avenue there for people to try and bring in and sell themselves. And so of course, that's going to affect the brick and mortar retail outlets. And that has been a complaint from them from the time the allowance came in, but they have been working on trying to find ways to encourage themselves. They've been able to maintain their pricing, which has been big for them. But overall, they are down over last year," he noted. 

 

"I think this Christmas too, because of the way the days fall, it does affect it. I mean, every year you have to look at how many shopping days you have and how often you can stay late," added the JCC president. 

 

Mr. Ramson said companies in the beverage industry have not been doing too badly. 

 

"The entertainment industry has been fairly active and busy, which pushes beverage. But because the pricing in cost of living and pricing of food is so high, people are really watching their pockets. And so generally food has been flat," he outlined.