I have asked this question to some of our retail shop owners here and most either won’t say ‘yes’ or ‘no’, are evasive or say a flat ‘no’.

This is in stark contrast to what they say in the USA and the UK. Some of our well known UK retailers are gone like Woolworths and British Home Stores. In the USA Macy’s and Sears are only two of a long list that are suffering lower sales. In fact 21 retailers in the US have closed a staggering 3,591 stores over the last 12 months!

They all have blamed the online impersonal shopping where customers can get their goods cheaper and now nearly as quickly without the need to go out of their home.

I particularly inserted the word ‘impersonal’.

In an article we have published today under the title “Retailers’ woes stretch far beyond lower prices” most retailers surveyed said the main reason was “consumer price sensitivity” (55%) and tying at 49% online competitors eroding their business. And lack of consistency and productivity from employees.

The researchers who wrote the report, Paula Rosenblum and Steve Rowen, however don’t agree with this assessment. In fact they said it was “shocking” that retailers considered price their biggest problem when consumer data shows they should be most worried about in-store service, competitive differentiation, and customer dissatisfaction.

The researchers named what they consider the actual problems:

In-store service complaints when disgruntled shoppers can easily buy online (even from the store).
Lack of competitive differentiation.
Overall customer dissatisfaction with the in-store experience.

When retailers make price their key concern, consumers cherry-pick the best deals, the article says quoting a RSR study. “That may lead to increased sales, but it drives margins down. That makes less money available to revamp stores to give consumers the convenient, differentiated shopping experience they are demanding.”

So why is it different here? Is it because customers in the Cayman Islands experience the in-store service, competitive differentiation, and are therefore satisfied?

I would love to think that.

I fear it is we live on an island (three in fact) and anything we import from abroad, even with the discounts, have import duties levied on them, plus the transportation costs from the first source we bought it from. Therefore cost is not so much relevant. Then there is the time it takes to arrive here. Then we have to go and clear it.

Our retailers are therefore protected somewhat.

The Internet online shopping has not as yet affected them. May it be so.