Shops feeling the pinch

Dec 26 2008 by Julie Watt, Dumfries Standard Friday

DUMFRIES retailers and businesses are starting to show the signs of people tightening their belts in the economic slowdown.

The impact of the global credit crunch is being felt in the town where a pattern of for sale, to let and empty premises is emerging.

The High Street has been badly hit with the announcement of Woolworths and Klick Photopoint and Munro Cleaners both being forced to close as a result of the crunch.

And Rab Smith, chairman of the town’s retailers’ association, fears that the worst is yet to come.

He said: “All you have to do is look at all the empty shops in the High Street to notice how the credit crunch is affecting Dumfries retailers. This has been the worst Christmas for retailers in Dumfries for decades, across the whole board.

“Woolworths and Klick Photopoint are just the beginning, I can see more being forced to close in the next year.”

MrSmith believes it is the small outlets which have been hit hardest over the festive period.

He said: “The problem really lies with small, family-run businesses. Bigger chains will not be affected by the credit crunch the same way smaller stores will.

“At Christmas time shops should be booming. In October, November, December shops should make around 60 per cent of their intake for the year, however under the current climate that figure isn’t even close.

“My own shop is down in revenue by 26 per cent from last year.”

Retailers have been forced to slash prices by as much as 75 per cent in the run up to Christmas in a last ditch effort to encourage spending.

Rab said: “Many outlets in the town have slashed prices as a way of getting cash in the till. However sales are a survival technique, I don’t think it’s worked as well as some retailers had hoped. Shoppers are searching out their bargains and are being canny with their spending at the same time.”

Businesses could also be missing out on thousands of pounds over the Christmas period as workers spend a record number of hours shopping online.

With the credit crunch burning a hole in their pockets, huge numbers of shoppers have chosen to swap queuing in crowded high streets for browsing cyberspace at their desk.

However, according to MrSmith, online shopping will never take away from profit made in store.

He said: “Online shopping is another way to bring in revenue, it can only be a good thing. I don’t think it will affect sales massively because people will always want to touch, feel and try on the product they are buying.”

The answer to Dumfries surviving the economic downturn, according to Mr Smith, is for novelty stores that are unusual, exciting and unique to open in the town.

He added: “Look at Castle Douglas and Thornhill: they have lovely interesting stores that makes them appealing to shoppers.

Lets give people something different that the big cities don’t have.

“Houstons Butchers is a good example of a local family run business that is unique and interesting. If we had 150 to 200 stores like that we could be a very successful retail town.

“Lets be the first town to buck the trend and offer something different, unique, interesting, exciting, that leaves shoppers happy with their experience in Dumfries.”

The retailers’ association is currently putting together an online site publicising businesses in Dumfries.