The Retail Beat

There is no way to sugar coat it. The retail scene in Christiansted and Frederiksted has been alarmingly slow all summer long and it continues to be slow into the fall. Granted, there have been slow off-seasons like this before where sales receipts were extremely sluggish, where business owners stayed up late thinking of ways to pull customers into their retail shops or to fill up seats in their restaurant, but this year has certainly ranked as one of the worst in recent memory. In similar past slow years, the weakness in sales has lasted all the way until the first week or so of December, and by the way it looks now, this year may be no different.

The hope of course is that this year will duplicate those slow years that suddenly, almost magically, turned into blockbuster December through May seasons. At least that is the hope, and in some cases the prayer, of many merchants as they plod through this very difficult time and they ask themselves, is there a light at the end of the tunnel? The fact is, there may very well be a light, a very bright light. Because let’s take a look at the culprits that have caused this severe breakdown of revenue.

Culprit # 1: The HEAT! It is very hot. Hot! Hot! Hot! Not just once in a while. Not just a few times a week, but every day of every week for months. Can you remember the last time you awoke and it was below 83-85 degrees? And the thermometer climbed quickly up to 88-92 by noon. And then it stays there, with a heat index that continually hovers around 100-102. Ridiculously Hot! But of course there has been record-breaking heat all across the States and we are just getting our fair share of it.

Nevertheless, it is a well-known fact, you can call it a scientifically proven fact if you like, that people (not AI people, not robots) but real people, do not like to go out and shop when their surroundings cause them to break into a drenching sweat five minutes after they’ve walked out the front door.

What they do instead of going out and shopping, is they decide to stay home if they don’t have to go to work. They hunker down with the AC and get comfortable. They pick out something on Netflix, connect with a few friends on Facebook, click on Amazon, and down a couple of real cool ones. They eat very little. Hydrate very much. And proceed to dump all sorts of items into their online carts. It is no secret that online retailers experience a spike in sales when it stays hot for extended periods of time. So, taking that fact into account, here is a culpable culprit to blame for such a slow off-season.

Culprit # 2: INFLATION! INFLATION! INFLATION! What is eating away at everyone’s pocketbook? INFLATION! Did you know, the cost of food is up 28% in the last five years. It has increased nearly 6% last year alone. That puts a crimp in most people’s budgets who eat at home; and it drives up the costs of eating in restaurants, whether they be fast food or fancy spots. Restaurant owners are faced with the difficult choice of either increasing menu prices and turning customers off, or eating the difference, which amounts to less profits on their end, in a St. Croix industry that is already struggling to make ends meet.

The good news on the inflation front is the 2025 outlook shows food prices leveling off in some areas or increasing only slightly for the year.

The good news on the heat index is the weather patterns are changing, it’s cooling off. The vicious heat cycle appears to be breaking and cooler temps are on the way, as they always are this time of the year.

The other good news is the “SEASON” is fast approaching on STX. The snowbirds and cooler air will inevitably come back. The northerners will start throwing on their layers to keep warm, all the while plotting their escape to the south, to the Caribbean, which has been growing exponentially in popularity for the past several years. And the Virgin Islands, due to the wise and nifty marketing campaigns created by the savvy people at the Department of Tourism, have jumped to the top of the “cool places to be” list. So, hang on, help is on the way!

Nosy News:

**Expansions -

*Molly’s Tropical Boutique is taking more space at her C’sted shop for her great line of tropical men’s and women’s clothing…

*Joyia is moving across the street to 2209 Queen Cross to fill a bigger studio with her beautiful jewelry designs and more. Check out her new lounge area …

*Crucian Gold bought the adjoining building to expand their wildly popular jewelry designs.

**Milestones -

*ib designs celebrating their 25th anniversary of creating their beautiful “Handcrafted Feel Good Jewelry” at their Company Street location…

*Bleu Chocolat in the Caravelle Arcade celebrates their One Year anniversary of creating their delicious chocolates…

**Openings -

*Napoleon’s Pizza opened their 2nd location on KIng Street in F’sted…

*Estera Restaurant opened recently in the Pan Am Pavilion in C’sted.

**Happenings -

*Tara & Bill, longtime managers of Rum Runners, recently purchased the iconic restaurant on the Boardwalk in C’sted…

*Mitchell Larson studio on Company Street to thankfully remain open after the passing of Jan Mitchell, the ‘Grand Lady of Christiansted’…

**Closings -

*Franklin’s disappearing forever from the F’sted scene…