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Monday, July 6, 2009

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Future of Solomon's Mines flagship store unclear By VERNON CLEMENT JONES ~ Guardian Business Editor ~ vernon@nasguard.com: There's growing concern about the health of one of the country's largest retailers, that given the apparent closure of part of Solomon's Mine flagship store on Bay Street last week and the sparse inventory throughout the remainder. "We're hoping it will reopen soon," said one store employee Saturday, telling Guardian Business much of the rented store's high-end jewelry had been boxed up and relocated to one of Solomon's Mines Paradise Island stores. "They've also just closed one of the PI stores as well," she told Guardian Business speaking on condition of anonymity. At least one other worker pointed to the possible closure of one of the company's T-shirt store along Bay Street as well. Attempts to reach company execs last week for a response were unsuccessful, and Guardian Business has been unable to confirm what if any additional job losses have been sustained. The recession is thought to have exacerbated any restructuring difficulties Solomon's has grappled with over the last two years. As recently as last spring, Mark Finlayson, principal for the company, sought to correct reports that tens of thousands of dollars of inventory had been seized by jewelry and clothing suppliers as part of an alleged court order. Still, last month the company was charged with having failed to pay $377,092.90 in NIB contributions between June 2007 and December 2008. Finlayson pleaded guilty, agreeing to work out payment arrangements with the board. As Guardian Business earlier reported, the company has moved to shutter more than seven stores over the last two year, an effort to minimize market cannibalization and pare back on staffing and other overhead costs. There was also a retrenchment to its core markets on PI, with the intentions of rebranding its stores and moving its merchandise on this side of the harbor down market. The latter has been what some retail analysts have long advised. They point not only to the recession but the more-long-term shift in tourists to the destination. As cheap and cheerful cruise ship passengers grow in prominence, the better-heeled stopover visitor has fallen off in number. It means that demand for expensive wears once synonymous with Nassau shopping has also declined. Last year, Finlayson told Guardian Business that he too sees the demographic changes playing a significant role in the reinvention of the shopping experience along Bay Street. It is unclear how Solomon's own moves to stay ahead of that trend have helped it weather the current economic slump, only expected to get worse before an eventual turnaround. Monday, July 6, 2009