Caribbean slump hits Little Switzerland

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Caribbean-based travel retailer Little Switzerland announced last week that its same store sales for the three month period ended February 2002 were down 8.9% on the previous year. Including newly opened stores total sales rose 0.1%. Little Switzerland operates 21 jewellery and fine gift stores on five Caribbean islands, Florida and Alaska.

Commenting on the results president and ceo Robert Baumgardner said: "The company is still experiencing adverse sales results due to the impact on the travel and leisure business by the events of September 11. This coupled with a mild winter in the US has adversely affected vacation travel to Caribbean resort destinations."

"With traffic levels depressed, our emphasis has shifted to improving gross margins while reducing overhead expenses to lessen the impact of these factors on financial results. Finally, the company is gratified with the results of our new Key West locations which has helped supplement overall sales."

According to figures from the Caribbean Tourism Organization tourist arrivals to almost all Caribbean islands declined sharply in September 2001 and there was a further slowdown in October, November and December. Regional tourism rose 4.6% in the year to August 2001, compared to 2000, but declined by 23% thereafter to the year end.

• For a full report on the Caribbean market see the Duty-Free News International Caribbean Duty Free Review just published.