Digital Jamaica throws sales lifeline to furniture companies

DESPITE TUMBLING sales and challenges with hire-purchase accounts, two of the largest retailers of home furniture and appliances, Courts Jamaica and Singer Jamaica, have found glimmers of hope during the COVID-19 pandemic.

That’s because work-from-home programmes and online schooling implemented by the Government since March, have been driving sales for electronic devices such as laptops, home office furniture and refrigerators.

Singer, which in 1940 began teaching women to sew through its Sewing Academy, has also seen a significant increase in sewing machine sales, mainly due to the mask-making ventures that have been cropping up as substitute income-generating activity for entrepreneurs and the jobless.

Driven by the need for cash flow and the desire to keep most of its staff intact, Courts’ parent company, Unicomer, decided not to include RadioShack nor any of its furniture business in the announcement of the closure of 10 stores, effective May 1.

Unicomer’s retail brands in Jamaica include Courts, Courts Optical, Ashley Furniture HomeStore, RadioShack, Lucky Dollar and Servitech.

“All of our businesses have been affected, but the one that’s least affected is our RadioShack chain, because the products that they carry is more needed now with people being at home. But it’s a relatively small part of the business, so it’s not enough to offset the losses that we’ve had from other categories,” Managing Director of Unicomer Jamaica Dennis Harris told the Financial Gleaner.

The 10 stores, which will remain closed for the month of May, include six Courts Optical, two Lucky Dollar and two Ready Cash outlets. Accordingly, a number of team members will be laid off from May 1 to August 28, 2020, with ex-gratia payment equal to 25 per cent of their salaries and health benefits, while executives and senior managers will see a 20 per cent and 15 per cent reduction in salaries, respectively, the company said.

Aside from a downturn in sales, Courts Jamaica has also had to grapple with significant declines in monthly receivables from goods it has sold on hire purchase, as well as loans from the Ready Cash financing business.

As a result, it says, some locations are operating at a loss.

Still, Courts is looking to provide assistance to customers amid the outbreak of COVID-19 with the implementation of a waiver on late payment for its Ready Finance customers, and is also willing to revise payment agreements and refinancing.

Singer is also offering customers who have taken goods on hire purchase extended credit term options during the ongoing pandemic. As to its own operations, the company has not relieved any staff member from their duties.

“We had reduced staff complements initially, but given that some employees have opted to take vacation time during this time, the company is back to its full staff complement,” General Manager Sharon Spence-Gibbs told the Financial Gleaner.

Fall-off in foot traffic

All the stores of Singer, which has operated in Jamaica for over 120 years, remain open; but in accordance with social-distancing regulations, the stores close early, daily, curtailing sales as a result.

“Certainly for March and April, there was a significant fall-off in our foot traffic. But right now we are trying to ensure that we keep all our staff engaged, because we recognise that it is a challenging time for individuals.

“We don’t know how long this is going to last, so if this goes on for six months, we don’t know what’s going to happen at that point in time,” Spence-Gibbs said.

In preparation for life after COVID-19, both Courts and Singer say they are trying keep their products at affordable prices for Jamaicans, despite the higher cost of imports due to the depreciating dollar.

“We are trying to keep things affordable in spite of the fact that we are buying goods at US$145 to the Jamaican dollar today. We do recognise that persons have less spending power at this time,” Spence-Gibbs said.

karena.bennett@gleanerjm