75.3 F
Cruz Bay
Thursday, March 28, 2024
HomeNewsArchivesIn Charlotte Amalie, Wall Street Woes Hit Main Street

In Charlotte Amalie, Wall Street Woes Hit Main Street

Dec. 3, 2008 — More than 20 businesses in downtown Charlotte Amalie have closed in the last year and a half, forcing people in the public and private sectors to think about what they can do to put some money back on the streets.
Efforts to boost tourism will likely keep St. Thomas from feeling the disastrous effects of the national economic downturn, but the doors keep closing. Reasons range from high electric bills to visitors spending less. Some businesses, such as three downtown jewelry stores, are still for sale, while others — from the head of Main Street down to Market Square — have shut down for good after several years on the strip.
International Plaza, one of the properties held by Armour Enterprises, has been returned to its mortgage holders in lieu of foreclosure — a process completed in July, according to Maria Ferreras, former property manager of Armour Enterprises.
But the picture isn't all doom and gloom. Businesses at shopping centers such as Havensight Mall are actually expanding, and are looking forward to the Christmas season.
Two long-time tenants recently pulled out of Havensight: Quick Pics, owned by Jeff Kreiner, and Cream and Crumb. But it will not be long before their doors open again, said Edward Thomas Sr., president and chief executive officer of West Indian Co. Ltd., which manages the mall for the Government Employees' Retirement System.
"I think it's fair to say that Mr. Kreiner wanted to retire after being in the mall for over 30 years," Thomas said. "We have been working with a willing buyer, and that spot was filled almost immediately, so there's no vacancy there. With Cream and Crumb, we had a desire to expand Gourmet Gallery. Dockside Bookshop was recently expanded — making it the largest bookstore on St. Thomas — and we wanted to expand Gourmet Gallery, as well, so we can pick up some business off of Yacht Haven, in terms of providing provisions for the yachts."
Gourmet Gallery's first store, which also provided service to boats, was located at the Old Yacht Haven.
With no more store closings anticipated for Havensight, Thomas said preparations are underway for the Christmas season, with the annual tree-lighting ceremony on tap for Tuesday.
"Like everybody else, we're cautiously optimistic," he said. "I think the cruise-ship industry is still pretty sound — the value you're getting for your dollar is still there, because a cruise is all-inclusive, so we're still seeing the same kind of numbers in terms of arrivals."
Uncertainty keeps spending low, Thomas said: "As we continue to see the unemployment numbers rise, I think a lot more people are asking themselves whether they're still going to have a job when they get back, so there really is more caution now than there was before."
Local residents, while still cautious, are expected to spend a bit more, Thomas added.
"I think we West Indians are different — we love to spend money," he joked. "So I think people will still be going out to spend, but I don't think anyone will be buying any luxury items, or spend as much as they were before, and the retailers are just going to have to adjust to that."
Too Many Bills, Not Enough Parking
Stakeholders in the private sector, such as the St. Thomas-St. John Chamber of Commerce, have been working with the government to promote the local tourism industry, increasing the number of visitors flying into the territory.
But businesses keep closing downtown, which some attribute to more than just the dwindling economy. Business has shrunk in recent years because of high electric bills, a lack of available parking spaces and the addition of nearby retail centers in Crown Bay and Yacht Haven, Ferreras said.
Utility bills for some business owners were sometimes higher than rent, and many merchants and even customers had nowhere downtown to park their cars for the day. The Fort Christian parking lot is filled by early morning, and many of the free parking spaces in the area have been turned into two-hour parking spots, she said.
"Town has definitely shrunk — we used to have business in areas from Garden Street, Back Street and Emancipation Garden right up to Market Square," Ferreras said. "Since then, there has definitely been an urban blight that has crept up further and further, hitting now as far as International Plaza."
Other smaller businesses were on the verge of closing more than a year ago, according to Tom Brunt, president of the St. Thomas-St. John Chamber of Commerce.
"Early this summer we gave a list to the governor that had about 16 businesses on it," he said. "Since then, the number has risen to over 20, and it may continue to grow a bit more if the trend continues. A lot of these are smaller business, but there are some big ones that are struggling, and generally the reason why can be traced back to the poor economic conditions in the States and how they're affecting the money that the tourists are spending in the stores."
And long as there is uncertainty in the financial markets, people are going to be cautious about what they buy, Brunt said.
"Investors don't like uncertainty, and until we see this trend stabilize, things aren't going to calm down," he said. "… [W]e've been polling the businesses downtown, and some say that they may not be making as many big sales, they are still able to make smaller sales when customers are in port, so they will make it through the Christmas season. Others say business is terrible — so we have the same kind of mixed picture."
At the same time, some of the closings could allow a different variety of stores to open up downtown that might appeal more to visitors, Brunt said. Because rent is typically higher in the downtown area, most merchants can only afford to sell products with a "high dollar value."
"It's the only way to make a profit and have a good season," he said. "But there could be more diversification, especially now that more people are coming in and replacing some of the stores with a different kind of establishment, so each closing will present another opportunity for that to happen."
Visitors are sticking to plans they made to come to the territory for vacation during the holiday season, Brunt said.
"Now the concern is, will they spend the same kind of money when they get here that they have in the past," he said. "Probably not. But that just means we're going to have to work a lot harder to make them decide to buy a watch, buy jewelry, buy whatever it is that would help us put money back into the economy."
Back Talk Share your reaction to this news with other Source readers. Please include headline, your name and city and state/country or island where you reside.

Print Friendly, PDF & Email
Keeping our community informed is our top priority.
If you have a news tip to share, please call or text us at 340-228-8784.

Support local + independent journalism in the U.S. Virgin Islands

Unlike many news organizations, we haven't put up a paywall – we want to keep our journalism as accessible as we can. Our independent journalism costs time, money and hard work to keep you informed, but we do it because we believe that it matters. We know that informed communities are empowered ones. If you appreciate our reporting and want to help make our future more secure, please consider donating.