Copyright newsday
DEVELOPMENTS concerning local furniture and appliance outlet Standard Distributors bring into sharp focus the continued softening of the retail sector. For decades, the Standard brand has been a household name ever since the first store opened in 1945. But branches across the country, and one in Barbados, were reportedly closed on November 1, with Ansa McAL later announcing the sale of the company to Term Finance. "Term Finance will evolve Standard’s operations and brand into a dedicated credit provider and e-commerce platform, leveraging Standard’s 80-year experience and hire-purchase knowledge to offer best-in-class credit products to the market at strategically placed branches to be established," Ansa McAL said. The transaction, whose terms have not been disclosed, is expected to be completed by December 31, pending approvals. Term Finance has signalled plans to transform Standard into a credit provider and e-commerce platform under the new name Standard Credit. These developments come as the retail sector continues to face post-covid19 pandemic challenges. The Central Statistical Office’s index of retail sales of household appliances and furnishings shrank by 3.5 per cent and then 5.2 per cent in the second quarter and third quarter, respectively, of 2023. Things rebounded somewhat last year. But there was a sharp drop in the first quarter of 2025, with the index down by 7.8 per cent. The overall retail index fell by 3.7 per cent in that quarter, in a sign that the problem is not just among furniture stores but across the board. Central Bank figures suggest one of the key indicators of economic health on the ground, retail sales, has been in a constant decline since 2024. The sale of Standard Distributors just before Christmas is hardly an encouraging omen. That online shopping has eaten into the business of physical stores is news to no one. Amazon, Shein, Walmart, eBay, Fashion Nova, Web Source, Skybox – these are just some of the sites routinely receiving traffic from TT shoppers. But high shipping costs for larger, bulkier household fixtures have meant furniture stores have theoretically had something of an advantage over all others, especially because people do still need to visit showrooms when it comes to what they want at home. Some local manufacturers have also maintained a retail presence as it relates to things like wood products. The deeper issue seems to be an unwillingness by consumers to splash the cash. This could reflect both reduced disposable income – worrying given robust banking liquidity, contained inflation and stable employment levels – and low consumer confidence. If customers are unwilling to borrow and spend more than they earn, that might also say something about attitudes to banks and financial institutions. And with housing demand not being met, it might be safe to infer furniture stores are feeling the brunt of that imbalance, too. The government’s approach to boosting growth through sustained spending and institutional strengthening will not harm economic activity. But the softening of the furnishings sector highlights the real extent of the challenge.
