Ocho Rios, one of the largest tourist towns in Jamaica is suffering. Stores are now closing under the economic pressure in an area once brimming with opportunity.

A combination of high rental costs and poor sales, among other factors, have forced several businesses in Ocho Rios, St Ann to close since the start of the year.

The latest such closure was Lerner Shops, which closed at the end of April after approximately two years in Ocho Rios.

This is the third branch of Lerner Shops to close in recent times following the shutting down of the Greater Portmore and West Parade branches.

Earlier this year Azan's House of Fabric on Main Street, Ocho Rios closed its doors.

However, its St Ann's Bay branch, Azan's Smart Buys, will continue to operate.

High rental costs

A spokesperson for both companies blamed high rental costs and stagnant sales for the closures.

"We were not doing any business and we had to pay staff, pay utilities and with a rental of US$4,500 (approximately J$400,000) per month we just can't pay the bills," said a spokesperson at Lerner Shops Limited's head office at South Parade, downtown Kingston.

"We can't pay the bills so it's impossible to remain open. This (situation) is highly ridiculous!" she said.

Lerner Shops, which specialises in clothing, still has several stores in operation spread across the island.

Meanwhile, a spokesman for Azan's, also a major clothing retailer, dispelled rumours that the St Ann's Bay store was to close also.

"We're actually putting in goods now; we didn't buy any goods since the start of the year until quite recently," he explained.

Taking pressure off

According to him the Ocho Rios store was opened to 'take some pressure off the St Ann's Bay store' but with the current economic crisis business has nose dived.

"With the reduction in sales and the rent moving up it became really too much for us. If we had our own building we would remain open but when the rent went up we couldn't manage," he said.

Madd Deal Wholesale and Retail Clothing which opened in Ocho Rios several months ago, has also ceased operations. The store closed last month.

The Gleaner was unable to get a comment from the persons who operated the business.

The Gleaner has also been informed that several other stores in Ocho Rios, which specialise in clothing, could also be closing down in coming weeks.