Business
As virus-wary shoppers opt for online purchases, retailers pay the price
LOS ANGELES(Reuters) – Online sales may be a saving grace for pandemic-battered retailers with fewer shoppers in their stores. But many retailers, from department store chain Macy’s Inc to essential retailer Target Corp, are grappling with higher expenses related to e-commerce.
Retailers often use the more lucrative in-store sales to subsidise hefty e-commerce costs, ranging from marketing to fulfilment and shipping. Companies don’t usually break out those expenses, which of late have been overshadowed by massive write-downs for unsold inventory and lower online profits.
Margins for the hardest-hit nonessential retailers – including mall-based clothing chains – on average are this year likely to be about half what they were in 2019, according to credit ratings agency S&P Global. The shift to e-commerce probably erased a couple of percentage points from company margins, Sarah Wyeth, senior director for retail and restaurants said.
When it comes to online sales, “retailers have always given away too much margin,” said Neil Saunders, managing director at GlobalData Retail. “Now that more stores are closed and online penetration is higher, losses have exploded.”
Historically, sales in stores accounted for more than 80% of all retail sales in the United States, according to eMarketer. E-commerce as a percentage of retail sales, excluding gas and auto, zoomed to 22.9% in the second quarter after the pandemic accelerated the shift to online shopping, said Andrew Lipsman, principal analyst at that research firm.
As of mid-July, the spike of COVID-19 infections around the United States has spurred states such as California to shutter indoor shopping malls – further endangering in-person transactions, which are generally lower cost.
Almost 18% of Macy’s stores are in California.
On July 1, the retail operator, which also owns Bloomingdale’s store, said gross margin tumbled to 17.1%, down more than 21 percentage points from a year earlier.
Macy’s CEO Jeff Gennette said the chain was seeing “a noticeably worse trend in brick-and-mortar” stores in Texas, Florida and Arizona, where infections are setting new records.
“Conversely, in those particular states, the dot-com business is improving,” he said on the heels of posting a staggering $3.58 billion loss for the quarter that ended May 2.
Fast-forward, tighter squeeze
RSR Research co-founder Paula Rosenblum estimated that typical online orders cost retailers roughly 10-15% more than purchases in stores, where shoppers do the work of selecting items and transporting them home. Her calculation does not include returns, which are more common with e-commerce purchases because shoppers don’t see, touch or try on products beforehand.
While Amazon.com Inc, Walmart Inc and other deep-pocketed companies can spend heavily on projects like automation and inventory tracking to reduce e-commerce expenses “a lot of companies are on the ropes and can’t afford to,” said Hilding Anderson, senior director of strategy and consulting at Publicis Sapient.
Target stayed open throughout the early stages of the pandemic, but its gross margin fell 450 basis points in the first quarter, when digital sales surged 141%. The retailer blamed the deterioration on apparel write-downs, a shift to lower profit sales of food and essential items, and rising digital fulfilment and supply chain costs.
“Our first quarter digital volumes weren’t anticipated for another three years … It was an extreme test of our model and our team,” Target Chief Operating Officer John Mulligan said on a May 20 conference call.
Meanwhile, FedEx Corp and United Parcel Service Inc have a lock on e-commerce delivery, but lost a significant amount of high-margin business when offices shuttered. Those carriers are raising their prices to offset the explosion in higher-cost home deliveries of everything from food to furniture and electronics and exercise equipment.
“The margin squeeze might go on for a while,” said Gabriella Santaniello, founder of retail research firm A Line Partners. “It’s going to be really hard to put the genie back in the bottle.”
Reporting and photo: Reuters
Business
Manhattan Grand Hotel inaugurated in Hulhumalé with 162 rooms and major event facilities
Manhattan Grand Hotel, a 162-room five-star property in Hulhumalé, was officially inaugurated on Saturday, 7 November 2026, marking the completion of a long-delayed hospitality development originally initiated by State Trading Organisation (STO) more than two decades ago.
The hotel was inaugurated by Minister of Finance and Public Enterprises Hassan Zareer during a ceremony held in Hulhumalé Phase 1. The opening marks a new chapter for the former STO City Hotel project, which remained unfinished for years despite substantial investment and repeated efforts to complete or sell the property.

Located approximately 10 minutes from Velana International Airport, Manhattan Grand Hotel has been developed to accommodate business travellers, transit passengers, leisure visitors and long-stay guests, while providing facilities for meetings, conferences, exhibitions and social events.
The property features 162 rooms and suites across eight accommodation categories, including city-view and sea-view rooms, deluxe accommodation and junior suites. Its facilities include four food and beverage outlets, an outdoor swimming pool, a spa and wellness centre, and a fitness centre.
A central feature of the hotel is its meetings, incentives, conferences and exhibitions (MICE) infrastructure. The property offers three major event halls, measuring approximately 700, 400 and 390 square metres, alongside dedicated meeting rooms and conference facilities. The venues have been developed to accommodate corporate conferences, exhibitions, annual general meetings, weddings, banquets and other large-scale gatherings.
The hotel’s architectural concept draws inspiration from Hukuru Miskiy, the historic Friday Mosque in Malé, incorporating elements of traditional Maldivian craftsmanship into its contemporary design. Marketed under the concept ‘Live the Heritage’, the property aims to combine local cultural influences with modern urban hospitality.
Manhattan Grand Hotel is operated by World of Business Pvt Ltd, with foreign investment from UAE-based Deep Seafood Company. The redevelopment was formalised through an agreement with Housing Development Corporation (HDC) in August 2025, under an arrangement involving 50 per cent foreign investment.
The property’s development history dates back to 2006, when STO approved plans to establish a city hotel in Hulhumalé as part of efforts to generate foreign currency revenue. Construction of the originally proposed 250-room five-star hotel began in 2011, following plans involving the US-based Carlson Hotel Group.
However, the development encountered repeated delays, leaving the building unfinished for more than a decade. STO subsequently explored several options to dispose of or complete the property before arrangements were made with HDC to facilitate its redevelopment.
The revised development also incorporates approximately three and a half floors designated for government-related facilities, including a media village, youth centre, heritage college and medical college.
Ahead of its formal inauguration, Manhattan Grand Hotel had already begun hosting hospitality industry events. The property hosted Food & Hospitality Asia Maldives (FHAM) 2026 from 7 to 9 September, bringing together hospitality suppliers, industry professionals and international exhibitors.
The hotel’s official opening adds a substantial accommodation and events facility to the Greater Malé region, supporting the growing demand for city-based hospitality services, corporate gatherings and accommodation close to the country’s main international airport.
The completion of the former STO City Hotel project also brings an end to one of Hulhumalé’s longest-running unfinished hospitality developments, converting the property into a functioning hotel and events destination.
Business
BBM’s ‘Studio of Culinary Excellence’ opens at MNU to bridge classroom, industry
The best way to secure the future is to create it.
Creating that future through specific, purposeful initiatives is what drives people of purpose—and, in turn, moves us all closer to the future we desire.
The Maldives is a compelling case study of a tourism-driven economy. Look around and ask why an event is being staged, what someone is working on, or where a new initiative is leading, and the answer will often point to the hospitality sector. Securing the future, therefore, is inextricably linked to strengthening and advancing that sector.

Here, “strengthening” means making the sector’s contribution more sustainable; ensuring that a greater share of its growth benefits the community; continuing to offer a compelling value proposition to the discerning global traveller; and ensuring that visitor experiences continue to generate an unparalleled reputation and valuable referrals.
To achieve these outcomes in the future, it is essential that current and future generations of the local community engage actively with the industry. Making hospitality appealing and aspirational, enhancing the quality of delivery and service, and building a pipeline of skills and talent into the sector are areas in which initiatives, inspiration, infrastructure and investment should be concentrated.

It is firmly in this context that Mr Ismail Hilmy, Chairman and Managing Director of BBM, initiated the establishment of a modern, exceptionally well-equipped and thoughtfully designed model kitchen, aptly named the Studio of Culinary Excellence. By donating the Studio to MNU, under whose auspices it will serve the Maldivian culinary community, Mr Hilmy is responding directly to the need for deeper community engagement. At the heart of BBM’s framework for industry-outreach initiatives— “Because tomorrows start today”—is Mr Hilmy’s ethos of fostering engagement and vibrancy in the industry.
“For our students, the gap between the classroom and a working resort kitchen has always been the hardest one to close,” said Dr Shehenaaz Adam, Vice Chancellor of the Maldives National University. “The Studio of Culinary Excellence closes that gap. Students can now train on the same equipment and to the same standards they will encounter on their first day in the industry. We are grateful to BBM for a partnership that goes well beyond a donation, and we look forward to the Studio becoming a place where the university and the industry learn from one another.”

The Studio therefore creates an opportunity to develop a pipeline of skills and talent in service of the industry.
“Embedding purpose in our work has been an ongoing endeavour at BBM. It keeps us connected to our stakeholders and builds insight, understanding and trust. Being a meaningful partner to academia as we move into the future gives us a great sense of fulfilment and guides our initiatives under the banner, ‘Because tomorrows start today,’” said AVS Subrahmanyam, Chief Operating Officer of BBM.
But what is the value of physical infrastructure without the corresponding spark of aspiration and ambition?

As Ali Afrah Hassan, Executive Representative at Chairman’s Office – BBM, aptly observed: “The Studio offers students and members of the community hands-on experience with world-class equipment, together with knowledge-sharing masterclasses. Who knows—in the not-too-distant future, a Michelin-starred Maldivian chef may fondly credit some of their inspiration to time spent at the Studio!”
Now that is the mind and heart in sync—working towards a future that is aspirational, ambitious and entirely attainable.
Business
BBM Hulhumalé Phase 2 opening promotion winner receives Honda Airblade
Bestbuy Maldives (BBM) has presented a brand-new Honda Airblade motorbike to the winner of a lucky draw held to mark the opening of its newest wholesale outlet in Hulhumalé Phase 2.
The outlet, located at Lot 20286 on Nirolhu Magu, opened on 16 February 2026 as part of BBM’s expansion of its wholesale operations.
To celebrate the opening and thank customers for their continued support, BBM introduced a special lucky draw exclusively for customers who made purchases from the new outlet on its opening day.

Customers who purchased products during the opening were eligible to enter the draw, with a Honda Airblade motorbike offered as the grand prize.
The lucky draw was conducted on 13 August 2026, with Ibrahim Shifaz of Vagthun Vaguthah outlet selected as the winner.
Shifaz was recently presented with the ceremonial key to the Honda Airblade by AVS Subrahmanyam, Chief Operating Officer of Bestbuy Maldives.

The promotion formed part of BBM’s activities surrounding the opening of its Hulhumalé Phase 2 outlet, which provides customers with access to the company’s range of wholesale products from the growing residential and commercial area.
Bestbuy Maldives is a supplier and distributor serving businesses across the Maldives, including customers in the hospitality, food service and retail sectors.
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