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A swag of retailers have shut their doors in the city during the past 12 months, with some fearing it could be a sign of worse to come.
According to the Westpac McDermott Miller Consumer Confidence Index, consumer confidence in Southland fell dramatically in the last quarter, with the index dropping from 102.2 in December to 91.6 in March.
The figure indicates there are more pessimists among us than optimists when it comes to Southlands economy, and places Southland second from the bottom for consumer confidence, with the region just above Northland (87.4).
Nationwide record store chain Sounds, which shut its Invercargill doors late last year, clothing store Millers, and manchester store Arbuckles have headed the trend for businesses closing in the city, while other smaller retailers, including giftware store Absolutely Fabulous Gifts, and bedroom furniture specialist Budget Bedrooms, are also now in the process of closing down.
Budget Bedrooms owner Lloyd Davies said high rents in his inner city showroom had contributed to the decision to close.
The arrival of internet auction site Trade Me may have also contributed to a decrease in people buying from shops, while a trend for people to buy new, but inexpensive goods, had also impacted, he said.
Absolutely Fabulous Gifts manager Debbie Hamilton said while she was unsure why the shop was closing, its Dunedin counterpart had already shut.
Southland Chamber of Commerce chief executive Richard Hay said the problem was simple.
Smaller retailers were being hit by increased compliance costs such as the Holidays Act, increases in transport costs and wages, to the point where outgoings were higher than incomings, he said.
%26quot;Many are starting to find that they are earning less income than the people they are employing,%26quot; Mr Hay said.
Hype surrounding the fall of various finance companies, combined with warnings from various agencies to curb spending habits, was also likely to have an impact, resulting in a general tightening of consumer purse strings, he said.
However, it was unlikely Southlands economy was going to go belly up, Mr Hay said.
%26quot;I dont think theres cause for panic that there is a downturn in the regions economy … Theres just a shuffling of the cards.%26quot;

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Yesterday workmen dug up a bone, which is yet to be identified, near the centre of the new roundabout.
A specialist team from Te Papa was flown to Invercargill yesterday to see if it could identify the bone.
Dr Taitea Rabbit last night said he was unsure of the origins of the bone but believed it was from an animal.
%26quot;Ultimately we need to treat this find as of huge historical importance.
%26quot;This could be a discovery of an animal that was never previously known to live here.%26quot; It was expected that DNA tests would be carried out on the bone to determine what species the animal belonged to.
However, the unearthing could mean further hikes for Invercargill ratepayers.
If the site is deemed to be of historical significance it could mean the road is permanently closed, requiring either another road to be built or all traffic to use Curran and Bay roads.
The specialist team will return to the site today and further excavation will take place.
It was expected the dig would be finished by noon today.

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Pacific Blue New Zealand general manager for commercial air Adrian Hamilton-Manns said yesterday an announcement was expected this week but details were not yet finalised.
%26quot;We hope to be able to update everyone in the very near future,%26quot; Mr Hamilton-Manns said.
The Christchurch-based Australian budget airline added main trunk domestic services to its trans-Tasman operation in November, forcing rivals Air New Zealand and Qantas to drop their cheapest standard fares by $20.
It has this month taken delivery of a seventh 180-seat Boeing 737-800 and is expected to add another to its fleet towards the end of the year.
Invercargill airport chief executive Barry Bouton said the airport was waiting to hear whether Invercargill would benefit from the commissioning of the aircraft but was nevertheless prepared for it.
%26quot;The airport has done everything possible to remove any restriction that might disadvantage us in Pacific Blue making its decision.%26quot; Mr Bouton said there was enough passenger demand in Invercargill for another Pacific Blue.
The decision would set up a head-to-head clash with Air New Zealand, which announced in January it was considering the two southern centres for trial jet services using its smaller 136-seat Boeing 737-300s.

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Farm consultants predict cashflows will ease in June and July with the onset of winter putting more pressure on cash-strapped sheep farmers reeling from their third year of poor lamb returns.
However, only two farming families in West Otago and Balfour have applied for special support payments available to rural families in drought-stricken areas.
Southland Adverse Events Trust drought facilitator Peter Hook said the slowdown in cashflow would have a huge impact on farmers.
%26quot;Were in a bloody terrible situation,%26quot; he said.
Cashflows were expected to ease as farmers got rid of the rest of their works lambs and the milking season came to an abrupt halt at the end of next month.
However, Trust chairman Russell Falconer believed most farmers would be reluctant to ask for financial assistance.
%26quot;Farmers are proud people and they prefer to do things for themselves.
%26quot;They dont like Government departments meddling in their business, let alone ask them for relief,%26quot; he said.
Last week the Government announced that special support payments would be available to rural families in drought-stricken areas.
The payments, set at 75 percent of the applicable rate of the unemployment benefit, were designed to cover essential living costs only, and were not included as income for farm accounts.
Farmers must meet an income test, a personal asset test on on-farm assets, and a cash-asset test.
They must also evaluate the viability of continuing to farm, or have made a decision to sell their property.
Mr Hook said sheep farmers were having a particularly tough time on the back of three years of poor lamb returns.
Winter feed reserves were low and they would struggle to compete with their dairy farming cousins on price for the limited amount of baleage that was available.
Baleage was currently fetching around $100 a bale, which was about double last years price, putting it out of reach of some cash-strapped farmers.
Mr Hook said a mild winter would ease the burden and he prayed that would be the case.
%26quot;June and July are likely to be our worst months, but at the moment were getting reasonable growth and the stock are being fed okay.%26quot; Mr Hook said some farmers had got rid of their replacement ewe lambs and old ewes, which had eased the situation, but the shortage of capital stock would impact on next seasons production.
Federated Farmers Southland President David Rose encouraged farmers entitled to help to ask for it.
%26quot;We need to look at all our options and consider help.
%26quot;After three years of poor lamb returns some farmers have no reserves left.%26quot;

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Highlanders coach Glenn Moore announced late yesterday that Saunders would join the squad fulltime replacing wing Lucky Munipola who has been ruled out of the rest of the competition as the result of a broken arm which he suffered during round one against the Reds in Brisbane.
Saunders has been training with the Highlanders for the past two weeks and it seems his knowledge of the Highlanders structure was a big factor in his callup.
%26quot;Matt is an experienced player at this level. He knows the Highlanders environment well and will fit into the squad,%26quot; Moore said yesterday.
It is some much wanted positive news for Saunders after the 25-year-old was left contemplating his future late last year when he was unwanted by Otago and the Highlanders for 2008.
Saunders resisted a move overseas and opted to sign with Southland for this year, and he now finds himself back in the Highlanders frame.
Meanwhile, a decision on a replacement for No 8 Ezra Taylor will be made prior to the Highlanders departure to South Africa in two weeks.
Moore has opted not to call in another No 8 just yet despite its looseforward stocks severely depleted at the moment.
Along with Taylors absence first choice No 8 Stephen Setephano has also been ruled out of the game against the Lions in Dunedin on Friday night because of a calf problem.
While Southlands Tim Boys is almost certain to start on the openside flank with Alando Soakai nursing a badly broken nose.
Soakai is expected to to be sidelined for two weeks.
Captain Craig Newby is now likely to start at No 8 with Boys and Adam Thomson on the flanks.
This will leave locks Hoani MacDonald and Hayden Triggs to provide the looseforward cover.

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Fisheries Minister Jim Anderton yesterday announced the daily limit on red cod caught by recreational fishers in the southern and eastern South Island is to be cut from 30 to 10 red cod per fisher per day.
Declining numbers of red cod in the fishery were the reason, with very low numbers of juvenile red cod surviving into adulthood, he said.
The catch limit reduction, which comes into force from today, applies to the fishery that runs from the Clarence River on the Marlborough Coast around the southern South Island to Awarua Point, just above Fiordland.
However, Mr Anderton increased the commercial catch limits for rock lobster (crayfish) in the Southland fishery by nearly 211 tonnes to 1053 tonnes. In the Otago fishery, the limit increased by 3.7 tonnes to 143.9 tonnes.
The increases were worth an estimated $11.5 million a year to commercial rock lobster fishers, Mr Anderton said.
Malcolm Lawson, chief executive of the CRA8 management committee, which represents the commercial rock lobster industry in the southern area of New Zealand encompassing South Westland, Fiordland, Stewart Island and Foveaux Strait, said the increased quota would provide the opportunity for more cray fishermen to come into the industry. He expected about 70 boats out fishing for crays in the southern area this season, up from 63 last season.
The increased quotas were a vindication for cray fishermen that had stuck with the industry in the hard times, he said.
Bluff cray fisherman of the past 22 years, Robert White, said his quota would increase by about two tonnes per year, which would increase his profit.
He said about 75 percent of crayfish quota owners, including himself, believed the 211-tonne increase in Southland was sustainable, but about 25 percent believed it was too much in one hit.
Mr Lawson said the increased quota was the result of the cray fishery rebuilding spectacularly in southern waters in recent years, due to a combination of several good spawning years and improved cray handling techniques by fishermen.
%26quot;Years ago there was never the thought that we could over-fish the ocean but now theres a realisation we have to get the ones we dont want back into the water straight away because thats next years catch.%26quot; With 95 percent of the cray catch going to the Asian market, there would not be cheaper crayfish on southern shelves this year, but there could possibly be more crayfish on the local market, he said.
Mr Anderton also increased catch limits of southern blue whiting, from 3500 tonnes to 10,000 tonnes, in an area south east of the South Island known as Bounty Platform.

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School board member and Christchurch Christian Schools co-ordinator Andy van Ameyde said the small private Queenstown school had room for up to 50 or 60 in its new Frankton premises.
At present it had two teachers for its 21 pupils, who ranged from new entrants through to Year 8.
%26quot;Were a small independent school and our fees at the moment are $4000 a year, but our board has decided to reduce that to $1600 a year,%26quot; Mr van Ameyde said.
The school applied 18 months ago to the Education Ministry to be integrated into the state school system but the ministrys decision has been put on hold until its Wakatipu area strategy for schools had been completed, he said.
State integration would pay for teachers salaries and operating costs.
The school board had decided to substantially lower its fees in the meantime to make the school more affordable.
Under integration the school would teach the state curriculum but with a special Christian-Protestant character, just like Catholic schools taught with a Roman Catholic flavour and Maori schools with a Kura Kaupapa component, Mr van Ameyde said.
%26quot;Were working towards teaching the New Zealand curriculum.
Teachers (from Southern Lakes Christian School) are coming to Christchurch for professional development once a term.%26quot; The school could already take 20 more pupils with the two teachers it had at present and its spacious new premises in the Frankton Arms complex had plenty of room for more.
%26quot;Weve got room for more pupils … theres been a whole raft of bad news about the capacity pressures on schools and this is some good news,%26quot; Mr van Ameyde said.
The school had Queenstown Lakes District Council permission to use the huge adjacent Frankton lakefront reserve as its supervised playground and had also recently upgraded its computer suite thanks to community grants.
%26quot;Because were small we can do different things.%26quot; The school board was just waiting for the ministrys area strategy to be completed so its integration could be approved.
%26quot;At the moment people are sending their kids to integrated special character Christian schools like John McGlashan and St Hildas (in Dunedin) we believe parents need the choice.%26quot; Public open days will be held on April 9 and 16 and May 7 and 14 from 9am until midday.

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Brewer Steve Nally said time had finally caught up with his hand-made four-headed filler.
A dedicated dispenser with a high degree of physical fitness could turn out up to 1100 bottles in a day but would be way too tired and sore to repeat the second day.
New Zealands southernmost boutique brewery has doubled production in the past year on the back of ever-increasing demand.
%26quot;Now I understand what the phrase `bottleneck really means we could make beer and distribute beer; what we couldnt do was bottle it fast enough to keep up with demand,%26quot; Mr Nally said.
Enter the custom-built American Maheen Merlin, which can tackle 2000 bottles an hour, washed, filled and capped.
Its a compact machine specifically designed for boutique breweries, which will revolutionise the way the brewery operates.
%26quot;Now we can do a months bottling in a day,%26quot; Mr Nally said.
If that sounds like over-capacity, it is. But its capacity the brewery plans to grow into.
Invercargill Brewery has four award-winning beers Pitch Black stout, Stanley Green pale ale, Biman in a New Zealand pilsner style and Wasp, a filtered wheat beer, as well as Nallys cider.
The Maheens arrival means Mr Nally will have more time to develop flavoursome seasonal brews in the ilk of Smokin Bishop, the smoked bock-style beer that won both gold and best in class at the BrewNZ Awards in September.
%26quot;Smokin Bishop was a big beer with a completely new flavour. Its certainly not an everyday beer but it did demonstrate theres an appetite for special-occasion beers,%26quot; he said.
The Maheen is customised to a 330ml bottle so theres still a place for the old filler, which will be put to work on big bottles for the brewerys speciality beers.
The summer has been trying for the brewery as it has battled to keep up with production using worn and outdated equipment.
%26quot;One of the many advantages of operating in Invercargill is temperature generally uniform and fairly cool.
%26quot;This year, weve had heat and thats played havoc with systems, not to mention that a couple of degrees makes a huge difference in brewing,%26quot; Mr Nally said.

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Parliament passed the Misuse of Drugs Amendment Act in February, banning the active ingredient in party pills piperazine, commonly known as BZP (benzylpiperazine) classifying it as a class C drug the same classification as cannabis.
The ban came into force last night, but there is a six-month amnesty period for people with 100 pills or 5g piperazine-based party pills for personal use. Anyone with more than the allowed amount risked prosecution.
Owner of Invercargill shop Pillz %26amp; Thrillz Ann Kincaid yesterday said she was selling piperazine-based pills for half price and would encourage customers to %26quot;make an offer%26quot; on stock before handing over any left over stock to police.
Despite clearing out the BZP pills, Ms Kincaids party pill cabinet did not remain empty for long.
Shelves were quickly filled with new stock developed by New Zealands five leading party pill manufacturers.
Ms Kincaid said ingredients varied but the effects were believed to be similar to BZP-based pills.
%26quot;The people that are distributing are telling us that the new product is a better product than BZP,%26quot; Ms Kincaid said. %26quot;They dont have the same `come-down (as BZP), its (the new pills) better on the body.%26quot; When asked why suppliers were not promoting the new pills before today, Ms Kincaid said BZP was a good seller. %26quot;Why fix something thats not broken?%26quot; The law change had forced suppliers to develop an alternative.
Southland District Health Board interim chief operating officer Leanne Samuel said there was one admission to the hospitals Emergency Department in relation to party pills at the weekend. The department generally saw %26quot;very few%26quot; party pill intoxicated patients.
About 20 to 30 percent of presentations to the department would have alcohol involvement, she said.
Otago MP Jacqui Dean said delays in getting this legislation through had watered down its effectiveness by allowing pill manufacturers the time they needed to develop new herbal highs which were not classified under this latest legislation.
Associate Health Minister Jim Anderton said it was a regrettable flaw in the legal system that allowed suppliers to sell any sort of pill without having to first prove their safety. Bans on the new pills could come into force if they were also found to be a risk.

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While last year Mt Aspiring College sent just one rower to the national secondary school championships, this year nine have made the trip to the Maadi Cup at Lake Ruataniwha, near Twizel, being held this week.
The schools sports co-ordinator Kelly Bailey said the growth in the sport had been %26quot;incredible%26quot; and had been instigated by a new pupil, Georgina Galloway.
Galloway had been rowing for her school in Dunedin (Columba College), but when she moved back to Wanaka and to Mt Aspiring College she brought a love for rowing with her that has become infectious.
%26quot;Georgina shifted back here and wanted to continue rowing and that was really the big push,%26quot; Bailey said.
%26quot;There was no rowing in Wanaka at all, so there was a big push to get something happening. Really, when she first got here she went to the secondary schools championships on her own. This year weve got nine going.%26quot; The Wanaka Rowing Club was formed late last year, and all of its members attend Mt Aspiring College so are eligible to compete for both the club and the school at regattas.
Crew member Sarah Cashen said the school now boasted a girls four, two under-17 crews, an under-18 novice crew, a boys doubles team and Galloway competed in the under-16/17 single sculls.
%26quot;We get out on the water about six times a week, but Georgina goes seven days. Theres also a development squad with quite a few young ones that get out twice a week,%26quot; she said.
The school has already posted promising results at the secondary schools South Island regatta, with top-seven placings in three events.
The aim for this weeks Maadi Cup regatta, which includes secondary schools from throughout the country, was to %26quot;get into the finals%26quot;, according to Cashen.
The Maadi Cup started yesterday and runs until the end of the week.

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