SOMBA K'E/YELLOWKNIFE
Dan Hayward's business held on past his expected closing date but with a realtor's sign in his store front window Hayward said he's day-to-day now.

Dan Hayward with a photo on his computer monitor display showing what Headgear used to look like before the Yellowknife business to take a turn for the worse with competition from online sources. Headgear's final going out of business sale is on now. - Walter Strong/NNSL

Hayward announced Headgear's pending closure earlier this year. His original business model, selling brand name clothing, accessories and ball caps fell victim to a slump in spending over the past couple of years. The cost of inventory became unsustainable as more and more people came into his shop to try on hats and clothing, only to leave the store and purchase it online.

What originally drew people to his shop when it was well-stocked with brand name labels and designs, became his business's weak spot. All the big labels are readily available online, often for cheaper than what Hayward could sell for.

"The store became a sizing shop," Hayward said. "People would come in, try stuff on, and then buy it online. I couldn't compete with warehousing down south.

"They can sell at a 20 per cent margin when I need 40 per cent to keep the doors open."

At its busiest, Hayward's store employed up to five people.

Since he stopped stocking designer casual clothing and ball caps, Hayward turned Headgear into a second-hand shop.

But that business has had its challenges as well, not the least of which being merchandise trades that are good on paper but which don't bring in any cash. Another challenge Hayward said he faced was dealing with city bylaw restrictions on sidewalk merchandise displays.

"If I put a chest of drawers - a high demand item - out front on the street, that would bring people into the store," Hayward said. "But if there's nothing out front, people don't even notice there's a shop here.

"I took a 30 per cent hit to my business when the city started ticketing my on-street display."

Hayward has been in Yellowknife for 40 years and has started up several businesses in his time.

"Yellowknife has been good to me," he said. "But the small business climate is hurting."

Headgear's going out of business sale is on now, and continues until the doors are locked.

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