SAN JUAN, Puerto Rico (AP) — A pair of nearly 5-inch black satin heels with a large gold alligator that serves as the front strap retails for almost US$1,600 at the first Saks Fifth Avenue store to open in Puerto Rico, more than what the average person here earns in a month and where nearly half the population lives in poverty.

While a nearly decade-long recession has forced many Puerto Ricans to seek a more affordable life on the US mainland, some of the world’s priciest retailers have stores at The Mall of San Juan, a US$475-million shopping centre which opened yesterday alongside one of the island’s most crime-ridden public housing projects.

“We know that Puerto Rico has its challenges, but we’re not basing our decision on the economy’s ups and downs,” said Manuel Vazquez, the mall’s general manager. “The sales of shoes, clothes and accessories in Puerto Rico have always been strong.”

Puerto Ricans do seem to have been busy shopping while the government struggles with US$73 billion in public debt and US investors worry that some of island’s public agencies could go bankrupt. Retail sales grew 0.5 per cent over the past year to US$37.6 billion, with a 17 per cent increase in sales at women’s clothing stores, according to government statistics.

Shopping on credit is popular on this island, where the population of 3.65 million holds more than US$22 billion in consumer debt, compared with the US$3.3 trillion held by consumers on the US mainland. Laura Ortiz, a sociology professor at the University of Puerto Rico, said consumers she interviewed for her book “Shopping in Puerto Rico” told her they didn’t worry about debt. The view was, “I’ll handle it,” she said.

That shop-until-you-drop mindset is on full display at the Plaza Las Americas, the largest shopping centre in the Caribbean. It generates roughly twice the sales-per-square-foot of the average US mall and draws up to 70,000 visitors daily.

Angel Diaz, who was shopping there with his girlfriend one recent afternoon, said they can’t wait to explore the new Mall of San Juan. “They say the economy is bad, but the stores are always full,” the teenager said.

Developers are betting the trend will continue at the new two-storey, 650,000-square-foot mall. It has more than 70 stores, many new here, including Lululemon and Jimmy Choo. Two high-end department stores anchor the shopping centre: Puerto Rico’s first Nordstrom, where shoppers can choose from 7,000 different lipstick colours (“We heard that people in Puerto Rico love their cosmetics,” spokeswoman Amy Jones said), and Saks Fifth Avenue, which has mother-of-pearl walls and polished white Italian marble floors.

Developers expect to attract strong sales from a mix of tourists and locals because of its proximity to the main international airport and Old San Juan, where cruise ships dock.

But some Puerto Ricans wonder why the mall was built next to the Ernesto Ramos Antonini housing complex, among the island’s most violent. It also borders on a working-class area.

“You would think a mall of this kind would be located in a high-end neighbourhood,” said David Caleb Acevedo, a translator. “I don’t know how good this will be for an island whose economy is in such a bad state.”

Other malls that tried to attract a high-end clientele have failed, and stores including Macy’s have had to lower prices and modify products for consumers, said economist Jose Villamil, CEO of the Puerto Rican consulting firm Estudios Tecnicos.

He said it’s remarkable that retail sales remain robust amid a shrinking economy, but maintained there’s not a huge demand for luxury items. “People erroneously assume that Puerto Rico’s high-end market is bigger than it is,” he said.

Still, some who live nearby hope to benefit from the new mall. In October, police officer Angel Aviles bought a small sports bar within walking distance, hoping to attract workers who cannot afford to eat there.

“If that mall weren’t there, I would have never done this,” he said.

CAPTION (Puerto Rico Luxury + Puerto rico bar)

SAN JUAN — This aerial photo, taken on Monday, shows The Mall of San Juan, alongside the Ernesto Ramos Antonini public housing project, far right, in San Juan, Puerto Rico. Puerto Ricans wonder why the mall was built next to the housing complex, among the most violent on the island. It also borders a working class area. (PHOTO: AP)

SAN JUAN — Customers order at the Habitant Restaurant inside Nordstrom, inside the newly built Mall of San Juan, in San Juan, Puerto Rico on Monday. (PHOTO: AP)