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Budgetary relief being sought by local retailers

The Chamber of Commerce is helping retailers on the Island petition the Government to give them some kind of relief in the 2001 budget after sales in some sectors fell by almost a million dollars in June alone.

Overall sales fell to $46.9 million, down 6.1 percent in June, and retailers are looking to the Minister of Finance for some help to balance their books.

According to George Grundmuller, the head of the Retail Visitor section of the Chamber, his division has been consulting with its members to fight the falling sales.

And they have been working with Finance Minister Eugene Cox to get some kind of help for the stores on the Island who have been badly hit.

"We are in talks with the Minister," said Mr. Grundmuller. "He is well aware of the issues. We have formed a working group and we are looking at the ongoing challenges."

The Royal Gazette has learned that the stores in "All Other Store Types" in the Retail Sales Index saw sales plummet from $11.3 million to $10.4 million in June - before inflation of over 3 percent is even taken into account.

In a leaked document the 15 stores that contribute to the "All Other Store Types" have overall lost nearly a million dollars between them this year so far, not taking inflation into account.

The stores hit in this category include Trimingham's, Gibbons, Smith's, Coopers, English Sports Shop, Calypso, Harbour Master, Living Centre, Cecile's, Pirates Port, Knick Knack, Daina Ltd (owners of Buds Beans and Books and Smugglers Reef) and St. Michael's.

Almost all retailers on the Island have been hit by months of poor sales, with a slumping tourism sector, a steady increase in residents buying from overseas, the flourishing in e-buying and a decrease in the amount of shopping done on the Island.

The Retail Sales Index, which is a key economic indicator, showed that in June, shoppers were slowing down their spending, as they had for the past three months. In contrast the amount of goods brought in from abroad soared by more than nine percent.

The Retail Sales Index so far this year has seen four months out of the first six showing a fall, one month remaining flat and only January showing upward movement.

In June consumer spending on clothes and accessories was particularly badly hit, dropping 9.8 percent.

In the "All Other Store Types" sector, before inflation, the shops have seen an increase of 4.6 percent in January from $4.7 million to $4.9 million, in February a decline of 4.4 percent from $4.9 million to $4.7 million, March up 3.7 percent from $6.9 million to $7.2 million, April down 3.4 percent from $9.7 million to $9.3 million and in January down 8 percent from $11.3 million to $10.4 million.

And while retailers are now ganging together to fight for help from the Government to help them survive, Mr. Grundmuller would not be drawn on what kind of relief retailers are looking for.

He said: "There is not anything concrete, but we are working on some kind of relief and we are working towards getting this in the next budget. It is what the retailers hope for."

Calls to the Ministry of Finance on the issue of falling sales in the retail sector were not returned.