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Retail sales show fractional increase

BADA vice-president Jonathan Brewin

Car sales helped boost the Island’s overall retail sales numbers in October but the bump is not indicative of a rebounding industry, say auto dealers.According to the Retail Sales Index (RSI) report released yesterday, sales of goods and services edged up a fractional 0.7 percent — or by $0.2 million. Though after adjusting for inflation, retail sales actually fell by one percent.Motor vehicle dealers, who have been reporting consistent year-over-year declines, interestingly posted the strongest sales activity of 43.3 percent in October, selling 20 more cars over the same period last year. Conversely, bike sales were down by 38 units sold.According to Jonathan Brewin, vice-president of Bermuda Automotive Distributors Association (BADA), the increase was due to a sale in September where car deals closed in October. He noted that this is just a one-off increase rather than a positive trend in car sales, adding that sales numbers have fallen in November.Perennially rising sectors — liquor and food — saw an increase in sales, reporting a 7.5 percent and 6.2 percent rise in sales, respectively. Gas stations also saw a 1.6 percent during October 2012.The biggest losers of the month were sellers of building materials, which saw sales fall 24.4 percent due to fewer contracts for new projects coming on line, and the near completion of major commercial construction projects. The industry’s September numbers were also down 27.3 percent year over year.Apparel stores also continued to feel the crunch, with sales falling 8.1 percent. Big-ticket items like furniture, appliances and electronics fell by 10.2 percent, tourist-related stores dropped 6.8 percent and pharmaceutical products dipped 2.4 percent year over year.Residents returning to the Island declared overseas purchases of goods valued at $5.3 million during October — seven percent, or $400,000, less than the $5.7 million declared in October last year. Combined local and overseas spending totalled $87.2 million.