Retail sales in Bermuda fell in December by 2.7 percent, after showing slight recovery in the two months before, according to figures released yesterday by Government.

The Retail Sales Index volume fell by 2.7 percent, after being adjusted for inflation and gross turnover in the retail industry stood at $55.4 million for the month - an average of $893.55 for every man woman and child on the Island.

Residents returning from overseas vacation and business trips declared purchases and goods valued at $4.01 million in December. This level of expenditure fell 8.4 percent below the $4.38 million declared in December in 2000.

The cumulative total of overseas purchases for the whole of 2001 was $37.4 million, which was fractionally above the $37.2 million recorded in 2000.

This equates to every man, woman, child and baby (62,000 residents) spending $603.23 per person per year on declared goods from overseas. It is believed that the real figure for goods brought in is much higher as many residents do not declare all their goods at customs on their return to Bermuda.

Following the attacks on the United States on September 11, during that month sales fell 5.9 percent during the month, compared to the year before. But the slump halted slightly and the volume of retail sales in October fell by just 1.7 percent. In November this marginal recovery continued, with sales only falling 0.2 percent after taking into account inflation.

There were 24 shopping days during the month of December 2001, the same as December 2000.

Sales in the apparel stores sector fell by 5.3 percent. This sector has been the hardest hit over the past year. With the exception of January, this sector reported a decline in gross receipts for each month during 2001.

And the retail sales index reported that, while some retailers reported increases due to the success of the Buy Bermuda campaign, others experienced severe declines in sales activities.

“The majority of these declines were due to a number of factors such as downsizing, lower levels of visitors and local spending, and poor sales of winter merchandise due to unseasonably warm weather,” the report said.

Petrol sales were hit hard, down 10.6 percent lower than the year before due, in part, to the global price of oil going down. The price of a barrel of oil continued to fall in December after the events of September 11.

Spending on hardware and building supplies, however, edged up 1.5 percent during December.

The aggregate retail sales for the motor vehicles sector rose 4.7 percent in December 2001, and car and bike dealers reported mixed sales as a result of shipping delays which affected stock levels.

Gross revenue flows in the “all other store types” increased fractionally by 0.7 percent. Sales of furniture and home furnishings continued to surge during the month as well as an increase in special orders.

Spending on pharmaceutical products, personal care supplies and boating equipment also increased. In contrast tourist-related sales and sales of electronic equipment and appliances contracted during the month.

Liquor merchants reported a moderate growth of 3.1 percent and gross receipts for food stores rose three percent.