A small increase in a small store's profits for a single month does not normally merit a story. But in trying times when shops are falling like flies, even the most modest hike in profits is big news locally.

And the news that Hamilton store Sail On has seen profits grown in October by six and three-quarter percent proves that some retailers have got what it takes, despite the events of September 11 and the ensuing economic fall-out which has rocked the world's economies.

Owner Hugh Watlington took the unusual step last week of announcing the increase in sales in his two shops in a bid to show that it was not all economic doom and gloom on the Island.

And his cheering news showed that one of his stores, the one off Front Street at Old Cellar Lane, had seen profits jump by 13 percent, while his Reid Street outlet did more modestly, making the same amount as last October.

"I think it is because we smile when we sell," said Mr. Watlington on his retailing success. "We try to offer really good service, and this is something Bermuda has to get to grips with. Everybody has to start offering service with a smile."

And he said that he believed that if he kept his staff happy, they would have a happy outlook and give both locals and tourists good service.

"If everybody started smiling and selling, then maybe everybody would do a little better," he said.

Sail On in the lane opened its doors for business 15 years ago, when Mr. Watlington saw a need for sports wear and windsurfing gear on the Island. A second store on Reid Street set up six years ago and both have done very well since then, according to Mr. Watlington.

His boom in business in October he attributes to sales in men's and women's sportswear and gifts and accessories.

"We have staff that have the product knowledge which is important," said Mr. Watlington. "We also play really good music."

Retailers have been suffering all year from poor sales, but events of September 11 are believed to have speeded up the slow down in spending.

The last Retail Sales Index (RSI) issued, which shows consumer spending, was for August and showed another drop in retail sales volume after adjusting for inflation, despite more than a 30 percent surge on last year's figure by the motor industry.

Spending on apparel and clothing accessories dropped 7.6 percent with more than 70 percent of stores in this sector reporting sales receipts below the previous year's levels.

Retailers in all other sectors reported mixed performances as gross revenue flows slipped 3.8 percent below the level reached last August.

Many outlets reported a downturn in sales activity, with the largest declines experienced by those businesses catering to visitors.

When adjusted for inflation (2.8 percent) the total volume of retail sales fell fractionally by 0.1 percent and gross turnover in the retail sector was estimated at $42.4 million for the month.

September and October's figures are expected to bring more grim news from the retail sector.