Shop owners had another piece of bad news yesterday, when official Government statistics proved what they already knew -- that sales in the normally busy Christmas period were down on last year.

The statistics department released the Retail Sales Index for December, which showed a decrease of 4.2 percent from the year before.

Shoppers spent an estimated $70.6 million, with sales activity in all sectors except food stores down on the same month last year. But they declared purchases worth $4.38 million, an increase of 2.8 percent, coming in from abroad.

The total value of retail sales for 2000 was up, with residents spending $616.2 million for the 12 months, up marginally (0.6 percent) on the figures for 1999.

Spending overseas for the year was up 5.4 percent over 1999, and stands at $37.2 million.

The index showed a decrease of 1.6 percent, but after adjusting for inflation the volume of sales fell by 4.2 percent.

There were 24 shopping days in the month and included two more shopping days in the month than in December 1999.

The motor vehicle and service station sector reported the largest overall decline, dropping 10.8 percent. But this followed two months of double-digit increases in sales revenue in October and November.

And the statistics department said that the fall in sales was mainly due to lower stock levels at the end of the year.

But the sale of gasoline, surpassed the figure for December 1999.

Despite the Christmas incentives offered during the holiday shopping season, gross revenue flows for the general retail stores fell slightly, by 0.6 percent, year-over-year.

The worst hit were tourist related stores. These reported a sharp declines in sales activities, reflecting the downturn in tourist arrivals.

Sales of pharmaceuticals, clothing, footwear and electronic goods also dipped during the month.

These declines were partially offset by a strong demand for big ticket items such as appliances, furniture, home furnishings and building and hardware supplies.

Feeling the pinch: retailers posted poor Christmas sales.