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Retail sales volumes drop for six successive months

Shops in Hamilton (Photograph by Akil Simmons)

Bermuda’s retail recession continues as island residents struggle with higher prices and a mixed economic recovery.

According to the Department of Statistics, sales volumes decreased 0.2 per cent in May year on year, although in value terms, retail sales were up owing to inflation.

Declines were reported in most categories and purchases from overseas also fell after big jumps in the spring.

Retail sales volumes are now down for six straight months.

According to the latest data, sales volumes in May were down year on year at food stores (minus 3.9 per cent), liquor stores (minus 8.3 per cent), service stations (minus 2.5 per cent), building material stores (minus 4.1 per cent), apparel stores (minus 3.5 per cent) and other stores (minus 1.6 per cent).

Sales at food stores have been dropping steadily since early 2021 and are now down more than 20 per cent since then.

The apparel index was 60.3 in May, meaning that sales volumes at these store are down almost 40 per cent from 2015, when the index was set at 100.

The only category in which volumes rose on year in May was motor vehicle stores, where sales were up 16 per cent.

In some subcategories, growth was particularly strong: furniture sales were up 33.8 per cent in volumes terms, while boat and marine sales rose 40.9 per cent.

In four categories, sales values in addition to volumes were down year on year. These categories are: liquor stores (minus 4.1 per cent), service stations (minus 2.5 per cent), building material stores (minus 2.4 per cent) and apparel stores (minus 1.8 per cent).

The most growth by this measure was in the motor vehicle category, where sales values were up 18.3 per cent.

Statistics for purchases from overseas provide some insight into how people in Bermuda import items on their own.

According to the data, imports via courier fell $3.7 million year on year in May to $15.5 million, while imports by sea increased $1.1 million to $9.5 million and by returning residents increased $0.9 million to $4.9 million. Post Office imports increased $100,000 to $500,000.

While direct imports were down year on year, they have more than doubled since 2020 to $30.4 million in May 2023.

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Published September 08, 2023 at 7:39 am (Updated September 08, 2023 at 8:49 am)

Retail sales volumes drop for six successive months

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