Sales figures in Bermuda have rebounded after February's downswing, and for on-Island retailers the news gets better as the latest figures reveal residents spent less of their dollars overseas and more in Bermuda during March.

But a less rosy trend appears to be developing in the service station sector with customers opting to spend less at the gas station retail outlets.

Service stations have seen a second significant monthly fall in sales since the start of the year, with a 12.4 percent sales drop in January and a year-on-year 8.2 percent drop in March. Gas station retail outlets were the only sector to record a negative result during March.

Retail sales in Bermuda for the month totalled $91.9 million, which was $7.5 million (8.9 percent) higher than a year ago. At the same time the value of overseas sales by Bermuda residents fell to $3.3m compared with $3.5m in the same month a year ago.

The latest figures available from the Department of Statistics show a rebound from a near two percent drop in on-Island sales in February.

Retail purchases by Bermuda residents, both on-Island and overseas, totalled $95.2m with the overseas portion of the figure dropping around 14 percent.

Higher sales in apparel, food and what are classified as "other store types" were the main driving force for the improved results.

Adjusted for inflation on retail goods, which was 2.6 percent in March (overall inflation is 3.5 percent), the volume of retail sales increased by 6.1 percent.

Grocery sales notched up another rise to continue an upward monthly trend that has been consistent since September 2002. Food store receipts went up 7.7 percent, partially due to higher prices for items during the month.

An increase in retail floor space in Bermuda, led by the re-opening of AS Cooper's flagship Front Street store, helped sales of apparel items, where there was a 19.9 percent year-on-year rise.

Customers were also buying more furniture, appliances, electronics, pharmaceuticals and personal care items as reflected in the 12.7 percent advancement of sales in the "other store types" category.

Sales of motor vehicles also returned to positive territory after a 23.9 percent drop in February. Motor vehicle sales for March rose 4.4 percent compared to a year ago.