Bermuda residents declared a whopping $7.2 million in overseas purchases in November - the largest amount ever recorded in any one month.

The $7 million figure - which is 19.4 percent more than the $6 million declared for the same period a year ago - was revealed yesterday in the latest Retail Sales Index (RSI) figures from Government.

The level of purchases abroad is all the more astonishing when you factor in that it is on top of returning residents having declared 30 percent higher overseas purchases in November, 2003 than in November, 2002.

In total, November's figures showed that Bermuda consumers spent out $48.5 million at home which amounted to - after inflation of 3.8 percent - a 3.1 percent jump on spending from a year ago.

Of that, Bermuda consumers spent out more on building materials, clothes, liquor, vehicles, groceries and gas during the month. In terms of the striking increase in purchases abroad, Government said this could be partly attributed to more people travelling, with 21.5 percent growth in the number of locals making trips during the period. The RSI release did not include a breakdown of how many more trips that 21.5 percent increase worked out to.

The high level of resident spending overseas was also in marked contrast to October with there being $4.54 million in declared purchases by returning residents then. However, that month's spending was nearly double the $3.1 million spent during the same period a year prior. It is also understood that the higher declarations by returning residents could be partly attributable to greater due diligence by HM Customs, after that body said earlier this year that it had put in place “a more thorough inspection process, which resulted in fewer ‘no claims' by returning residents”.

Regardless, the increase in resident spending overseas will not be good news for retailers who in recent years launched the ‘Buy Bermuda' marketing campaign to get locals to do their shopping at home.

Lawrence Trimingham, chairman of the Chamber of Commerce's retail division, told The Royal Gazette yesterday that while he thought the increase in overseas travel partly explained the higher spending figure, he also cautioned that retailers cannot ignore the loss of market share.

Mr. Trimingham pointed out that the increase meant that 12.9 percent of the total spent by Bermuda consumers in November - tallied as $55.7 million - had been made outside the Island. That amount was a small increase on November, 2003 when total retail purchases abroad accounted for 11.7 percent of total retail spending.

“That is what I would be more concerned about. It does show that overseas spending is going up over a year ago, though it is not by a large amount. This is a concern to all retailers in Bermuda. We have to do what we can to remain competitive,” Mr. Trimingham said.

Although saying that as long as Bermudians travel, they will shop, he said retailers are concerned when the level of spending increases: “This is something we all need to be aware of; we can't ignore it.”

Mr. Trimingham said the ‘Buy Bermuda' campaign had been a big success in raising awareness on the need to support local retailers. He said other efforts included on-going lobbying of Government (both the present and past administrations) for lower duty rates as well as permission to, on a store-by-store basis, to open on Sundays.

He said that although retailers felt strongly they should, on a voluntary basis, be able to choose to be open seven days a week, the real push was coming from customers. “This is more what people's expectations are, more a case of the customer decides.”

As for the money that was spent at home during the month, much of that went to building supply firms with that sector posting a 17 percent increase in the value of purchases for the month.

“New and continuing construction projects have fuelled substantial growth for this sector after the initial upswing in sales following (hurricane) Fabian (in September 2003).

“Condominium and other residential developments were among the large-scale projects that boosted demand for building materials and supplies during the month,” the Government release reported.

Liquor sales also rose 9.1 percent in November, motor vehicle dealers posted modest growth of 2.2 percent compared to a dip in sales a month prior, and grocery store sales gained 4.2 percent.

Higher sales at the gas pump were also recorded, with an increase of 9.9 percent in November sales. However, higher petrol prices were said to have contributed to the increase.