Weak sales for cars and clothes contributed to a 5.7 percent decline in retail sales in June as consumers spent $3.9 million less than the $64.2 million recorded last year.

According to figures released yesterday by the Department of Statistics, consumers spent $60.3 million in retail sales in June marking a third month sales have fallen below previous years since January 2006 and this was the largest decline in the retail sector since August 1995.

Apparel stores and car dealers experienced double digit year-over-year declines in sales revenue and after adjusting for the annual rate of inflation, measured at 3.7 percent in June, the volume of retail sales fell 9.5 percent reflecting an overall decline in the total quantity of goods sold in this sector.

Most of the larger apparel stores experienced substantial gains in sales revenue this month due to the absence of defunct retail competitor Trimingham?s.

But the apparel sector still fell a further 34.4 percent in June. This was a result of ongoing clearance sales held within the sector last June prior to the closure of Trimingham?s.

Lower priced merchandise translated into a higher volume of goods purchased by consumers last June.

Car dealers were affected by negative sales for a third month this year.

Dealers reported a decline of 21.7 percent in June in 2006, reflecting sales more consistent with 2004 levels.

The weaker sales can be directly attributed to strong sales activity experienced by car dealers in 2005 due to clearance prices of old vehicle models.

Also lower stock levels and poor consumer demand for vehicle models currently in inventory, contributed to the sector?s decline.

Residents returning to the Island from business and vacation trips declared overseas purchases of $4.5 million during June.

This level of spending was approximately $0.2 million or 5.1 percent higher than the level of spending reached in June 2005.

Combined local and overseas retail sales totalled $64.8 million in June 2006, $3.7 million less than June 2005.

Overseas spending represented 6.9 percent of total retail sales in June, a slightly higher proportion than the 6.2 percent recorded last year.

Service station sales bounced back after three consecutive months of declines. Sales in this sector increased 10.2 percent in June.

The increase in sales in this sector can be attributed to a 16.4 percent increase in the price of gasoline over the same period.

Gross receipts for food stores increased 6.8 percent in June and gross receipts for the food stores sector have remained competitive since September 2002.

Meanwhile, households were subject to a 2.3 percent increase in the price of food when compared with June of 2005.