Retails sales in January fell to their lowest level in more than two years with consumers buying 3.9 percent less this year than they did in January, 2004.

The situation probably wasn?t helped by a significant increase in overseas spending with Bermuda residents spending 32 percent more on purchases abroad, or a total of $5.22 million.

In Bermuda cash tills rang up the same value of sales $38.9 million ? as the previous year, but the volume fell year on year by 3.9 percent after adjustment for 4.1 percent inflation in January.

Year on year, there was one less shopping day this January than during the prior period. The Department of Statistics ? which revealed the decline in its monthly release of the Retail Sales Index yesterday ? said January was historically a ?slow month? for retailers.

But this January?s retail results were said to make it the weakest month of sales since November, 2002, with the year-on-year value of sales increasing each month between the two periods.

But comparatively, the sales of $38.9 million in January, 2005 were a marked $4 million lower than in November, 2002 when retail spending of $42.9 million was recorded.

Some sectors did however see their sales levels increase during the month, with the healthiest jump coming from apparel stores posting a 17.5 surge in the volume of business. But that picture might be rosier than the reality with the increase attributed to customers taking advantage of post-holiday discounts and store relocation sales by apparel stores.

A.S. Cooper & Sons Ltd. was the only retailer known to hold major relocation sales in January, as the long-time Front Street department store prepared to move its various departments into six separate stores dotted around Hamilton.

The move was made to allow redevelopment of the old Cooper?s site, but an increase in volume of sales did not translate to an increase in profit, said CEO Peter Cooper.

Speaking with yesterday, Mr. Cooper said clothing sales for the retailer were up during the month.

?This was probably due to the fact we were running down inventory so we didn?t have to move it.?

However, Mr. Cooper said the items being sold off were not new stock, and had been greatly discounted. ?It was not a good month as we were selling at cost or below cost; what was selling at $125 was marked down to $75. The volume looks good, but it didn?t help the bottom line,? he said.

Service stations and grocery stores sectors posted more marginal increases in receipts for January. A seven percent increase in petrol sales was however attributed largely to a 4.4 percent jump in the cost of fuel.

And gross receipts for food stores inched up a moderate 2.1 percent in January.

Sales for building and hardware stores were relatively flat year on year, edging up 0.2 percent only to make January the weakest month for building material suppliers since June, 2003 when sales fell 2.3 percent.

And some sectors saw receipts decline significantly. Vehicle dealers were the hardest hit from January?s decline with sales for this sector falling off 24 percent. Liquor sales also declined by four percent.

The RSI report said vehicle dealers had suffered from consumers purchasing fewer new cars, cycles and vehicle accessories while an overall reduction in the inventory of new car models also didn?t help.

?The limited availability of certain automotive models suppressed consumer demand causing a significant decline in auto sales in January, 2005.?