Spending in local stores over Christmas may not have been what retailers were hoping for, with sales increasing over the previous year by a fractional 0.7 percent when adjusted for inflation.

In total, shoppers spent out $2.3 million more during the month of December - a 3.9 percent increase over December, 2002 but after adjusting those numbers for a 3.2 percent rate of inflation, retailers really only saw a 0.7 percent increase in sales during what is typically the busiest period of the year for many retailers.

Sales levels for the month were revealed in the Bermuda Retail Sales Index released by the Government Department of Statistics yesterday, showing that gross turnover for retailers during the month was $60.6 million.

Disappointing sales at Bermuda cash registers may not have been helped by increased spending overseas with residents declaring $5.5 million in purchases abroad during the month. In total the money spent by local residents while travelling was up by 12.8 percent over the prior period when $4.92 million was spent outside Bermuda. Overseas purchases are based on the total value of goods declared to HM Customs by returning residents.

In Bermuda, the sectors hardest hit were motor vehicle and tourist related sales, which both fell by 14.3 percent and 14.9 percent, respectively.

The report said that motor vehicle dealers had reported mixed results due to changes in their levels of stock and consumers taking longer to replace old vehicles with new models. A slump in tourist spending was attributed to both a downturn in number of visitors to the Island as well as the closure of some retail outlets in hotels closed for repairs after damage from Hurricane Fabian last September.

Some sectors saw gains, albeit some were marginal, with gross receipts at food stores increasing 3.3 percent, and liquor stores seeing a slim gain of 0.5 percent compared to December, 2002.

Sales of petrol also remained flat with a 0.2 percent year over year increase.

There were sectors that fared better including shops that sell "big ticket" household items such as furniture, appliances and electronics with that sector seeing sales go up by 7.1 percent. Consumer demand for furniture was said to be largely responsible for the boost in sales.

Also seeing a healthy rise in sales was the apparel market, with cash registers taking in 9.9 percent more than the year prior. Strong activity in this sector was attributed to increased advertising, high levels of inventory and a varied product mix.

For the entire year, retailers saw sales of an estimated $553.6 million or an increase of 4.7 percent over 2002 but after adjustment for inflation the increase was a modest 1.5 percent.