Retailers were hit by depressed sales in December, largely because the apparel sector posted a stiff drop in sales.

The Island?s clothing retailers experienced a 19.3 percent fall in sales during what is typically the sector?s busiest shopping period, as increased sales for individual stores failed to offset the closure of major department stores Trimingham?s and Smith?s earlier last year.

Service stations also saw sales fall into negative territory while most other sectors held their own.

Overall, shoppers spent $70 million in Island shops during the Christmas shopping period, an increase of $1.6 million over the $68.4 million spent in December, 2004. After adjustment for inflation ? which measured its lowest for the year at 2.5 percent in December ? the volume of sales fell by -0.3 percent.

The overall value of sales made by Island retailers throughout 2005 rose 6.1 percent to $641.5 million, a slower pace of growth than the 8.4 percent recorded in 2004.

Also not good for Island retailers was a surge in overseas spending. Returning residents declared 18.8 percent more in purchases abroad in December, dropping $1.1 million more with overseas retailers than in December 2004. This was based on the $6.7 million Customs collected duty on during the month. The Customs numbers used in calculating the RSI only reflect what returning residents declare to Customs at the airport, not the value of items that are shipped in from overseas through catalogue or online orders.

The dip in apparel sales continued a trend with this sector seeing overall sales nosedive since last year?s closure of Trimingham Brothers Ltd. and H.A.&E. Smith?s, figures released in Government?s Retail Sales Index bulletin showed.

Somers Cooper, co-chairman of the Chamber of Commerce?s Retail Sales Division, said he was ?optimistic? after seeing the December RSI.

While clothing retailers? sales were down 19.3 percent on the year before, he said he was glad it was better than during previous months.

Apparel sales have fallen since Trimingham?s and Smith?s shut their doors last July, as follows: August (-22.5%); September (-26.1%); October (-33.4%); November (-26.4%) and December (-19.3%).

?Maybe the Buy Bermuda campaign is making a difference,? Mr. Cooper said of the Chamber?s recently launched initiative to encourage shoppers to check out what?s available on the Island before buying overseas.

While overseas spending did jump during the month, Mr. Cooper said: ?This is understandable and I would have expected that to be the case with a large player (Trimingham?s) leaving the market.?

Service stations also saw lower sales in December, largely because there are a number of stations across the Island closed for major renovations.

Service station sales measured by the RSI not only reflect sales at the gas pump but also what?s bought in the increasing number of convenience stores operated by the stations, a Government statistician said.

Over the month, sales for this sector were down 12 percent, a development in contrast to the rest of the year.

Gas sales had been strong through the first 11 months of the year.

In November, consumers spent out 17.9 percent more at the gas pump. And over the year, gas sales advanced a total of 13.4 percent. This was partly because larger cars, which take more gas, were a popular sell, as well as a 9.9 percent increase in the cost of gas as global oil prices rose.

The other sectors tracked by the RSI reported gains during December. New car sales continued to climb, experiencing a 26.3 percent surge in sales. As in the previous month, new car sales rose 26.1 percent with the rise both months being attributed in part to motor vehicle retailers stacking showrooms with greater than normal inventory, Government?s bulletin said.

Large vehicle sales also attributed to the rise in sales during November and December.

Gross receipts taken in by grocers were 6.1 percent higher, with food item prices rising 2.7 percent.

Food store sales increased 6.7 percent over the year, a slower pace than the 7.8 percent growth in 2004. December liquor sales were 11.4 percent higher, likely a result of the Christmas holiday.

The sale of building materials posted a gain in December of 2.1 percent, more or less on par with activity in November, which was on the heels of four consecutive months of negative sales.