The fifth consecutive month of declining car sales dragged the volume of retail sales down in October by 1.2 percent.

Car dealers have been complaining that size restrictions are reducing choice for vehicle buyers and have been dampening sales this year.

Gross receipts for the motor vehicle sector fell 8.4 percent compared to October, 2001 as the sales jump that began in June continued. The vehicle sales decline offset an otherwise improved retail picture for the Island compared to last October, when the volume of sales also fell by 1.7 percent in the wake of the September 11 terrorist attacks.

The Retail Sales Index rose 0.9 percent as turnover improved from $41.6 million in October, 2001 to $42 million this year. After being adjusted for inflation, the volume of sales was down 1.3 percent. Overseas purchases declared by returning residents rose 1.4 percent from $2.76 million to $2.8 million.

"October was not as good as we had hoped," said Chamber of Commerce retail division president George Grundmuller. "It has to be seen against the backdrop of last October which was really bad coming after September 11, so it is disappointing that the number is flat against last year. "Before the numbers came out I had some early feedback from other retailers and I know they were disappointed and November does not look much better."

Mr. Grundmuller said Bermuda tends to follow US retail trends and he said US consumer confidence had been down in October and November and seemed to spike in the early part of the Christmas shopping season but had petered out since. "Here, I think shoppers are being more selective and again we may see a last minute rush," he said. All sectors except motor vehicles sales rose, with sales of building materials and hardware leading the way with a 6.2 percent rise attributed to the "buoyant construction industry". Service station receipts also rose by 4.3 percent, although part of that increase can be attributed to a 16.4 rise in the cost of motor fuel during the month. Motor fuel prices have been erratic this year.

Clothes stores had a good month in October as sales rose 2.5 percent and the majority of stories in the sector reported a rise in receipts. "Our sales are right on target this month, but October was slightly down," said 27th Century Boutique owner Sharon Bartrum. "The reason in our case was that we received our winter selection later than usual. Other than that we are right on target."

Liquor store receipts rose 1.6 percent and food sales rose 1.2 percent.

Revenue in all other store types rose 1.8 percent overall, but different segments of the sector reported highly varied results. Tourist-related sales plummeted nine percent, while marine supplies and furniture fell 1.9 percent and 0.8 percent. For the tourism side to be down nine percent is disappointing, but the tourism season is just getting shorter and shorter," Mr. Grundmuller said. "I know the Tourism Minister is working hard to extend the shoulder months with activities and special events and we hope that makes a difference next year," he said.

However, pharmaceutical and personal care supplies rose five percent while appliance and electronic equipment sales rose 1.4 percent.

Mr. Grundmuller, the president of the Phoenix Stores, said October sales were strong but said: "We usually have two big cold waves and we had one in October so that played a role in the pharmaceutical side."