sales -- before Christmas.

Business has been so slow that some retailers are trying to stimulate trade by offering as much as one-third off all purchases.

`There Really is a Santa Claus,' screams the headline in an advertisement placed by Bermuda Blue.

The store is offering 20 percent off all of its 7,000 different products, which range from ceramics and glassware to Christmas decorations and bridal accessories.

Store owner Mr. Tony Cabral said he was playing American stores at their own game.

Many retailers in the Eastern Seaboard region have been staging sales virtually all year round.

"It's hard to compete when they are offering discounts every day of the year,'' said Mr. Cabral.

"Our sale is one way of boosting our income. It's also designed to give people a price break after such a tough year.'' In order to be able to hold a sale, Mr. Cabral said he was having to take a lower mark-up than his US competitors.

"It's difficult to compete with stores which have a buying capacity far in excess of your own,'' he said.

"We carry the same merchandise but have to pay more for it from suppliers than US stores because, whereas I'm buying in dozens, they are buying in hundreds or thousands of dozens.

"By taking less of a mark-up, I'm able to price most of my goods competitively with the US.'' The Gem Cellar is currently giving 30 percent off all jewellery made abroad, with 20 percent off locally-manufactured items.

Mr. Chet Trott, manager of The Gem Cellar, in the basement of the Walker Arcade, said: "This is a New Year's sale before Christmas. It's as a response to the recession.

"It works well for us and is a way of boosting sales.'' His store ran a recession-beating pre-Christmas sale for the first time in 1991, and the results were so encouraging that it was decided to stage another, said Mr.

Cabral.

"The difference is that last year we were offering 40 percent off and this year we're giving 30 percent off foreign made items and 20 percent off those manufactured in Bermuda,'' he said.

A discount of 40 percent had been a mistake and was too much to offer the public, he admitted.

"The amount of profit you make is not worth it,'' he added. "If customers aren't willing to accept 30 percent off then it's not worth selling anything.

"It did the trick, though, and it was really crazy in here last year.'' One of the reasons for having a sale now was to "catch people in a spending mood'', said Mr. Trott.

"We hope the sale persuades them to buy more,'' he added. "People seem to have been saying that jewellery was too expensive and have been looking for other gifts to give at Christmas.''