Retailers suffered a hard winter with retail sales falling by 5.8 percent after adjusting for the rate of inflation in November 2008, according to the latest statistics released by Government yesterday.

The Department of Statistics' Retail Sales Index report revealed that sales volume dropped for nine of the first 11 months of last year and was the second biggest decline over the past year after the 6.3 percent fall in October 2008.

Construction was one of the hardest hit sectors, with building material stores seeing gross receipts dropping by 4.3 percent in November compared to the same time in 2007, as stores felt the knock-on effect of the slowing economy.

The report showed that total retail sales slipped by 0.4 percent for the month of November as fears over the current global economic crisis continued to impact local consumer spending and represented the second consecutive month of falling sales despite the relief of receding fuel prices.

Meanwhile gross sales turnover was down $400,000 at $91.9 million in November from $92.3 million the previous November, with all sectors posting lower sales figures apart from food and liquor stores.

Auto dealers experienced another tough month, as sales declined further by 12.7 percent with a flagging demand for new vehicles continuing in November and following the 16.6 percent fall reported in the same month in 2007.

Residents on business and holiday were also spending less overseas, with purchases dropping 5.6 percent below the $8.9 million outlayed in November 2007 to $8.4 million.

Apparel vendors felt the economic pinch too, as sales dwindled for the fifth straight month in November 2008, with retailers seeing a nine percent contraction in sales revenue despite promotions and discounts in advance of the holiday season, in contrast to the 12 percent gain of November 2007.

Service stations also posted their first sales decline of the year in November, as sales fell 2.1 percent, partially reflecting the 4.8 percent decrease in the price of fuel recorded for the period and a significant turnaround from the 6.8 percent increase seen in November 2007.

Tourist-related shops experienced a strong fall in receipts of 28.3 percent, but there was some good news, with furniture and boat and marine supply sales growing 18 percent and 3.3 percent respectively.

However, food stores enjoyed a 8.6 percent rise in gross receipts for November, driven by a 8.2 percent hike in prices and surpassing the 4.7 percent level posted in 2007.