Tourist-related stores see sales rocket on cruise ship arrivals increase
Tourist-related retailers saw a 28 percent jump in sales in September - all due to spending by cruise ship passengers.The number of cruisers who called in Bermuda in September nearly doubled to 46,033 from 24,328 last September.It was one of the few bright spots in the monthly retail sales bulletin from the Department of Statistics.Despite increased spending on souvenirs, apparel, building supplies and gas in September, retail sales volume, which takes inflation into account, was down 3.2 percent over last September, as people spent less on cars, motorcycles, furniture, appliances, boats, food and liquor.It was the 41st straight month the retail sales volume has fallen in Bermuda.In fact the retail sales volume in Bermuda has fallen every year from 2007 (-2.5) to 2010 (-8.5) and with this year almost over, a further annual decline is likely. Through September, retail sales are down 3.2 percent.From January through August alone monthly sales volumes, adjusted to eliminate the effect of price change, haemorrhaged 7.8 percent, 8.8 percent, 8.6 percent, 3.6 percent, 7.9 percent, 6.3 percent, 8.5 percent, and 2.3 percent. The value not adjusted to eliminate price change fell 0.1 percent below the total of $82.7 million registered last September.Adding to those gloomy figures, residents spent nearly six percent more in retail stores abroad.The bulletin showed they declared they bought goods worth $5.7 million in September, compared to $5.4 million last September- mostly due mostly to residents bringing in more parts, electronics and computer hardware.That reverses a trend of several months of declines in overseas spending, including a drop of 3.8 percent in the volume of declared goods in August.On Island, the bulletin showed building materials recorded the strongest growth in September with a sales increase of 14.4 percent.Demand for building materials and hardware supplies was higher due in large part to the King Edward VII Memorial Hospital construction project.Apparel stores and service stations also showed growth. Sales receipts within the service stations sector increased by 6.5 percent during September 2011. This growth mostly reflected a 15.2 percent rise in the price of gasoline.Sales for the apparel store sector rose by 13.1 percent. Sales during the month compared favourably to last year when two shopping days were lost due to the passage of Hurricane Igor.Meanwhile, food stores reported a 3.2 percent decrease in gross receipts compared to September 2010 when consumers purchased extra food items, stocking up in preparation for an impending storm to the Island.The motor vehicle sector registered the largest decline in sales of 14.1 percent.The decrease in motor vehicle sales was attributed to 15 fewer cars sold compared to last year.Although more units of motorcycles were sold during the period, the heavily discounted prices of these units prevented receipts from surpassing the level achieved last year, the bulletin explained.Receipts from liquor sales fell by 4.3 percent during the same period.Sales receipts of pharmaceuticals fell by 0.2 percent.Sales of furniture, appliances & electronics, and boat & marine supplies also declined by 9.9 percent and 11.1 percent, respectively.Gross receipts within the all other store types sector slipped 1.3 percent during September 2011.