Retail sales in Bermuda fell by 4.2 percent during the month of February, according to statistics released by the Government yesterday.

Hardest hit were general retail stores, which recorded a decline of 5.5 percent in gross revenue flows -- despite the fact that residents made fewer trips abroad and brought in 8.5 percent fewer goods by worth.

The monthly release from the Statistics Department said: "Consumer demand weakened during February 2001.'' Not surprisingly retail outlets catering primarily to tourist demand reported a sharp dip in sales revenue, but some of this may be attributable to stores in the Fairmont Southampton Princess being closed during renovations to the hotel.

The monthly index for the total value of retail sales slipped 1.6 percent year-over-year, with an estimated gross turnover in the retail sector of $40.3 million. But after adjusting for inflation, which stood at 2.8 percent in February, the volume of retail sales fell by 4.2 percent.

The report added: "Aggregate retail sales for the general retail stores sector reported the largest decline (-5.5 percent) in gross revenue flows.'' The Government press release added this was a considerable drop after the strong sales performance in January, which was up seven percent.

Sales slump hits stores Consumer outlays on big-ticket items such as household appliances, electronics equipment and water pleasure crafts contracted during the month.

There was also a lower demand for pharmaceuticals and personal care products.

In contrast, spending on hardware and building supplies increased, the report stated.

The motor vehicles and service station sector sales contracted by 5.3 percent.

Vehicle sales were reported down due to lower stock levels and the fact that some auto dealers experienced above average sales performances in February 2000. Conversely petrol sales were up fractionally.

Both food and liquor stores posted a modest increase in sales of 3.8 percent and 2.5 percent respectively. Residents returning from overseas business and vacation trips declared purchases valued at $2.05 million for the month of February 2001, a decline of 8.5 percent year over year. There were roughly 6,890 returning residents during February 2001 compared to 6,994 last year, a drop of 1.5 percent.

BUSINESS BUC