Retail sales showed a healthy increase of 6.6 percent in August, compared to August 1998, with almost every retail sector enjoying a boom -- except for department stores and small specialty shops, where aggregate sales were down.

Gross turnover in the local retail sector was estimated at $50.8 million in August, against $47.7 million a year earlier.

After adjusting for inflation, sales volume increased 3.8 percent.

The value of goods declared by returning residents was $3.67 million in August, compared to $3.41 million a year earlier, an increase of 7.6 percent.

The data, an analysis of retail sales and the retail sales sales index, has been released by the Statistics Department of the Ministry of Finance.

Motor vehicle dealers and service stations led the retail charge, with sales ahead by 15.5 percent year-on year as Bermuda residents take advantage of recent changes in the law to upgrade their vehicles.

"You can sell a four-wheel drive, Jeep-style vehicle just the moment it comes off the boat, regardless of the paint colour or anything else,'' said one car salesman, who asked not to be identified.

David Gibbons, managing director of Gibbons Company, said that his store has not felt the pinch other department stores have reportedly been experiencing.

"We have been showing consistent increases over the last five or six months,'' Mr. Gibbons reported, attributing at least part of his company's gains to "recent changes we have made and investments we have put into the business, which may have resulted in our drawing some business from other local retailers''.

The report commented that "hardware stores continued to report healthy sales, citing the buoyancy in the construction industry as the reason''.

Reg Minors, general manager at Tools and Equipment, said that sounded "about right'' to him, and added: "As long as we have this construction boom, the hardware stores are going to enjoy fairly healthy demand.'' How long it would continue, Mr. Minors said, was another matter. "I have been talking to people in the industry, as I always do, and it's fair to say that they are optimistic in terms of the next ten years.'' After that, he said, the future was less clear.

Eldon Trimingham, who is "semi-retired'' from his post as president of Trimingham Brothers, which is now managed by his son, Lawrence, was more concerned.

The statistical report says that "at department stores and small specialty shops, catering to both locals and tourists, aggregate sales were down''.

"That is fair comment, in line with the continuing decline of air arrival passengers,'' said Mr. Trimingham.

Air arrivals this year are down on 1998, although cruise ship passengers visiting Bermuda have increased by more than ten percent year-on-year.

"I don't see things picking up (for the department stores) until tourism turns around,'' Mr. Trimingham said.

"We also have to do something about getting our prices down,'' he added, saying that his was a personal view.

"If we are going to compete, it's hard if you have to pay somebody enough to buy gasoline at $5 a gallon, when you're competing against people whose gasoline costs $1 a gallon.'' Mr. Trimingham said he was using gasoline as an example of Bermuda's high prices across the board.

Building boom: Tools and Equipment's Reginald Minors