This year's decline in retail sales is the first since 1992.

In 2009 local retail sales fell $42 million, according to updated figures from the Department of Statistics.

The last time Bermuda saw a decline in year-on-year sales was 18 years ago when there was a 1.9 percent decrease, which equated to a $41 million decline.

December had a five percent reduction in the volume of goods with inflation taken into account, according to the Department of Statistics' Retail Sales Index issued this week.

It marked the 11th consecutive month sales were down. January was the only month that saw a growth in sales last year.

However with inflation taken into account it was actually the 21st month during which stores did not see a growth in sales.

How the decline will impact shop employees is still not known. Chamber of Commerce retail spokesperson Kristi Grayston said she was aware that some owners have cut back hours to help save revenue.

Bermuda Employment Council head Martin Law said he was not sure how many people have been let go as a result of the weak sales, but added: "Members in the retail sector have found it necessary to shrink their workforce due to low volume of sales. The retail sector is hurting and so are others."

Doug Soares, a partner at recruitment firm Expertise Limited said declining retail has impacted many who look to the sector for a second job

"The degree to which this decline in retail sales is impacting employment in that industry will not be known until the labour statistics are published next year," he said. "But a significant decline in retail employment is an inevitable reality.

"It is important to keep in mind that the retail industry tends to employ a large number of part-time employees, casual workers, and students — many who would not qualify as an employee as defined by The Employment Act.

"Consequently, the downsizing of a retail workforce often happens more quickly and discretely — and often less formally — than in other industries where there tends to be a greater proportion of full-time employees who are subject to minimum standards legislation governing layoffs, redundancy, notice periods and severance pay.

"I think it is also fair to say that many folks who are accustomed to working a second job in retail to supplement their income are finding it difficult in 2010 to find such employment."