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No Christmas boost for retailers

No pre-Christmas cheer for retailers as shopping again fell.

Retailers failed to get a pre-Christmas boost as figures released today showed sales fell by more than five percent in real terms.Government this morning released the retail sales index which showed that sales totalled an estimated $106.6 million during December last year.“This represented a decline of 3.2 percent or $3.5 million less than in December 2009. Motor vehicle outlets and building material suppliers suffered the largest percentage declines. Additionally, liquor stores and retailers within the all other store types sector also reported falling sales.“Overseas purchases declared by residents returning to the Island from business and vacation trips totalled $8 million, an increase of 1.3 percent above 2009 levels. Combined local and overseas spending fell by 2.9 per cent to $114.6 million during the month.“After adjusting for the annual retail sales rate of inflation, measured at 2.6 percent in December 2010, the volume of retail sales contracted by 5.6 per cent.”The report adds: “The December 2010 sales index for building materials and hardware supplies stores fell 24.4 percent to its lowest sales level on record. This drop was reflective of the decline in construction activity, which translated into weaker demand for construction materials.“Motor vehicle retailers experienced another month of falling sales. The 15.8 percent sales decline within the sector marked the ninth consecutive month of negative sales growth. This was largely due to a decrease in the sales volume of motor vehicles throughout the period.”It adds: “Gross receipts by retailers within the all other store types sector declined 3.7 percent during December 2010. Boat and marine supplies retailers suffered a 29.3 percent drop in sales during the month. Sales receipts for furniture, appliance and electronics decreased 7.7 percent.“Sales of pharmaceutical products fell 2.2 percent. In contrast, tourist-related stores was the only sub-sector experiencing higher sales levels, and reported a 7.8 per cent rise in sales year-over-year.“Food sales were 0.6 percent higher than in December 2009. This growth was due to a 2.4 percent increase in the price of food. Over the same period, liquor sales dipped three per cent during the month.“Apparel stores reported a 0.2 percent rise in sales revenue during December 2010, a fractional increase over the sales levels recorded in December 2009.”“Local retail sales for the entire year fell five percent to an estimated $1.04 billion compared to $1.10 billion in 2009. Combined local and overseas retail sales dropped four percent to an estimated $1.12 billion from $1.17 billion in 2009.”