September retail sales plunged after the attacks on the World Trade Center - and retailers said yesterday they are only hoping to equal last Christmas's sales.

September's decline was reported yesterday in the release of Government's Retail Sales Index.

Head of the Chamber of Commerce's Retail Division, George Grundmuller, said retailers have been hard hit and the figures were no surprise. "It has been very difficult for retailers, and sales for most shops remain soft," he said.

Speaking of the economic effect of the September 11 tragedy, Mr. Grundmuller said many local shops - as in the US - experienced declines in revenue. He added that speciality shops, catering to a tourist trade, saw sales fall as much as 40 to 80 percent.

Government is attributing September's index drop to a decline in the numbers of visitors to the Island, combined with shorter work weeks and staff layoffs, following the events of September 11.

Index data, which is based on figures voluntarily supplied by retailers, shows total sales were down by 3.2 percent, over last year. And after adjustment for the current rate of inflation - 2.8 percent in September - the total volume of retail sales fell by 5.9 percent, over last year.

The hardest hit areas were department stores and clothing shops, with sales in the apparel sector falling 17.3 percent over last September.

Government reported that 80 percent of stores in this sector experienced lower sales this September - which had 24 shopping days, including five Saturdays. Figures indicate that both tourist and domestic spending contracted.

Vehicles sales also fell, by four percent, although the decline was attributed to lower stock levels as car shipments were delayed after the September 11 terrorist attacks.

There were however sales increases in some sectors. Liquor and food sales saw a modest increase - 3.3 and 3.6 percent respectively - while hardware and building supplies saw a year-over-year increase of 4.7 percent.

Overseas, local spending also showed a decline, with residents declaring purchases of $2.89 million. This is 10.2 percent lower than last year's declaration of $3.22 million in September.

Government reported that the decline in local purchases abroad resulted from fewer residents travelling during the month. The number of locals travelling during the month fell from 10,146 last year to 8,205 persons this year.

Lawrence Trimingham, director of Trimingham Brothers, said the company, in line with index figures, had suffered strong sales declines in its tourist-related areas. But, Mr. Trimingham added that the store is fortunate to have a strong local clientele.

Of the success of the "Buy Bermuda" campaign, which was launched last month, Mr. Trimingham said it may have made locals think twice before spending overseas, but it is too early to gauge its impact on sales.

Roger Davidson, president of H.A. & E. Smith's, said September's sales were down, as were October sales.

Mr. Davidson said October, after May and December, is typically one of the store's better months but that was not the case this year with sales being "very depressed" compared to years past.

A.S. Cooper's also reported that sales were down in September and October. Managing director Peter Cooper said September's sales were more heavily hit than October's, but that last month had also seen a significant revenue drop.

Mr. Cooper added that the departments catering to visitors were "dramatically off". He said the company's hotel branches had also experienced a drop-off in sales.

But, looking forward, Mr. Cooper said he hopes for Christmas sales on par with last year. "I would be very pleased if sales were equal with last year, but I am not anticipating that," he said.

A smaller retailer, The Source, which sells men's clothing and shoes from its Washington Mall location, also indicated sales were down for September and October. Owner Lisa Richardson said sales had slowed even before September 11 and revenue fell by between ten and 12 percent, in September and October, compared to the same period last year.

Mrs. Richardson said her business is only marginally affected by tourism levels, as up to 95 percent of her clientele is local. But Mrs. Richardson said sales in the first three weeks of November show a three percent jump on last year. She attributed the increase to consumers kicking off their Christmas shopping.

But, overall retailers are not expecting miracles from the Christmas season. Mr. Grundmuller said: "It is too early to say if Christmas will be good or not, but indications are that it may not be. But, we won't be able to say for sure until December 24... There is however great concern from (my) colleagues."