Retail sales fell by 4.5 percent in June —the fifth consecutive fall, according to statistics released by Government this afternoon.

And the drop is worse when inflation is taken into account, with sales falling in real terms by 6.6 percent, the report shows.

According to the Department of Statistics report, all store types — with the exception of food stores — recorded lower sales revenue in June.

However, in comparison, the June level of sales activity generated by Bermuda’s major trading partners showed marginal signs of recovery.

In the UK, retail sales grew 1.4 percent, mostly driven by stronger clothing sales. The US and Canada reported fractional increases in sales of 0.6 percent and 0.5 percent respectively, due primarily to higher gas prices.

The report breaks down some of the retail sector and shows that clothing retailers continued to struggle as gross sales declined by 20 percent in June — the seventh consecutive month of double-digit sales declines.

Building materials and hardware suppliers registered their fifth month of declining sales revenue for the year. Gross sales fell 8.5 percent in June following a similar decline in May.

The report said: “Lower sales revenue can be attributed to the knock-on effects of reduced building projects in the construction industry.”

Gross receipts for food stores increased by 6.2 percent in June, much stronger than the 3.4 percent in June last year. “This increase can be partially attributed to the 5.2 percent rise in the cost of food items during the month.”

* Full story and reaction in tomorrow’s Royal Gazette.