Shoppers continued to keep their cash in their pockets as retail sales again fell by millions of dollars, according to statistics released this morning.

The Department of Statistics’ monthly Retail Sales Index showed that despite easing inflation, buyers spent $7 million less on retail goods in September compared to the same time last year.

The report said: “An estimated $87 million was spent on retail goods, falling five percent short of revenue a year ago. The retail industry showed little evidence of stabilising as food and liquor stores were the only ones to record positive sales growth this month.”

It added: “After adjusting for the annual retail sales rate of inflation, measured at 1.9 per cent in September, the volume of retail sales shrank by seven per cent. Fewer quantities of retail goods have been sold every month of 2009, compared with 2008.

“Although September’s ten percent decline in apparel sales was the smallest setback for the year, it marked another month of weak sales for apparel retailers. The last positive sales gain dates back to June 2008.”

* For the full story see tomorrow’s Business section in The Royal Gazette.