Bermuda is 'on sale' with reductions and discounts across the board in stores Island-wide.

That is according to Kristi Grayston, chairman of the retail division of the Chamber of Commerce and owner of Pulp & Circumstance, who said that despite the traditional post-Christmas and New Year sales by retailers there was no big rush of shoppers to find the bargains.

And she reckons traders will be very careful about what they invest in during 2009, but was cautiously optimistic about the future of the sector.

"I think pretty much everyone is having a sale," she said.

"Things are reasonably where they would be normally after Christmas, no more and no less. But no one is rushing in buying lots of stuff."

Ms Grayston believes most shopkeepers will be holding sales at least through the next week and some beyond the end of January, but admitted she was unsure what the future held for the industry as a whole.

"It is anyone's guess what will happen," she said.

"I think everyone is preparing for a downturn of things.

"I think retailers are going to be cautious about how they invest in products.

"But I am cautiously optimistic that sooner or later things are going to turn upwards."

George Grundmuller, president and chief executive officer of the Phoenix Stores Ltd., said sales were up on last year at the Phoenix Stores as shoppers hunted around for bargains.

"Sales have been good — they are slightly up on last year," he said. "I think people are looking for a bargain and discounts and there was a fair amount of that."

Mr. Grundmuller, who is also in charge of Brown & Co., said sales would finish today, but he had been impressed with how the store had done, particularly in sales of Christmas items.

"There has been a good amount of that," he said.

"We sold a lot and people have been stocking up and snapping up bargains."

But he thinks 2009 will be a tough year for traders with the current financial crisis and more economic fallout expected in the future.

"I think it will be challenging in 2009 — I think especially the first quarter will be hard and otherwise there is more visibility after that.

"I think a lot depends on things coming together in the US and people are looking to what the new president will do and what kind of economic stimulus package is being put together.

"There is still hope that the tourists will come in next year as they are vital to our economy from a retail perspective."