Retail sales increased year on year for the second consecutive month in March, raising hopes that a four-year slump in the sector may finally be bottoming out.Total retail sales in March 2012 rose 1.9 percent, according to the Retail Sales Index, as consumers spent $85.6 million on retail goods, representing an increase of $1.6 million year over year.There was a double dose of good news with a substantial revision upwards for February’s sales figures. The Department of Statistics reported that consumers spent $72.7 million in Bermuda outlets, compared to the $70.3 million that they originally reported a month ago.The revisions came in the food and “all other stores” sectors.This meant that the February increase in sales was 3.6 percent. Also retail sales volume, which takes inflation into account, rose 1.3 percent in February, the first increase in that metric in about four years.“Overall, everyone is delighted to see an uptick in March sales,” said Paula Clarke, chair of the Bermuda Chamber of Commerce’s retail division.However, she added that the business environment remained tough for her members.“The fact is that there are fewer people living in Bermuda and that affects the volumes for all sorts of business, and the retail sector is badly affected.“We are seeing a decline in footfall. I think a part of that is down to the economy. People are thinking twice before every purchase.”Last Thursday evening, the Chamber organised a “Shop, Dine and Unwind” event, which entailed participating stores and restaurants staying open late and making special offers.“In Washington Mall, the stores did not get the kind of traffic they were hoping for, but they said it was worth staying open,” Ms Clarke said, reflecting on the event. She had heard anecdotally that participating restaurants had done quite well.The Retail Sales Index showed that in March, among the broad retail sectors, sales from liquor stores were the strongest, increasing 15.4 percent, partly because of a 2.6 percent increase in the price of alcohol.In contrast, motor vehicle dealers reported the largest decline in sales of 21.7 percent.Residents returning to the Island declared overseas purchases of goods valued at $3.6 million during March 2012. This was 16.3 percent lower than the $4.3 million declared in March 2011.Services stations suffered their first dip in revenue since August 2010. Despite the 5.2 percent rise in gasoline prices, the drop in the number of litres sold led to a 0.2 percent fall in sales.After adjusting for the annual retail sales rate of inflation, measured at four percent in March, the volume of retail sales fell by 0.2 percent.There were 27 shopping days during the month, the same as in March 2011.