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Car, food and clothes sales push Retail Sales Index up 3% in January

More buying in Bermuda: Retail sales rose in January, latest figures show.

Retail sales got off to a good start this year, jumping 3.1 percent in January led by car, food and clothing purchases.Apparel stores showed a healthy more than six percent increase in sales for the month but sales of big-ticket items like furniture and appliances fell.Motor vehicle dealers saw the largest gain in sales of some 31.6 percent.Overall, retail sales increased by $2.3 million during January to $74.3 million with sales activity rising in five of the seven retail sectors, a Statistics Department report released yesterday said.In contrast, retailers of building materials reported the largest decline in sales of more than 30 percent.Residents returning to the Island declared overseas purchases valued at $4.4 million during January; 2.2 percent or $0.1 million less than the $4.5 million declared in January 2012.Combined local and overseas spending totalled $78.7 million in January compared to $76.5 million last January.After adjusting for the annual retail sales rate of inflation, measured at four percent in January 2013, the volume of retail sales fell by 0.9 percent.There were 26 shopping days during the month, one more than in January 2012, the report said.In the food and liquor sector, receipts from food sales rose 7.2 percent compared to January 2012. Liquor stores reported a 2.4 percent increase in gross receipts during the same period.Sales of building materials declined 30.2 percent during January 2013.The reduction in sales was attributed to the near completion of major commercial construction projects such as the redevelopment of the King Edward Memorial Hospital, and a contraction in residential construction, the report said.Aggregate sales for apparel stores increased 6.1 percent during January 2013.The report said retailers attributed the rise in sales performance to improved customer service and marketing strategies, as well as increased demand for a wider selection of merchandise made available to consumers.The “all other store types” sector experienced a decline in sales receipts of 0.5 percent during January.Gross sales revenue from tourist-related stores suffered the largest decline of 5.4 percent.Receipts for big-ticket items such as furniture, appliances and electronics fell by 2.9 percent.In contrast, sales receipts from marine supplies grew 10.6 percent while the sale of pharmaceutical products rose 2.3 percent year-over-year.Retail sales of motor vehicles jumped 31.6 percent in January and contributing to the strong increase in aggregate receipts was the sale of 27 additional cars and two additional motorcycles compared to January 2012, the report said.Sales receipts for service stations increased 2 percent. The growth in sales for this sector was attributed to the increased price of fuel as the overall volume of fuel sold within the sector decreased.And, residents declared 2.2 percent or $0.1 million less in overseas purchases than the $4.5 million recorded for January 2012.Decreased expenditure outlays on clothing and footwear as well as toys and sporting goods contributed to the drop in the total value of declarations in January 2013.This outcome may be partly due to the new HM Customs Green/Red channel system for declaring goods at the airport introduced in November 2012.