Retail sales are down by anything between one third and a half over the past four years during the month of December, a top retailer has estimated.Kristi Grayston, chairman of the retail division of the Bermuda Chamber of Commerce, reckons that sales in December 2010 have dropped by 30 to 50 percent from December 2006.But Ms Grayston still has confidence in the Island’s retail trade and will be consolidating her operations and opening a new store later this year.The two Pulp & Circumstance stores in Queen and Reid Streets will close and the new bigger store which will comprise both is due to be launched at the site of North Rock Communications in Washington Lane in May.The retailer only moved her gift store from the corner of Queen and Reid Street to Front Street in the summer but admitted that business had not done as well as first predicted.She said that when the opportunity became available to move into a larger and more central location she jumped at the chance.“It is really a consolidation,” she said.“Our clientele is mainly local and I just don’t see the traffic in Front Street that I saw here in Queen Street.“I think our clients didn’t like us being so far apart.“When we originally opened in this location we were able to give the people who wanted paper lots of time and attention and those who wanted gifts came in and got them wrapped quickly.“People have been asking us to bring the two back together again and now we have this opportunity to move into such a great space and we are very excited about it.”While maintaining some of the old favourite lines, the new store will be expanding its selection and taking on a modern look, while Ms Grayston has been working with Cooper Gardner on the interior design.“We will still do the high end gifts and gifts at each price point,” she said. “We will also be doing invitations and taking our printing service with us.“So basically we will be offering all of the services that we have been able to our clients in the past but hopefully we will be able to do it better.”Ms Grayston said that Washington Mall had become the hub of retail with a good mix of stores in the three phases as businesses have moved around and more room to grow with four spaces currently available in Phase III.She said that a lot of traders would be waiting to see what concessions they got from the Budget, having made the most of the retail refurbishment duty relief introduced last year, before deciding their next move.But Ms Grayston is also realistic about the future of retail in Bermuda.“December is going to be down,” she said. “If you look at the numbers in December 2010 versus December 2006 it is really frightening.“We are really starting to talk about big differences and we have got a long way to go to get back to where we were.“It varies from retailer to retailer, but I would say sales are down 30 to 50 percent over that period.”She said that Bermudians had become very nervous, there was a lot of unemployment, businesses had been cutting their hours and people were saving more or going online to source cheaper goods overseas. This, allied to fewer people on the Island, many of whom had significant disposable income to spend, had contributed to a great degree of uncertainty over the future.“My big concern is that we lose any more international business because, let’s face it, tourism is not making it happen at the moment, so we need to focus on our strongest pillar of the economy,” she said.The original Pulp & Circumstance opened in Old Cellar Lane in 1996 and the gift store followed two years later before the current premises in Queen Street was launched in 2000.The chain also has a store at LF Wade International Airport.The new store will be open from Monday to Saturday between 9.30am and 6pm.For more information contact 292-3224.