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Store sales fall again

Photo by Mark TatemA new poll suggests three-quarters of people are unhappy with Government's handling of finances and the economy has displaced crime as people's number one concern.

Retail sales continued to drop, declining 7.9 percent by volume during May, according to the latest figures released by Government.Driving the fall were building material stores and liquor stores, which decreased by 7.9 percent and 7.4 percent respectively, both contributing to the 4.1 percent decline in value (or four percent after adjusting for inflation) for the month.The Department of Statistics’ Retail Sales Index revealed that food stores’ sales also fell 4.6 percent - perhaps an indicator of the number of people leaving the Island in recent months - but service station sales rose 3.9 percent compared to May 2010 due to a 17.9 percent increase in the cost of fuel.Sales of motor vehicles dropped 2.2 percent during the year as a result of fewer and less expensive models bought over the period of May.Residents returning to the Island declared overseas purchases of $6.3 million for the month, 1.6 percent lower than a year previous.Paula Clarke, chairman of the Bermuda Chamber of Commerce’s retail division, said that the results were particularly disappointing given that May is typically a strong month for retailers.“The results, however, were not surprising because as retailers have all realised that we have a much smaller customer base due to so many people having left Bermuda,” she said.“All the retailers are aware of it and continue to work hard to meet the demands of the local consumer.“But our concerns remain the amount of dollars that are continuing to go off the Island. Despite the figure for overseas spending being slightly down on last year, it is still over $6 million that could be spent here in Bermuda.“More worrying though is the amount spent on online shopping that we don’t have any statistics on, which again is money that is being spent overseas which could be used to fuel the Bermuda economy.”Ms Clarke said that declining food, liquor and auto sales were all indicative of a shrinking customer base and retailers had been feeling the effects of that as more people left the Island, particularly at the end of school terms when families packed up and went home, for close to 18 months or more now.She revealed that the Chamber was working on an initiative to raise awareness of the impact that money being spent overseas was having on the local economy, from the dock workers and truck drivers to Government administrators and taxi drivers, and urged residents to keep their hard-earned dollars on the Island, therefore helping to support their family and friends.For the third consecutive month, apparel stores’ sales declined, this time down 3.5 percent compared to an increase of 7.2 percent 12 months earlier.The all other store types sector also fell 5.2 percent, with pharmaceutical retailers reporting the largest decrease of 6.6 percent. Sales by furniture, appliances and electronics vendors also dropped 4.9 percent. The only rise was recorded by boat and marine supplies traders, who were up almost one percent.