CHRISTMAS shoppers are spending more in Bermuda's stores this year than they were at this time last year, according to retailers.

The increase is put down to a variety of factors, including the success of the Buy Bermuda Campaign and the success of many stores in competing with US prices.

George Grundmuller, head of the retail sector of the Chamber of Commerce, said: "Generally most retailers are pretty upbeat about holiday sales which appear to be better than last year.

"There are differences from shop to shop, of course, but overall the sales figures are better."

Local stores had stood up well to competition from overseas and Internet shopping, said Mr. Grundmuller. And he believed that was partly due to the message being spelled out by this year's Buy Bermuda Campaign, which was launched last month.

"The majority of members have been very pleased with the campaign and it has generated discussion in the community and that was one of the intentions," Mr. Grundmuller said.

The Chamber's executive vice-president Diane Gordon said retailers had been working hard to win business.

"Most businesses have been fairly aggressive in trying to keep people shopping at home," Ms Gordon said.

"There have been some great promotions, continuous sales and basically retailers are making themselves very available."

One of the growth areas has been in electronic home entertainment appliances.

M & M International Ltd.'s sales and marketing manager Matthew Mello said: "We had heard from some people that possibly, as a result of the high cost of air tickets this season, we might see some increased traffic.

"People started shopping earlier this year and sales are definitely up over the same period last year. So far, we have certainly met expectations. We have seen the numbers we were hoping for.

"All we've really done is advertise as we normally do. I think that many people think they get these really great deals when they go abroad. They don't realise our prices are fairly competitive; especially when you factor in customs and freight duty and the fact that shopping here is so hassle-free."

Mr. Grundmuller added that many stores were offering pre-Christmas promotions. Sales ahead of the holiday season ? as well as after it ? were a growing trend in the US as well as here, he added.

"Traditionally, the last few days before Christmas are when it gets really busy, so we are hoping for a lot more business to come," Mr. Grundmuller added.