Retail sales edged higher in April compared to figures for April 2001, but declined when inflation was taken into account, according to Government statistics released yesterday.

The value of sales increased 1.6 percent, but the 2.4 percent inflation rate meant that the volume of sales during April 2002 was actually 0.8 percent lower than in April 2001, despite the two extra shopping days during the month this year. The estimated gross turnover in the retail sector was $39.6 million in April 2001 and $40.2 million in April of this year.

The decline follows a 1 percent gain in volume between March 2001 and March 2002.

But the most recent set of figures from the Statistics Department revealed dramatic increases in certain sectors. Furniture sales increased 13.3 percent during the month, which the report said was due to higher inventory levels.

Ceci Bernard-Lambert, the operating manager at Rooms for You, said September 11 had, in a roundabout way, helped sales. She explained that consumers' reluctance to travel meant that many who would have imported furniture decided to shop at home. "It gave them an opportunity to revisit us locally," she continued. "They saw that some of us had some good things to offer."

Ms Bernard-Lambert said the wave of new insurance companies after September 11 was also continuing to help sales.

David Moniz, an owner of The Living Centre, said year-over-year growth for his business had "quite easily" reached ten percent during the past several months. As one of his sales managers said: "Thank God for the exempt companies."

A spokesman for Mayne's Furniture refused to comment. Spending on appliances and electronics advanced ten percent during the month, although a spokesman for M&M International, one of the Island's largest retailers of audio and video equipment, said the company's sales were virtually flat year over year, posting less than a 1 percent increase.

But he said that the difference in the sector might be attributed in part to the World Cup, which can be an excuse to buy a new television set. The appliances and electronics and furnishing stores are part of the "all other store type sector." But overall growth in the sector was just 2.5 percent, as strong sales figures were muted by spending on pharmaceuticals and personal care supplies, which dipped 3 percent, and tourist-related sales, which fell 10.1 percent. In March, spending on health care products rose 14.5 percent and tourist-related sales rose 5.5 percent.

The only other sectors to outpace inflation were motor vehicle sector and the building materials and hardware sector, which reported 3.9 percent and 3.7 percent growth, respectively. The increase in car and bike sales were attributed to an increase in stock levels.

Gross sales for food stores edged up 0.9 percent and liquor store sales, which increased 9.5 percent in March, increased 1.0 percent. Service station receipts climbed 2.2 percent, although that figure tends to reflect world oil prices more than consumption. Clothing store sales contracted 0.2 percent. According to the Government release, 70 percent of the retail businesses reported an increase in year-over-year sales, but the figure was dragged down by the remaining shops. Residents arriving at the airport during the month declared $3.37 million worth of goods compared with $3.33 million declared in April 2001.