Car buyers drive up May retail sales
and more new cars.
Figures for May, after inflation, showed retail sales grew by 4.2 percent year on year. But the sales boost might not have got out of first gear were it not for the roaring trade in car sales.
Statistics released by the Finance Ministry yesterday showed motor vehicle and service station sales jumped by a massive 14.7 percent, year on year.
Mike Cordeiro, sales associate at Continental Motors in Pembroke, said: "We've had a tremendous increase in car sales.
"We've already shifted about 100 vehicles so far this year. Last year, we only sold about 80 in total, so already we're well ahead.
"There are about 23,000 cars registered on the Island and the average car on the road is about ten years old.
"It's going to take another 10 years to replace those 10-year-old cars and that seems to be an ongoing cycle.
"But perhaps, right now, Bermudians are getting fed up with their older vehicles.
"Demand is very high at the moment and people are looking for quality and a decent product, which we are fortunately able to offer at the moment.
"Overall, people are also confident with the state of the economy and while tourism may not be booming, sales at home certainly are.'' Gross turnover in the retail sector was estimated at $49 million in May.
Food stores said their gross sales were up 5.9 percent on the same month last year. And liquor sales jumped by 4.2 percent.
Aggregate sales in general stores were up 4.5 percent year on year but business was not booming for clothing, footwear and accessories stores.
Only appliance and hardware stores reported a solid sales performance.
And stores catering to tourists also struggled.
A statement from the Ministry of Finance said: "This was partially a reflection of the drop in tourist arrivals during the month of May.
"Retailers indicated that visitors seemed to be spending less than in previous years. Department stores, on the other hand, posted moderate gains in sales.''