Retailers could be in for a tough first six months of 2010, but the second half of the year looks much more positive.

That is the view of Kristi Grayston, chairwoman of the retail division of the Bermuda Chamber of Commerce and owner of Pulp & Circumstance.

She said she believes that while the next 12 months will be hard for the retail sector, she is hopeful that by the spring a recovery of the US economy and more cruise ship passengers will combine to boost the local market.

She also held out hope that Bermuda's economy would start to show some signs of bouncing back by the autumn and the industry will experience a strong fourth quarter.

"I think the first half of the year will be more difficult than 2009 and I am hopeful that the second half of the year will be more positive than 2009 and maybe that will make for a more positive 2010," she said.

The Retail Sales Index dropped by 4.3 percent during the third quarter of 2009 – the third consecutive quarter it has fallen, with apparel stores down 15.8 percent for the quarter, according to Government's Quarterly Bulletin of Statistics.

Ms Grayston said retail has the potential to prosper in the future and urged shoppers to get away from their computer screens for online purchases and to take a walk down the street to have a look at what is on their doorstep.

"Retail is a lot more work than people realise at times," she said. "The bulk of people would be surprised as online shoppers if they just got up from their desks and went for a walk around the shops in town to see what is on offer."

Looking ahead to the January sales, Ms Grayston said that the period between Christmas and February was always difficult for traders to adjust to, but so far takings were in line with what were expectations.

She said the economic downturn had been a good opportunity for retailers to focus their attention on their core operations and, as a result, they were much more savvy about the way they did business from keeping a tight inventory to providing the best customer service.

In October, The Royal Gazette reported that Stevedoring Services Ltd.'s profits plunged more than 60 percent in the year up to the end of March, 2009 as the volume of goods imported through Hamilton docks slumped, indicating that traders were cutting back on the stock they held.

The cargo management company said at the time it made net income of $399,578, or 32 cents per share, in the year ended March 31, 2009, compared to $1.08 million, or 87 cents per share, the previous year.

According to Government's Quarterly Bulletin of Statistics, imports fell ten percent through the first nine months of 2009.

Meanwhile, employment income edged down 0.3 percent to $2.29 billion from $2.3 billion, suggesting there was less disposable income in the community.

Meanwhile, visitor spending on shopping, entertainment and transport plummeted 18 percent to $51.6 million through the first nine months of 2009.