ACTHE latest top-of-the-shops survey, which reveals a slide in York's retail fortunes, has met with a mixed reaction from the city's traders.

The new research shows York has dropped to 23rd place in national retail rankings from the 21st place it occupied in 1998 when the last study was carried out.

But the city's retailers believe the general outlook for York is encouraging.

The ranking, produced by information firm Experian, comes from surveys at more than 1,100 shopping locations and more than 300,000 shops in the UK.

Every location was given a "vitality" score based on a number of performance indicators such as the number of vacant outlets, the size of the centre by floorspace and the numbers of major multiple and quality independent retailers.

While York's vitality score dropped from 256 in 1998 to 238 in 2000, the city held its third place in the regional ranking for Yorkshire and Humber. Leeds and Sheffield respectively occupy the two top spots.

Roland Harris, chief executive of York and North Yorkshire Chamber of Commerce, said other factors could be behind the apparent decline the figures showed for York.

For instance, he said, if the empty units set aside for the second phase of development at the BAA McArthurGlen designer outlet, near Naburn, - which will open this year doubling the centre in size - were counted as vacant, it would give a false impression.

He said: "The retail scene in York and its immediate environs is generally quite encouraging."

The latest feedback from the chamber's retail committee showed trade boosted over Christmas and the New Year, followed by a flat "post Millennium blues" period lasting to mid February, with all the signs now showing a revival.

Adam Sinclair, chairman of the chamber's retail committee, said of the survey: "It does not surprise me that York is experiencing a ruthlessly competitive retail environment and it would appear obvious that we need to build on our existing floorspace before we embark on further general retail developments across the city."

On the positive front, the survey shows York staking its claim on the number three spot of the best historical shopping destinations in the country.

Bath, 1998's number two, dropped to York's previous number four spot, with Chester leading and Norwich number two.