(ANSA) - Rome, September 26 - Retail sales in recession-hit Italy registered a fall in July after two months of modest increases, Istat said on Wednesday. The national statistics agency said July's retail sales were down 0.2% on June. They were also 3.2% lower than in the same month in 2011 for the fourth consecutive year-on-year fall. Istat said small stores were hit hardest, with sales down 3.8% on July 2011, but added that large retail chains also suffered from declining revenues of 2.3%. It said that even discount food stores, which had been faring reasonably well as crisis-hit consumers turned to them to try to cut their shopping bills, were 0.1% down in July compared to the same month last year.