Retailers are to seek reassurance at a summit meeting with Government over their fears of the possibility US mega stores setting up on the Island.

A delegation from the Visitor Retail Division of the Chamber of Commerce is to meet with Finance Minister Eugene Cox next week to discuss the prospect of the relaxation of the 60/40 business ownership law.

And top of the agenda will be a clarification from the Minister over exactly what their plans are with any changes to the law, which, at present prevents any foreign business becoming owners of a Bermuda company.

It is also likely that the representatives will raise a few proposals of their own in the event that 60/40 rules may be changed for different sectors of the economy.

VRD chairman Ian Smith will lead the five strong delegation, which also includes Chamber of Commerce chairperson Cris Dapena and Phoenix Stores president George Grundmuller.

Yesterday, Mr. Smith said they were hoping the session could be used for some "brainstorming'', where they would get a chance to air the "mixed'' views of the VRD members.

But one thing that he and Mr. Grundmuller were united on was that huge chain stores like Walmart or K-Mart must not be allowed into Bermuda.

"We must stop something like Walmart setting up, that could kill anybody in the process,'' he said.

And the Phoenix boss said the arrival of a US multiple would bring few benefits and hurt many Front Street businesses -- leading to job losses as they struggled to compete with the "big boys'' cheaper operating costs and massive purchasing power.

"Businesses like that centralise operations, accounting and human resources would all be done overseas, creating an unfair playing field..where local organisations are burdened with these costs,'' he said.

"It would be difficult for lots of businesses but that doesn't mean some don't survive. It is perceived that that is what killed "main street'' in the US.

"Typically there are very, very few benefits, if someone has a deal with Walmart, one individual store would benefit but for 15 to 20 stores down the road it would be very difficult..'' However, he pointed out that there was no consensus from members at a recent meeting, with some believing the opportunity to attract overseas capital could be good for their operations.

Fellow VRD member Kristina Viera said one proposal was for there to be a size limit on any prospective incomers.

She added that members were divided on the issue and were seeking guidance from the Minister of Finance regarding their actual intentions.

Ian Smith agreed with a possible size restriction but added that all their fears could be unfounded once the Government has shared its intentions.