Retailers are worrying this year may prove to be a record year for overseas spending by residents as the total value of their purchases continued to climb this summer.

Latest figures show $1.58 million was spent in overseas stores in July -- a 9 percent increase year-over-year. Since January, residents have spent nearly $12 million abroad.

Gross turnover in the local retail industry in July was estimated at $43.2 million, with the motor vehicle sector continuing to see the biggest gain.

With Christmas fast approaching, the retail community is taking early steps to try and keep residents shopping locally.

Saladmaster of Bermuda has organised a Christmas Expo in November at Number One Shed to show off local goods. And the Chamber of Commerce, currently sponsoring the Harbour Nights Wednesday evening shopping festival, is gearing up for its late night Christmas shopping programme.

"Our Christmas festival is well in hand,'' head of the Chamber's Retail Sector Mr. Bobby Rego said, adding, "We are hoping to include more stores this year.'' Mr. Rego believed slashed air fares as a result of the "airline wars'' had encouraged more residents to go abroad for shopping this year.

More effort would have to be made to educate residents on the importance of shopping locally, he said.

He felt the merchant community was doing its bit by offering incentives and credit programmes.They had high customs duties, rents and salaries to pay which their US counterparts did not have to contend with.

By year's end, he believed some $22 million will have been spent on overseas purchases.

"In a year in which our economy needs every single dollar it can get, that's not very good news,'' he said.

In the general retail sector in Bermuda, there were mixed results, with strong demands for some consumer goods such as clothing, footwear and personal care items, which helped push the sector's July index up 4.9 percent year-over year.

Food store revenues rose by 4.6 percent year-over-year, while liquor store receipts declined 1.8 percent.

Total receipts for petrol/gas sales slipped fractionally in July. After adjusting for the rate of inflation (2.6 percent in July) the monthly volume of retail sales remained above the previous year's level, increasing by 1.9 percent year-over-year.

Hamilton merchants are planning a "shopping mall'' product promotion on Front Street this autumn to help deter residents from shopping overseas.

Sponsored by Saladmaster of Bermuda, the expo, which is scheduled for November 18-21, will be held in Number One Shed.

The show is being billed as the first Christmas shopping extravaganza for all Bermudians under one roof.

Director Mr. Junius Durrant said: "The `Christmas Collection Expo' will present a festive variety of displays, products and services as well as entertainment and musical revues.

"Bermuda needed a type of upgrade home and trade show,'' Mr. Durrant said.

"After looking around for the most viable place, we were able to secure the Number One Shed. We want to put on a first class show.'' Mr. Durrant added: "We want to help small businesses and merchants who feel too many Bermudians go abroad to shop for Christmas.'' Coordinator of the expo, Mrs. June Augustus said people who are not selling items will be demonstrating new products.

Everyone from travel agents to carpet cleaners have been invited to participate.

"We encourage stores to bring in special items that people cannot find here,'' Mrs Augustus said.

"Over 100 stalls will be present some of which will be selling items and others promoting. Several food stalls will also be set up.'' Mr. Durrant said there would be something for everyone.

A booth with everything priced at $10 would also be available for Christmas shoppers.

The event will also have a contest for the best decorated booth, with the winner earning a free space in the 1994 expo.

Mr. Durrant hopes the four-day promotion will be the start of an annual pre-Christmas event.

Merchandisers who would like to participate or who would like to decorate Christmas trees should contact Mr. Durrant at 236-4522 or Mrs. Augustus at 292-4366 or 238-2012.

A donation from the event will be made to the Eddie Gladwin Memorial Fund in memory of the late St. James Church organist.