They were arch rivals who vied for the latest styles, the best heeled customers and the wealthiest of tourists.

From china from England to silks from India, only the best was sold at Trimingham Brothers and H.A. & E. Smith's during their glory years.

And together with A.S. Coopers they were part of the original 40 Thieves - the people who really controlled Bermuda.

But the Front Street boys, the old school of the Island's retailers, not only had the same customer base just through thick walls that divided the stores but also joined forces as an awesome economic power.

But during the 1980s tourism started to decline in Bermuda and then recession hit - and the stores struggled to recover. The power was fading and job shares and lower wages were introduced. Rumours of one of the big names closing were rife.

Bets were on for either Trimingham's or Smith's to close - seen as two fading department stores with out-of-date stock and a dwindling customer base. Speculation about which would close first began to circulate about ten years ago.

But Trimingham's started pulling away and gaining ground on its neighbour. First they started updating women's clothing, and then the real work began with the opening of Brothers Cafe, re-doing the linens and kitchen sections and adding a decorative household area and refurbishing fine crystal and china. The final recent upgrade has been a huge hit - Mac, the makeup of stars, was finally introduced to Bermuda through Trimingham's.

Smith's managed to open a young "trendy" section at its Reid Street entrance, but failed to update the rest of the store.

And for the past four years, rumours about either Gibbons Company, Coopers or Trimingham's buying them out have circulated regularly.

Yesterday Smith's president Roger Davidson confirmed that the store had been looking for a buyer for four years, and finally sealed a deal with Trimingham's for "more than they wanted (to pay)".

What had been obvious to the rest of the Island for years happened and the two similar stores bang next to each other were finally to knock holes through the dividing walls and become one.

"This decision may come as a surprise to some," said Lawrence Trimingham, president of Trimingham's, but not to industry observers.

"They have been a worthy competitor and we shall miss their friendly rivalry," added Mr. Trimingham.

The additional retail space will allow the new single store to greatly expand merchandise offerings, but the new owners are being coy about saying it will all become Trimingham's and are saying they will keep the Smith's name for the moment.

"The name will still be above the Front Street store and initially our customers will notice very little difference, but it will be a Trimingham's operation," said Mr. Davidson. "For us the decision was brought about by a number of factors, the ongoing decline in tourist spending, the ever expanding retail space in the US, the ease of travel making it more and more attractive for Bermudians to shop overseas together with the rising cost of doing business here on the Island.

"Whilst we recognise that these are challenges all local retailers face, there are clear advantages in having one combined and strengthened retail operation."

Sam Simmons, Trimingham's chief executive officer, who has been responsible for many of the recent upgrades and changes at the store is optimistic about the shop's future.

"This is a decisive move that accelerates our strategy and furthers our leadership position in the markets we serve," he said. "In addition to the strategic benefits of combining two highly complimentary retail operations, it is an excellent opportunity for our customers who will have access to a wider range of merchandise."

And he pointed to the efficiencies gained by combining the operations to invest more in "our people" and their training and development, technology and improved customer service.

"This is a bold move and we have every confidence it will be a tremendous success," he said, adding he was looking forward to working with Mr. Davidson during the transition period when the two will eventually become one.

Mr. Trimingham said Mr. Davidson was going to retire after the repositioning and would be spending more time with his family.

Mr. Davidson said he was not being pushed out, but instead was retiring at the age of 65 after over 40 years in retail.

"My wife would like to see a bit more of me again," he joked.