building, across the road from its current site in Reid Street, Hamilton.

Medical Hall is adjacent to M&S's sister store, Archie Brown and Company. Both stores, along with the Bermuda branch of The Body Shop, are run by Mr. Warren Brown Jr. and his family.

A wall between the two buildings will be knocked down to create an open entrance between both stores, said Mr. Brown.

"This is a very exciting development,'' he said. "We will be able to satisfy the needs of all our customers under one roof.'' The Medical Hall building is smaller than M&S's current site, which has an area of about 10,000 square feet.

Mr. Brown said: "We have chosen a smaller site that's more appropriate to the size of the sales. Our current store is too big.'' Although the site is smaller, M&S, which is more popularly known in Bermuda as St. Michael's, will still carry as many lines of clothing, although stocks will not be as large.

Its administration will also be moved under the same roof as Archie Brown's.

"We're trying to make savings and improve profitability,'' said Mr. Brown. He said the changes would produce no job losses other than by attrition.

"M&S started in Bermuda 32 years ago and we have a lot of loyal staff here,'' he said. The Bermuda store is the second oldest overseas M&S branch in the world.

Although M&S's Bermuda store had been hit by a weak dollar against sterling, the store had a policy of keeping prices competitive even if it meant eating into profit margins, said Mr. Brown.

He added: "As a result are sales are up this year, which is excellent considering the economy.'' M&S will is scheduled to move to its new home at the beginning of 1993.