Retailers say they have a fight on their hands to keep the industry healthy in the coming year.

And they are calling on Government to address tax regulations as one way of helping struggling stores stay afloat.

The challenges facing the retail industry were discussed at the division?s annual general meeting at the Bermuda Chamber of Commerce yesterday.

Somers Cooper, from A.S. Cooper & Sons Ltd., and Pulp & Circumstance owner Kristi Grayston were elected co-chairs for 2005/2006.

And at the top of their wish list for the year is continued tax concessions from Government.

This includes a continued reduction of import duties and a reduction or elimination of duty on equipment and fittings for renovation, similar to hotels and restaurants.

One success the retail industry did have earlier this year was the payroll tax bracket adjustment. Government raised the payroll ceiling qualifying for the lower tax rate. This allows a greater number of smaller employers to fall in under a lower tax rate.

However, Mr. Cooper said, the tax burden is still a major issue with larger retailers.

?The tax concession after the September 11, 2001 terrorist attacks was a major help to larger retailers as far as eliminating the payroll tax for a whole year ? something that was obvious in their profit margin,? he said.

But he said the whole tax structure still needed to be investigated.

?There?s very little incentive to renovate and put our best put forward and many stores until now have not been renovated in years and any major undertaking was so expensive that there?s only a few people who can re-invest in their companies like that. We just want to get on a level playing field with restaurants and hotels,? he said.

Having received a clear majority support from its retail members, the Chamber lobbied the Government to relax the rules on Sunday shopping last year and in this year?s Budget Sunday shopping restrictions were lifted.

But as to which retailers would participate in the seasonal Sunday shopping, Mr. Cooper said they would only have a clear picture of this closer to the season. However, he still felt the lion?s share of Sunday shopping would still happen in the run-up to Christmas. Ms Grayston said many smaller retailers welcomed the opportunity to open their doors on Sunday. ?Many of us work on Sundays anyway and now being able to open our doors to tourists who wonder around Hamilton with nothing to do is a wonderful opportunity,? she said.

Another challenge facing the new co-chairs this year is ?Buy Bermuda?. Mr. Cooper said it was a ?whole new ball game? with Trimingham?s out of the mix which took a large chunk of retail sales out of the picture.

?Whether that business now goes to other retailers, the Internet, catalogues or people travelling abroad to buy stuff, that remains to be seen. But we need to do whatever we can to keep that money in Bermuda and save future jobs,? he said.