Eastleigh traders are on "store wars" alert following news that the world's largest retailer could be set to take over a hypermarket on the edge of the railway town.

A special meeting is scheduled for this evening to discuss a plan for managing the impact on the town of a Wal-Mart store in Chandler's Ford.

Last week the American giant announced a £6.7 million bid for the Asda supermarket chain in what has been described as the biggest shake-up in UK retailing this century.

Based in Bentonville, Arkansas, Wal-Mart is the world's largest retailer with annual sales in excess of £85 billion from over 3,600 stores. In the United States, the company sells everything from food to tyres, all at hugely discounted prices.

If the bid goes ahead, Wal-Mart would take over the huge existing Asda store at Chandler's Ford. Eastleigh town centre manager Dennis Chandler says it is important that traders are prepared to rise to the challenge.

He said: "I believe Eastleigh is well placed to deal with this competition - there are fewer empty shops than at any time for the last few years. In the last 12 months, 15 shops have either opened or been modernised and the number of people visiting Eastleigh is higher than ever."

But he added: "Faced with this challenge as well as the opening of West Quay, Southampton, in August 2000, we need to devise a strategy for dealing with the changes which face Eastleigh in the next three to four years."

An Asda spokeswoman said: "Our stores will be managed by the same people. Asda will not change, the stores are saying the same."

But the acquisition is seen as providing Wal-Mart with a significant entry point into the UK grocery and general merchandise market.

Mr Chandler commented: "The message coming out is that the Asda name will remain, but it just remains to be seen what sort of format they will adopt."

The town centre manager added: "While the entry of Wal-Mart into the UK may seem to benefit the consumer, we need to stress the variety of choice and value in out-of-town and city centres.

"People in the States have quickly come to realise you don't combat Wal-Mart. I don't think you can meet them head on. We want to consider how we are going to play it."

Converted for the new archive on 25 January 2001. Some images and formatting may have been lost in the conversion.