EU - Question and Answer - June 16, 2002

How will small retail businesses, such as grocers, compete in the EU?

The fear of competition among retail shops is a real issue. However it is wrongly portrayed as a result of EU membership. There are already a large number of retail outlets in Malta, all facing very stiff competition both with similar small shops as well as with large retail outlets or even supermarkets. This has happened quite independently of EU membership and is the natural consequence of a modernising economy.

Despite intense competition, several small grocers have survived, largely because they have successfully exploited factors that cannot be offered in the same way by the large outlets, such as person-alised service and their location in the village centre.

Another concern among small shops is that EU membership will lead to foreigners setting up shop in Malta. EU membership does give the right to establish oneself in any EU country. However, one must also consider that our retail market is already saturated for its size. This makes further investment in additional supply difficult, whether or not this is made by Maltese or foreign entrepreneurs.

The Malta-EU Information Centre have kindly offered to answer any questions you may have about EU consumer-related issues. If you do have any questions write to me.