There is no sign of Christmas shopping just yet, but impatience has got the better of a handful of retailers who kicked off pre-Christmas sales, much to the annoyance of the larger business community.
"People are panicking," GRTU director general Vince Farrugia told The Times Business. "The sales are in full swing in London and Paris. In Malta, the culture used to be for sales to start after the Epiphany. Now, retailers hold a sale whenever they want to."
In Naxxar and Gozo, Studio 9, the furniture and gift retailer, has launched a Christmas sale offering discounts of up to 50 per cent. "We are hoping to increase our sales," managing director Victor Petroni said. "The sale will run until early January. We are expecting a so-so Christmas. It should not be better than last year's."
In Sliema and Valletta, Options and For You stores have a 'sale' sign covering an entire shop window. "The lack of sales can be felt," proprietor Lino Farrugia explained. "My sales assistants were complaining about their commission. This is an ongoing sale and it aims to increase takings, although Christmas shopping has not started yet."
Clamus, the Valletta stationer and toy shop, has a 10-70 per cent pre-Christmas sale on gifts and toys and offers on decorations and cards. Luxury homeware store Living Interiors in Gzira is offering discounts of between 10 and 70 per cent on branded goods until Christmas Eve. Bi Stores in Naxxar is giving discounts of up to 70 per cent on furniture and tableware until the end of November. Marks and Spencer is advertising a mid-season sale of up to 40 per cent on selected items.
Some furniture importers and manufacturers in Birkirkara and Qormi are offering varying discounts on sofas and loose furniture. There are also attractive offers to be had on household appliances at various stores around Malta.
Carmen Borg, the executive in Mr Farrugia's office at the GRTU, says the spate of sales might not necessarily be linked to international financial anxiety. "We received several complaints last year when some retailers held a sale before or during the festive season," she said. "Retailers are telling us that Christmas shopping will not start before the December 8 holiday and they just cannot be bothered to open for extended hours just yet.
"This year, they are angry that it has happened again. Many of the retailers we are talking to in Valletta, especially, say pre-season sales are unfair because it does not give them time to make a profit on new stock. Many are confident sales will pick up as soon as people receive their wages at the end of the month."
Republic Street Business Community Association vice-president Paul Fenech told The Times Business that retailers starting sales now did not augur well for business and went against the whole concept of a sale.
"Sales are held on left-over stock after a season has ended to help break even or recoup losses on it. That money is then invested on the new collection," Mr Fenech pointed out. "Sales held now might not be genuine, although pre-season sales have slowly made an appearance in recent years. It is true that this year money was tight for most people. Since the budget, the situation for small sales has deteriorated, especially where the first 'level' of buyers is concerned. The new electricity tariffs and the pressure on people to buy newer cars have affected spending, especially as there seems to be a lot of misinformation."
Mr Fenech said the mood on Republic Street was "cautiously confident" when in previous years it was "cautiously optimistic". "People will spend," he said. "They will spend less."
Across Europe, measures are being taken to encourage shoppers to spend. This week, Britons were called to shop their country's way out of the recession as Chancellor of the Exchequer Alistair Darling announced a temporary 2.5 per cent VAT cut to 15 per cent, the lowest rate allowed in the EU, to boost Christmas spending power. Over the weekend Italian Prime Minister Silvio Berlusconi told his country to stop talking about the crisis and get on with it.
"People are panicking," GRTU director general Vince Farrugia told The Times Business. "The sales are in full swing in London and Paris. In Malta, the culture used to be for sales to start after the Epiphany. Now, retailers hold a sale whenever they want to."
In Naxxar and Gozo, Studio 9, the furniture and gift retailer, has launched a Christmas sale offering discounts of up to 50 per cent. "We are hoping to increase our sales," managing director Victor Petroni said. "The sale will run until early January. We are expecting a so-so Christmas. It should not be better than last year's."
In Sliema and Valletta, Options and For You stores have a 'sale' sign covering an entire shop window. "The lack of sales can be felt," proprietor Lino Farrugia explained. "My sales assistants were complaining about their commission. This is an ongoing sale and it aims to increase takings, although Christmas shopping has not started yet."
Clamus, the Valletta stationer and toy shop, has a 10-70 per cent pre-Christmas sale on gifts and toys and offers on decorations and cards. Luxury homeware store Living Interiors in Gzira is offering discounts of between 10 and 70 per cent on branded goods until Christmas Eve. Bi Stores in Naxxar is giving discounts of up to 70 per cent on furniture and tableware until the end of November. Marks and Spencer is advertising a mid-season sale of up to 40 per cent on selected items.
Some furniture importers and manufacturers in Birkirkara and Qormi are offering varying discounts on sofas and loose furniture. There are also attractive offers to be had on household appliances at various stores around Malta.
Carmen Borg, the executive in Mr Farrugia's office at the GRTU, says the spate of sales might not necessarily be linked to international financial anxiety. "We received several complaints last year when some retailers held a sale before or during the festive season," she said. "Retailers are telling us that Christmas shopping will not start before the December 8 holiday and they just cannot be bothered to open for extended hours just yet.
"This year, they are angry that it has happened again. Many of the retailers we are talking to in Valletta, especially, say pre-season sales are unfair because it does not give them time to make a profit on new stock. Many are confident sales will pick up as soon as people receive their wages at the end of the month."
Republic Street Business Community Association vice-president Paul Fenech told The Times Business that retailers starting sales now did not augur well for business and went against the whole concept of a sale.
"Sales are held on left-over stock after a season has ended to help break even or recoup losses on it. That money is then invested on the new collection," Mr Fenech pointed out. "Sales held now might not be genuine, although pre-season sales have slowly made an appearance in recent years. It is true that this year money was tight for most people. Since the budget, the situation for small sales has deteriorated, especially where the first 'level' of buyers is concerned. The new electricity tariffs and the pressure on people to buy newer cars have affected spending, especially as there seems to be a lot of misinformation."
Mr Fenech said the mood on Republic Street was "cautiously confident" when in previous years it was "cautiously optimistic". "People will spend," he said. "They will spend less."
Across Europe, measures are being taken to encourage shoppers to spend. This week, Britons were called to shop their country's way out of the recession as Chancellor of the Exchequer Alistair Darling announced a temporary 2.5 per cent VAT cut to 15 per cent, the lowest rate allowed in the EU, to boost Christmas spending power. Over the weekend Italian Prime Minister Silvio Berlusconi told his country to stop talking about the crisis and get on with it.