Thursday, 8th January 2009 - 09:33CET
Christmas shopping survey: 50% of businesses saw unchanged turnover
December 8 was busiest day
Half of respondents to a GRTU Christmas shopping survey have reported that business this year was at the same level as last year.
Five percent said there was a slowdown of under five percent and an equal amount reported a decrease of five percent to 10 percent.
Another 10 percent said their business had dropped by between 20 and 40 percent.
No respondent reported growth of over 20 percent, but 10 percent said they enjoyed growth of between five and 10 percent, while 20 percent of respondents saw growth of under five percent.
The GRTU said some shop owners registering high sales played it safe when it came to stocks, focusing on top selling items. Offers and incentive schemes proved very popular, with 75 percent going for this option.
In order to attract more customers and boost sales, some retail outlets started their sales early, or offered gifts.
“Various shop owners were of the opinion that the country is at the moment passing through a period of uncertainty and that consumers were refraining from spending their money as they were awaiting higher utility bills, among other reasons” the GRTU said.
The busiest business day was December 8, and although businesses had expected this level of business to continue into Christmas, their hopes did not materialise.
The chamber said that while sales are still underway businessmen are complaining that business has not yet caught up.
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Comments
The surcharge at the moment should be higher than 35%, as local economists are saying. Governments in other EU countries are easing 'expenses' on their citizens (Italy and the UK are excellent examples), so that they can be able to spend more and thus this will benefit the economy.
Well... we only copy the EU when it suits us (fejn jaqblilna bil-Malti!).
So bottom line, businesses, stop abusing your customers because the maths is simple:
no customers = no turnover = no profit
I would recommend that some of you people learn the difference between “turnover” and “profit”, because if you go into business you will run it into the ground in about 3-5 years.
I apologise for putting all the businessmen in the same basket. As you said, not all are the same, but most businesses want to become rich overnight.
There are some stores where, beleive it or not, in Malta it is cheaper than in UK or on eBay. However, I rarely look at eBay when comparing prices. I compare prices of local shops with prices of UK shops (not auctions)
For example, a laptop from a local Computer shop costs nearly twice as much as the same model from www.laptopsdirect.co.uk.
This is what bothers me... while I appreciate that these UK shops may get bulk discounts and maltese shops don't, it is still unacceptable to have prices doubled in Malta.
I think it is also time for businesses to start investing in Online Marketing and Selling, or even being just an online shop like www.med-way.com therefore keeping overheads to a minimum and being able to lower the price. All you need is a good website, regularly updated (very important), online ordering and above all PROPERLY PROMOTED. You will then see a growth in your business and not at our expense...
And no,you wouldn't call me cynical.
Please do not put all Maltese businessmen in the same category. I invite you to come to my store and compare my prices with those on the internet!
There are some "honest" businessmen around. I try to keep my prices comparable with UK and US sites but I still get people coming in and requesting up to 50% discounts! The price is the price and if you do not like it: shop around!
I did the majority of my shopping online this Christmas mainly from a site called rewardlover and saved a small fortune.
Guess Mr Farrugia does not want to upset his master since he's going to contest the EP election on his ticket.
http://www.timesofmalta.com/articles/view/20081217/local/smes-report-drop-in-sales/
Or is it the case that Mr Vince Farrugia, who is considering entering the political field , is now playing another tune?
http://www.timesofmalta.com/articles/view/20081228/local/grtu-boss-expected-to-run-on-nationalist-ticket/
I just said my opinion (for the first time)! And its very simple I just received some clothes today and i can assure you that the van carrying goods from abroad was full up with clothes !! if you afford the prices that maltese shop owners give to the same items found with online shopping good for you!
With who ever i speak everyone complains of lower sales. who are these 50% then?
Yesterday I went to Valletta and I thought I was in the middle of summer because all I could find for sale were summer tops! And to add insult to injury they are only suited to be worn in carnival because they're horrible!!!! High end shops change overnight into the local church's bazaar with no offence to the bazaar!
1. The original prices where way overpriced
2. The 50% sale is a gimmick and prices were in reality not reduced by 50% (this fraud was discovered some months ago in Italy)
Just goes more to confirm what Tony Cassar and others have been saying for a long time...BUY ONLINE, IT'S CHEAPER
How come nobody mentioned the fact that many shop owners had to start sales before christmas beacuse of a slow down?!
What did we think? Honest person equals not a good businessman!!!!
Also, thanks to the free movement of goods, and the euro, it's easier to compare prices, and myself, and many people are know have bought their Xmas books, CDs, mobiles, and other presents online, saving quite subtantially...
Local businessmen should wake up, smell the coffee and adapt themselves to the new reality of online shopping and lower profit margins.
I have made only one Christmas purchase locally last year. All the others I did through websites based abroad, particularly in the UK (which is more convenient at the moment due to the decreasing value of the pound.
It simply does not make sense any more to buy stuff from here at twice the price you would get it from abroad. And I'm not talking about console games and the like...but clothing, footwear and everything else under the sun.