Seasonal retail prospects mostly ‘bad’ or ‘uncertain’ – GRTU
A large majority of retailers – 69 per cent – say that the prospects for this year’s Christmas season are bad or uncertain, according to a survey conducted by the Chamber of Small and Medium Sized Enterprises – GRTU.
The survey, conducted among businesses involved in retailing and services, showed that 21 per cent of those interviewed consider their prospects over Christmas to be bad, 19 per cent said they were very bad while 29 per cent said they were uncertain. Five per cent said the prospects were very good while 24 per cent said they were good.
The most significant factor which influenced the businesses’ Christmas prospects were the utility tariffs, cited by 27 per cent of the respondents, followed by the financial crisis, mentioned by 25 per cent of those surveyed. Other factors highlighted were the lack of tourists (12 per cent), lack of client confidence due to an increase in expenses (12 per cent), positive business strategies (10 per cent), a decrease in purchasing power (seven per cent), liquidity problems (three per cent), a usual slow-down in certain sectors (two per cent) and the sale of necessary goods (two per cent).
Asked to describe the state of their business today, five per cent said very good, 24 per cent said good, 29 per cent said average, 26 per cent said bad and 16 per cent said very bad.
The relative majority of the respondents (21 per cent) mentioned the financial crisis as the factor which most influenced their business in the last six months. This was followed by positive business strategies (17 per cent), the utility tariffs (16 per cent), a lack of quality tourism (10 per cent), wrong fiscal measures and a lack of an infrastructure (10 per cent), increased competition (seven per cent), a lack of client confidence (seven per cent), an increase in fuel prices (four per cent), unfair competition (three per cent), an increase in business expenses (three per cent), liquidity problems (one per cent) and the introduction of the euro (one per cent).
Questioned about their prospects for the next six months, 29 per cent of respondents said they were uncertain, 21 per cent said they were negative, 36 per cent said they were stable and 14 per cent said they were positive.
Nineteen per cent of the respondents said they were considering reducing the number of their employees while 16 per cent said they were envisaging closing some of their shops or part of their shop. Five per cent said they would close their business and 10 per cent said they would open new shops or expand their business. Fifty per cent of those questioned said they would make no changes to their business.
Vince Farrugia, director general of the GRTU said: “It is obvious there is a lot of uncertainty this Christmas. The GRTU has worked hard to convince the government to produce a Budget for 2010 that raises hopes and sends a positive message, however it has not sufficed to raise consumer confidence in the pre-Christmas period and alas the very ill planned and ill timed electricity tariff increases are further dampening consumer expectations”.
Mr Farrugia added: “The GRTU strongly urges the government to take some serious professional advice on how to handle its public relations if it really wants consumer confidence to grow and business to thrive in a world economic scenario which is definitely not comfortable. The GRTU intends to keep pressing the government for a reassessment of its whole package of economic incentives to small business.”
Popular Stories
Update 3: Woman found dead in car,...
Updated: Woman dies in car crash
Carm Mifsud Bonnici resigns after...
Part of Dwejra 'Azure window' collapses
The end of the bar that ‘never closed’
Bundy does not know whether to...
Updated - Jason Micallef demands...
This WAS the night - Kurt makes it...
Petrol price up 6c
In Discussion
Updated - Jason Micallef demands...
Gozo tunnel could take 5-7 years to...
CABS remote controlled aircraft shot...
Carm Mifsud Bonnici resigns after...
Joseph Calleja condemns portrayal of...
Updated: Labour would give...
CABS drone shot down
Second group of migrants arrives
Adrian Vassallo in scathing...
23 Comments
Post comment
Please sign in or create your Account to post comments.
N.Calleja
Dec 17th 2009, 16:50
I have read again the write-up and for those hereunder who queried my maths I repeat what I read : 5% said very good, 24 % said good and 29% said AVERAGE, which to my English is not UNCERTAIN. Ok folks? Understood ? a total of 58%! Settled?
M.Gauci
Dec 17th 2009, 14:46
@ all
I am sure all of you are doing well on your present wage so much so that you never dream of owning your own bussiness. I am also sure that next time round when your wage rise is due you are going to refuse it.
You have no idea of the sacrifices one goes through to start employing people like yourselves.
Go on be a retailer if you think it is so good.
J Farrugia
Dec 17th 2009, 13:40
Vince you're not going to convince us. We know the tricks of this trade. So try to tell it to the marines. We dont accept theoretical figures but we go down in the roads and see the people purchasing their goods from your members' shops. That more practical and no one lies. So rid us of this annual pantomime and theatrics. You wont convince any one.
J Farrugia
Dec 17th 2009, 13:37
U halluna GRTU u negozjanti li jsefsfu f'widnejn il-grtu!. Morru sal-belt u taraw in-nies jixtru mill-hwienet, morru tas-sliema u taraw l-elite jonfqu l-liri fil-hwienet. Fejn qed imorru n-nies? Morru araw in-nies fix-xhopping centres ma' Malta u Ghawdex kollu ... kollha jgorru boroz kontra boroz b'affarijiet li jkunu xtraw mill-hwienet. Kif triduna nehdukom bis-serjeta' meta kull sena teqirdu li n-negozju fqir. Veru li l-hwienet qed jizdiedu u n-nies ghandha hafna fejn tmur tonfoq il-flus li ghandha. Fejn qed imorru l-flus li jhallu n-nies fil-hwienet ta' kull generu? Mohbija minn tat-taxxa? Din sieheb l-Italja dawk il-miljuni ta' nies jixtru u jonfqu u n-negozju dejjem jilmintaw. M'ghadkom tikkonvincu lil hadd hlief xi gahan fl-Opposizzjoni. Jew issa qed twahhlu wkoll fis-super five? Mela mhux kulhadd irid jiekol sehemhu mill-flus tal-poplu? Morru araw il-vilel u l-yacths tan-negozjanti u l-vetturi lussuzi u 4x4. U jigu jilmentaw li m'hawn kummerc.
Fenech M D
Dec 17th 2009, 13:34
Last year the shops that were full of people shopping, were the ones that had forwarded their January sales to a week or two before Christmas. I suggest others do the same this year.
If you can't beat them, join them!
salvatore morgan
Dec 17th 2009, 13:13
I agree with S Risso when he/she indicated that shops should lower thier prices and bite the bullet rather than expect abnormal profits everytime! Guess what, I already bought my Christmas presents ONLINE which are much cheaper than buying them from the shops here, they get delivered right on the door step and what's more, I get a cheerful and speedy service and in some cases even free items that I did not ask for included with the purchases made. I am sure that a lot of people from Malta also bought their presents online so as to make great savings.
S.GRIMA
Dec 17th 2009, 12:43
SHOPKEEPERS CANNOT BLAME US. FOR INSTANCE I CANNOT SPEND AN EXTRA PENNY FOR XMAS BECAUSE WAGES IN GOV.DEPARTMENTS ARE DUE ON THE 30TH DECEMBER SO MY FAMILY HAS GOT TO WAIT A BIT FOR THEIR PRESENTS.
V Azzopardi
Dec 17th 2009, 12:42
The salon I usually go to has reduced their prices by 50% as they realized that they were losing customers. Now the staff said business is excellent and they cannot cope with the demand. Only proof that people do spend where necessary but are not willing to be cheated or over priced. Where the prices are reasonably the customers will shop.
V Azzopardi
Dec 17th 2009, 12:39
What about the percentage of people who prefer to buy on line as the products are far cheaper overseas.
Joe Micallef
Dec 17th 2009, 12:08
I just hope that only a very few people in Malta have the same serious and sorry problem of g.c. Forte!
Watch all news (maybe international as well) and make your own judgments! Do not abdicate from your natural endowment of the ability to think!
Clive Azzopardi
Dec 17th 2009, 11:57
@ N.Calleja
According to my English, i don't classify uncertain with being good. Hence, according to my mathematics, 21% said bad, 19% very bad whilst 29% said uncertain. That makes 69% saying that they are not expecting a Good Christmas. Merry Christmas to everyone :)
M. Mifsud
Dec 17th 2009, 11:49
The situation for these retailers would greatly improve if they lowered their profit margins. The financial situation of many people calls for finding a way to spend less, one of them being online shopping. Why pay double or more for the same item when it can be purchased online and delivered right to your door for half the price or even less than you would buy it here? And these online shops are making profits too, imagine the profit of the local retailer IF he manages to sell at HIS price! And what about the quality standards? Here you can pay cheap prices, yes, but only for cheap quality products. Sales are just an attempt to get rid of all the old stuff that accumulated over the years and nobody wanted in the first place! I quit shopping here a long time ago, if it's not something I need that very moment!
EDWIN DE MARCO
Dec 17th 2009, 11:47
Gerger, gerger, dejjem gerger...kif xebbajtu lil kulhadd! They never let us have a look at their profits..........
A Bonello
Dec 17th 2009, 11:46
Compare the empty shops to the queues at the various post office counters with people collecting parcels from overseas and you will see the real reason why shops' business is going down. People have become more savvy on where to get bargains and you can get cheaper prices online from the comfort of your home, as opposed to searching for parking spaces and fighting though the throngs of people just walking around window shopping.
Mario Bonnici
Dec 17th 2009, 11:41
@S.Risso
So now you are blaming the retailers!!!
What about the new electricity bills announced by the government???
dusty williams
Dec 17th 2009, 11:41
OVVJA. JIENA NGHADDI MINN NAXXAR IL MOSTA U SAN GWANN KULJUM F'CERTI HINIJIET TA NEGOZJU FACLI TINNOTA LI BEJGH MA HAWX U MHUX BILLI JGHIDU TAN NET TV. HWIENET LI SSOLTU JKUNU MIMLIJIN BIN NIES JIXTRU QED IKUNU VOJTA. TISTA TINNOTA FACILMENT UKOLL IN-NUQQAS TA DAWL TAL MILIED FIT TOROQ U DJAR. IMBAGHAD IL GVERN JIGI JGHOLLI S-SURCHARGE FI ZMIEN LI SUPPOST IL QILLA TAL BEJGH TAL MILIED, DIN GENNATA HOXNA, IN-NIES QED IBAGHTU.
IMBAGHAD XI NGHIDU GHAL PREZZIJIET ESSAGERATI HAWN MALTA! Kulhadd jircievi fuljetti b kull ma tista tixtri. Jien ghamilt esperiment billi qbadt item minn kull page rajt il-prezz minn malta u qabbiltu ma tal e-bay u tinnota kemm jisirquna hajjin qeghdin hawn malta. 100orhos fuq camera bil posta bkollox, 60 euro orhos fuq toys, kollox orhos, zraben, hwejjeg etc etc
In-nies qed titghallem u qeghda tahseb kmieni ghar-rigali, morru l posta u taraw b'ghajnejkom.
Anthony Farrugia
Dec 17th 2009, 11:33
Retailers always moan that business is always worse than last year but lo behold how many of them shut shop; the only thing they do is increase prices and fleece consumers vide medicine prices.
Joe E Galea
Dec 17th 2009, 11:15
Dear N Calleja: Your Maths workings are obviously very biased.
we have 3 instances to take account of:
Good & V Good = 5 + 24 = 29%
Uncertain = 29%
Bad & V Bad = 21 + 19 = 40%
Missing: 2%
Uncertain doesn't mean good or bad it is neutral. it can go both ways.
So we have 40% bad against 29% good. However, no one can deny that the new utility tariffs will continue to erode the people's spending power therefore they will spend less, therefore, business will go worse. This government is making its very best to ruin this country and its people.
K Frendo
Dec 17th 2009, 10:53
Can anyone remember the last time a retailer said that business was good?
N.Calleja
Dec 17th 2009, 10:51
These business people seem to be living in a world of their own! Don't they read newspapers or watch TV? The same atmosphere reigns in all parta of the world!! But according to my poor maths, 5% said their business was very good, 24% said it was good and 29% said it was average. Total 58% had positive results! The rest are the usual gloomers who are very sharp at not divulging their true intake!!
Charles Micallef
Dec 17th 2009, 10:45
The choice is either save to pay the Enemalta bill or spend it in the shops………...the average wage does not suffice for both......period
Gordon Brown decided to leave the money in people's pocket to keep the economy going while in Malta we are made to pay for the Administrations' in-efficiencies..!
g.c.Forte
Dec 17th 2009, 10:42
@ Mr. Vince Farrugia.............Dear Vince, I am sorry to say that I do not agree with you and the G.R.T.U. because I watch the NET T.V.every night, and their news are like living in heaven. Dear readers..........do as I do and you will have consolation,comfort and rest in mind, just watch NET T.V. because for this station,, in this country !!** there is nothing wrong," kollox miexi fuq ir rubini".
S Risso
Dec 17th 2009, 10:41
To the retailers whining about no business or lack there of??
LOWER your prices and bite the bullet like the rest of the citizens of Malta have to do. You can not expect to have thriving businesses expecting 100 to 500% profit all the time!! I have seen many stores selling lots of merchandise--but these ones are known for their fair pricing--I think the ones with the problems should follow suit and quit being so greedy!!