Almost half of Malta’s retailers expect this year’s Christmas sales to be the same as last year’s, according to a survey conducted by the GRTU. Forty five per cent of those questioned said they expected no change in sales volumes while 36 per cent anticipated a decrease in sales and 19 per cent said they believed their sales would increase.
Last year’s Christmas sales were not considered to be good, due mainly to the financial crisis and the increased utility tariffs.
Most of those surveyed, 63 per cent, said that consumers have not started their Christmas shopping and they expect them to do so on Monday, Republic Day, which is traditionally the start of Christmas shopping in Malta. Many of those who said Christmas shopping had started said it began haphazardly and will resume on Monday.
Two thirds of retailers, however, said the best week for sales will be between December 20 – 26, while 31 per cent chose the week between December 13 and 19 and four per cent said December 27 to January 2.
Asked what government measures and other factors would hinder sales in the Christmas period, the retailers pointed to the randomly issued increased water and electricity bills, the issue of these utility bills just before Christmas, the eco tax disadvantage when competing with foreign products, less disposable income, the increase in national insurance contributions, unfair competition, a parking problem in several localities and people’s preference for purchasing goods from the internet.
Many of the retailers surveyed said they doubted how effective any special preparations they made to boost Christmas sales would be. They also said that decreased profits meant that they had to reduce their spending on advertising and promotions.
Just over one third of those surveyed said they had spent money on advertising to try and boost sales while 27 per cent said they opted for special offers and gift packs. This was followed by window displays (seven per cent), booklets (four per cent), free gifts (four per cent), websites (three per cent), open weeks (two per cent) and the launching of innovative products (one per cent).
Seventeen per cent of those questioned said they had taken no special measures to boost their sales over the Christmas period.
The items identified by retailers as having the most potential for sales at Christmas were LED TVs, net books, Toy story 3, innovative products, the cheapest products, perfumes, silver products and fashion accessories.
The retail outlets surveyed consisted of shops that sell clothing and footwear (32 per cent), health and beauty products (18 per cent), jewellery (11 per cent), toys, books and music (16 per cent), household goods and gifts (12 per cent), food (seven per cent) and telecommunications (four per cent).
A survey carried out by the GRTU at the end of last year showed that 37 per cent of retailers said their sales in Christmas 2009 were bad, 15 per cent said they were very bad and 33 per cent said they were average. Only 12 per cent said their sales were good and three per cent said they were very good.
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Photo: Darrin Zammit Lupi
Most of the retailers surveyed, 63 per cent, said that consumers have not started their Christmas shopping and they expect them to do so on Monday, Republic Day.