Location, footfall – and the car

Business has picked up quite briskly all over the island, but particularly in the main shopping areas at Valletta and Sliema. This is only natural with Christmas and new year just round the corner. It also comes in the wake of a survey that attracted much attention about changes in shopping patterns.

This proliferation of shopping centres must be having an economic impact- Lino Spiteri

The main change was that Valletta has lost its place as the main shopping centre. That is now occupied by Sliema. That is not surprising. The number of shopping outlets in Valletta tends to be broadly fixed. There is a no new place for development, although redevelopment does take place.

It is a different matter in Sliema. This year in particular, a massive new shopping complex has come on stream at The Point in Tigné. By itself, that is a major addition which to a large extent explains the move away from Valletta.

There are other points at issue. Sales in Valletta have been suffering from the infrastructural development taking place there and the congestion caused by the new Parliament building. This has now been eased, to the relief of the main shops located at the centre to the city.

Changes have taken place and more should be expected. These will affect not only location but also the nature of how we do our shopping. This may not be the case with The Point. Shops in the area starting from the old Ferries still do well, as shown by M&S and the Plaza shopping complex, as well as individual shops. It may be that The Point still has to attract additional big names to those it has already secured.

Location counts. Valletta is a location itself. Further out, Ħamrun, Paola and Mosta are also notable locations.

But there is coming a time when location will not be as important as of old. Joinwell is an example of that. It moved from prime premises in Sliema to a new state-of-the art building on the Qormi periphery. There is practically no passing trade. But there is no sign that Joinwell, with its pitch from middle up market, is not doing well.

Before that Fino, too, had moved to a location which does not see much footfall, even abundant traffic passing by was reduced by the construction of the Mrieħel bypass. In the same area, Farsons too have made so bold as to restructure their footfall to free land which will eventually be developed into prime centres.

Location has, to a large extent, become separated from footfall. The Gasan and Tumas groups are reportedly planning a complex along the Mrieħel bypass which will offer strong competition when finished, side by side with the Gasan car showcase.

The bypass itself, which does not at all attract footfall, is slowly but surely developing into a shopping centre, mixed with other service activities, like the complex which houses Forestals on the one side and the headquarters of Deloitte on the other.

At the other end of the bypass, a financial hub is developing. So far, the MFSA buildings stand there in splendid isolation. Not before too long they may be joined by private offices locating in the vicinity.

San Ġwann is another area which, though it does not see much footfall, is becoming a mixed shopping centre, as exemplified by the recent move there of P. Cutajar Ltd, preceded long ago by the Little People complex.

The basic point is that the old business model of shops in towns and villages is changing. Today it is access to cars and parking space that matters, though this point might be sorely tested should Smart City ever go ahead with plans to develop another main shopping centre in the south of Malta.

In addition to changing location, another factor showing inevitable change is size.

Malta moved fairly quickly from village shop, to mini-market to modest supermarket in practically every town and village. Now a new meaning to size is being given.

PAVI, the major supermarket where the main industrial area in Qormi used to be, is a particular example. Again, there is no footfall but the complex is blessed by an ample parking area.

Remarkably there is talk of another major supermarket being planned back-to-back with PAVI, where the Marsovin Lowenbrau brewery was located.

The entrepreneurial spirit in the shopping area still lives, and how! This is also demonstrated by the arrival to Malta of Lidl, a giant if ever there was one.

It is opening all over Malta, and soon Gozo too. It is attracting large volumes of customers wherever it is located.

And yet it has not deterred older names from setting up or extending chains.

Two come immediately to mind, among others, Scotts and Miracle Foods. Both have expanded very rapidly in recent years and word has it they are ready for further growth.

This proliferation of shopping centres must be having an economic impact. Prices are more competitive for those who bother to shop around.

A survey or two broad based as above rather than concentrated on traditional areas might produce a few surprises.