Increasing competition, rather than accessibility, has become the biggest concern for retailers over the past six months, according to the second market barometer conducted by PricewaterhouseCoopers.

One in every four retailers acknowledged that competition, including the effect of online sales, was trimming their margins.

The fall in disposable income was also a common cause for concern. Retailers in Valletta, however, still felt that accessibility and parking problems are the primary daily issues that they face.

The telephone survey was carried out in September, and targeted the food and beverage, clothing, ICT and the cultural and recreational retail businesses in Valletta, Sliema, Ħamrun and Paola.

The first survey was carried out in March, and was aimed at capturing local market sentiment after the festive period.

Just over half of the 250 participants confirmed a downward trend over the past six months. Only 15 per cent registered an increase, with the rest saying that sales were either in line with the last two quarters or that they were unsure.

The largest negative trend was felt among Ħamrun businesses, with almost one in three registering a decrease in business in the past six months. Business in Sliema showed the most favourable trends, with 20 per cent of retailers noting an increase in business.

Retailers were also asked about their outlook for the next six months. The results are broadly consistent with the responses given in March: 36 per cent answered favourably and anticipated growth in their business, while 24 per cent have a negative outlook. The remaining 40 per cent either expect the same level of business or are unsure. Businesses in Sliema, at 44 per cent, are the most upbeat about the economy while those in the Ħamrun area are the ones who have mostly negative outlook.

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