Some 40% of retailers who took part in GRTU’s annual business survey reported a decrease in sales last year when compared to 2013, while only 25 per cent reported an increase.
According to the survey, the main reasons for this decrease were local competition, trading from Sicily, online shopping and lack of parking facilities.
“Local retailers cannot ignore the online market anymore. They need to realise that while people in Italy and France are buying products online from Italian and French outlets, the Maltese are buying from foreign outlets,” Vice-President Marcel Mizzi said.
36 per cent of all respondents - including retail, arts, accommodation, and entertainment - said they saw an increase in sales over 2013, while 33 per cent reported a decrease. The rest registered similar sales to the previous year.
However, considering retail on its own, while 25 per cent increased their sales, 40 per cent saw a decrease of up to 30 per cent.
GRTU President Paul Abela said the government’s promise to impose more controls over products imported from Sicily, which usually avoided tax and VAT, and the overhaul in the warden system should help improve the situation.
Traffic fines discouraged many from buying from particular places that lacked parking facilities in the surroundings, he explained.
Another issue that needed to be better regulated was permits issued to hawkers, such as those selling Valentine’s Day flowers, which were meant to be temporary and tied to a particular place.
CEO Abigail Psaila Mamo said loopholes allowed some to extend these permits, while others were just setting up shop for months, at the Sliema Front for example.
Meanwhile, referring to businesses expectations for 2015, Mr Mizzi said the outlook was positive. While nearly half said this year would be the same as 2014, another 36 per cent expected the coming months to be better.
On the transfer of the Valletta market, Mr Abela said the GRTU felt the stalls should not overspill into that part of Ordinance Street near the new Parliament.