Malta’s retailing landscape is undergoing what must rank as one of the most rapid changes in recent history. A number of old, distinctive names in Valletta, such as A.C. Aquilina, the corner bookstore next to the Palace, in Republic Street, have faded into Malta’s past, in the same way others, such Blackley and La Ville De Londres had done many, many years before it. Their places have been taken over by newer outlets, renewing a cycle that goes on and on.

Elsewhere, the scene is changing, too, with huge, purpose-built supermarkets and general merchandise stores in key centres taking the bulk of the retail trade. Boutiques are sprouting up across the country and so are take-away outlets.

Can the island possibly support such a huge commercial expansion? One result is a sharp rise in competition but, despite a string of problems facing small businesses, there does not seem to be any particular dampening of business spirit.

Going by the results of a business performance survey carried out by the Chamber of Small and Medium Enterprises - GRTU, the contrary is the case. More than a third of small businesses have reported a rise in sales last year as compared with 2015. What is even more interesting is that a third of businesses plan to expand, which conforms to the overall sentiment of business buoyancy that has translated into growth and low unemployment – even taking into consideration the training scheme/s that are removing names from the unemployment register.

Although retailers made up the bulk of respondents, other sectors were represented too. Importers, for instance, made up 41 per cent, and wholesalers, 23 per cent. Only seven per cent had businesses located in shopping centres. What led to the rise in sales? Quite interestingly, the most important reason (20 per cent) given was the introduction of new services and product lines, not a better consumer spending power (nine per cent), though, of course, the consumer had to afford buying the goods or services.

But it would also seem that a number of businessmen had to cut prices to push up sales. Those that reported a decrease in sales gave a number of reasons for this, including the rise in local competition, illicit trading and unfair competition, increased costs and lack of parking facilities, a standard complaint for many years now. Only three per cent mentioned lack of human resources as contributing to a drop in sales but the GRTU is making a case for new arrangements to make it easier for third-country nationals to take up jobs on the island.

GRTU president Paul Abela was quoted saying that businessmen were increasingly struggling to find suitable employees due to record unemployment. Bureaucracy involved in applying for a working visa was preventing businesses from recruiting from countries such as Serbia where low wages make Malta an attractive option. Mr Abela said businesses were poaching employees from each other and pushing wages prohibitively high.

There is no reason to doubt what he says as he must have a wider view of the general retailing and trading situation in the country than individuals in the different sectors represented by his union. However, it is somewhat strange that only three per cent gave the shortage of workers as reason for the drop in sales. Since trade does not remain static and there is no guarantee that there will be no interruptions to the present cycle, it makes sense too for the government to exercise caution in the granting of working visas.