Retailers are complaining that online shopping has eaten away a significant chunk of their profits over Christmas as more people resorted to the internet to buy their presents.

The concern was raised in the annual survey carried out by the Chamber of Small and Medium Enterprises, GRTU, over the festive period in which more than 200 retailers took part.

Thirty-eight per cent of the respondents complained they fared worse than in the previous year, while 37 per cent said their level of sales was on par with those of the 2012 festive season. A quarter of respondents saw an improvement.

The results were well below expectations. According to the survey, 46 per cent had expected sales to remain the same, while 45 per cent had expected an improvement. Only 9.3 per cent had negative expectations. Asked what had negatively impacted their sales, respondents mentioned lack of consumer confidence and online shopping.

They complained the playing field was not a level one, arguing that online stores could offer better prices as they were not subjected to the same tax regime. In particular, respondents pointed a finger at schemes advertising delivery of goods from stores in the UK.

The best days for shopping were December 13 and the two days before Christmas

The survey results showed that the best strategy for boosting sales was to reduce prices; a quarter of respondents subscribed to this view.

On the other hand, retailers said tourists were this year more willing to dig into their pockets, to the point that 23 per cent said this had a positive impact on their sales. The government’s promise that the cost of utilities would be reduced was also cited as a positive contributor.

The results showed that the best days for shopping were December 13, which was a public holiday, and the two days before Christmas.

Respondents were also asked if they made use of sales and many said they immediately introduced different levels of reductions on Boxing Day.

A number of other respondents complained that they were negatively affected by the outlets introducing reductions at such an early stage.

Other factors mentioned in the survey included the lack of parking spaces in Valletta and Sliema, while others questioned whether the economy could sustain more retail outlets.

Three out of every five respondents said they took advantage of the extended opening hours during the festive season.