36% of local businesses experience increase in sales during 2016, 29% register decrease

36% of the local businesses have registered an increase of more than 30% in sales during 2016 compared to the sales reported in the previous year. Another 36% reported more or less the same sales when comparing the two years.

This information emerges in a survey carried out by GRTU, the Malta Chamber of SMEs, which looks into the sales performance for the year 2016.

29% of the 175 respondents have reported a decrease of up to 30%.

Among the most common challenges being faced by retailers and shop owners are traffic, unfair and fair competition in the market which has increased drastically.

On a positive note, the survey shows that more than 34% intend to expand their businesses locally while some 4% want to expand their businesses abroad.

Marcel Mizzi, the vice president for finance and administration at GRTU explained that the study also looks at the sales performance during the festive season. Most sales were generated between the 19 and 25 December. 62% of the respondents did not start the December sales right after Christmas day.

Most retailers are not accustomed to participate during Black Friday as 72% chose not to take part.

Women are the most frequent shoppers, with 33% while 51% of the respondents feel that males and females buy at an equal pace.

Shoppers during Christmas time spent an average of €20 - €50.

Mr Mizzi expressed his disappointment at seeing that only 22% of shop owners chose to take their business venture to the online world. He said that many businesses do not see the huge potential that the online shopping world can offer.

Perfumes, jewellery and expensive wines were among the 2016 top sellers.

GRTU President Paul Abela has called on the authorities to address certain issues which hinder businesses. He mentioned in particular the problem with finding people to employ. While praising the government’s initiatives to decrease the unemployment at an all-time low, Mr Abela said that this progress cannot expand unless the work force is increase.

When asked to mention what possible solutions are there to tackle this issue, Mr Abela said that the government needs to get people who are willing to work from abroad.

“We need to target people from countries tries like Serbia because their local salary is so low, that they will surely be interested to work in Malta.” GRTU criticized the bureaucracy involved in applying for a working visa. Mr Abela said that this process should be simplified if the work force needs to expand.

The problem with finding workers, GRTU explained, is causing poaching from one shop to another and in some sectors, salaries have to be “ridiculously high” to convince the worker to stay.

On the traffic problem, GRTU said that this is causing businesses to give up, especially those shops which require delivery.

When asked to react about the government proposal regarding shops opening on Sundays, GRTU believes that shop owners should be allowed to operate at any time they want. Mr Mizzi said that certain consumers can only go shopping after 5pm and on a Sunday. GRTU believes that the €700 fine should be removed completely.

When commenting about the excise duties introduced by the government in the latest budget, GRTU said it’s considering taking up the case before the EU Commission as it is arguing that this is another form of import duty which goes against the spirit of the common market.