Malta sees substantial decline in retail trade

According to data released by Eurostat, Malta registered the 4th worst result in retail trade amongst the EU countries in December 2016, Mario de Marco said.

While retail sales across the EU increased by 2.3%, retail sales in Malta shrunk by 0.7%. Eighteen countries out of the twenty-two Member States that submited their data fared better than Malta.

A closer look at the data points to an even worse situation. With a 9.5% decrease, Malta registered the worst decrease in food sales. On the other hand, retail sales of fuel increased by staggering 17.2%. Were it not for this increase in the consumption of fuel, the overall decline of retail sales in December would have been much steeper.

The picture painted by these statistics tallies with the survey data published by the GRTU earlier last month. According to the GRTU data, over 65% of retailers reported that sales during the Christmas period remained at par or decreased by up to 30% when compared to sales in the corresponding period of the previous year.

The situation in shopping districts outside the main tourism zones is more worrying. While the positive touristic performance ensured that localities such as Sliema and Valletta retain a healthy retail perspective, shopping areas that traditionally rely on local business, such as Paola, Hamrun and Birkirkara, have witnessed a significant decrease in activity.

Partit Nazzjonalista urges government to take concrete action to help retailers retain their competitiveness. Partit Nazzjonalista’s policy document, “A Policy For Retailers”, includes wideranging proposals that government can and should consider to help ensure that retailers overcome the challenges they are facing.