Increasing competition, rather than accessibility, has become the biggest concern for retailers over the last six months. 23% of the retailers who participated in the second market barometer conducted by PwC during the third week of September acknowledged that competition, including the effect of online sales, is trimming their margins. The fall in disposable income is also a common cause for concern. Retailers in Valletta, however, still felt that accessibility and parking problems are the primary daily issues that they face. The telephone survey intended as a barometer of the retail market sentiment targeted the food and beverage, clothing, ICT and the cultural and recreational retail businesses in Valletta, Sliema, Hamrun and Paola. This follows a similar initiative carried out in March, which captured the local market sentiment after the festive period.
52% of the participants confirmed that they registered a downward trend over the last six months. Only 15% of participants registered an increase, with the rest stating that it was either in line with the last two quarters or were unsure. The largest negative trend was felt amongst Hamrun businesses, with 61% registering a decrease in business in the last 6 months. Business in Sliema transpires to be the most favourable, with 20% of retailers noting an increase in business.
Retailers were also asked regarding their outlook for the next six months. The results are broadly consistent with the expectations registered in March, when the first market barometer was performed. 36% answered favourably and anticipated growth in their business, whilst 24 % have a negative outlook. The remaining 40% either expect the same level of business or are unsure. Businesses in Sliema, at 44%, are the most upbeat about the economy whilst those in the Hamrun area, are the ones who mostly negative outlook.
The results of the market barometer analysed by locality, in which 250 businesses participated, are presented below.
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