PwC Malta

Market Barometer
Retail
May 2018

Middle Market Barometer 1

Highlights

PwC’s latest market barometer is again placing a spotlight of the local retail industry. Around 200 local retailers have participated in telephone
interviews, in which a variety of pertinent topics were discussed. The barometer provides insights into the investment and innovation plans of the
industry, besides gauging the levels of business, outlook and concerns of the players in the market. In the context of the level of business and real estate
development the Maltese economy is registering, the views of retailers about possible relocation were noted.

David Valenzia, Territory Senior Partner at PwC Malta, welcomed the results of the barometer, which he said, signal the importance of a continuous
reassessment of the traditional business models employed by the industry, in a scenario driven by new technology trends and a drive to enhance
customer experience.

Innovation and capital investment Re-location plans Management of a customer database

• 17% of the local retailers have plans to
introduce an innovative concept in their
business.
• 19% of retailers are planning a capital
investment in their outlet.
• Businesses involved in the sale of IT and
communication equipment (ICT) rank
first (25% of those interviewed) in seeking
innovative business solutions.
• 15% of retailers indicated plans to change
their location of their current outlet, or
increase the number of existing ones.
• Retailers currently stationed in the St
Julian’s area top the list of the ones which
are planning such a move.
• From an industry segment perspective,
retailers involved in sale of ICT equipment,
at 17%, score first in terms of re-location
and expansion of business outlets.
• 40% (against 60%) of those interviewed
manage a customer database;
• Retailers involved in the sale of ICT
equipment (at 58%), followed by clothing
and fashion retailers (at 43%) top the list of
business which actively managed a customer
database.
Employee recruitment
• 36% of retailers interviewed in the barometer
stated that they are successful in recruiting the
right employees to their business as opposed to
23%. 41% have no recruitment plans.
• It appears that outlets in the Mosta and Valletta
areas are the most attractive to employees
working in the industry.
Business outlook
• 43% of those interviewed in the barometer
have a favourable outlook for the next 6
months. In March 2016, this mark stood at
37%.
• Retailers in the Sliema and Mosta area appear
to be the most upbeat.
• 17% of the participants in the barometer have a
negative outlook.
• Retailers in Paola emerge to be the less upbeat
when compared to their peers.
Level of business
• 38% of retailers stated that their business
increased in the last 6 months. In March 2016,
when the last PwC retail barometer was carried
out, 32% had answered favourably to the same
question.
• Retailers in the Gozo and Mosta areas report
the largest surge in business in the last 6
months.
Business concerns
• Competition, at 34%, tops the list of business
concerns indicated by retailers followed by
parking and accessibility (33%) and online
shopping (22%).
• In March 2016, parking and accessibility, at
41% topped the list of concerns, followed by
online shopping at 28%.
 Innovation and capital investment

Total 2018 Breakdown 2018

Total 2018

74
74
19% 67 67
67 67 65
65
61
61 60
60
PERCENTAGE (%)
PERCENTAGE (%)
17% 47
47
64%
3737
2929 25 25
25 24 2323 20
16
16 1520 15
10
10
12
12 1313 13
13
88 88

GG
OOZZOO HHAAMMRRUUNN MMOOSSTTAA PPAAOOLLAA SSLLI IEEM
MAA SSTT. . VVAALLLE
LETTTTAA
JJUULLIIAANNSS

Planning an investment in your retail outlet Introduce/d some innovative concept No

PwC Malta 1
 Breakdown 2018
2018

64 66
64 64
PERCENTAGE (%)

50

29
25 25
22
18 18 19
15 14
7

C U L T U RA L & FOOD, BEV ER A GES ICT C LOT HI N G & OT HER

R EC R EA T ION & T OBA CCO OT HER GOODS HOU S EHOLD
GOODS E Q U I P M E NT

Planning an investment in your retail outlet Introduce/d some innovative concept No

Middle Market Barometer 2

 Re-location plans

Total 2018
Total Breakdown 2018
2018

8%
7%

92 97
86 88
PERCENTAGE (%)
84 80
67

85%
33
20
14 12 12
4 8 3
0 0 0 0 0 0

GOZ O HA M R U N M OST A P A OL A SL I EMA ST. V A L LE T T A

JULI ANS

Plans to re-locate Increased number of outlets No plans to re-locate

PwC Malta 3
 Breakdown 2018
2018

100

86 88 86
83
PERCENTAGE (%)

14 17 14
12
0

C U L T U RA L & FOOD, BEV ER A GES ICT C LOT HI N G & OT HER

R EC R EA T ION & T OBA CCO OT HER GOODS HOU S EHOLD
GOODS E Q U I P M E NT

Yes No

Middle Market Barometer 4

 Management of a customer database

Total 2018
Total Breakdown 2018
2018

69 67 69
58 59 58 60
40% PERCENTAGE (%)

60% 42 41 42 40
31 33 31

GOZ O HA M R U N M OST A P A OL A SL I EMA ST. V A L LE T T A

JULI ANS

Yes No

PwC Malta 5
 2018 2018
Breakdown

76
71 71

58 57
PERCENTAGE (%)

42 43

29 29
24

C U L T U RA L & FOOD, BEV ER A GES ICT C LOT HI N G & OT HER

R EC R EA T ION & T OBA CCO OT HER GOODS HOU S EHOLD
GOODS E Q U I P M E NT

Yes No

Middle Market Barometer 6

 Employee recruitment

Total 2018
Total Breakdown
2018 2018

58
50 50
41%
41% 36%
36% PERCENTAGE(%) 45
41 41
36 38 39 40
33 35 34
25 24 23 25
23%
24% 19 17 17
10

GOZO H A MR U N MO ST A P A O LA SLI E MA ST . J U LI AN S V A LLE T TA

Yes No N/A

PwC Malta 7
Level of business in the last 6 months
Total
Total
Total 2016 Total 2018
Total 2016

5%

14%
13%
32%
32% 38%
18%

31% 31%
2018
Increase Decrease The same Not Sure
Breakdown 2018

50 50
46
42
PERCENTAGE (%)

41 41
38 38
33 33
30
23 23 25 25
22 22
17 16
14 13 12 12
8 10 10
6
0

GOZ O HA M R U N M OST A P A OL A SL I EMA ST. V A L LE T T A

JULI ANS

Increase Decrease The same Not sure

Middle Market Barometer 8

 Employeeoutlook
Business recruitment
Total
Total 2016 Total 2018
Total 2016

37% 40% 43%

50%

13% 17%
2018
Positive Negative The Same
Breakdown 2018

67
59 58
PERCENTAGE (%)

53 49
39 38 40
33 34 34 34 32
29 30 30

13 12
8 8
0

GOZ O HA M R U N M OST A P A OL A SL I EMA ST. V A L LE T T A

JULI ANS

Positive Negative The same

PwC Malta 9
Business concerns
Total
Total 2016
2016
Total 2018
Total 2016

11%

23%
23% 28%
33%
41% 22%

28% 8%
41% 8%
34%
2018
Accessibility &
Accessibility & Parking
Parking Competition
Competition OnlineShopping
Online Shopping Others
Others
Breakdown 2018

50 50
42 44
PERCENTAGE (%)

40 39
36 37
32 33
28 28
23 25 25 25
21
17 17 16 15
14 12 13
8 10
0 0

GOZ O HA M R U N M OST A P A OL A SL I EMA ST. V A L LE T T A

JULI ANS

Accessibility & parking Competition Online shopping Others

Middle Market Barometer 10

 www.pwc.com/mt/barometer
#PwCMarketBarometer

Contact
David Valenzia
Partner
+356 2564 6892
david.valenzia@mt.pwc.com

Steve Gingell
Partner
+356 2564 6732
steve.gingell@mt.pwc.com
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Michael Formosa
+356 2564 7804
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