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Sales start as retailers fear stocks will remain unsold
by David Kelleher
Fears that large amounts of stocks will remain unsold after
the New Year have forced many retailers to start their winter
sales a week earlier with some offering discounts on top brands
of up to 50 per cent.
A number of outlet owners told The Malta Business Weekly that
a very slow build up to Christmas and poor sales of clothing
items was forcing them to start their annual sales much earlier
than usual.
“Retailers are starting to feel the pinch and rather than
wait for the first week of January – the usual week for
Christmas sales – they started on Boxing Day. Many fear
they will not be able to sell their stock,” one retailer
said.
Philip Fenech, the secretary general of the Association of General
Retailers and Traders (GRTU) told The Malta Business Weekly:
“There was some obligatory spending but there was no build
up to Christmas as in previous years. Over the past four to
five years, there used to be a peak but this did not take place
this year,” Mr Fenech said.
He said that another reason was due to the fact that there was
more supply. “There have been new outlets, but in reality
the game is becoming even tougher even though a lot of last-minute
shopping was reported even in the leisure industry.”
First indications this year show that mobile phones were among
the top sellers this Christmas with thousands of models sold
in the run-up to Christmas. Other favourite presents included
the latest fad in “transport”, the scooter, and PlayStation
2 consoles.
“The number one present this year has been a mobile phone
and connection. With prices down to their lowest levels in years,
parents were even purchasing mobile phones for 13- and 14-year-olds,”
one shop owner told The Malta Business Weekly.
While sales over the Christmas period failed to reach expectations,
there seems to be good news for entertainment outlets over the
New Year. Mr Fenech said that despite a slow start, the number
of bookings was slowly but surely picking up.
“There are good indications that business is picking up.
Restaurants are reporting slow but steady bookings and are expecting
the usual rush towards the end of the week,” Mr Fenech
said.
He added that an increase in tourist arrivals between today
and Saturday will surely help business and the presence of the
military vessel in Malta for the festivities had contributed
to better overall activity in Paceville.
Mr Fenech said that there were few staff parties – nothing
exceptional. “However, on Christmas Eve and Christmas Day
there was one big explosion, which gave owners a good feeling.”
A number of outside caterers told The Malta Business Weekly
that the trend to hold private parties continued this year however
the majority of those staying at home were older couples.
“Last year the lack of spending power forced many to organise
private parties. Although the trend this year is similar, we
have noticed that old couples are organising private functions
rather than teenagers. There has not been a marked increase
in business however,” one outside caterer said.
A spokesperson for a five-start hotel said that for New Year’s
Eve and New Year’s Day they were fully booked. Other hotels
also reported a high level of booking.
Mr Fenech said that a number of owners in the Paceville/St George’s
area had complained that traffic chaos in the area resulted
in clients turning up late. Yesterday afternoon, the GRTU held
talks with the Commissioner of Police over the traffic problems
and appealed to all revellers to get there early.
“I would like to appeal to all party-goers to go early
to Paceville, even a couple of hours before. If they can pool
resources and use a single means of transport, this would help
no end to reducing traffic problems in the area on New Year’s
Eve,” Mr Fenech said. He also urged all drivers, including
taxi and minibus drivers, to keep to the legal limit of alcohol
consumption.
“The police are going to be very strict and will be monitoring
the situation,” he added.
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