31 May - 6 June 2001

Retail business at Bay Street doing ‘very well’

by David Kelleher

Rumours that the Bay Street Tourist Complex in St George’s Bay is in financial difficulties just six months after opening are unfounded, managing director Chris Grech has said.
Speaking to The Malta Business Weekly, Mr Grech said it was not true the complex was having financial problems and that creditors were not being paid.
“These are just rumours. We are not in financial difficulty and outlets are not closing down,” he said. “On the contrary, retail business has been picking up and we are more than aware of the moves we made to open the complex.”
Mr Grech said the company had restructured its financial standing of the company with a further investment of between Lm2m and Lm3m. “We have spent more money on improving the standards at the complex. That is why we have invested more money in the project. With regards to our creditors we have also restructured our payments schedule with them and this is something they can confirm,” Mr Grech explained.
The Bay Street Tourist Complex is a major project, he said, and at no time did or do they expect to make a profit after just six months. “We have sacrificed medium-term returns for long-term gains. We anticipate we will be profitable in five or six years’ time. This is only natural for a new development,” Mr Grech said.
Asked why a number of outlets had left Bay Street, giving rise to the rumours that not all was well at the complex, Mr Grech said that most outlets were on a four- to six-month contract. “Their contracts have now expired. One outlet will be leaving very soon and this will be replaced by the Tal-Lira chain of shops. We are constantly looking for the best outlets for the complex,” he said.
Mr Grech stressed that those outlets that did not meet the standards set down by the complex would not be allowed to operate there. High standards have been adopted at Bay Street, he said, and all outlets, had to conform.
“We are proud of what we have achieved over the past six months. Retail sales have been picking up better than expected and the weekends have become a hive of activity. More and more families are making use of the complex and this is exactly what we had in mind. Bay Street Tourist Complex not only caters for tourists but Maltese families as well,” Mr Grech told The Malta Business Weekly.
He added that people are getting used to the “open street” concept and the idea has been given considerable coverage by foreign press who came to Bay Street.
Business-to-Business is another area that is being actively promoted. “We are encouraging other businesses to make use of our facilities such as the conference hall and theatre as well as the entertainment areas. We have already had some companies using Bay Street for their team-building exercises,” Mr Grech said.