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PwC Market Barometer 1
PwC Malta Middle Market Alert
www.pwc.com/mt
November 2014
PwC Market Barometer 2
Latest PwC market barometer dissects through retail market sentiment
From a geographical perspective the widest gaps transpire in Paola and St Julian’s, where in the former area, 64% registered a fall in business, whilst 33% of the registered retailers in St Julian’s reported an increase in business activity. In terms of retail segment, the largest drops have been reported from retailers of food, at 63% and ICT equipment, at 58%. Retailers in the most significant segment, clothing, shared mixed feelings, with 46% reporting a drop in business, 25% an increase and 28% registering a consistent business activity with the previous six months.
Competition, almost consistently, tops up the concern of local retailers. 37% of retailers interviewed consider that competition, including the onset of online business, dents their margins. A significant number of retailers consider their business is susceptible to the performance of the tourism industry. This sentiment is especially widely felt in St Julian’s and Gozo at 30% and 20% respectively. From a geographical perspective, retailers in food and beverage, which include supermarkets, at 43%, are the ones mostly concerned with competition.
The market barometer indicates a possibly gloomier prospect for the forthcoming festive season. 33% of retailers hold a negative outlook for the next six months. This is comparable to 26% in December 2013. Only 28% are upbeat, and this contrasts to 41% in December 2013. The most contrasting drop arises in the retail of food and beverage sector.
Local retailers, across all sectors, reported an eagerness to have a stronger lobby and representation in national fora. Only 24% of retailers interviewed consider that their aspirations are represented appropriately with policy makers.
Local retailers still hold contrasting opinions on the plans to open retail outlets on Sunday – although the segment of those opposing the prospect is gaining more ground. As at September 2014, 55% of the respondents were not in favour of the idea as opposed to 45% in December 2013. This emerges from the fourth retail market barometer conducted by PwC in the third week of September, in which 339 local businesses participated.
Retailers who were interviewed over the phone comprise retail operators in the food and beverage, clothing, ICT, and the cultural and recreational businesses located in Valletta, Sliema, St Julian’s, Hamrun, Paola and Gozo. The population excludes catering establishments and bars.
48% of those interviewed registered a decrease in business when compared to the previous 6 months, whilst only 22% noted an increase. The segment of retailers reporting a drop in business is on the increase when compared to the equivalent segment in December 2013, which stood at 39%. Conversely the portion of the retailers who either registered an increase or reported consistent business when compared to the previous six months, decreased - from 54% in December 2013 to 50% in September.
Opinion on opening retail outlet on Sunday
Ana
lysi
s by
geog
raph
y
Sept 2014 Dec 2013
Total Valletta Sliema Hamrun Paola St Julian's Gozo TotalAgree 44% 40% 37% 49% 36% 33% 51% 46%
Do not Agree 55% 59% 63% 51% 64% 67% 49% 45%
Only on Christmas and Public holidays 1% 1% - - - - - 8%
Not sure - - - - - - - 1%
Retail sale of cultural and recreational equipment
Retail sale of food and beverage
Retail sale of ICT equipment
Other goods including clothing
Retail sale of household equipment
Sept 2014
Dec 2013
Sept 2014
Dec 2013
Sept 2014
Dec 2013
Sept 2014
Dec 2013
Sept 2014
Dec. 2013
Yes 60% 48% 48% 46% 26% 50% 52% 49% 24% 33%
No 40% 39% 52% 49% 74% 42% 48% 44% 76% 49%
Not sure - 6% - - - 4% - - - 2%
Christmas and public holidays - 7% - 5% - 4% - 7% - 16%
Ana
lysi
s by
sect
or
Agree
Do not agree
Only on Christmas and Public Holidays
Not sure
55%
1%
44%
Opinion on opening retail outlet on Sunday (Total)
PwC Market Barometer 3
Level of business in the last six months when compared to the previous six
Level of business in the last six months when compared to the previous six (Total)
Outlook for the next six months (Total)
28%
33%20%
19%Negative
Positive
The same
Not sure
Sept 2014 Dec 2013
Total Valletta Sliema Hamrun Paola St Julian's Gozo TotalDecrease 48% 54% 47% 53% 64% 44% 37% 39%
Increase 22% 16% 27% 19% 20% 33% 24% 18%
Not sure 2% 2% - 2% - - 3% 7%
The same 28% 28% 26% 26% 16% 23% 36% 36%Ana
lysi
s by
geog
raph
y
retail sale of cultural and recreational equipment
retail sale of food
retail sale of ICT equipment
other goods including clothing
retail sale of household equipment
Sept 2014
Dec 2013
Sept 2014
Dec 2013
Sept 2014
Dec 2013
Sept 2014
Dec 2013
Sept 2014
Dec 2013
Increase 10% 23% 7% 13% 21% 13% 25% 18% 29% 18%
Decrease 40% 32% 63% 41% 58% 42% 46% 38% 46% 44%
The same 43% 32% 28% 44% 16% 29% 28% 37% 25% 35%
Not sure 7% 13% 2% 2% 5% 16% 1% 7% - 3%Ana
lysi
s by
sect
or
Sept 2014 Dec 2013
Total Valletta Sliema Hamrun Paola St Julian's Gozo TotalNegative 33% 38% 40% 30% 20% 30% 29% 26%
Positive 28% 17% 15% 26% 16% 26% 23% 41%
The same 19% 22% 30% 23% 36% 33% 33% 19%
Not sure 20% 23% 15% 21% 28% 11% 15% 14%Ana
lysi
s by
geog
raph
y
retail sale of cultural and recreational equipment
retail sale of food and beverage
retail sale of ICT equipment
other goods including clothing
retail sale of household equipment
Sept 2014
Dec 2013
Sept 2014
Dec 2013
Sept 2014
Dec 2013
Sept 2014
Dec 2013
Sept 2014
Dec 2013
Positive 33% 32% 11% 49% 37% 54% 29% 38% 35% 44%
Negative 37% 26% 37% 23% 26% 21% 31% 25% 33% 31%
The same 10% 23% 22% 15% 21% 17% 20% 21% 16% 13%
Not sure 20% 19% 30% 13% 16% 8% 20% 16% 16% 12%Ana
lysi
s by
sect
or
Outlook for the next six months
Decrease
Increase
Not sure
The same
2%
28%
22%
48%
PwC Market Barometer 4
16%
11%
13%4% 2%
17%
37%
Competition (including online shopping)
Fall in disposable income
Seasonal
Tourism industry
Economic climate
Parking and accessibility
Utility bills
Sept 2014 Dec 2013
Total Valletta Sliema Hamrun Paola St Julian's Gozo TotalCompetition (including online shopping) 37% 30% 36% 44% 36% 15% 18% 28%
Fall in disposable income 17% 18% 9% 9% 8% 4% 17% 9%
Tourism industry 16% 12% 4% 2% 0% 30% 20% 13%
Parking and accessibility 11% 11% 8% 14% 4% 4% 6% 16%
Seasonal 13% 7% 8% 14% 12% 4% 16% 4%
Economic climate 4% 2% 8% 5% 4% 4% 1% 3%
Utility bills 2% 2% 2% 0% 0% 0% 0% 8%Ana
lysi
s by
geog
raph
y
retail sale of cultural and recreational equipment
retail sale of food and beverage
retail sale of ICT equipment
other goods including clothing
retail sale of household equipment
Sept 2014
Dec 2013
Sept 2014
Dec 2013
Sept 2014
Dec 2013
Sept 2014
Dec 2013
Sept 2014
Dec 2013
Competition 23% 32% 43% 26% 42% 33% 23% 26% 30% 33%
Parking and accessibility 13% 19% 11% 15% 11% 8% 5% 16% 11% 16%
Tourism industry 7% 3% 2% 5% 0% 4% 20% 22% 6% 2%
Fall in disposable income 20% 3% 9% 5% 5% 4% 14% 8% 14% 22%
Utility bills 3% 3% 4% 28% 0% 8% 2% 5% 2% 4%
Economic climate 7% 10% 0% 0% 0% 0% 4% 11% 2% 2%
Seasonal 3% 13% 2% 3% 16% 4% 12% 4% 6% 4%
Ana
lysi
s by
sect
or
Major factors affecting business
Major factors affecting business (Total)
PwC Market Barometer 5
24%
66%
10%
Yes
No
Not sure
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Representation in national fora
Sept 2014
Total Valletta Sliema Hamrun Paola St Julian's GozoYes 24% 26% 25% 23% 24% 33% 18%
No 66% 66% 66% 67% 76% 63% 63%
Not sure 10% 8% 9% 10% - 4% 19%
Ana
lysi
s by
geog
raph
y
Sept 2014
Retail sale of cultural and recreational equipment
Retail sale of food and bever-age
Retail sale of ICT equipment
Other goods including clothing
Retail sale of household equipment
Yes 24% 22% 1% 29% 16%
No 73% 70% 94% 57% 79%
Not sure 3% 8% 5% 14% 5%
Ana
lysi
s by
sect
or
Representation in national fora (Total)
