2016 was a good year for the Maltese retail industry with 72% of the retailers reporting an increase or the same sale values compared to 2015 and 2014. Out of all the retailers surveyed only 175 respondents announced a small decrease in sales numbers. Traffic and competition were the main hurdles encountered by Maltese companies last year. Foreign investors interested in starting a business in the retail industry, can rely on the services provided by our Maltese company formation representatives.
The Maltese retail sector is one of the most powerful industries because it is backed by the large number of domestic purchases but also by the demands from foreign suppliers. According to the last survey issued by GRTU, which is the Maltese Chamber for SMEs, 36% of the Maltese companies participating to the report reported a 30% increase in sales last year, compared to the previous two years, while another 36% announced the sales figures remained pretty much the same as in 2015 and 2014. Only 175 of the respondents announced a slight decrease.
Another good news coming from Maltese retailers is an expansion of the businesses at local and international levels. While 34% of the companies extended their activities internally, 4% went further and established their presence in other EU countries.
Asked about the difficulties they had to pass through last year, most of the respondents said traffic and competition (both fair and unfair) were the most common.
GRTU has already started addressing some of the issues reported by the retailers, among which the unfair competition which mainly referred to the number of employees which migrate from one retailer to another because of the lack of workforce. One of the solutions would be to hire individuals from abroad, according to GRTU representatives. Another solution would be the expansion of the businesses in the online environment, as according to statistics only 22% of the respondents have taken their ventures online.
For assistance in setting up a retail business in this country, do not hesitate to contact our company incorporation consultants in Malta.