PwC Malta Market Barometer barometer last... · GOZO HAMRUN MOSTA PAOLA SLIEMA ST. JULIANS VALLETTA PERCENTAGE (%) Total 2018 Breakdown 2018 Middle Market Barometer 2 Planning an

Middle Market Barometer 1

Retail

May 2018

PwC Malta Market Barometer

Innovation and capital investment

• 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.

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.

Re-location plans

• 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.

Management of a customer database

• 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.

Highlights

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.

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%.

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.

PwC Malta 1

19%

17%64%

Total

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


29

8 8

37

2315 1310

25 2416 12 15 13

6167 67

47

6560

74

G OZ O HA M R U N M OS T A P A OL A S L I EM A S T . J U L I A N S

V A L LET T A

PER

CEN

TAG

E (%

)

Total 2018 Breakdown 20182018

29

8 8

37

2320 1310

25 2516 12

2013

6167 67

47

6560

74


V A L LET T A

PER

CEN

TAG

E (%

)

PwC Malta 1

19%

17%64%

Total



29

8 8

37

2315 1310

25 2416 12 15 13

6167 67

47

6560

74


V A L LET T A

PER

CEN

TAG

E (%

)




18

2925

1922

18

7

25

15 14

64 64

50

66 64

C U LT U RA L & R E C R E A T ION

G OODS

FOOD, B E V E R A G E S & T OB A C C O

I C T C LOT HI N G & OT HE R G OODS

OT HE R HOU S E HOLD E QU I P M E NT

PE

RC

EN

TA

GE

(%)

Breakdown 20182018

PwC Malta 3

8%7%

85%

Total

Re-location plans

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

14 120 0

820

30 4

33

120 0 0

86 84

67

88 9280

97


V A L LET T A

PER

CEN

TAG

E (%

)


PwC Malta 3

8%7%

85%

Total

Re-location plans

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

14 120 0

820

30 4

33

120 0 0

86 84

67

88 9280

97


V A L LET T A

PER

CEN

TAG

E (%

)



14

0

1712 14

86

100

8388 86


G OODS




PER

CEN

TA

GE

(%)

Yes No

Breakdown 20182018

PwC Malta 5

40%

60%

Total

Yes No


3142

3341 42

60

31

6958

6759 58

40

69


V A L LET T A

PER

CEN

TAG

E (%

)


PwC Malta 5

40%

60%

Total

Yes No


3142

3341 42

60

31

6958

6759 58

40

69


V A L LET T A

PER

CEN

TAG

E (%

)



2924

58

43

29

7176

42

57

71


G OODS




PER

CEN

TA

GE

(%)

Yes No

Breakdown 20182018

PwC Malta 7

36%

24%

41%

Total


Yes No N/A

36

25

50

24

38 40 41

19 17

33 35

23

10

25

45

58

17

41 39

50

34

G O Z O H A M R U N M O S T A P A O L A S L I E M A S T . J U L I A N S V A L L E T T A

PER

CEN

TAG

E(%

)


36%

23%

41%

Total

PwC Malta 7

36%

24%

41%

Total


Yes No N/A

36

25

50

24

38 40 41

19 17

33 35

23

10

25

45

58

17

41 39

50

34

G O Z O H A M R U N M O S T A P A O L A S L I E M A S T . J U L I A N S V A L L E T T A

PER

CEN

TAG

E(%

)



38%

31%

18%

14%

Total

Level of business in the last 6 months

Increase Decrease The same Not sure

42

33

50

41 38

302522

46

0

41

23

50

38

22

1317

12

23

10

25

148

33

6

1610 12


V A L LET T A

PER

CEN

TAG

E (%

)

32%

31%

32%

5%

Total 2016

Increase Decrease The same Not Sure

Total 2016 Total 2018

Breakdown 2018

2018

38%

31%

18%

13%

Total

PwC Malta 9

Employee recruitmentBusiness outlook

Positive Negative The same

53

38

67

12

58

4034

813

0

29

8

30 3439

49

33

59

3430 32


V A L LET T A

PER

CEN

TAG

E (%

)

37%

13%

50%

Total 2016

Positive Negative The Same

43%

17%

40%

TotalTotal 2016 Total 2018

Breakdown 2018

2018


33%

34%

22%

11%

TotalBusiness concerns

Accessibility & parking Competition Online shopping Others

42

2833

25 28

37 393632

17

4044

50

21

8

23

50

25

16 13

25

14 17

0

10 12

0

15


V A L LET T A

PER

CEN

TAG

E (%

)

Total 2016 Total 2018

Breakdown 2018

28%

8%41%

23%

Total 2016

Accessibility & Parking Competition Online Shopping Others

41%

8%28%

23%

2016

Accessibility & Parking Competition Online Shopping Others

2018

www.pwc.com/mt/barometer#PwCMarketBarometer

© 2018 PricewaterhouseCoopers. All rights reserved. PwC refers to the Malta member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.

Contact

Michael Formosa+356 2564 [email protected]

Steve GingellPartner+356 2564 [email protected]

David ValenziaPartner+356 2564 [email protected]

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PwC Malta Market Barometer barometer last... · GOZO HAMRUN MOSTA PAOLA SLIEMA ST. JULIANS VALLETTA PERCENTAGE (%) Total 2018 Breakdown 2018 Middle Market Barometer 2 Planning an