People’s purchasing power has been diminished and businesses complain that they are not making as many sales as they used to.

However, it becomes very clear as to why this is, if one compares our prices with those abroad and on the internet. These are not exceptions. Everything in Malta is just so expensive. Years ago, one used to compare prices in the UK chains which are in Malta and nine times out of 10, something which cost, for example, £10 in the UK cost Lm12 in Malta. And guess what… we are still in that same situation. What is annoying is not that things are slightly more expensive, but that they are a great deal more expensive. This holds true for clothes, electronics, gadgets, phones and more or less every single retail item on the market.

The worst thing about it is that businesses complain that they are not making any sales, when it is clear that if they had more competitive prices, they would shift a great deal more merchandise.

An example can be taken with digital cameras. a Fuji S3000 goes for £120, yet in Malta it retails at something in the region of Lm150. Does the seller really have to charge that price? Does the seller not realise that people check the internet in this day and age?

There is a national drive for the country to become more competitive, but how can we if we have a stagnant local retail market from which retailers are not prepared to budge.

The saddest thing about it is that, as a result of their own actions, they are clearing the way for people to shop on the internet.

It will eventually reach the situation where buying from local shops will not even be viable.

There are sites such as ebay which, apart from securing very cheap prices, gives the shopper a great sense of satisfaction because they bid the prices they are prepared to offer – enhancing the “I found a great bargain” syndrome.

And the list grows. Books can be bought at bargain prices, as can music, console and PC games and various other gizmos and gadgets. This all comes with free delivery to boot. So we ask the question again – is it even worth buying from shops at the prices they charge?

Prices must go down, otherwise businesses are going to keep floundering. In Malta, we see the established businesses that have been around for about 20 years and which benefit from their “good name and reputation”. New businesses, speaking retail, usually set up shop and go out of business more quickly than you can bat an eyelid. And the answer to why is simply because their prices are too high. On Maltese salaries, there are not that many people who can afford, or even want, to buy a shirt that costs about Lm30.

Of course shops should not operate at a loss, that would be commercial suicide, but a little less greed will result in more sales and profits in the long run. Simple maths – what gives a bigger return? Selling one item at Lm100 or selling three at Lm70 – which would be more attractive to the customer anyway? It’s as simple as that.