Results of a survey conducted by the Chamber for Small and Medium Enterprises show that half of the retailers said that they fared worse than they expected during the Christmas period.
Just 19 per cent said that they fared better, while 31 per cent reported the same level of sales that they expected for the busiest time of the year.
Replying to another question, a sizeable 75 per cent said that sales were “not bad”, while only six per cent reported good sales. 19 per cent said that they fared badly this year.
When asked to compare sales during Christmas in 2004 and 2005, 38 per cent said they were on the same level, 31 per cent reported a drop of between five to 10 per cent, 13 per cent said they saw sales drop by 10 to 20 per cent, while six per cent reported a drop of between 30 and 40 per cent.
Just 12 per cent reported an increase in sales and these were split in half, with six per cent reporting an increase of five to 10 per cent and a further six saying that they saw sales rise by 20 to 30 per cent.
Speaking to The Malta Independent, GRTU director general Vince Farrugia said that the survey results, although quite alarming in their stark reality, demonstrated a changing pattern in consumers’ behaviour.
“The drop in consumer confidence has now been pretty sustained over the past three years, and that is the pattern that emerges from these results. However, we are also observing certain trends in the purchase of more expensive items used for domestic consumption that are actually on the increase,” he said.
Mr Farrugia said that the recent phenomenon of immediate post-Christmas sales is also having a significant effect on business during the festive period.
"There has been a significant shift in consumption patterns from the more traditional items to the more exotic.
Today, there are several people who hang on to their cash and spend it in the sales that start literally the day after Christmas. However, the survey shows us that there is a significant increase in the purchase of wines and quality food items such as hams, cheese and exotic fruits, again a shift to more modern consumption patterns," he explained.
The GRTU director general still believes that consumer confidence is very low and people are much less willing to spend on credit.
“The past years have seen a tightening in the buy now-pay later phenomenon, with fewer people willing to spend on credit.
“This shows that several are wary of the future and prefer to pay upfront, instead of stacking up large bills,” Mr Farrugia said.
On the issue of dual pricing guidelines issued last Thursday by the National Euro Changeover Committee, Mr Farrugia said that the Chamber was definitely in favour of curbing abuse, although he said the guidelines were not really necessary at this stage.
“We have no qualms condemning those who try to tamper with the system. But it is clear that the expenses incurred by the retailer have to be clearly shown in the prices of products displayed.
Although not really necessary, these guidelines are a step in the right direction and we hope that this will put an end to all the petty abusers of the system," he said.
The GRTU will also be meeting the Prime Minister and Cabinet ministers on Monday, where it will be presenting them with their proposals on how to revitalize economic confidence. This will also be the main theme of the upcoming GRTU Annual Conference – to be held on 15 January.