42% of businesses that responded to a survey by the Chamber of SMEs expect to see better sales during the festive season than 2020, while a further 11% of businesses feel that this festive season will be closer to 2019 levels.
This shows that the majority of businesses are optimistic that, while the Covid-19 pandemic is still present, people are more willing to go to shops and spend this year than last year. A significant number however, are not as optimistic nonetheless.
The Chamber said that businesses “are more cautious in their optimism, compared to weeks and months ago. Malta is highly dependent on the functioning of foreign markets, making it very sensitive to Covid developments in other countries and on an international level. Businesses are however looking forward to give their best for a successful festive season.”
Covid-19 affected business in the island since it appeared in early 2020. Many people have now gotten used to living in the current situation, and thus are not as afraid to venture out as they used to be. Restrictions have also been eased.
We must, however, not try to push the boundaries too much lest we end up having to reintroduce major restrictions. So let us all be wise and careful in order to keep our current levels of freedom without jeopardising the health of others. Remember, the numbers are rising. We must avoid any disruption to day-to-day business, even if that means taking early precautions to, for instance, limit mass events, which might not be a bad idea.
Black Friday recently passed, and it also seems to have seen some success. 39% of respondents were at least satisfied with the business generated thanks to Black Friday. 33% were not satisfied - mainly sectors not normally associated with Black Friday and those predominantly selling essential items.
This was the main focus of the survey by the Chamber of SMEs.
Malta Chamber of SMEs CEO, Abigail Agius Mamo, said that these results leave room for optimism. "Malta is surely on the road to recovery, albeit the pace of recovery being a slow one. Businesses need to recover at a faster pace to start making up for the losses sustained since the start of the pandemic, a steady recovery is however, the best one can hope for."
This year, many businesses decided to extend their offers beyond just the day of Black Friday. While this led to a calmer 26th of November - Black Friday, "it also gave businesses a strong November and results which left the majority satisfied overall."
In terms of the period during which the Black Friday offers were available, most popular was Black Friday Week starting the 22nd of November with 35% of businesses opting for this option. This was followed by the 'Black Friday Weekend' at 27% and closely followed by those opting to run offers throughout the month of November at 23%.”
"Businesses wanted to avoid overcrowding and queues because of Covid. In addition, given the dire situation all businesses are facing in terms of human resources, this strategy helped them keep up with the increased demands, while also maintaining the same level of customer service,” the Chamber said.
It will be interesting to see whether extending the idea of Black Friday to a week or month will remain popular among businesses in the years to come or whether, once the pandemic settles down, they would revert to the traditional Black Friday scenario.