[WATCH] GRTU survey shows businesses’ biggest concern is unfair competition

Accessibility problems in Valletta, online shopping, and unfair competition from Sicily are main concerns for small businesses

The General Retailers and Traders Union’s business performance survey has revealed that the majority of businesses (34%) have registered improvements in performance since 2014, but 27% said performances had remained the same and 25% reported slumps in businesses.

GRTU president Paul Abela explained that 2015 presented a 10% increase in businesses reporting a good year. Abela said that those impacted negatively had experienced slumps due to unfair competition, online competition and parking issues among others.

GRTU CEO Abigail Psaila Mamo said that the survey had revealed that most businesses expressed concern over unfair competition presented by unchecked imports, primarily from Sicily and unlicensed hawkers at events such as flower sellers on Valentine’s day.

“One of the biggest issues is not having enforcement of licenses issued and conformity to the conditions of these licenses,” Psaila Mamo said, adding that changes were necessary both in the way the licenses were issued and in the enforcement of the licenses.

Abela explained that the GRTU had also issued measures to ensure that hawkers were also supposed to give out VAT receipts regardless of whether or not they made over €6,000 in a year in sales. The initiative came into force earlier this year.

Finance and administration vice president Marcel Mizzi said that 183 respondents had participated in the online survey, which they filled in anonymously, with 67% being retailers, wholesalers and distributors and 24% of respondents offering additional services among others.

He explained that of the businesses that had registered improvements, many had taken up various initiatives to improve business including the addition of e-services and online shopping facilities.

He added however that alternatively, of those who had registered slumps, 16% said that it as because they had faced competition from online shopping.

Among the other issues that the survey revealed, Psaila Mamo said that a large number said that parking issues were to blame (13%), as well as accessibility to many in Valletta.

“Loading and unloading bays had experienced various issues during the year,” she said, adding that the GRU would be discussing  with local governments to see what allowances could be given to delivery vans for double parking for loading and unloading.

“We will start pilot projects to see how these systems can fare in different localities,” she said.

Mizzi also explained that the survey had gone into detail into Christmas sales period, and that some 50% of businesses had registered satisfactory periods.

“A very small number of businesses, 6%, said they had participated in Black Friday initiatives, which are relatively new in the country,” Mizzi said, adding that with 2% had registered good sales on the day.

Psaila Mamo also said that other issues flagged by respondents included the need to have more assistance in order to face competition from online sources, as well excessive electricity bills, to which end, she reiterated the GRTU's call for a 30% reduction in energy bills.