Malta offers a full range of sales channels to consumers, with various distribution methods depending on the type of product offered. These methods range from wholesalers selling to traditional shops which then sell to the public, to more sophisticated methods such as large department stores which have become increasingly popular outlets.
The Maltese retail distribution sector is mostly made up of small local retail shops and street vendors (fruits and vegetables). Most of these are family owned. However, entry into the EU and the adoption of the Euro have changed the face of traditional local retailing and have paved the way for large European retailers and franchises to expand on the islands. While the retail industry in Malta is still by and large dominated by small trading companies, Malta’s entry into the EU has forced local traders to re-think their distribution strategies by opening the local market up to foreign competition. In fact, the last ten years have witnessed takeovers and mergers of local domestic shops with larger international entities.
Market share
Malta does not have any natural resource wealth or any heavy industry: the country thus depends entirely on imports to meet its requirements of basic products, industrial products as well as consumer goods. Though Malta is a small market, it is characterised by the active presence of a multitude of trade companies, often family-run businesses but very competitive towards each other. These companies generally undertake the import and distribution of goods at the same time. A few specialist importers also exist and they constantly seek to expand their field of action by extending their product range. Many European distributors have been partnering with Maltese firms to open franchises of fashion and food stores across the island over the last few years. For instance, supermarket chains such as SPAR, the discount chain LIDL, British mass retailers Marks & Spencer and, most recently, Matalan have entered the market. Some local operators have invested in modern mass retail, working directly with European retailers, while others have partnered to represent brands in North Africa.
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