[WATCH] Valletta businessman insists capital ‘still Malta’s main shopping centre’

Saviour Balzan interviews Republic Street Business Community president Paul Fenech on Reporter

Valletta remains the number one shopping area in Malta, notwithstanding shopping malls mushrooming up across other parts of the island, the president of the Republic Street Business Community claimed.

“Business in Valletta had been regressing for many years, and we had lobbied with current and previous administrations to take the necessary steps to reverse this trend,” Paul Fenech said on Monday nights’ edition of Reporter. “For a number of years, Valletta was something of a work in progress which caused business to lose out, but now that several large projects have been completed, business is doing well.

“Phenomenal levels of development can be seen in Valletta, with once-unwanted properties now fetching incredible prices, the number of shops constantly on the rise, and brands setting up shop here.”

When questioned on the greatest problems faced by businessmen in Malta’s capital, Fenech focused on the high rates of commercial rents – particularly in Republic Street, where “rent is higher than in anywhere else on the island” - and the small sizes of the existent shops.

“Shopping malls like Tigne Point have created a space that brands want to occupy, and brands will not accept shops with areas smaller than 100 square metres. Unfortunately, many shops in Valletta are much smaller than that.”

When questioned by host Saviour Balzan on the lack of brands in Valletta that sell high-quality merchandise, Fenech admitted that Malta’s small population makes setting up such shops a daunting prospect for businessmen.

“Malta’s market is just above 400,000 people, compared with London’s 12 million and Milan’s five million,” he said. “When one also take into consideration the fact expensive brands only attract around 2% of a population, then it is easy to realize that setting up shop in Malta is all but unmanageable.”  

He sounded a bullish tone when faced with questions on the threat posed by online shopping to traditional commerce.

“Rather than being a threat, the Internet is an adjustment of modern life that must be dealt with,” Fenech said. “People always gather like herds to try out new products or experiences, but they will eventually realize that online shopping isn’t as satisfactory as shopping from an actual shop.

“As businessmen, we must ensure that we offering people with a shopping experience that they cannot get on the Internet.”