The corner shop was once at the top of the pyramid in the Maltese retail landscape, but now mega markets dominate the industry.
The proliferation of large supermarkets over the past two decades has shown no sign of considering 10 planning applications for new facilities.
Moldova looked at the finances of many popular supermarkets to find out who wins the sales battle and who lags behind in the process.
Statistics reveal that 12 popular supermarket chains account for half of the total revenue generated by retail sales in non-specialty stores – 23% of which is accounted for by Little. Bama ranks second with 5.7% of the sector’s revenue.
Little enjoys the highest absolute turnover with $ 170 million, more than three times the turnover generated by Bama. Naturally, the German discount store generated the largest pre-tax profit of $ 30 million, with the highest net worth reaching $ 100 million.
Of the 12 supermarket chains analyzed, Little dominates by wide variance. Its turnover is 42% of the total revenue generated by those supermarkets, followed by Bama 11%.
Little runs eight supermarkets and is in the process of buying four more outlets from the family-run Scots chain for $ 35 million. The transaction is currently being evaluated by the competition office.
The first discount store opened its doors in 2008 with a $ 13 million loan from the European Investment Bank to start operations in Malta.
But the market is also moving towards a kind of consolidation.
Seven supermarket companies, last year, formed a joint venture under Retail Marketing Limited, which appears to be an effort to mobilize resources.
Prior to the Office for Competition, it conducted an analysis of the relevant market, including a survey of consumer practices in the field.
In their analysis, they found that Little was the preferred supermarket for about 27% of their major shopping responders from a variety of supermarkets. For those who regularly shop in the same supermarket, the preferred option is PAVI / PAMA, of which 24% of respondents choose those outlets.
Little is undoubtedly one of Malmota’s forecast discount stores. Nearly 80% of respondents agreed that Little was a discount store, and 90% of Little customers felt that supermarket products were cheaper than competing company products. Apart from this, 70% of Little customers found that Litlin ads were more attractive than those offered by other supermarkets.
A Maltese survey in 2016 showed similar results. Nearly half of the respondents were frequently purchased from Little outlets. In second place, 15% of respondents said that Pavi is their most frequent supermarket.
While Little celebrity clearly dominates, it is often not just supermarket customers who buy. According to a Maltese survey, 63% of shoppers from Little shopped at other supermarkets.
Was the focus of the revenue assessment of operations. Due to the limitations of the available information, some figures reflect the activities of 2017, while others are a snapshot of the company’s 2018 financial position. Little’s financial values only reflect 2019.
To calculate the turnover share, we used the total turnover value for retail in non-wholesale stores, and food and beverages are mainly sold per unit.
Retail in non-specialized stores includes the retail sale of a variety of product lines within a single unit, including supermarkets or department stores. Turnover here includes all market sales of goods or services provided to third parties, including obligations and taxes, and all other fees to customers.
Supermarket applications are pending
- Trickton Carmill (Bypass) Birkirkara – Clement Kuc
- Trick Il-linja / Trick Ant Attard. Skambri / Trick in-Midna – Scots’ investments said
- Naxar near the former trade fair – Jean Pork
- Sepak – Little on the SMW Cortis site
- Jafar on Marcuscala Bypass – Redesign of Chef Choice
- Little – Mosta Josmer Complex near Peprina Limited
- Trick Barmarot C / W, Trick Is-Sardin – Ponnysi Brothers
- Marca at Trick Alto Moro instead of the Pessina shipyard
- Trick Tal-Balalil San Quan – JDG Holdings Limited (Joe Kaser)
- Victoria Atrick Fortunado Missy C / W, Trick Da’Viani – Walter Farrukia
Approved but not yet built
Miruhel in Kazan’s Quad Towers
Denied but appeal pending
Fukura in the Sun and Moon – Little