MAJORCA CONSUMERS TIGHTEN THEIR BELTS

PALMA
CONSUMERS in Majorca are tightening their belts according to the latest retail sector survey which reveals that 70 percent of traders have branded this year's Spring-Summer season worse than last year.

The pessimism is most extreme in Palma where three quarters of the retail sector is not happy with business over the Spring-Summer period but even out in non-metropolitan areas, it appears that consumers are spending less.

59 percent of the retail sector outside of Palma echoed similar fears to the majority of traders in the capital.
The gloomy outlook is the result of a survey carried out by PIMECO, the Association of Majorcan Small and Medium sized shopkeepers, and nearly 400 shops were canvassed in 15 municipalities.

PIMECO sources said yesterday that the primary cause for the down turn in high street trading is a reduction of the general public's disposable income.
Rising mortgages and the escalating cost of living are hitting people in their pockets.
Only 15 percent of Palma retailers claim that trade is either on par with or better than last year.
However it appears that the findings of the survey would have been even worse had it not been for a good summer sales season.
Palma traders gave the summer sales a six out of ten rating while elsewhere the sales were awarded 5.3 points.
But, while the bulk of traders were pleased with the outcome of the sales, eight out of ten people questioned admitted that the final results of the sales did not live up to their initial expectations.

While there appears to have been no shortage of potential punters, consumers are not spending.
Ironically, one of the principal reasons Majorca's summer sales start at least a week later than in the rest of Spain is to cash in on tourists, but neither the summer visitors saved the sales nor boosted high street takings.

All is not lost, yesterday's reports were published just days after Palma city council unveiled an ambitious plan to boost retail activity in the centre of Palma by closing the centre to traffic on weekends and public holidays in a fresh bid to attract people in to the city by also offering a host of activities and incentives for traders and restaurants to remain open over the weekend.