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A total of 78 percent of local shopkeepers in Palma say that their sales actually fell in September compared to the same period in 2007.
However, outside Palma only 37 percent of shopkeepers said that their sales were down.
This underlines the fact that the capital has been hit to a greater degree than other parts of the island.
The Small and Medium Sized Shopkeepers Association has claimed that this year is going to be a very tough period on the high street and they are forecasting a fall in sales. Shops are looking for a bumper period over the run-up to Christmas to boost their depleted coffers.