Issue link: https://maltatoday.uberflip.com/i/1347847
maltatoday | SUNDAY • 7 MARCH 2021 10 NEWS NICOLE MEILAK THE corner shop was once at the top of the pyramid in the Maltese retail landscape but now mega-markets are dominating the industry. A proliferation of large super- markets over the past two dec- ades shows no sign of abating with 10 planning applications for new facilities still up for consideration. MaltaToday looked at the fi- nancials of several popular su- permarkets to find out who's winning the sales war and who's being left behind in the process. The figures reveal that 12 popular supermarket chains account for half of all turnover generated through retail sales in non-specialised stores – Lidl accounts for 23% of this. Pama is a far second, with 5.7% of the sector's turnover. Lidl enjoy the highest abso- lute turnover value with €170 million, which is over three times the turnover generated by Pama. Naturally, the Ger- man discount store generated the largest pre-tax profit vol- ume at €30 million, and enjoys the highest net worth of €100 million. Among the 12 supermarket chains analysed, Lidl dom- inates by a wide margin. Its turnover accounts for 42% of all turnover generated by those supermarkets, followed by Pa- ma with 11%. Lidl operates eight supermar- kets and is in the process of ac- quiring four more outlets from the family-run Scotts chain for €35 million. The transaction is currently under evaluation by the Competition Office. Lidl had been awarded a €13 million loan from the European Investment Bank to commence operations in Malta with the first discount store opening its doors in 2008. Pooling resources But the market also appears to be moving towards some form of consolidation. Seven supermarket compa- nies, last year, formed a joint venture under Retail Market- ing Ltd in what appears to be an attempt to pool resources. Prior to the Office for Com- petition green-lighting the venture it embarked on an analysis of the relevant market, including a survey of consumer patterns in the sector. Supermarket wars: Lidl dominates with 20% of sector's turnover Pending supermarket applica- tions 1. Birkirkara at Triq Dun Karm (bypass) - Clement Gauci 2. Attard at Triq il-Linja/Triq Ant. Schembri/Triq Il-Mitna - Said Investments of Scotts 3. Naxxar near former trade fair - Jean Borg 4. Zebbug on SMW Cortis site – Lidl 5. Zabbar at Marsaskala bypass - redevelopment of Chef Choice 6. Mosta Josmar complex near Lidl – Peprina Ltd 7. Burmarrad at Triq Burmarrad c/w, Triq is-Sardin - Bonnici Brothers 8. Marsa at Triq Aldo Moro in- stead of Bezzina shipyard 9. San Gwann at Triq tal-Balal - JDG Holdings Ltd (Joe Cassar) 10. Victoria at Triq Fortunato Mizzi c/w, Triq ta' Viani - Walter Farrugia Approved but yet to be con- structed Mriehel at Gasan's Quad Towers Refused but pending appeal Fgura at Tax- Xemx u l-Qamar - Lidl Supermarket turnover Company turnover 200,000,000 180,000,000 160,000,000 140,000,000 120,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 0 Valyou Scotts Lidl Smart Greens Lasco Tower Supermarket Pama Pavi Chain Market € million Valyou Scotts Lidl Smart Greens Lasco Tower Supermarket Pama Pavi Chain Market Malta supermarkets turnover Source: Creditinfo. Latest available figures used for each company Figures for Valyou, Greens, Pama, Pavi and Belleview (Valyou) reflect 2018 financials, while figures for Scotts, Smart, Polrem (Lasco), Tower Supermarket and Chain Market reflect those of 2017. All Lidl figures reflect their 2019 financial position Company turnover as percentage of retail sales Lidl enjoy the highest absolute turnover value with €170 million, which is over three times the turnover generated by Pama. Naturally, the German discount store generated the largest pre-tax profit volume at €30 million, and enjoys the highest net worth of €100 million