With retail being among the worst hit industries locally and around the globe, this afternoon The Boardroom spoke with three local leading retailers on their experience so far, and how concerned they really are about the short and long term prospects for the industry locally.

Retailers Sam Borg – Director of Bortex (clothing & fine tailoring), Claire Abela – Director of Lucy Makeup Store and Franks Stores (perfume and beauty) and Sarah McGourty – founder of Miss Ellen’s (Unique sweets and party supplies), each struck a decidedly determined tone when asked about their prospects for the future, and how they fared so far.

Their comments also converged when discussing how the pandemic unfolded in Italy and other European countries gave them just enough time to start taking crucial decisions.

Non-essential retailers were allowed to re-open their doors as of 4^th May, with a number of social distancing measures and hygiene measures in place, such as the use of masks, the banning of changing rooms and trying on items in the shop.

Initial Shock

Responding to how Bortex has been impacted, Sam said that since the Maltese tend to be overly cautious, the company anticipated similar repercussions in Malta and thus they began to prepare.

“We hoped for the best and expected the worst,” he said.

Claire remarked that while they anticipated what would happen in Malta, events progress so quickly that it can be hard to keep up. She said thankfully, both Franks and Lucy Makeup Stores were quick to respond.

Sarah highlighted that while they had to give Miss Ellen’s travelling van a break, trade in the shop experienced a significant slowdown. She said one of the biggest surprises was how quickly her client-base adapted to using the online platform and continued to make purchases.

Going Digital

Turning to adapting to the digital space, which is about the only way retailers can reach clients without restriction, Sam said previously their online platform focused on the brand Gagliardi, and the retail shop included multi-brands.

He said previously, it did not seem feasible to focus on a digital platform locally as the Maltese market is more geared towards in-person shopping.

“Our Bortex multi-brand site won’t be up for another two weeks. Instead, what we have done is carried out guerrilla marketing initiatives online, through the Gagliardi site.”

He said that shifting manufacturing to essential goods such as masks was also a big game changer.

Asked about the shift to digital for Lucy Makeup Store, Claire said the move was undoubtedly “crazy”. She explained that unlike Franks, Lucy Makeup Store is volume-based not prestige-based, which was her biggest concern with creating a digital platform.

She said they first made the semi-shift to digital by using Facebook, and after being approached by an agency, the Lucy Makeup Store website was up and running in three weeks. She said what surprised her is that since make-up selling is consultation-based, she did not expect the site to perform as successfully as it has.

Sarah remarked that the most difficult aspect of going digital was ensuring all the clients get what they ordered in a timely manner, as quite some interest on the site was generated.

“But once you start something, you have to see it through, and many clients appreciated our service and told us that we made a difference. Ultimately, it is a unique business with unique circumstances,” she said.

Overcoming the next phase

Sam remarked that while retail was getting used to both supply and demand shocks, now the country is at a point where supply side issues are subsiding, but demand has been slow to respond.

When speaking of the issues Lucy Makeup Store and Franks Stores are facing today, Claire highlights how for beauty products, it has been challenging because people try on and touch products.

“Can you imagine selling a lipstick without at least rubbing a tester on your hand to see the colour,” she questioned.

In order to overcome this, Franks launched a helpline where customers can have consultations over the phone. With glee in her voice, she explained that the initiative really took off.

“People working for the stores have actually been promoted because of the work they have done throughout COVID-19. We absolutely would not have gotten to this point without them.”

Here, Sarah spoke of the importance of retailers to really go the extra mile for their clients. She said that while this was always the case, the current situation makes this more so the case.

“Personalise your customer experiences! Coming from abroad, this is the retail culture I am used to. Tailor your customers’ experience to their needs – if they need you to Google something, do it. If they need some extra help, provide it.

“They will remember you, and like what I have experienced, they will tell you that they appreciated the service. I know I definitely would.”

COVID-19-related lessons and surprises

Asked about any lessons learnt or surprises from the COVID-19 experience so far, Sam quipped that he is pleasantly surprised to see the shift from cash to contactless, remarking that for a country which loved to use cash to such an extent, the shift has been quite remarkable.

Sarah referred to previous remarks on the shift of the local market online, adding that it is of paramount importance for local retailers to give the service they are advertising and strengthen consumer e-commerce confidence.

Claire, taking a positive tone, believes that in a year Malta could recover substantially. Speaking about the Lucy Makeup site, she believes she has managed to attract customers who ordinarily purchased make-up from international sites.

“I have faith that in a year’s time we will get back to where we left.”

The Boardroom, presented by business-writer Jo Caruana, invites Malta’s leading figures in the business community to discuss strategy and share ideas on the most pertinent issues facing businesses and the economy locally.