We're Shopping

Shop till we drop. No. Shop if the prices drop. Or shop when consumer confidence doesn't drop - or something like that. Bad times on the Mallorcan high streets, or calles mayores if you prefer. "The Bulletin" reports on significantly reduced retail activity in March, compared with last year. It is not difficult to work out the reasons. The credit crunch is one issue, but add on inflation and a general lack of confidence, and it is easy to understand why there is less spend on those high streets.

While Palma is the centre for much shopping, the small towns all of course have their shops. In addition to the supermarket chains - Eroski, Caprabo and Mercadona being the largest - there are other chain stores, such as the Milar electrical goods outlet, and then there are any number of franchise operations, especially in the clothing sector, Gas for example. And the small towns are littered with all manner of other shops, not just those catering almost exclusively for the tourist market. Take the clothing sector. Again, continuing in a sense the recent theme on this blog, if you wander around there are seemingly innumerable clothes and fashion shops. And you wonder quite why there are so many, given that the real populations of the towns are relatively small and also given that a trip to Palma takes only 30 odd minutes from the likes of Alcúdia.

It's when you get to know some of these shops that the reason starts to emerge. Many are run by the daughter of so-and-so, or the wife of so-and-so. These so-and-so's are often quite successful businesspeople in other sectors, e.g. restaurant owners. Something is needed for the daughter, so up pops another little fashion shop. Which is not to say for one moment that they shouldn't start a shop, but it is to say - is it really needed? Once more, you come back to the whole notion of supply and demand, and quite frankly I don't get it.

The supply of shops (and of bars etc.) has been increased by the way in which apartment blocks are created. Invariably there are a number of "locals" on the ground floor of these blocks, and equally invariably there is at least one clothes shop. Why? And then, having set the place up, stocked it, spent an arm and a leg on the design, there is a discovery that there are "muchos gastos" (many costs) attached to the running of a shop. You think, do they ever do something as basic as a cash-flow analysis before getting the interior designers around to give them a huge quote? Even if they do, what do they base it on? Nothing would be my guess.

I know what, can't think of anything better, let's open a shop, there's a unit going under the new flats. And then reality kicks in, and the current reality is none too rosy. Shop till we drop. Nope, shop and the shop will drop.

And just a small "Bulletin" moment for all fans of its editorial rigidity. In the context of the contribution of immigrant workers, it says that there has been an increase of "85 percent (not per cent, but the Americanised "percent") in GDP in the islands during the period 2000 and 2006. 85 per cent!? Given that average annual GDP increases have been in the 3% region, I think not.


QUIZ: Yesterday - Said I wouldn't again, but - Peter Gabriel. Today's title - another this time duo who are sort of regulars here. Which?

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