Small businesses in Mallorca have ended the summer season with worrying results. According to a survey of more than 600 establishments conducted by the retail association PIMECO, 54.7% say they sold less than in the summer of 2024, compared to a mere 12.5% who managed to increase their turnover and 31.25% who kept it stable. “This summer there were a lot of people on the streets, but few sales. Small businesses have made efforts, but profitability has been severely affected,” warned PIMECO president Carolina Domingo.
The hardest-hit sectors were fashion and accessories (34.4%), footwear (8.5%) and, to a lesser extent, food and local products (3%). These are precisely the sectors most closely linked to so-called shopping tourism, which seems to have lost momentum. The study reveals a change in the profile of both tourists and residents.
One in two retailers has noticed that visitors are spending less and looking for more discounts, while six out of ten perceive that residents are delaying their purchases and being more cautious. Everything points to a reduction in purchasing power and greater price sensitivity. The majority perception among those surveyed is clear: many describe this summer as a season of ‘lots of traffic on the streets, but few actual purchases’. Almost a third of businesses share this same feeling of frustration.
Among the causes explaining this weakness, PIMECO points to the early sales by large chains, which force small businesses to compete from the start of the season with minimal margins. Added to this is the increase in the cost of living in Mallorca, which has led tourists to adjust their spending and cut back mainly on purchases. The association also points to the baggage restrictions imposed by airlines, which limit the purchase of bulky or higher-value products. In addition, 25% of retailers believe that the social climate and the debate on tourismophobia have had a negative impact on sales, generating mistrust and cooling consumer decisions.
Another factor contributing to the weakness of the sector is the fragility of the online channel. Only 16% of businesses have digital sales, and in most cases, this channel has a marginal weight in total turnover. The association is calling for immediate measures. PIMECO is calling for the regulation of sales to curb unfair practices, the strengthening of institutional support through direct aid, consumer vouchers and tax reductions, as well as awareness campaigns that highlight the value of local commerce.
The organisation also insists on the need to promote the digitalisation of the sector and to reach agreements with airlines and ports to facilitate the transport of local products, with the aim of overcoming current limitations. ‘Small businesses are the real economy, neighbourhood life and quality employment. If we give them oxygen now, they will survive until next season. Mallorca cannot afford to lose its local businesses,’ concluded Domingo.