One in four small retailers in Mallorca ended the summer of 2026 with lower sales than the previous year. Specifically, 25.6% of the businesses surveyed by PIMECO reported a decline, while 38.9% maintained their sales and another 25.6% managed to increase them.
The figures come from a survey sent by the business association to more than 600 retailers across the island and reflect a season marked by significant differences between businesses and by consumers being more cautious about spending.
According to PIMECO president Carolina Domingo, the results show “a very uneven season, in which we cannot speak of a single reality for the entire small retail sector. The sector, the type of product and, above all, the customer profile are increasingly making the difference between businesses”.
Small retailers in Mallorca end an uneven summer for sales
Among the businesses that managed to increase their sales, 37.9% put growth at between 10% and 20%; 34.5% at below 10%; and 27.6% reported growth of more than 20%.
Promotional campaigns did not necessarily guarantee better results either. 58.6% of retailers that increased their sales had offered discounts, but so had 55.2% of those that recorded a decline.
“Price is still important, but it is no longer the only factor determining a purchase. Consumers are giving their decisions more thought and want what they buy to offer real value. This is where small retailers have a great deal to offer because they can provide proximity, advice, specialisation and an experience that other channels find difficult to replicate”, Domingo says.
39% say local consumers are spending less
The behaviour of local customers is another indicator that helps explain the performance of small retailers in Mallorca. Although almost half of businesses have not noticed any major changes compared with other seasons, 39% believe local consumers are spending less.
“Local customers are the ones who provide continuity for retailers throughout the twelve months of the year. Building their loyalty is essential, even more so in a context in which families are scrutinising every expense much more closely”, says the PIMECO president.
More people on the streets does not always mean more sales
The survey also highlights a gap between footfall in shopping areas and its impact on sales. Around 64% of retailers report high numbers of people on the streets, but this activity has not always translated into increased purchases.
Small retailers in Mallorca are seeing more people on the streets, but not more sales. Photo: Teresa Ayuga.
“This is probably one of the major challenges we face: turning footfall into actual spending in shops”, Domingo explains. “Having busy streets is not enough. We need to give residents and visitors reasons to enter shops, discover what they have to offer and make purchases”.
PIMECO is committed to continuing to promote joint campaigns and activities in shopping areas to raise the visibility of businesses and strengthen consumers’ connection with local retailers.
78% of retailers have tourist customers
Tourism continues to play an important role in local retail in Mallorca. 78% of the businesses surveyed say they have tourist customers, while almost one in five say tourists account for more than 75% of their customers.
More than 60% of businesses also report changes in their behaviour. The main trends include lower spending, a greater focus on discounts and more planned purchasing, although retailers are also seeing growing interest in local products and local businesses.
“Tourists remain essential for many retailers in Mallorca, but we are also seeing tourists who are more demanding and more careful about how they spend their money. They are buying, but they are looking for a better balance between quality, price and authenticity”, Carolina Domingo says.
Most retailers see no impact from anti-tourism sentiment on sales
The PIMECO survey also addresses the potential impact of the social debate surrounding anti-tourism sentiment. 60.2% of retailers say it has had no impact on their sales, while 16.8% believe they have been affected in some way.
“The figures show that it has not been a determining factor for most retailers, but we must continue to convey a balanced and welcoming image of Mallorca, where protecting residents’ well-being is perfectly compatible with welcoming and treating our visitors well”, Domingo says.
Online sales continue to account for a small share
Digitalisation is another of the sector’s challenges. Some businesses already sell their products through their own websites or external platforms, while others are considering adding this sales channel.
Among businesses that already sell online, online sales generally account for between 0% and 25% of turnover.
“Digitalisation should not replace physical shops. It should help strengthen them. The great value of small retailers continues to lie in personal service, product knowledge and trust, but we must take advantage of digital tools to reach new customers and adapt to their changing habits”, concludes the PIMECO president.
Leave A Comment