Small Shops on Mallorca Report Notable Revenue Decline

Summer 2025: Many small retailers feel the pressure

Last week I was in Palma's Old Town, on Passeig del Born, and spoke with three shop owners. They basically all said the same thing: "This year it's different." A survey by the local merchants' association among around 600 businesses confirms this impression – nearly 55 percent reported declining sales compared with the previous year.

Who is especially affected?

Especially boutiques, shoe stores and accessory shops were on my little tour in the center. A shop owner near Plaça Major said that the tourists are here, but buy less. "They look, take photos, but don't spend like before," she said, rolling her eyes. Many of the shops I saw had discounted prices or "Sale" signs that were already hanging in July.

Why the declines?

Pimeco, the merchants' association, cites several reasons: big chains start their discounts earlier, the cost of living pressures spending, and new baggage rules from airlines mean travelers have less space to shop. On site I also hear that competition from online shops and short-stay tourists who stay only a few days exacerbates the problem.

A small shoe shop owner on Avenida de Jaume III sums it up: "The costs are rising, spontaneous purchases are dropping. We feel it every day."

What does this mean for the island?

When a quarter of the urban centers look emptier, that's not only affecting the owners. Craftsmen, suppliers and even the cafes next door notice the gap. Some retailers are already considering adjusting their assortment or staying open longer temporarily to attract European visitors who often shop in the evenings.

The mood is subdued, but not hopeless. Several entrepreneurs are calling for clear support from politics and tourism associations: targeted campaigns for "Local Shopping", more flexible store hours in the off-season, and measures against ruinous price competition. Whether and when such steps take effect remains open.

For the coming months the plan is: stay alert, deliberately click through small shops, and, if possible, visit local stores more often. A tip from me: if you're looking for a special piece, stroll through the quieter lanes in the evening — sometimes you find the most beautiful items there and you support the neighborhood.