Business & Finance
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The latest retail traders survey shows that the business climate continues to flourish in Monaco. The car industry remains the strongest of all retail trades, experiencing significant growth over the past years.
According to the latest statistics by IMSEE, there were 801 retail establishments in operation in 2017, representing 8.6% of the total in the Principality.
More than 29% of those were created between 2013 and 2017 and half are less than 10 years old. The average age of these institutions is 14.4 years, compared to an average of 13 across all sectors.
With a total turnover of 1.4 billion euros in 2017, retail trade is the fourth largest contributor to the local economy, excluding sales and insurance. It’s positioned just behind wholesale trade; construction, scientific and technical activities; administrative and support services. It accounts for 10.6% of the Principality’s total revenue.
The automotive sector and personal equipment stores posted the strongest growth in terms of sales since 2001. In 2017, automotive sales accounted for 33.2% of all retail sales, six points more than in 2010. Automotive trade has seen an average annual growth of 7.2% since 2001, compared with 3.6% for traditional retail trade.
Retail trade is also the 7th largest sector in terms of employees. In December 2017, it recorded 2,769 employees, or 5.8% of the Principality’s total population. The majority of those are women, who represent 54.1% of all retail employees – the second most female dominated sector after the administration, education, health and social action industries.
But the proportion within the sectors varies greatly: 73.8% of employees in personal equipment stores are women, however that rate drops 22.1% in the automobile industry.
The government has bolstered some of the support systems it introduced recently for businesses in the Principality.
Banking giant Barclays has announced the launch of a £100 million package in an effort to help those most affected by the Covid-19 epidemic.
The Maltese Communication Authority has approved a €250 million corporate contract between Monaco Telecom and Malta’s leading telecommunications company, Vodaphone Malta.
Monaco is reopening the Larvotto construction site to workers, saying the beach project is “essential for the development of the Principality”.
Julius Baer Group, Switzerland’s third-largest wealth manager, has hired several private bankers from HSBC Holdings to bolster its Latin American business, according to three reliable sources.
The bankers are based in Monaco and Switzerland, said one of the sources, asking not to be identified. More may be hired in Monaco, one of Julius Baer’s European hubs serving Latin American clients, said another person. Officials at Julius Baer and HSBC declined to comment to Bloomberg.
Julius Baer has acquired businesses and hired bankers to compete with larger wealth managers such as UBS Group and Credit Suisse Group. The firm has signed more than 200 client relationship managers from Credit Suisse and other Swiss, Asian and British private banks this year, CEO Boris Collardi said last month.
Albert Henriques also joined Julius Baer from HSBC as chief executive officer in Monaco.
HSBC is in the process of divesting a portfolio of Latin American client assets in Switzerland to Banco Santander as the British lender restructures its private bank, people familiar with the matter said last month that the deal may include $4 billion to $6 billion of assets under management, according to the people close to the deal.