INTERIM RETAIL PLANNING GUIDELINES

Final Version
February 2004

Table of Contents

1.0 Introduction

1.1 Policy Objectives

1.2 Town Centre Strategy

1.3 Assessing New Developments - General Principles

1.4 Assessing New Developments - Specific Types of Retail Development 8

Annex 1: Town Centre Boundaries

17

Annex 2: The Assessment of Retail Impact

18

Annex 3: Glossary of Terms

20

TABLE 1: Guidelines Checklist

Retail Outlet
Shopping Malls
Supermarkets
Showrooms
Retail Parks
Factory Outlet
Centres
Small Shops
Speciality Shopping

Town
Centres

Neighbourhood
Centres

Outside Centres

Y
Y
Y
N

N
Y
N
N

N
Y
Y
Y

1.4.1
1.4.5 - 1.4.7; 1.3.1 - 1.3.10; Annex 2
1.4.8 - 1.4.12
1.4.8 1.4.12

N
Y
Y

N
Y
N

Y
Y
Y

14.13 - 1.4.15
1.4.16 - 1.4.18
1.4.19 - 1.4.22

Indicates General Acceptability subject to certain conditions as stipulated as

per provisions in referenced guidelines

Indicates it is Not Acceptable

Subject to
Guidelines outlined
in paragraph nos. below

1.0

Introduction

1.0.1

In May 2001 the Malta Environment and Planning Authority

approved a Retail Topic Paper as part of the Structure Plan Review
process. The Retail Topic Paper was subject to consultations with
the following technical stakeholders namely, Association of General
Traders and Retailers, Chamber of Commerce, Gozo Business
Chamber and the Ministry for Economic Services. An extensive
public consultation exercise organised by the Ministry for Economic
Services was also undertaken. The findings and recommendations
of the Retail Topic Paper form the basis of these planning
guidelines.

1.0.2

These retail
framework to

planning

guidelines

provide

comprehensive

guide the Malta Environment and Planning Authority in the

assessment of applications for development permission
(including new development, redevelopment and change of use)
in the interim period to the approval of Local Plans and the
Structure Plan Review and,
assist retailers and developers in formulating development
proposals.

1.0.3

The intention of these guidelines is to provide the background

guidance and context against which the retail sector and developers
can prepare proposals with a degree of certainty, as to the way in
which any particular scheme will be judged. However, the onus is
on an applicant to demonstrate convincingly that the proposal does
comply closely with these guidelines.

1.0.4

These guidelines update the policy on retail development set out in

the current Structure Plan and give firm guidance on how to deal
with retail development proposals. The current Structure Plan
policies dealing specifically with the retail sector are COM6, COM7
and COM8 and the retail component is dealt with in the following
general policies: IND13, HOU5, COM3, COM4 and SET7. These
guidelines supersede the retail component of the Local Shops
Policy, 1997.

1.0.5

Table 1 provides a synopsis of the preferred location for the

different types of retail outlets and the guidelines to be crossreferred to.

1.0.6

These guidelines start off by identifying the objectives for retail

planning. The next step is to identify general principles for the
assessment of new retail developments. The criteria for the
assessment of specialist retail developments are then outlined in
the final section of this document.

1.1 Policy Objectives

1.1.0

The challenge to be faced is how to accommodate new retail

development in a manner which is efficient, equitable and
sustainable. It is important to establish the optimum location for new
retail development, which is accessible to all sections of society and
is of a scale, which allows the continued prosperity of town centres.

1.1.1

These guidelines identify five key objectives which have equal

weight

The first objective is to channel investment into existing town

centres, some of which are deteriorating as residential
populations decrease and commercial activities begin to
decentralize. This is in line with the first goal of the Structure
Plan, which states that further social and economic development
of the Maltese Islands should be encouraged and to ensure, as
far as possible, that sufficient land and support infrastructure are
available to accommodate it.
The second objective is to strengthen the future health of town
centres by adding to their shopping attractiveness and retain
existing shopping uses. This objective also supports the first
and third goals of the Structure Plan. The latter states that the
quality of all aspects of the environment of both urban and rural
areas should be radically improved.
The third objective is to prevent/prohibit development of new
retail facilities on undeveloped sites outside the urban areas.
This also follows the Structure Plan goal which states that
development activity is to be channelled into existing and
planned urban areas, ensuring that land and buildings are used
efficiently. This objective also promotes the urban containment
strategy of the Structure Plan.
The fourth objective is to encourage multi-purpose trips (and
thus reduce the overall need to travel) by concentrating
employment, shopping and leisure opportunities within town
centres, together with social and community facilities. This is line
with the Structure Plan goals, which promote further social and
economic development and improve the quality of the urban
environment.
The fifth objective is to ensure that retail growth occurs in
locations, which are well served by public transport. This leads
to the realization of the transport objectives and to sustainability
as a whole.

The Role of Town Centres

1.1.2

The Malta Environment and Planning Authority attaches importance

to the improvement of town centres. The town centre is the focus
for a range of commercial and community activities, resulting in a
2

mix of, often interdependent, land uses, which contribute to a sense

of place and identity. It includes a combination of natural features:
historic buildings, cultural, civic and governmental buildings, as well
as public open spaces. This physical form and mix of functions,
which have evolved over a considerable period of time, makes a
town centre different from a shopping centre and provides much of
its character which can be further enhanced by introducing
appropriate new uses into historic buildings. It also has a high level
of accessibility to employment, services, and facilities for all the
community.
1.1.3

Shopping provision is a key component of town centres, and makes

a major contribution to their vitality and viability. It is important
therefore that they retain retailing as a core function.

1.1.4

In this guidance, the term "town centre" is used generally to cover

city, town and village centres, which provide a broad range of
facilities and services and act as a focus for both the community
and for public transport. It excludes small clusters of shops of purely
local significance. The size of centre will influence the range of
activities and its function. The scale of development possible and
the opportunities available will differ from place to place.

Convenience and Comparison Goods

1.1.5

The term convenience goods is defined as food, alcoholic drink,

beverages, tobacco, newspapers, magazines and household
cleaning materials.

1.1.6

The term comparison or non-food goods is defined as clothing,

footwear, furniture, household textiles, electrical goods, hardware,
chemists goods, jewellery, recreational and other miscellaneous
goods.

1.2

Town Centre Strategy

1.2.1

The Malta Environment and Planning Authority designates a

network of primary, secondary and tertiary town centres, where the
intention is to encourage the expansion and intensification of
shopping facilities and associated services. The Malta Environment
and Planning Authority aims to reinforce the retail function of these
designated centres, particularly for non-food shopping.

Primary: Valletta, Sliema, Birkirkara, Hamrun, Paola, Victoria,

and Mosta.
Secondary: Fgura, Qormi, Rabat, Zurrieq, Zabbar, Birzebbugia,
Zejtun, Bormla, Naxxar, St.Pauls Bay, San Gwann, Mellieha
and St.Julians/Paceville.

(Note: The Retail Topic Paper has recommended that a new secondary
town centres be created in Tigne This recommendation would be
implemented following the completion of the first phase of the Tigne
project.)
Tertiary: Birgu, Siggiewi, Marsa, Floriana, Ghaxaq,
Ghajnsielem, Gzira, Nadur, Luqa, Balzan, Xaghra, Isla, Kirkop,
and Safi.
1.2.2

Neighbourhood centres are locations to be designated in Local

Plans to accommodate a planned approach to the provision of local
retail services in new and expanding housing areas. These areas
should provide coherent groupings of appropriate facilities, with
shared parking and service delivery provision, pedestrian access
routes and planned public transport provision.

1.2.3

Most of the growth in non-food shopping will be accommodated

within the primary and secondary centres, as defined by the
boundaries in Annex 1. Local Plans will define the boundaries for
the tertiary town centres.

1.2.4

Within the designated town centres, the Malta Environment and

Planning Authority will encourage the development of:

appropriate pedestrian priority and traffic management schemes

high quality landscaping of public areas, spaces and pedestrian
routes and the creation of new public squares or open spaces
projects to upgrade public transport facilities and associated
facilities
projects to improve the provision of managed town centre
parking facilities, which address the requirements of shoppers
and short-term visitors as well as commuters and residents
coordinated public/private sector initiatives to improve the
management of the town centre

1.2.5

Positive action to promote change may include the identification of

development opportunities, better access for public transport,
cyclists and pedestrians, and environmental improvements
including improving the attractiveness of townscape and open
spaces. Renewal opportunities may also arise where underused
property and land might be brought back into more productive use
through joint action or through other initiatives. Improved town
centre management could also help in the co-ordination and
implementation of a range of activities, which enhance the town
centre.

1.2.6

The provision of appropriate public car parks can be assisted

directly through the Commuted Parking Payments Scheme (CPPS).

1.3

Assessing New Developments General

Principles

1.3.1

As far as possible new retail development is to be sited within town

centres or, if no sites are available, immediately on the edge of
town centres with a presumption against development elsewhere,
except where neighbourhood centres are being provided to meet
neighbourhood needs and under the particular provisions as
described in the discussion of Specific Types of Retail
Development.

1.3.2

New development should be capable of being accessed by a

variety of transport modes without causing undue congestion. The
demonstration of congestion arising from car usage should not be
used as an argument against town centre development locations,
where adequate public transport exists or could be provided, or
where measures to alleviate congestion can be provided.

1.3.3

It should be ensured that appropriate servicing arrangements can

be provided which do not detract from the environmental quality of
town centres nor cause additional congestion. The scale and form
of new development should complement rather than detract from
existing retail facilities and direct attractive pedestrian links should
be provided between new developments, the existing central area
and both public transport facilities and car parks.

1.3.4

Where there is doubt on any aspect of a planning application the

Malta Environment and Planning Authority will require a detailed
justification related to the questionable matter. All applications for
retail development should be assessed against the principles set
out in this section of the Guidelines.

Location of Development
1.3.5

The preferred location for new retail development where practicable

and viable (in terms of the policy objectives outlined beforehand) is
within a town centre. Where it is not possible to provide the form
and scale of development that is required on a site within the town
centre then consideration can be given to a site on the edge of the
town centre so as to encourage the possibility of one journey
serving several purposes. An edge of centre site, for the purposes
of these guidelines, is taken to be one, which is within an easy and
convenient walking distance from a town centre. The distance
considered to be convenient will vary according to local
circumstances but is not more than 100 metres from the edge of the
town centre boundary, and less in smaller settlements. This is
commonly known as the sequential approach to the location of retail
development.
5

1.3.6

A particular issue that will arise in the appraisal of alternative

locations is the potentially contrasting performance in terms of
urban design, accessibility and traffic congestion. Each case will
have to be treated on its merits and a balance struck between a
sites relative performance against the various planning and
transportation factors to be evaluated. In relation to urban design,
applicants should make every effort to integrate successfully new
retail development, much of which will be of a scale larger than the
existing urban grain, into the townscape of existing centres.

1.3.7

It is likely that some retail development will take place in out of

centre locations. Not all centres, particularly small and historic
towns will have sites that are suitable in terms of size, parking,
traffic generation or servicing arrangements for large-scale
developments in the town centre itself. In such centres,
development should be of a scale appropriate to the size of the
centre in order to minimise the potential for adverse impact. (Annex
2 provides an overview of the assessment of Retail Impact).

Impact On Vitality and Viability

1.3.8

New developments can have an adverse impact on the vitality and

viability of established town centres. Annex 2 provides the
methodology for the assessment of vitality and viability of a town
centre. This is a consequence of the competitive environment in
which retailing operates. Though it is not the purpose of the Malta
Environment and Planning Authority to prevent competition, proper
planning and development includes promoting healthy town
centres. Where new developments compromise this planning goal,
they should be rejected in the public interest.

1.3.9

In making an application for development permission for retail

development which the Malta Environment and Planning Authority
considers to be large scale in relation to existing town centres, the
onus is on the applicant to demonstrate compliance with these
guidelines and that there will not be a material adverse impact on
the vitality and viability of any existing town centre. In the case of
major development MEPA will advise the applicants to undertake a
Retail Impact Assessment (RIA). Table 2 indicates the current retail
sales areas within the primary and secondary town centres.

TABLE 2: SALES AREAS OF PRIMARY AND SECONDARY TOWN

CENTRES
Convenience
Comparison
Businesses
Businesses
Sales Area by Centre (sq.m)
(sq.m)
(sq.m)
All Shops (sq.m)
Sliema
2348
19730
22078
Valletta
1546
15572
17118
Hamrun
653
7807
8460
Victoria
1423
6463
7886
Birkirkara
339
3864
4203
Paola
266
2877
3143
Mosta
171
1978
2149
Total Primary Centres
6746
58291
65037
Fgura
235
4287
4522
Rabat
871
2074
2945
Qormi
1086
1507
2593
Mellieha
585
1700
2285
San Gwann
545
1214
1759
Bormla
653
799
1452
Zabbar
436
951
1387
Birzebbugia
476
774
1250
Zejtun
282
816
1098
Zurrieq
431
299
730
Naxxar
300
336
636
Total Secondary Centres
5900
14757
22657
Source: Retail Topic Paper, 2001
1.3.10

In submitting evidence in relation to retail impact the applicant shall

address the following criteria and demonstrate whether or not the
proposal would:

Materially diminish the prospect of attracting private sector

investment into one or more town centres.
Cause an adverse impact on one or more town centres, either
singly or cumulatively with recent developments or other
outstanding planning permissions, sufficient to undermine the
quality of the centre or its role in the economic and social life of
the community.
Diminish the range of activities and services that a town centre
can support.
Cause an increase in the number of vacant properties in the
primary retail area that is likely to persist in the long term.
Ensure a high standard of access both by public transport, foot
and private car so that the proposal is easily accessible by all
sections of society.
Link effectively with an existing town centre so that there is likely
to be commercial synergy.

1.4

Assessing New Developments Specific Types

of Retail Development

1.4.1

The general principles for assessing all new retail development

(including redevelopments and change of use to retail) are set out in
1.3. This section of the Guidelines deals with specific retail
development concepts. These are:

Freestanding Shopping Malls

Neighbourhood Centres
Supermarkets
Showrooms and Retail Parks
Factory Outlet Centres
Small Shops outside Designated Town and Neighbourhood
Centres
Speciality Shopping

Freestanding Shopping Malls

1.4.2

Freestanding shopping malls aim to replicate the attractions of a

town centre in a purpose-built, managed environment with
generous car parking. Malls, which seek to provide new shopping
destinations outside existing centres, are specifically designed to
draw trade away from existing cores. Malta is well served with
town centres and it is considered inappropriate to foster the
development of major freestanding shopping centres outside
these locations. The intention is rather to channel retail investment
into the enhancement of existing centres, as far as possible.
Small-scale shopping malls can be accommodated within existing
centres and such developments can contribute to the vitality and
viability of existing centres.

Neighbourhood Centres
1.4.3

The provision of local retail services within new residential areas

needs to be improved. Current provision is largely ad-hoc, driven
by
individual
entrepreneurs.
Provision
of
appropriate
infrastructure, such as shared parking facilities, is often lacking.
Concentrations of local facilities, where they do occur, are often
haphazard. Localised problems of traffic congestion caused by
chaotic short-term parking and service deliveries are
commonplace. Integration with public transport provision and the
provision of other public sector services (e.g. post offices) is rare.
Provision of local facilities within housing estates is likely to lead
to local use for a wide range of services, including: small
supermarkets, newsagents, post offices, health centres, chemists,
and play areas. Planned growth of local level provision can be
8

achieved by defining nodes for neighbourhood centres (normally

based on appropriately located, unplanned concentrations of local
shops).
1.4.4

The Retail Strategy provides for the modernisation and expansion

of local convenience shopping facilities. This would be achieved by
allowing the continued development of very small convenience
stores within residential areas, together with larger convenience
stores in designated neighbourhood centres. The criteria for
neighbourhood centres are the following:

Convenience shops with a combined sales and storage area of

up to 250 square metres will be allowed in the neighbourhood
centres, together with other defined local and community
services.
All new retail developments in residential areas will be evaluated
in terms of their potential traffic and environmental impacts on
neighbouring residents.
Suitable short-stay parking provision will be required for the
outlets within a neighbourhood centre.
There is no clear size threshold for a neighbourhood centre,
although it should incorporate a small cluster of between 4 and
12 shops, primarily selling convenience goods or providing retail
services (e.g. hairdresser, dry cleaners, video hire) together with
other social and community services for the immediate
neighbourhood.
The range of retail provision within a defined neighbourhood
centre could be improved by allowing limited retail development
within a distance of 100 metres from the edges of these centres.

Supermarkets
1.4.5

Supermarkets are an accepted component of the retail hierarchy.

They serve mainly the large weekly convenience goods shopping
requirements of families. They require large clear areas of
floorspace together with adjacent car parking as many people
undertake their weekly bulk convenience shopping by car.

1.4.6

Large supermarkets are defined as supermarkets with a combined

sales and storage area of at least 500 sq m. The aim is to
accommodate modern facilities in all areas, to supplement existing
convenience shopping provision in the designated centres and to
serve residential neighbourhoods.

1.4.7

The criteria for assessing applications for supermarkets are:

Large supermarkets should preferably be provided in a town

centre or on the edge of the centre where public transport
provision can be made available for shoppers who do not have
the use of a car. In exceptional cases it will not be possible to
bring forward sites which are in or on the edge of a town centre
because of the site size requirements of large supermarkets,
residential amenity, environmental constraints in historic towns
or because the road network does not have the capacity for
additional traffic and service vehicles. Where such proposals are
approved, conditions will be applied to restrict future extensions
to the retail uses and to prevent changes in the type of good
sold.

Such developments are also acceptable on appropriate sites in

existing and planned urban areas, offering good access to the
arterial and distributor road network and good public transport
connections.

Industrial land or buildings will be considered appropriate for

supermarkets if it satisfies the following conditions:
a) The site is larger than 1000 sq m;
b) Industrial land or buildings should not form part
of an industrial estate managed by MDC or
under its control;
c) The development will not negatively impact
neighbouring industrial concerns in particular
and the area in general.
d) Such developments are only acceptable on
industrial land and in industrial premises in
existing and planned urban areas which offer
good access to the arterial and distributor road
network and have good public transport
connections.

New supermarkets will be permitted with a food sales area of up

to 1,500 square metres. Applying a 75 % convenience goods

10

floor space area to a 25% comparison goods floor space area

ratio (as recommended in the Retail Topic Paper) the total sales
floorspace cap is 2000 square metres. Where the proposed
development would affect an established tertiary centre, is
reliant on a restricted rural catchment area, or negatively effects
residential amenity, additional size restrictions may be
appropriate. Supermarkets located in industrial areas will have a
total sales floorspace of between 2500 and 3000 sq m. The
sales floorspace should be distributed as follows: 75% for food
sales and 25% for comparison goods.

The application drawing accompanying an application for

development permission should clearly delineate the areas to be
devoted to the sale of convenience goods, comparison goods
and storage together with servicing arrangements and customer
access points.

Off-street parking in accordance with Malta Environment and

Planning Authority requirements (as per TRA 4 and provisions in
Explanatory Memorandum) will be required for supermarkets as
well as appropriate goods vehicle servicing and access
arrangements as in the Development Control Policy and Design
Guidance 2000 of the Malta Environment and Planning
Authority.

Goods vehicle service arrangements, goods storage and access

arrangements, will not have detrimental impacts on
neighbouring residents, businesses, or other land uses.
Provision must be made for on-site/off street servicing and
access.

The supermarkets will not create nuisance for neighbouring

residents through noise, smell, lighting, hours of servicing, hours
of operation or other factors.

All large supermarket developments should be subject to a

Retail Impact Assessment as stipulated in Annex 3 of this
document.

At the discretion of the Malta Environment and Planning

Authority, the developer may be required to prepare a traffic
impact statement illustrating the likely impact of their proposal
on the highway network and may be required to accommodate
their proposals (as required by policy TRA 3).

11

Showrooms and Retail Parks

1.4.8

The strategy allows the development of large showrooms for the

retailing of selected, bulky non-food goods on appropriate urban
sites. For the purposes of these guidelines, large showrooms are
defined as showrooms with a combined sales and storage area of
between 500 sq m and 2000 sq m. The aim is to offer a reasonable
choice of available showroom locations throughout the Maltese
Islands and Local Plans will identify the areas where such
developments are to be sited.

1.4.9

Large Showrooms will be permitted within urban areas, provided

that:

The goods for sale are restricted to the following categories:

motor vehicles and boats; furniture and soft furnishings;
bathrooms and ceramic tiles; DIY; hardware, tools and
machinery; timber and building materials; and large electrical
appliances including white goods, computers and home
entertainment equipment.

Off-street parking is provided in accordance with Malta

Environment and Planning Authority standards (as per TRA 4
and provisions in Explanatory Memorandum) for non-food retail
outlets.

Goods vehicle service arrangements, goods storage and access

arrangements, will not have detrimental impacts on
neighbouring residents, businesses, or other land uses.
Provision must be made for on-site/off street servicing and
access.

The showrooms will not create nuisance for neighbouring

residents through noise, smell, lighting, hours of servicing, hours
of operation or other factors.

External design should not adversely affect the scale and visual
amenity of the adjoining urban development.

Traffic impact associated with the new development can be

accommodated, without negative environmental impacts on the
affected areas.

Adequate provision is made for comfortable and safe pedestrian

access to the site from neighbouring residential and commercial
areas.

12

1.4.10

Suitable sites for large showrooms are rarely available within town
centres and the servicing and space requirements of such outlets
are difficult to satisfy in congested town centre locations.
Appropriate sites are within urban areas, offering good access to
the arterial and distributor road network and good public transport
connections Sites should accommodate adequate access, servicing
and parking facilities, without negative impacts on surrounding
residential areas. Industrial land is not considered appropriate for
showroom development.

1.4.11

Clusters of large showrooms in retail parks, with shared access,

servicing and parking facilities, will be permitted in suitable urban
locations. Appropriate sites for such retail parks will be identified
within the Local Plans, where possible, but proposals on other
urban sites will be considered in relation to the criteria above but
not where they might be in conflict with Local Plan policies.

1.4.12

At the discretion of the Malta Environment and Planning Authority,

the developer may be required to prepare a traffic impact statement
illustrating the likely impact of their proposal on the highway
network and may be required to fund the necessary remedial
highway works required to accommodate their proposals (as
specified in TRA3).

Factory Outlet Centres

1.4.13

At its simplest, this form of retailing involves the selling of products

at discount prices in an individual factory shop usually located as
part of or adjacent to the production facility. Such shops, which are
an ancillary use to the main manufacturing activity, are not an
established part of the retail scene in Malta, though examples of
tourism related outlets for craft products (e.g. glass) might be found.
Proposals for individual factory shops may be appropriate, provided
the scale of the shop does not affect the viability of nearby town
centres or raise significant traffic and transport issues. Unless the
sale of goods can be regarded as a use incidental to the
manufacturing process, such outlets should be treated as normal
retail developments and assessed accordingly.

1.4.14

The success of these centres depends on drawing customers and

visitors from a wide catchment area, including tourists. There may
be implications for existing town centres, even those some distance
away from the proposal. In particular, they can lead to the diversion
of expenditure on comparison shopping, particularly fashion and
specialist goods which forms a key component of town centre
turnover. Conversely, if a factory outlet centre is located so that it
links well with a town centre and thus achieve commercial synergy
it can assist in raising the profile of a town and enhancing
13

aggregate town centre turnover on retail goods. The relatively small

population of Malta suggests that there is market potential for only a
limited number of factory outlet centres.
1.4.15

Due to the potential economic benefits to town centres which can

arise from the close proximity of factory outlet centres and
established town centres, particular attention should be given to the
location of factory outlet centres on the edge-of-town centres or
where a short public transport link can be provided. It should be
recognized, however, that factory outlet centres are unlikely to
succeed commercially in close proximity to the town centres
because retailers do not normally choose to trade at a large
discount in direct competition with their high street outlets.
However, experience shows that this constraint is unlikely to arise
with smaller or secondary town centres, especially those in areas
which attract large numbers of tourists. Consequently, the most
appropriate location for factory outlet centres is likely to be where
commercial synergy can be achieved between an outlet centre and
a town centre which would lead to economic benefits for the local
area.

Small Shops outside Designated Town and Neighbourhood Centres

1.4.16

The Malta Environment and Planning Authority will encourage the

modernization and limited expansion of local convenience shopping
facilities. This will be achieved by allowing the continued
development of very small convenience shops within residential
areas other than those areas zoned in the Temporary Provision
Schemes or Local Plans for detached or semi-detached residential
development (as per DC 2000 section 15.3).

1.4.17

Small shops (Class 4A as per Use Classes Order 1994 as

amended) in residential areas offer a vital service to the
neighbourhood. In many locations, there is continued demand for
new and expanded convenience shopping. As a general principle,
local provision of such facilities will reduce the need to travel by
encouraging shorter shopping trips, often on foot. Many small shops
can be accommodated within residential areas without causing
nuisance to neighbours. However, careful control of these uses is
required in order to protect the residential character of the local
neighbourhoods, prevent nuisance to neighbouring properties, and
avoid localized traffic congestion within residential areas.

1.4.18

Small shops (Class 4A as per Use Classes Order 1994 as

amended) with a combined sales and storage area of up to 75 sq m
will be allowed, without an automatic requirement for additional offstreet parking provision provided that:

The proposal will not threaten the residential character or

function of the area either by:
14

attracting a large number of customers from outside the

immediate locality; or
introducing a development which is not sympathetic with
neighbouring residential buildings in terms of building line,
scale or the design of the faade; or
visual intrusion of signboards and advertisements
(illuminated or otherwise)

The shop will not create nuisance for neighbouring residents

through noise, smell, lighting, hours of servicing, hours of
congestion and operation or other factors

The shop will not cause local traffic congestion, or jeopardize

the safety of road users or pedestrians, through customer
parking or access by parking vehicles

The shop will not encourage on-street parking on arterial or

distributor roads

Speciality Shopping
1.4.19

Speciality shops can be defined as themed facilities for recreational

and leisure, which often form part of a wider, leisurebased
development project. Speciality shopping provision will be
encouraged within the designated primary, secondary and tertiary
centres. In general, such facilities enhance the attractions of
established centres to visitors, tourists and other users and
reinforce the vitality and viability of the centre. Examples of
speciality provision within designated town centres may include;
craft markets, leisure-shopping facilities, food courts and themed
restaurant areas. These may be located within restored historic
properties, ancillary to other visitor attractions, in a waterfront area
or in another location with recreational potential.

1.4.20

In exceptional cases, specialist-shopping facilities will be required

outside the designated town centres. Small speciality shopping
developments may be permitted as ancillary uses, in association
with tourist or leisure-oriented development. Other examples would
include: duty free shopping complexes within port areas or ancillary
retail activities in craft workshop areas.

1.4.21

Proposals for speciality shopping provision outside the designated

town centres will be considered on their individual merits and will be
subject to the following requirements:

The scale and type of specialist shopping provision proposed

will require careful justification: the developer will need to

15

present detailed reasoning to justify the need to provide such

facilities in the proposed location, rather than within a
designated town centre

1.4.22

The Malta Environment and Planning Authority must be satisfied

that the proposal will not undermine the vitality and viability of a
primary, secondary or tertiary town centre

Where such proposals are approved, conditions will be applied

to restrict future extensions to the retail uses and to prevent
changes in the type of good sold

Goods vehicle servicing arrangements, goods storage and

access arrangements will not have detrimental impacts on
neighbouring residents, businesses, or other land uses

The shop will not create a nuisance for neighbouring residents

through noise, smell, lighting, hours of servicing, hours of
operation or other factors

Traffic impacts associated with the new development can be

accommodated, without negative environmental impacts on the
affected areas.

Requirements for off-street parking, public transport facilities and

pedestrian access in association with speciality shopping facilities
will require careful evaluation. There may be a requirement for offstreet parking, in accordance with Malta Environment and Planning
Authority standards for non-food outlets, for public transport
provision and for comfortable and safe pedestrian access from
neighbouring residential and commercial areas.

Out of Centre Developments

1.4.23

The Malta Environment and Planning Authority will not permit the
development of large scale shopping facilities outside the
designated town centres with the exception of large supermarkets,
large showrooms, retail parks, factory outlets and speciality
shopping as outlined in the previous sections 1.4.5 - 1.4.22.

16

Annex 1: Town Centre Boundaries

17

Annex 2: The Assessment of Retail Impact (RIA)

An RIA entails an economic evaluation of the proposed developments likely
impact on town centres and neighbourhood centres including consideration of
the cumulative effects of recently completed developments and outstanding
planning permissions. New developments can have an adverse impact on the
vitality and viability of established town centres. This is a consequence of the
competitive environment in which retailing operates. Though it is not the
purpose of the Malta Environment and Planning Authority to prevent
competition, proper planning and development of town centres remains an
important land-use planning objective. Where new developments compromise
this planning goal, they should be rejected in the public interest.
In making an application for development permission for retail developments
which the Malta Environment and Planning Authority considers to be large
scale in relation to existing town centres, the onus is on the applicant to
demonstrate compliance with these guidelines and that there will not be a
material adverse impact on the vitality and viability of any town (including
neighbourhood) centres emanating from the proposed development.
RIAs need usually only adopt a broad approach. Parties should, where
possible, agree data (such as trends in turnover, population, expenditure and
efficiency in the use of existing retail floor space) before preparing impact
assessments and present information on areas of dispute in a succinct and
comparable form.
It is commonly accepted that there are six main steps to the assessment of
retail impact:
1. Identification of catchment or study area including the primary and
secondary catchments. The approach used in the identification of the
catchments should be clearly set out in the assessment. To avoid delay
and remove uncertainty, developers and/or their agents may wish to
liase with MEPA in arriving at a consensus view either about the
methodology to be used in arriving at the catchment area or the
catchment area itself.
2. Estimation of expenditure available within the defined catchment or
study area.
3. Estimation of the turnover of existing centres within the catchment
area, which are likely to be affected by a new development.
4. Estimation of the turnover of the new development for which a planning
application is being lodged.
5. Estimation of the quantum of consumer retail spending available in the
catchment area that will be diverted from existing centres to the new
retail development; this assessment normally highlights the diversion of
expenditure by zone within the catchment area. The diversion of
expenditure is likely to be higher from the Primary as opposed to the
secondary catchments.
6. Aggregation of the zonal diversions from each centre to the new
development to provide an estimate of trade diversion; trade diversion
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is then expressed as a proportion of a centres turnover at the target

year to provide a measure of impact.
NOTE: In relation to retail developments with both convenience/comparison
elements, turnover and consumer expenditure assessments need to
be undertaken for both elements separately and the extent of the
trade diversion to the proposed developments from various centres
shown separately.
Many of these steps in the assessment of retail impact are relatively
straightforward and make use of readily available data. The one matter
that is less clear-cut in the assessment of impact is step (5), which is
where the estimate of trade diversion from each of the centres in the retail
system to the proposed development is made. A variety of approaches
can be adopted at this stage of the assessment, some more sophisticated
than others. It is not intended to impose a required methodology to this
stage of the calculation. It is important for all approaches to be clearly
substantiated, however, preferably using up to date information and survey
evidence as far as possible. Unsubstantiated judgements and assertions
do not assist in providing a clear assessment.
In submitting evidence in relation to retail impact the applicant shall address
the following criteria and demonstrate whether or not the proposal would:
1. Materially diminish the prospect of attracting private sector
investment into one or more town centres.
2. Cause an adverse impact on one or more town centres, either
singly or cumulatively with recent developments or other
outstanding planning permissions, sufficient to undermine the
quality of the centre or its role in the economic and social life of the
community.
3. Diminish the range of activities and services that a town centre can
support.
4. Cause an increase in the number of vacant properties in the
primary retail area that is likely to persist in the long term.
5. Ensure a high standard of access both by public transport, foot and
private car so that the proposal is easily accessible by all sections
of society.
6. Link effectively with an existing town centre so that there is likely to
be commercial synergy.

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Annex 3: Glossary of Terms

Combined sales and
storage area
Commuted Parking
Payment Scheme
(CPPS)

Convenience Goods
Comparison Goods
Gross floor area

Large supermarket
Main town centre
Neighbourhood
centre

Out of centre
Primary shopping
street
Primary town centre
Residential area

Sales area, together with portion of premises used by a retail

business for storage of goods, inclusive of associated circulation
space.
CPPS raises money to subsidise public parking provision by
collecting money from developers who, in specific circumstances, are
not required to make the usual provision to accommodate their
parking requirements. The scheme is currently operational in
Valletta, Floriana, Sliema and St. Julians (including Paceville). Within
these areas, the scheme applies where there is a change of use to a
more intensive category in terms of parking requirements. Qualifying
projects may be on sites where parking provision is physically very
awkward, within Urban Conservation Areas or in potential areas for
pedestrianisation. Small shops and bars catering for a local clientele
and developments with a parking requirement of 3 spaces or less are
generally exempt from the scheme. When the Malta Environment and
Planning Authority determines that the CPPS is applicable, a fee of
Lm900 per missing space is charged. This is intended to be
equivalent to the average cost of supplying an off-street parking
space.
Food, alcoholic drink, beverages, tobacco, newspapers and
magazines and household cleaning materials
Clothing, footwear, furniture, household textiles, electrical goods,
hardware, chemists goods, jewellery, recreational and other
miscellaneous goods
All floorspace within or incorporated into a development, measured
up to the median line of the external walls. Gross floor area includes
stairs, lift shafts and other circulation space, as well as floor areas of
rooms and covered enclosures at roof top level.
Supermarket with a combined sales and storage area of at least 500
square metres.
A primary or secondary town centre.
Neighbourhood centres are locations to be designated in local plans
to accommodate a planned approach to the provision of local retail
services in new and expanding housing areas. These areas should
provide coherent groupings of appropriate facilities, with shared
parking and service delivery provision, pedestrian access routes and
planned public transport provision.
Not within a primary, secondary or tertiary town centre.
The commercial heart of a main town centre. Normally, at least 75%
of the properties should have a ground floor commercial use to
qualify as a primary shopping street. However, the street must also
be trading successfully and attracting strong pedestrian flows.
Town centre with a regional or sub-regional function for non-food
shopping. The proposed primary town centres are Valletta, Sliema,
Birkirkara, Hamrun, Paola, Victoria (Gozo) and Mosta.
Urban area where the predominant use is residential.

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Retail

Retail park
Sales area
Secondary town
Centre

Sense of place
Shop
Showroom

Speciality Shopping
Street market
Supermarket
Tertiary town centre

Town centre
Urban area

White goods

Retail uses are defined in the Use Classes Order (Class 4: Shops) as
follows:
Use for any of the following:
a) retail sale of goods
b) post office
c) sale of tickets
d) travel agency
e) hairdressing
f) direction of funerals
g) display of goods for sale
h) hiring out of domestic goods or personal goods or articles
i) reception of goods to be washed, cleaned or repaired
where the sale, display, or service is principally to visiting members of
the public.
This study applies this definition. However, a distinction is made
between retail sale of goods [category (a)], showrooms [category (g)]
and retail services (other categories). The consumer retail
expenditure estimates and associated estimates of floorspace
requirements relate to the retail sale of goods and showrooms.
Cluster of showrooms within an integrated, planned development.
Access to the surrounding road network is shared and there may also
be shared parking provision.
Area of a shop devoted to the display and sale of goods, including
checkout areas. It excludes storage, internal parking, office areas,
staff facilities, stairwells, foyers and lift areas.
A significant non-food shopping centre serving local residents, or
residents of closely neighbouring villages, and used by at least 2,500
people for non-food shopping (Estimates based on 1997 Shopper
Survey). The proposed secondary town centres are Fgura, Qormi,
Rabat, Zurrieq, Zabbar, Birzebbugia, Zejtun, Bormla, Naxxar, San
Gwann, Mellieha and St. Julians/Paceville.
Awareness of identity or special character associated with a physical
location
Use conforming to class 4A and 4C (Shops) of the Development
Planning (Use Classes) Order of 1994 (See retail).
Premises primarily used to display goods for sale where little direct
(over the counter) retail sale is intended. Showrooms normally have
a gross floor area of at least 150 square metres and display a
specialist range of bulky, non-food goods, such as: white goods;
furniture; motor vehicles; household items, hardware and bathroom
fittings.
Themed facilities for recreational shopping, often forming part of a
wider, leisure-based development project. Frequently located in
waterfront or historic locations.
Collection of removable trading stalls in an outdoor location.
Shop with a sales area of at least 50 square metres, with at least
75% of sales area devoted to food and groceries, and with selfservice provision for customers.
A significant non-food shopping centre, but serving a smaller number
of people than a secondary town centre. The proposed tertiary town
centres are: Birgu, Siggiewi, Marsa, Ghaxaq, Gzira, Nadur (G), Luqa,
Balzan, Xaghra (G), Isla, Kirkop, Safi and Qala (G).
Primary, secondary or tertiary town centre.
Areas within the limits to development or within the boundaries of
designated major projects, town centres, MDC industrial estates,
industrial zones or ports as indicated on the Structure Plan Key
Diagram.
Large electrical appliances for the kitchen and washroom, including:
fridge, freezer, dishwasher, washing machine and tumble dryer

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