In the first half of this year, Pimeco said, small businesses and retailers registered a total sales volume of 1'408 million euros, 293 million less than during the same period in 2008 (1'701 million).
Pimeco claimed that a policy of promoting the sale of certain goods which weren't subject to particular taxation had proved ineffective as a means of kick-starting consumer confidence amongst the resident population.
Research has also shown, said Pimeco, that although there has been a slight year-on-year upturn in the number of visitors (of 2.07%) sales registered by small to medium-sized businesses have actually gone down.
Financial records kept by Pimeco furthermore show that in comparison with 2011, retailers on Majorca have lost around 23 million euros. Confidence among small to medium-sized businesses on the island is fading fast said a spokesman.
According to the most recent quarterly survey Pimeco carries out to measure such confidence, the gauge is currently fluctuating between 37.5 and 38.6 points, the worst results since the start of the crisis.
Pimeco said that although these results are provisional, they show that despite the best efforts of the Commerce sector to adjust prices to demand, there hasn't been an adequate response from the public.
The association said that if there isn't a considerable recovery in sales volumes, profitability amongst the retail sector could sink to its lowest level of the last ten years.