‘Our secret is to give customers what they want: convenience, quality and variety’ – Malcolm Camilleri

Over the past 38 years, PG Group – the powerhouse behind retail giants PAVI, PAMA and Malta’s Zara AND ZARA HOME franchise, among others – has solidified its dominant position in the retail and FMCG market. Its CEO, Malcolm Camilleri, who began his journey with the company as CFO before transitioning to operations, has been pivotal in shaping the firm’s strategy, diversification and growth.

“Our drive has always been to focus on customer needs, and this year we will continue to do exactly that,” says Malcolm Camilleri, CEO of PG Group, the firm behind some of Malta’s biggest brands, including the supermarkets PAMA and PAVI, and the Maltese franchise of Zara and Zara Home. “We plan to strengthen our position as the market leader in retail and the fast-moving consumer goods (FMCGs) sectors. To do so, we’re investing in our staff, as well as further digitising our offering to lead through innovation while ensuring sustainable growth.”

Such an ability to diversify and adapt is crucial when operating within the ever-changing retail industry, he explains. “You need to readjust quickly since the market is ever-evolving. New competitors are always appearing; customer needs and expectations are continously shifting; there are challenges ahead with regard to sustainability in textiles; and the digital tools at our disposal keep improving. This means we need to maintain our pace of transformation and development.”

Indeed, throughout its history the group has kept in step with the flows and shifts within the industry. In 1987, Paul Gauci established the firm as a family business, recognising opportunities in the retail sector despite Malta’s economy at the time being largely focused on manufacturing and wholesale. The company partnered with international market leaders, including Inditex – the group behind Zara and Zara Home – and Conad in Italy. It opened its first Zara outlet in 2002, followed by PAVI in 2006, Zara Home in 2008, and PAMA Supermarket in 2015. Over the years, the group restructured and became a publicly listed company in 2017.

Malcolm has witnessed the firm’s evolution first-hand, having joined in 2006 as Chief Financial Officer. “I was part of the company’s transformation from a medium-sized business to the market leader it is today, with its strong financial performance, business model and management team culminating in a successful Initial Public Offering (IPO) in 2017. Even as CFO, I was always involved in the firm’s operations,” he says.

In Malcolm’s view, the key to the group’s success has been its ability to anticipate and meet consumer needs. “Our secret is to give customers what they want: Convenience, quality and variety. This perspective has shaped the company’s values; it is embedded in the firm’s culture and communicated at every level. We’re also agile – we make decisions fast, and we are quick to adapt and respond to changes in the market.”

Ensuring all staff work together toward the same objectives is central to Malcolm’s role, he continues. “I take responsibility for leading the team and drive the company to achieve its goals to facilitate the board’s direction while fostering the group’s culture. This needs to be communicated to every member of the team at all levels, so that everyone understands the overall direction.”

It’s an approach that has proven largely successful, with the group today commanding a significant portion of the market. “Everyone is busy, and we provide a one-stop solution for our customers, which translates into loyalty. So, we’ve invested in converting footfall into more than a single stop – making one visit become two. Our business strategy is based on volumes; we encourage as many people as possible to shop in one of our outlets. I would say we’re succeeding in this: our group sees around 120,000 people per week visiting our sites – that’s around 20 per cent of the local population.”

Moreover, the business “has been built on solid financial foundations, and that has always guided our decisions,” the CEO notes, adding that the firm has consistently focused on sustainable growth without overstretching its resources. “This means we have no debts and no commitments, and, as a result, we have weathered storms and will continue to do so.” Crucially, the group’s relationships with partners such as Inditex have been productive, with the international behemoth “supporting the firm’s transitions in practical ways”.

The group’s diversification has also strengthened its position, he asserts. “For instance, our clothes shops had to close during COVID-19, but our supermarkets boomed. As a result, we were able to support our local partners during the pandemic by not charging them rent for retail space. In this way, they not only survived but could quickly get back on track once everything reopened.”

Much has changed since 2020. In recent years, the island has faced significant challenges due to supply chain disruptions and inflation. Despite this, the CEO remains optimistic. “Our business is still performing well, and in the current scenario, we believe it will continue to flourish year after year. The favourable local economic conditions enabled our company to achieve significant growth and deliver strong performance by fully capitalising on the opportunities presented.” Still, satisfying customer needs can be challenging. “They vary a lot – people are price-focused, and there is always more competition to contend with. Motivating staff is also crucial: They work long hours, so you need to empower them.”

Looking ahead, the group will enhance its competitiveness by launching new brands across all product categories, as it has successfully done in the past. This approach will enable it to offer entry-level products at highly competitive prices while maintaining consistent quality. “We’re planning on introducing more over the next year; we have the right sites, the right partners and the right staff to do so. We plan to continue providing the superior shopping experience our customers expect of us without sacrificing affordability, newness or innovation.”

The PG Group experience is also set to expand further online, Malcolm explains. “We’re preparing new interactive tools for our customers. For instance, we’re launching a supermarket app which will not only allow shoppers to buy online – and have their items delivered – but also help them find products within our stores. At PG Group, we recognise the critical role of digitisation in today’s world and its necessity for staying competitive while enhancing the customer shopping experience. That’s why we are making significant investments to develop and advance our digital capabilities.”

Seeing the company evolve is a great source of satisfaction for Malcolm. “This business is part of my life; I treat it as if it were my own. So, when I come into work, I pour a lot of energy into taking the time to interact with staff and customers. In fact, I spend the first half of every day on the shop floor, speaking to our front-facing team and interacting with shoppers. While it is challenging to meet expectations, I am fulfilled by the relationships I am building,” he concludes.  

This article is part of the serialisation of 50 interviews featured in Malta CEOs 2025 – the sister brand to MaltaCEOs.mt and an annual high-end publication bringing together some of the country’s most influential business leaders.