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The pink shop on Plaça Major is closed: What the loss of "Anita Cakes" means for Palma

Why Palma’s Old Town Shops Are Closing

High rents and costs are squeezing small businesses in Palma’s historic centre, even well-known ones.

Published: April 23, 2026
The pink shop on Plaça Major is closed: What the loss of "Anita Cakes" means for Palma

Answer

Why are small shops closing in Palma’s old town?

In Palma’s historic centre, small shops are under pressure from high rents, rising operating costs and uneven demand across the year. A business may be popular with visitors, but it still needs steady local trade to stay viable. When fixed costs are high, even well-known places can struggle to keep going.

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