Big hit for business
BEEFED-UP coronavirus restrictions will serve up a big economic hit to Geelong, with experts predicting many businesses will shut for good.
While the G21 region escaped the stringent Stage 4 restrictions enforced across Melbourne, the head of Geelong’s Chamber of Commerce said the second Stage 3 lockdown would be a bitter blow to businesses that had just managed to stay afloat.
From 11.59pm on Wednesday, Melbourne retailers that do not sell essential items will no longer be able to open metropolitan bricks and mortar stores. Greater Geelong retailers will be allowed to operate, but restaurants and cafes will only be allowed to serve takeaway food.
Piano Bar’s Andy Pobjoy said his business could not move towards a takeaway model and would again struggle during the six-week shutdown.
“We would like to be able to put our people back to work, we can’t pivot to a takeawayonly model,” Mr Pobjoy said.
“Human interaction – that’s our product, that’s what makes our business what it is. We are just exhausted.”
Some clothing stores, such as Seed Heritage, which has a Newtown and Geelong CBD store, have already signalled all Victorian stores will close during the restricted period.
Major retailers including Harvey Norman and Myer will keep their doors open in Geelong.
Geelong Chamber of Commerce chief executive Ben Flynn said the broader Melbourne restrictions would reduce confidence among Geelong business owners.
“It is a hit to Geelong and while we are not at the same level as Melbourne it is still very difficult for businesses just to be profitable,” he said.
“We are all in this to together – Geelong is not going to be immune and it is a still a very difficult time.
“There will be quite a lot of businesses that will be closed for good because of this.”
Deakin Business School lecturer and management and marketing researcher Michael Callaghan said Geelong businesses should be prepared for the possibility of Stage 4 restrictions being extended to Geelong.
“Unless Victoria can turn those numbers down in terms of cases, the likelihood is going to mean (businesses) that aren’t strong won’t survive the second round,” Dr Callaghan said.
“I think that fatigue is already there and some business owners have already decided that the effort involved in complying with restrictions is greater than the financial commitment they are prepared to continue with.”
Federal Treasurer Josh Frydenberg told the ABC on Tuesday the federal government was looking at flexibility around the eligibility requirements for JobKeeper for businesses beyond the end of September, when JobKeeper payments are due to decrease.