WAITING FOR CUSTOMERS TO RETURN IN THE PROVINCE’S ECONOMIC REBOOT
Slow start for worried retailers who hope to mitigate losses from pandemic shutdown
The first two days are over. For Rhonda Fairhurst, owner of Country Living Furnishings & Design in southwest Calgary, the reopening of her business on Thursday proved to be a slow start.
And Friday wasn’t much different.
“Day one ended and we just had one customer, around noon. They bought some accessories and that was it,” Fairhurst said Friday, pegging the first-day sales at $400.
“That’s a bit worrisome, but I think as time goes on people will feel more comfortable ... We need at least $2,500 a day to pay our bills.”
It’s still early days in the relaunch of Alberta’s economy following a government-ordered shutdown to slow the spread of the coronavirus.
For two months, Albertans were told to stay home and avoid unnecessary trips to the store. About 25,000 businesses had to close because of the public health orders, affecting 300,000 jobs.
Now, some retail businesses previously forced to close, such as clothing outlets and furniture shops, can open again, although with new safety protocols.
However, simply turning on the Open For Business sign doesn’t magically flick a switch on a $350 billion economy. Nor does it capture the magnitude of the damage done to the bottom line of businesses in the past two months.
A gradual restart of the economy has left entrepreneurs like Fairhurst and Elena Achilleos, owner of La Chic designer clothing store in downtown Calgary, adjusting to a new normal.
“Our first day was fine. Our second day today is dead down here,” said Achilleos, whose store is located on the second floor of Bankers Hall.
“The night before (reopening) I was worried about traffic and are people going to come out? Will they be interested in shopping? Are they worried about leaving their homes?
“And I am still worried about that.”
Achilleos notes the Plus 15 network is still closed by the city, making it difficult for people to navigate through the downtown and access stores that are now open.
Calgary Chamber of Commerce CEO Sandip Lalli said the No. 1 issue in the restart will be to instil confidence in consumers that it’s safe to go out, visit stores and spend money.
She’s also heard similar issues being raised by local business owners who have begun operating this week.
“No customers. No foot traffic,” Lalli said. “No one is knocking on their door just yet.”
For Fairhurst, her store closed in mid-march after the government declared a public health emergency in the province. Four employees were laid off as the outlet was temporarily shuttered.
The company had to pay $30,000 in monthly rent for
April and May, although Fairhurst learned Thursday she will receive some rent relief from her landlord as part of a federal-provincial program.
However, closing for two months cost the business a couple of hundred thousand dollars in sales, as March and April are two of her busiest months.
Part of the business also involves going into people’s homes and helping them with their interior design; that work also ceased in the shutdown.
“As a successful company, you have a little bit of (cash) stockpiled, but we don’t have enough for two months and we are opening today almost flat broke,” she said.
“You don’t save $100,000 for a rainy day as a small business.”
The company has accessed the federal emergency wage subsidy and the Canadian Emergency Business Account program, which provides interest-free loans to small businesses.
Given the size of the company’s 8,000-square-foot showroom, social distancing is easy to maintain. The company has acquired masks and hand sanitizer, and her staff makes sure door handles and the payment machine are wiped down.
The key business issue in Fairhurst’s mind is how long it will take for customers to return.
“I am really apprehensive about that, if the people will come,” she said.
Although Achilleos works in a different industry, she has similar concerns.
The downtown business has been open in Calgary for 44 years and has a loyal customer base.
Operating a clothing store, Achilleos had to put new protocols in place for steam sanitizing all garments customers try on. Masks and gloves have also been acquired for the staff.
She had to lay off two employees during the closure, although with the federal wage subsidy being extended until the end of August, Achilleos is considering bringing another back.
Even for an established retail business, there are challenges ahead.
The store had thousands of dollars in spring and summer merchandise delivered from Europe before the mandated shutdown. Some inventory may have to be discounted.
With little walk-in traffic and even some longtime customers wary about leaving their homes, she said it’s hard to know how quickly things will bounce back.
“Right now looking outside, I am petrified; there’s nobody in the malls,” Achilleos said Friday over the lunch hour.
“But I have to wait for a while in order for me to gauge the situation.”
While customers are cautious today, she is confident they will eventually return. The question is exactly when will that happen?
“People are going to come back again, they are going to go to restaurants and bars and do everything they were doing before. It’s just a matter of time,” she added.
“Fingers crossed we will all see some light at the end of the tunnel.”