72 per cent of businesses say virus rules hurting sales
The coronavirus pandemic has been devastating to B.C. business operators, hitting their bottom line like nothing before it.
Some 72 per cent of business operators responding to a COVID-19 impact survey reported decreased sales, with almost two-thirds of respondents reporting losses in revenue of 25 per cent or more, according to a new report by the B.C. Chamber of Commerce.
And half of the respondents reported a hike in operating costs, “likely due to costs associated with new restrictions,” according to the survey of 615 business leaders taken Dec. 3-18.
Reports on the continuing effects of COVID restrictions on their business were similar to the previous four surveys, done every two months or so, but there was some optimism, thanks to the rollout of vaccines.
Some 36 per cent of the respondents reported they feel “slightly more optimistic” for the outlook for the next 12 months. And 22 per cent said they expect to hire over the next six months.
The survey also said 73 per cent of businesses reported using some form of government support, which was up from 65 per cent in the summer, said the interim CEO of the B.C. Chamber of Commerce, Dan Baxter.
Accessing enough cash flow for wages, rent, taxes, inventory and personal protection equipment is among the main concerns, he said.
“They're saying, `We made it through 10 months but we can't take on any more debt,” he said. “They're trying to keep open and keep the lights on so they will be there when the economy recovers.”
The upside is 63 per cent of businesses used new online marketing tools and strengthened their ecommerce.
“We had to completely adapt our business to online,” said Sara Hodson, CEO of a chain of fitness gyms called Live Well Exercise Clinics.
The chain, which had 14 franchises in B.C. before several
closed last year, said the remaining gyms had retained 85 per cent of memberships until last summer. But closures and then reopening under COVID protocols and rising COVID cases further cut memberships to about 55 per cent at the end of the year, she said.
Hodson invested in online
classes and then interactive classes when members requested more connection and said she's optimistic for the next year.
“The year 2021 is going to be the year of the comeback kid for the fitness industry,” said Hodson, who is also the B.C. chair of the Fitness Industry Council of Canada.
B.C.'s tourism industry may be the hardest hit by COVID19 restrictions including recommendations for residents to avoid non-essential travel.
“The word we are hearing around here is decimation,” said Hilton Hotel Metrotown general manager Chris Perna. “Talking to my colleagues in the hospitality and tourism industry, overall we were down over 90 per cent (last year) from previous years and we find that continuing into 2021.”
Perna said 180 members of his staff, 85 per cent of his workforce, are waiting at home, wondering what's going to happen with their jobs.
“That's a tough pill for any employer to swallow,” he said. “But if there's no (sales) volume, there's no hours.”
The survey for the B.C. Chamber of Commerce, which represents members from 120 local business chambers, found their members continued to be concerned about the cost of doing business, labour costs and accessibility, employee efficiency and the lack of development of new goods and services, all of which they say worsened last year.
Baxter said members are looking for government supports, such as wage and rent subsidies and grants, to continue until the economy recovers, and his organization will be seeking tax relief, too.