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Survey paints grim picture of COVID-19 impacts on local businesses

Apr 30, 2021 | 6:45 PM

MEDICINE HAT, AB– Cycling alone inside her spin studio is Sabrina Moore, the owner and operator of Kollektiv Cycle in downtown Medicine Hat. This past year has been a whirlwind for the business owner, who has been faced closures spanning a little over a year.

“The fact that we have been closed for 13 months with a brief window of opening for two weeks, It’s not faring super well. We were headed in the right direction so we had some positive thoughts moving forward as we transitioned through the steps and when we took that step back, that was really deflating, because we never even got out of the gates yet,” she said.

Revenue dropped by 90 per cent, despite pivoting to online classes and bike rentals. And finding other ways to offer in-person classes that fall within the government guidelines, has fallen short.

“It would be nice to be able to transition, and just strictly do outdoor rides but, that’s not even a possibility in terms of even our location,” she said.

Moore is not alone. A new report prepared for the Medicine Hat and District Chamber of Commerce surveyed 502 businesses in the community from Sept. 2020 to December 2020. The report found that 55.18 per cent of businesses experienced a drop in revenue, compared to 26. 10 per cent that reported similar revenue levels. 18 . 3 per cent of businesses, according to the report experienced an increase in revenue.

“It’s been a tough go for a lot of people, “ said Marcus Campbell, president of the Medicine Hat and District Chamber of Commerce, who noted the report will help the chamber on further advocacy efforts.

Even businesses deemed essential have noticed some negative impacts.

“ We aren’t getting a lot of traffic in the front doors. People are just not coming,” said Victor Hauseur, owner of The Market Centre, who noted that while retail revenue has shrunk wholesale revenue for their vegetables has actually increased.

Throughout the pandemic various levels of support were provided to impacted businesses. Many people surveyed reported neutral or satisfied feelings towards the support. But for Moore, she said additional is needed for industries still shutdown.

“When businesses are forced closed for this extent of time, there has to be a supplement for that because as I’ve said my hands are completely tied, and if that’s the case then that’s something that we need to access because that could mean the difference of being able to reopen and not reopen,” she said.

The chamber said while the wage and rental subsidy is a positive step, additional work needs to be done to ensure businesses can survive.

“We need to get together and we need to keep working together so that we can keep the businesses open for the long term, and stop with this roller coaster of open and close, open and close,” said chamber president Marcus Campbell.

Of the businesses surveyed, 38.65 per cent of businesses were forced to close from from March to September last year. A total of 46.88 per cent of respondents were closed for less than two months, followed by 29.17 per cent that were closed for .three to four months. A little over six percent reported being closed for five to six months.

The subsequent closures required 41.81 per cent of businesses surveyed to lay off staff. While some were able to rehire, 53.25 per cent of respondents were unable to do so. Not having enough work for them, employees finding employment elsewhere, business closures,and limited business operations still not resuming full activity were listed as reasons for not re-hiring.

Not all businesses however struggled during the pandemic. According to the impact study some businesses reported a positive impact.

One of those businesses is Hat Cannabis. They have been experiencing a jump in revenue, since the beginning of the pandemic. Cannabis stores were deemed essential by the province, thus stores did not have to close.

“It’s interesting, I think it is probably a number of factors. I know I hear from a lot of my customers that their anxiety has gone up a lot so they are looking for something to help with that,” owner Rebekka Leidl said.

As for Moore, she’s taking a positive approach despite being shut down. But the recent rise in COVID-19 cases has her concerned as a business owner.

“ I would hope that the numbers come down because as a business owner it is very stressful when we have the high case numbers that we do right now. It’s terrifying to open up, and what if something happens? So that is always something that has played in my mind,” she said.

Even with protective barriers and safety measures in place, Moore said she does not feel comfortable opening, as of yet, even if the province gives her the green light.

A look at the report can be found here.