![A shopper walks along Government Street in downtown Victoria. [Darren Stone, Times Colonist]](https://www.vmcdn.ca/f/files/glaciermedia/import/lmp-all/1639350-TC-95875-web-VKA-maskshop-8723.jpg;w=960;h=640;bgcolor=000000)
While it’s no surprise the retail environment has been devastated by the COVID-19 pandemic, a new study on Canada’s main streets, released Monday by Vancity, underscores the depth of the losses downtown retailers have endured.
According to the study, Government Street in Victoria saw a massive drop in feet on the street, with nearly one million fewer visits this year to the retail block between Humboldt and Johnson streets between April and September.
About 85 per cent of the businesses on the strip reported lower revenues this year with more than half saying revenues were less than 50 per cent of pre-COVID numbers.
The survey noted five businesses on the block had permanently closed, 75 per cent are operating with fewer staff, and of the 78 storefronts 10 are now empty.
The study, a combined effort of the credit union and the Canadian Urban Institute, said small businesses in Canada’s downtown cores are also dealing with the increased effects of the opioid crisis and vandalism.
It noted that 77 per cent of Government Street businesses said crime and safety issues in the neighbourhood are their biggest challenges.
“Right across the country small businesses are struggling. And if we let them fail, the whole country will be poorer for it. Local businesses form the backbone of the Canadian economy and they have shown determination and resilience during the pandemic,” said Christine Bergeron, Vancity’s interim chief executive.
In terms of fixes to downtown retailing, 69 per cent of businesses surveyed said they would like governments to focus on encouraging shopping at local and independent businesses.
The study found businesses along Government Street saw more visits this summer from people who live in surrounding neighbourhoods and that customers were “more purposeful” and intended on buying when they came downtown.
The dark cloud that continues to linger for downtown is the fact office workers are still being encouraged to work from home. The Downtown Victoria Business Association estimates if downtown does not get 65 per cent of office workers back, many businesses will close.
Across the country the story is much the same.
Each one of the seven blocks studied said visits were down 35 to 70 per cent compared with the same time last year, and 58 per cent of businesses are operating with reduced revenues.
“This is a crucial time for our main street businesses. Community members can continue to support their local shops, especially throughout the holiday season,” said Mary Rowe, chief executive of the Canadian Urban Institute. “These businesses also need support from all levels of government. Consumers and government must step in right now and take action to bring back our main streets.”
The study is a follow-up to research done between April and July that showed despite the pandemic, the business community had the space to find innovative ways to adapt during the summer by taking advantage of conditions such as relaxed restrictions and lower COVID-19 case numbers.
