MONTREAL – At least thirty shops montreal have closed their doors in recent weeks due to the pandemic of the COVID-19.
VAT News has obtained a first portrait of the closures of shops, which are proliferating in the territory of the metropolis.
But the impact should really be felt at the end of the summer, more precisely in September, predict with concern and apprehension of the traders ‘ associations.
A dozen companies for the commercial development (SDC) have been consulted. Recent counts by an average of two to four closures by commercial artery since mid-march, which is in addition to premises that were previously vacant. That is to say, in a preliminary way, that a thirty closures of shops have already taken place in Montreal, a situation mainly attributable to the pandemic.
“Many businesses are in a difficult situation currently. The traffic usual on the commercial streets is not at the rendezvous. In addition to a significant drop in sales and turnover, retailers are faced with new expenditure (purchase of sanitary products, masks, sanitizer, security, etc) that are meant to protect their staff and customers,” said Billy Walsh, president of the Association of business development corporations in Montreal (ASDCM).
“We are witnessing a significant change in consumer behaviour in connection with the crisis of the COVID-19. There is obviously a rationalization of spending and the transfer of a significant portion of purchases on the web,” he added.
“As a result of these behavioral changes, the stimulus doesn’t seem to enjoy at all. The shops of basic needs are able to take. Other shops non-essential as the restaurants and shops may have more difficulties. If the businesses located on arterials, the local manage to limit the damage, it is different for the arteries of the destination and the other used to bring workers and professionals”, said Billy Walsh, who said that a drop in revenue of 30 % to 40 % is currently the norm.
He said that several merchants are still in business thanks to the wage Subsidy emergency of Canada (SSUC), a program put in place by the Trudeau government.
“Thus, the fall could be catastrophic for several commercial streets and hearts of montreal neighbourhoods”, concluded Mr Walsh.
A contractor on a 10-Quebec is considering bankruptcy
At the scale of Québec, the situation is no longer pink and the bankruptcy could be multiplied, according to the canadian Federation of independent business (CFIB).
“In the end, we will be able to judge the intensity of the consequences of the pandemic and the effectiveness of the measures of governmental aid to respond based on the survival rate of enterprises in Quebec. According to the data that we have in hand currently, nearly a quebec entrepreneur-in-ten is considering bankruptcy. It is huge and very worrying. Obviously, this is a disaster scenario, and nobody wants to go that far. That is why the CFIB has been working on a more detailed analysis to the whole economy in quebec and canada that we will publish shortly”, said of his side Gopinath Jeyabalaratnam, senior policy analyst with the CFIB.
A bleak future, according to a trustee in insolvency
Chantal Gingras, president of Ginsberg Gingras trustee in insolvency, indicates for its part that the business people who contact his office “have already thrown in the towel”.
“They find, unfortunately, that the way to revive them is doomed to failure. They have big problems to restart their business. It must be remembered that they continued to pay their rent without making sales. Grants and government assistance provide a boost, but some companies are unable to recruit students who receive ECPS. I confirm you that we receive a lot of calls from merchants who look of the pessimistic scenario”, she detailed.
– With information from Yves Poirier, VAT New