First balance sheet of the closings of businesses related to the COVID-19 in Montreal

Premier bilan des fermetures de commerces liées à la COVID-19 à Montréal

More than four months after the start of the pandemic in Quebec, TVA Nouvelles has obtained a first portrait of the closures of shops that proliferate in the montreal area.

But the impact would really be felt in September, after the summer, predict with concern and apprehension the associations of merchants in the metropolis.

VAT News has consulted with a dozen Companies for the commercial development (SDC) of Montreal. Recent counts by an average of two to four closures by commercial artery since mid-march.

That is to say, in a preliminary way, that a thirty closures of shops have already taken place in Montreal. A situation primarily 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,” says Billy Walsh, president of the Association des SDC de Montréal.

“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 adds.

“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.

Billy Walsh says that a decline in revenue between 30% and 40% is currently the norm.

He said that several of them are still in activity, thanks to the wage subsidy federal.

“Thus, the fall could be catastrophic for several commercial streets and hearts of montreal neighbourhoods”, comes to conclude.

A contractor on a 10-Quebec is considering bankruptcy

“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 be here. 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. “

– Gopinath Jeyabalaratnam, senior policy analyst, canadian Federation of independent business

A bleak future, according to a bankruptcy trustee

Chantal Gingras, president of Ginsberg Gingras, indicates for its part, TVA News 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”, explains she.

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