Alberta Retail Hit Hard Amid Oil Decline, Taxes, and Coronavirus Pandemic: Expert

Date:

Share post:

Time is running out for many small business owners in the retail and food and beverage industries, especially in Alberta where they have been hit with a triple-whammy in recent years.

The first hit came when oil prices collapsed in the latter half of 2014 sending the economy into a tailspin. Almost six years later, Alberta’s economy is still struggling and feeling the negative impact of that oil price decline.

The second hit has been the increasing costs Alberta small businesses have suffered through in recent years including hikes in minimum wage, property taxes, and food costs among other things.

Many Alberta small businesses were on the brink of shutting down before because of those two factors and now the blow to the economy being brought on by the COVID-19 (coronavirus) pandemic may be the final nail in the coffin for many of them.

GRACE YAN

“It’s tough. When you add all that up, it’s a struggle already,” said Grace Yan, a commercial real estate agent with Coldwell Banker Mountain Central in Calgary. “The economy in general is in a coma. The longer this takes the less businesses will be able to come back up. These businesses just can’t keep bleeding every month.”

Realistically, how many of these small businesses will not be able to carry on?

“Well just today I believe it’s about 25 per cent that won’t come back up already. Just driving around I’ve seen so many spaces. They’ve left. They’ve just left. All the stuff in there is gone. It’s tough.”

Yan has been very aggressive in social media channels urging Prime Minister Justin Trudeau to make an order to suspend all commercial and residential mortgages, rents, utilities and taxes or “it will continue to be a disaster.”

“The current plan has been inadequate and insufficient. Action to close non-essential services then action for relief and support should happen just as fast. Leaving businesses and people to ‘figure it out’ is completely unacceptable and dysfunctional. Other countries immediately had orders for relief CUT THE RED TAPE – Get it done TODAY for the people – THAT WILL SAVE LIVES!,” is Yan’s message on her social media network.

OIL PUMPS, ALBERTA.

Yan said it’s obvious these businesses are going to need government support to survive.

“Businesses are the lifeline of the economy. Without businesses, people won’t have jobs to go to when this is over. So governments really need to support the businesses and it’s a whole domino effect,” she said. “They need to fast track the money to the businesses because the processes have been too slow. Nobody I know has even obtained this $40,000 relief (loan) even.

“And the relief that’s been given – loans and debt deferrals – that’s not adequate relief. That’s not going to really help businesses. And what’s going to help businesses relief as in true relief – grants. Federal grants with no strings attached. Because I’m hearing a lot of these businesses aren’t even qualifying for this $40,000 loan. That’s not even enough. That’s not enough to help businesses. We need to increase that number to at least $200,000. Payable in 2022. The U.S. has a far superior stimulus package compared to Canada. Far more generous. Fast processing. Businesses already have the money over there. No strings attached.”

Yan said this is what is needed right now in Canada – true relief for businesses or they will just close.

“And then what are we going to do?,” she said.

“The longer this persists there will be less businesses that survive and we need support from the government from all levels. I’ve been very, very vocal about this because it is a domino effect. We need to suspend residential and commercial mortgages, utilities, taxes. So the landlords are getting relief from the banks and they can pass that along to the tenants. Then the whole stress then is flattened because of course landlords can’t pass on relief if they’re not getting relief themselves.

“Who is going to survive this? Ontario is already saying that they’re going to extend their state of emergency for another month. Another month? The economy is on life support. These businesses can’t hang on for another month. We won’t have an economy left.”

1 COMMENT

  1. If only Alberta had an appropriate level of taxation to create a fund from which they could provide that help!

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More From Retail Insider

One Bloor East in Toronto Secures Nike Flagship and Mango as Key Retail Tenants [Exclusive]

First Capital REIT has leased-out the entire retail podium at the iconic Yonge and Bloor corner, including space to another new tenant in the main-floor space formerly occupied by Nordstrom Rack.

Anatomy of a Leader: Ken Keelor, CEO of Calgary Co-op

After moving to Canada from India in 1995, Keelor began working at Save-on-Foods and then other major retailers as his career progressed upwards.

Unprecedented Opportunity for Canadian Retailers to Sell to Consumers in China Online

China is the world’s largest online consumer market, and it is projected to grow for years to come.

Modern Golf Opening Innovative Golf Social Experience in Downtown Toronto’s First Canadian Place [Interview]

The 8,500-square-foot Financial District space will feature multiple bays, bars, lounge areas, and partnerships with Food Dudes for food and beverage offerings, marking a significant shift in the company's growth strategy.

Krispy Kreme Doughnuts Gears Up for Nationwide Expansion in Canada with Innovative Store Formats [Interview]

New locations in new markets are planned, including a mix of Doughnut Café concepts and manufacturing locations for the public called 'Theatre Hubs'.

Robson Street in Vancouver in Flux as New Retailers Prepare to Open Stores [Feature]

The street is seeing new retailers prepare to open, including a prominent corner that is about to see some very big changes and a potential luxury mall nearby cancelled.

Wendy’s Bold Dynamic Pricing Move Has its Positives and Negatives [Op-Ed]

Sylvain Charlebois discusses the unusual move by Wendy's in the US to implement dynamic pricing, and how it could benefit the business while potentially turning off consumers.

Growing Crisis in Retail Inventory in Canada as Factory Direct Liquidates Stores [Interview]

The founder of A.D. Hennick & Associates says he's seeing overwhelming demand to liquidate inventory, indicating a concerning trend in the industry as more retailers look to insolvency.

Here’s What We Can Learn from Canada’s Response to Inflation in the 1980s and 1990s [Op-Ed]

Younger, poorer households have disproportionately suffered because their price index is skewed more toward food and shelter, say the authors.

Food Preferences in Canada Changing as Millennial and Gen Z Demographics Shift [Op-Ed]

Sylvain Charlebois discusses Canada's aging population and how younger consumers are shifting the grocery food landscape.

Henry Singer Unveils Downtown Edmonton Flagship Store at the ICE District, Featuring a Bar, Barber and Shoe Shine [Photos/Interview]

Jordan Singer discusses how the upscale menswear retailer recently relocated its Edmonton flagship store from Manulife Place into a 10,000 square foot space at the base of Western Canada's tallest building.

Canadian Retail Sales Dip: Year-End Drop in Discretionary Spending [J.C. Williams Group Analysis]

2023 Canadian retail sales ended in a lacklustre way, with controlled consumer spending amid a tumultuous year.

Landlord QuadReal Launches Pickleball Courts in Commercial Properties to Create Consumer Experience [Interview/Photos]

The initiative helps revitalize and re-imagine spaces using sustainable development practices, while incorporating the latest technology to enhance the visitor experience, blending physical and digital elements.

Canadian Consumers Willing to Switch Grocery Stores while Seeking Bargains: Study [Op-Ed]

Sylvain Charlebois says that a new survey offers a rigorous look into the preferences and behaviours shaping the future of grocery shopping in Canada.

Iconic Flo’s Diner in Toronto’s Yorkville Forced to Close After 33 Years Amid Landlord Dispute 

Retail Insider interviewed Flo’s co-owner who discusses the “heart wrenching” situation where he is being forced to close his business that began on Bellair Street in 1991.

Anatomy of a Leader: Teresa Spinelli, Owner of Alberta-Based Italian Centre Shop Ltd.

Spinelli discusses her leadership of the popular retailer which has expanded over the years, describing how she struggled to run the company at first and grew to love it.

Upscale Canadian Fashion Brand SMYTHE Expands with New Standalone Calgary Store [Interview/Photos]

It's the second store location for the Toronto-based brand, which is seeing success with its exclusive womenswear collections.

Toronto’s CF Sherway Gardens Hits Sales Milestone with Exciting Retail Growth and Future Plans [Interview]

The shopping centre is adding new retailers as sales per square foot hit an all-time high, with plans to re-tenant Nordstorm as foot traffic grows following Eataly's opening in the mall a few months ago.

ECS Coffee Opens Canada’s Largest Coffee and Espresso Equipment Gear Showroom and Retail Space in Toronto [Interview]

The new Etobicoke location is unique to Canada if not North America, according to its founder, with coffee roasting, equipment showroom, over 500 varieties of coffee, Youtube studio and various in-store experiences. He has plans to expand the concept nationally.

New Loblaws City Market Opens in Vancouver’s ‘The Post’ Building, Adding Grocery Competition to the Downtown Core [Podcast]

Craig and Lee discuss the opening of a new Loblaws City Market in downtown Vancouver's renovated Post building, and they explore its potential impact on local grocery shopping.

RECENT RETAIL INSIDER VIDEOS

Advertisment

Subscribe to the Newsletter

Subscribe

* indicates required

RECENT articles

One Bloor East in Toronto Secures Nike Flagship and Mango as Key Retail Tenants [Exclusive]

First Capital REIT has leased-out the entire retail podium at the iconic Yonge and Bloor corner, including space to another new tenant in the main-floor space formerly occupied by Nordstrom Rack.

Anatomy of a Leader: Ken Keelor, CEO of Calgary Co-op

After moving to Canada from India in 1995, Keelor began working at Save-on-Foods and then other major retailers as his career progressed upwards.

Unprecedented Opportunity for Canadian Retailers to Sell to Consumers in China Online

China is the world’s largest online consumer market, and it is projected to grow for years to come.

Modern Golf Opening Innovative Golf Social Experience in Downtown Toronto’s First Canadian Place [Interview]

The 8,500-square-foot Financial District space will feature multiple bays, bars, lounge areas, and partnerships with Food Dudes for food and beverage offerings, marking a significant shift in the company's growth strategy.

Krispy Kreme Doughnuts Gears Up for Nationwide Expansion in Canada with Innovative Store Formats [Interview]

New locations in new markets are planned, including a mix of Doughnut Café concepts and manufacturing locations for the public called 'Theatre Hubs'.

Robson Street in Vancouver in Flux as New Retailers Prepare to Open Stores [Feature]

The street is seeing new retailers prepare to open, including a prominent corner that is about to see some very big changes and a potential luxury mall nearby cancelled.

Wendy’s Bold Dynamic Pricing Move Has its Positives and Negatives [Op-Ed]

Sylvain Charlebois discusses the unusual move by Wendy's in the US to implement dynamic pricing, and how it could benefit the business while potentially turning off consumers.

Growing Crisis in Retail Inventory in Canada as Factory Direct Liquidates Stores [Interview]

The founder of A.D. Hennick & Associates says he's seeing overwhelming demand to liquidate inventory, indicating a concerning trend in the industry as more retailers look to insolvency.

Here’s What We Can Learn from Canada’s Response to Inflation in the 1980s and 1990s [Op-Ed]

Younger, poorer households have disproportionately suffered because their price index is skewed more toward food and shelter, say the authors.

Food Preferences in Canada Changing as Millennial and Gen Z Demographics Shift [Op-Ed]

Sylvain Charlebois discusses Canada's aging population and how younger consumers are shifting the grocery food landscape.

Henry Singer Unveils Downtown Edmonton Flagship Store at the ICE District, Featuring a Bar, Barber and Shoe Shine [Photos/Interview]

Jordan Singer discusses how the upscale menswear retailer recently relocated its Edmonton flagship store from Manulife Place into a 10,000 square foot space at the base of Western Canada's tallest building.

Canadian Retail Sales Dip: Year-End Drop in Discretionary Spending [J.C. Williams Group Analysis]

2023 Canadian retail sales ended in a lacklustre way, with controlled consumer spending amid a tumultuous year.

Landlord QuadReal Launches Pickleball Courts in Commercial Properties to Create Consumer Experience [Interview/Photos]

The initiative helps revitalize and re-imagine spaces using sustainable development practices, while incorporating the latest technology to enhance the visitor experience, blending physical and digital elements.

Canadian Consumers Willing to Switch Grocery Stores while Seeking Bargains: Study [Op-Ed]

Sylvain Charlebois says that a new survey offers a rigorous look into the preferences and behaviours shaping the future of grocery shopping in Canada.

Iconic Flo’s Diner in Toronto’s Yorkville Forced to Close After 33 Years Amid Landlord Dispute 

Retail Insider interviewed Flo’s co-owner who discusses the “heart wrenching” situation where he is being forced to close his business that began on Bellair Street in 1991.

Anatomy of a Leader: Teresa Spinelli, Owner of Alberta-Based Italian Centre Shop Ltd.

Spinelli discusses her leadership of the popular retailer which has expanded over the years, describing how she struggled to run the company at first and grew to love it.

Upscale Canadian Fashion Brand SMYTHE Expands with New Standalone Calgary Store [Interview/Photos]

It's the second store location for the Toronto-based brand, which is seeing success with its exclusive womenswear collections.

Toronto’s CF Sherway Gardens Hits Sales Milestone with Exciting Retail Growth and Future Plans [Interview]

The shopping centre is adding new retailers as sales per square foot hit an all-time high, with plans to re-tenant Nordstorm as foot traffic grows following Eataly's opening in the mall a few months ago.

ECS Coffee Opens Canada’s Largest Coffee and Espresso Equipment Gear Showroom and Retail Space in Toronto [Interview]

The new Etobicoke location is unique to Canada if not North America, according to its founder, with coffee roasting, equipment showroom, over 500 varieties of coffee, Youtube studio and various in-store experiences. He has plans to expand the concept nationally.

New Loblaws City Market Opens in Vancouver’s ‘The Post’ Building, Adding Grocery Competition to the Downtown Core [Podcast]

Craig and Lee discuss the opening of a new Loblaws City Market in downtown Vancouver's renovated Post building, and they explore its potential impact on local grocery shopping.