As winter is taking a hold of Australia so is Covid-19, again, with the virus sending greater Sydney into a lockdown for two weeks and putting all other states on high alert.
While Sydney and the eastern suburbs were first placed under stay-at-home orders, this was quickly expanded to include the Blue Mountains, Wollongong and the Central Coast.
The lockdown means most retailers have had to close their doors, which is set to lead to a $2 billion loss in trade.
Australian Retailers Association (ARA) CEO, Paul Zahra, says whilst the restrictions are a bitter blow for business, he appreciates the NSW Government’s advice that a broader stay-at-home order is now the appropriate action to take given the growing Covid-19 case numbers.
“The Covid situation has evolved rapidly in recent days and we’ve reached a point where the NSW Government has deemed an extension of the stay-at-home order is now the only solution to curb the growing case numbers in the community,” he says.
“Whilst the NSW Government has done an admirable job keeping the state economy open throughout the pandemic, the latest outbreak is of great concern and we respect today’s decision.”
However, he adds, we can’t ignore the fact that the lockdown is a devastating blow for retailers, in particular small businesses who were already struggling due to the ongoing Covid impacts.
“The restrictions will result in around $2 billion in lost retail trade. While some businesses can still open, with the consumer restrictions in place there simply won’t be the usual number of people out shopping.”
Indeed, NRA CEO Dominique Lamb says that while retailers accept that action needed to occur it will cost millions in retail sales.
“The New South Wales Government has done a fantastic job over the past 12 months managing Covid outbreaks while keeping the economy relatively open,” she says.
“Retailers understand that this is a last resort option, but it’s certainly going to come at a cost. CBDs right across the country have struggled throughout Covid and all have foot traffic well below pre-pandemic levels. Even if this lockdown is short and successful, it’s likely to further dent the number of consumers visiting the Sydney CBD once restrictions are lifted.”
Lamb adds that both the state and federal governments need to urgently consider assistance measures to affected retail businesses.
“Retailers impacted by this lockdown will be doing so without the JobKeeper safety net. If we’re to cushion the economic blow of this round of restrictions then both the state and federal governments need to provide urgent assistance measures.
“This lockdown also comes in the final week of end-of-financial-year sales. Rather than seeing consumers stampede into town to cash in on bargain sales, Sydney CBD shopping precincts will resemble a ghost town.”
