The recent seven-day lockdown in Victoria is a devastating blow for retailers, costing them over a billion dollars in terms of lost retail trade.
While the Australian Retailers Association (ARA) supports the Victorian government in its response to keep the community safe, you can’t ignore the significant impact this lockdown will have on retailers, the Melbourne CBD and small businesses in particular, says CEO Paul Zahra.
“Victorians have been to hell and back over the past year or so and just when we thought the worst of Covid was behind us, it’s reared its head again mid-year,” he says.
“Businesses no longer have JobKeeper support payments available to them and Victorian small businesses in particular will be under significant stress―this is a huge blow to their confidence.
“A seven-day lockdown is expected to cost retailers over a billion dollars in terms of lost trade. This isn’t just a financial cost―it’s a social one as well. This lockdown will have an enormous impact on people’s health and wellbeing and will shatter fragile confidence levels for the second half of the year. This will also set back the valiant efforts of State and local government to restore confidence and foot traffic within Melbourne’s hard-hit CBD.”
National Retail Association (NRA) CEO, Dominique Lamb, says that Victorian retailers are hopeful that the new round of restrictions will be short and successful, but many remain nervous given there is no assistance measures in place.
“The pandemic has wreaked havoc across the entire country over the last 12 months, but none more so than Victoria,” she says.
“Foot traffic across major shopping precincts worsens with each lockdown, the Melbourne CBD has tracked consistently at 40 per cent below pre-pandemic levels.
“JobKeeper is no longer in place to ensure Victorian retailers will not shed staff, but even a brief lockdown can devastate a business’s bottom-line. There will be no revenue coming in the door, fresh produce will become spoiled, and permanent staff will still need to be paid.
“Government support will be needed otherwise businesses and jobs across Australia’s second largest state will be in jeopardy. Not only are retailers hurt during the actual lockdown period, but even when restrictions are eased we don’t see economic activity return to normal like flicking a switch,” she says
The Victorian Government has introduced a $250.7 million business support package but the ARA says it doesn’t go far enough to cover the losses retailers will incur during the current seven-day lockdown.
“The cost of the Victorian lockdown is mounting by the day and while the State Government’s business support package is a small relief it won’t fully offset the losses they’ll incur during the current seven-day shutdown,” says Zahra.
“The support package is also quite narrow in nature, with retail businesses who can trade online not eligible for the one-off grants. The vast bulk of retail sales take place in stores and online trading cannot make up for the losses they will suffer.
“There needs to be ongoing, targeted support from the states and the Commonwealth to help those businesses who are forced to close their doors through no fault of their own.”
