As small businesses across Ontario brace for a potential expansion of the province's bizarre "Grey Zone" retail rules (which close small businesses and push customers to line-ups at busy big box stores), here are my reflections:
1. No other province or public health official in Canada has adopted Ontario's counter-intuitive practice. Most provinces have adopted capacity restrictions for all, SK focuses on reducing crowds at big-box stores, MB closes both small & large to non-essential retail.
2. The province has provided no data to support its small business retail closure policy. When asked, most officials admit it is intended to send consumers a message to stay home, not because shopping is riskier than other business/personal activities.
3. The province has shared only shaky reasons why it allows big-box stores to remain open. Govt seems to be more concerned with big-box supply chain inconveniences than the very survival of 1000s of small businesses. Note: Walmart/Costco are open in Manitoba for groceries only.
4. A growing number of local mayors and health care officials are calling for a different approach in Peel and York. Listen to this interview with the Medical Officer of Health in York Region: iheartradio.ca/newstalk-1010/…
5. The public is not buying this approach either:
- 93% believe small retailers should be allowed to open w capacity limits
- 72% feel safer shopping in a small biz than a big-box store
- 88% see the current policy as unfair
- 76% say big-box should close if small firms do
6. So where do we go from here? Small retailers understand we are dealing with a serious issue. Very few are calling for a removal of all restrictions. But they want a policy that makes sense & has a chance of working. At least one that doesn't lead to higher risks.
7. One option is a capacity restriction for all retailers. Most provinces limit all retailers to between 15-50% of their capacity. Quebec limits to 1 person per 20 sq. m.
8. A second option is CFIB's "Small Business First" COVID retail strategy allowing all retailers to serve up to 3 customers in-store at any given time. Details here: promo.cfib-fcei.ca/saveontario/
9. A third option (not our preferred choice) is to lock-down all non-essential, in-store retail. This means if it's dangerous to buy a book at an independent bookstore, you can't buy one at Costco. If govt closes Susan's Boutique, it closes Joe Fresh. Manitoba does this.
10. Ontario boasts it has the most small business friendly govt in Canada. But it has adopted one of the most anti-small business policies in Canada's history. One that seems to make COVID risk worse. One no other province/health official has adopted. We need a change.
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Please listen to this @NEWSTALK1010 interview with York Region Medical Officer of Health Dr. Karim Kurji. He expects that the province will put York into lockdown this weekend, but doesn't recommend it. iheartradio.ca/newstalk-1010/…
Dr. Kurji says he must consider "the downside of mental health issues, social isolation and economic ruining for small businesses in particular".
Dr. Kurji goes on to say that "going into lockdown won't necessarily help anyone", they will have "minimal effect" and that Toronto/Peel lockdowns haven't had the expected results.
It is hard to imagine a more anti-small business policy than Ontario's grey zone retail rule (shutting small businesses down while leaving big box stores open). CFIB is hearing reports the govt will expand this measure to other parts of Ontario this weekend.
We need a different approach to protect the public. One that doesn't entirely close quiet small retailers and send their customers to giant lines in/out of Costco and Walmart.
88% of Ontarians agree that closing small retailers to in-store shopping while allowing the same goods to be sold in-store at big box stores is unfair.
I've had dozens of discussions w officials on lockdowns over the past few weeks. Here is how they typically go:
Me: Why are you locking down small retailers & leaving big box open to sell similar items?
Officials: We are locking down retailers based on medical advice.
Me: Will you share the data they are using to support shutting down small retailers?
Officials: The data isn't clear. What is clear is that people need to stay home.
It was good to meet w Toronto Mayor @JohnTory together w other business assocs to share the impact the Toronto/Peel lockdowns are having on small business.
CFIB shared our member data. In Toronto:
- 47% of small firms are fully open
- 15% are earning normal levels of revenue
- 52% are losing money every day they are open
- 31% are concerned about permanent closure
Toronto & Peel are the only regions in all of Canada that require small retailers to close while allowing big box stores to remain open. Sask allows small firms to remain open, but limits big box stores to 50% capacity. Isn't that a better approach?
I've been asked a lot of what would happen to small business if a second wave of COVID-19 prompts a further round of economic shutdowns. Here are a few thoughts.
1. In March, governments bluntly shutdown most of the small business economy in order to protect society. Support programs to help small firms survive were just not in place. This was, to an extent, understandable.
2. It took months to get programs up and running and governments did quite a poor job of listening to what was needed. But, with some programs like the wage subsidy, they got there.
While it is good news that EI rates are frozen for 2 years and the new benefits are temporary (for now), CFIB's biggest concern is that a worker can now collect $400 per week for a half-year if they've been working a part-time job with 3 hours a week (or less).
So my part-time job in high school (washing dishes at a pizza place for 3 hours each Friday night) would qualify me to collect over $10,000 if I decide NOT to work.
Small firms in retail, hospitality, arts/recreation & the service sector were the hardest hit by COVID-19. Now that they are allowed to open, many will struggle to get their part-timers back, making them more vulnerable to bankruptcy & slowing Canada's economic recovery.