As America counts nearly eight months from the start of the Coronavirus pandemic, small businesses across the country are in trouble.
Following the initial shutdowns and issuance of health guidance, there was a cascading effect throughout the nation as small businesses, which employ around 50% of American workers, were forced to shutter temporarily.
As economists know, many of those closings are now permanent. The severe repercussions of the shutdowns for small business were primarily due to a high degree of financial fragility. According to a July study by the National Academy of Sciences, few small businesses had enough cash-on-hand to cover expenses for even two weeks. This forced such business owners to either drastically cut expenses, take on more debt or declare bankruptcy.
National corporations, meanwhile, have made an absolute killing since Coronavirus reached American shores. Walmart alone saw its online sales double at the height of the shutdown period.
Despite the rather muted response by Tennessee officials to the pandemic relative to those of other states, Martin’s businesses haven’t emerged unscathed, and according to city officials, the financial damage of the pandemic has followed the same pattern here that it has in the rest of the country.
Mr. Brad Thompson, Director of Economic and Community Development for the city, spoke to The Pacer just before the Thanksgiving break on the economic situation of retail businesses in Martin.
“Big box retail such as grocery and national chains, Walmart, Rural King, have done really well.” Thompson said. The key to success, according to Thompson, was the ability to adapt to the fears of consumers by offering drive thru and web options for shopping. Those businesses, according to Thompson, even exceeded performance expectations.
Those businesses most hurt, Thompson added, were “local and small businesses, especially those who haven’t changed their practices.”
Some establishments, especially restaurants and bars, had a difficult time adapting to the complex demands of the partial lockdown earlier this year.
Nevertheless, some local businesses have adapted to the new environment by offering expanded takeaway services and/or expanding their online presence. Diners can regularly be seen at the restaurants around Martin, and by all accounts the situation seems to be stabilizing for businesses in the area.
This is especially important for retail business as the Christmas season approaches.
“For a lot of businesses, [Christmas] is the time when you either make it or break it.” Thompson elaborated. “If you were inclined to support local business, local retailers have really amped up their online retail presence for Christmas.”
To that end, the Martin Business Association’s Facebook page has been advertising the “Merry Martin Giveaways” for the patrons of local businesses this holiday season, with over a dozen businesses participating.
This holiday season will be an interesting phase in the COVID-19 pandemic. As vaccines create a light at the end of the tunnel for a wearied nation, small businesses will be putting up a fight for survival. As for the local economy, the ultimate impact of the pandemic on Martin’s small businesses remains to be seen.
Photo Credit / CityofMartin.net
