137th Street, Newton - Surrey, B.C.
BLOCK REPORT ROUND #2: NOVEMBER 2020
This report was prepared during the months of October and November 2020 based on conversations with the Newton Business Improvement Area (BIA) and local business owners, a business survey and a variety of other data sources. It provides an update to the Round #1 Block Report produced in July 2020.
Photo credit: Google Street View
Summary
The Newton neighborhood is located along 137th Street in Surrey. The street plays host to an active community of entrepreneurs and is made up of a variety of businesses, 76% of which are independently run.
Many businesses in Newton are minority-owned or operated, representing the cultural diversity of the area.
Two businesses on this block have permanently closed since the pandemic and two businesses remain temporarily closed. These closures have had an impact on pedestrian traffic.
Only 39 out of 110 businesses reported having any online presence. The costs associated with delivery platforms and lack of digital commerce skills are acting as barriers to making this transition.
A number of business on this block have been sold and have new owners.
Business Survey Highlights
We conducted a survey of local businesses on this block to better understand the impacts of COVID on businesses and the street. Here is what we learned:
63% of businesses report decreased revenues
25% of businesses said they have been positively impacted by selling more online
25% of businesses expect to permanently closed in 3-4 months if there are increased restrictions as a result of a second wave
63% of businesses said they would like to see improved/expanded relief measures for business cash flow (e.g. CEBA, wage subsidy)
88% of businesses said that their biggest challenge was lack of foot traffic going by the business
Newton During COVID-19
Key Impacts:
Two businesses on this block have permanently closed since the pandemic: one chain restaurant (Panago Pizza) and one independent business (BBQ Nation). Two businesses remain temporarily closed. These closures have had an impact on pedestrian traffic. A number of business have also changed hands and have new owners.
The summer felt quiet on this block. There were 454,616 fewer visits from April to September compared to the same time last year (a 49% decrease); 88% of businesses said that their biggest challenge was lack of foot traffic going by the business.
There are several large property owners in this neighbourhood, who have been unwilling to be flexible with rent payments or apply to the government rent subsidy program. Businesses felt that these landlords don’t value the tenants or the neighbourhood itself but are more interested in the long-term gains as the neighbourhood develops.
The BIA reported that consumers in Newton have become more proficient online shopping and many are choosing to make purchases through online platforms like Amazon rather than supporting local businesses. Residents living near the block tend to shop at big box stores such as Costco because they feel safer and can get everything they need there.
The pandemic has exacerbated challenges facing the most vulnerable community members in Newton. People experiencing homelessness, mental health, and addictions, with limited community services, facilities, and supports to serve their needs during this time, have been severely impacted. Business owners also express concern about public safety perceptions among other members of the community as a result.
City of Surrey created a patio program; however very few businesses participated, reportedly because the program has high fees and a cumbersome application process.
Bright Spots:
There are several small fast-food and restaurant businesses on this block that have expanded their take-out options; 38% of businesses said they have been positively impacted by more business through delivery applications.
The 2 pubs on this block have been doing well since the pandemic.
The BIA reallocated its events budget towards doing a master placemaking plan. The BIA is also offering a digital grant of up to $3000 for businesses to increase their ‘Google footprint’.
Despite the fact that many businesses are struggling, 40% of businesses said they have either the same or increased revenues, compared to last year.
What’s Next:
Businesses are optimistic about the governments new rent relief program; in October 50% of businesses said they would like to see governments improve/extend relief measures for commercial rent (e.g. CECRA funds directly to tenants).
There is also interest from local businesses in improved/expanded relief measures for business cash flow (e.g. CEBA, wage subsidy).
What Can Governments and Others Do?
The BIA is supporting businesses to expand their digital footprint. More grants, financing and other supports from governments to support businesses with digital transformation would be valuable.
Programs to support restaurants with expanding their patios in public spaces are critical to their recovery. The City of Surrey could take the winter season to evaluate their patio program and look at opportunities for improvement, such as by reducing or eliminating the application fees and streamlining the application process.
The BIZmap program, which provides easy access to market data tailored to customized business districts in Vancouver could be expanded to surrounding communities like Surrey. Other programs and services that help BIAs with data collection could be developed.
The BIA suggested that the provincial government could give businesses a sales tax refund on liquor and wine to help the restaurant industry. According to the BIA, restaurants in BC used to get discounts when they bought wholesale but that recently changed. Another suggestion for helping small businesses was to require the credit card charge (1.6-2.2% of sales) to be itemized on the bill to encourage people to pay by cash.
About This Block
Newton is an ethnically-diverse neighbourhood located in Surrey, British Columbia. It serves as the town centre for the City of Surrey and is home to a mix of educational, recreational and cultural facilities, including the Bell Centre for Performing Arts and the Newton Cultural Centre. It is a gateway community for new immigrants, with almost half the population speaking Punjabi.
While Newton itself contains a mix of big box stores, medium-sized and small businesses, this block has a large presence of independent businesses (76 percent) including a well-loved Shawarma shop, sushi restaurant and multiple coffee shops. 137th Street also includes a few light manufacturing businesses, such as the Cloverdale paint store and a poultry processing plant.
The areas surrounding 137th Street are mostly commercial. There are few residential buildings, although apartment buildings are under construction. Nearby, there is a community centre with an arena, a few parks, and a senior’s centre.
Newton is a transit hub for the City of Surrey. Prior to COVID, the City had plans to invest in a $1.7 billion rapid transit line running through the neighbourhood. That investment has been delayed.
The BIA promotes Newton as an event hub with an emphasis on culture and art. Mural alley, located off 137th Street, is home to 11 murals that were created to showcase the diversity of the area and give life to the darker corners of the community.
Provincial COVID Context
British Columbia has the fourth highest Covid-19 case count among Canadian provinces with over 27,000 cases. Beginning March 18th, the provincial government declared a public health emergency and required non-essential businesses to shut down, while requiring the safe operation of a broad range of businesses designated as essential services. As of June 24th, B.C. moved into Phase 3 of the government’s Restart Plan, which allows a broader range of businesses to reopen, including hotels and resorts, and select entertainment venues, providing that they develop the provincially mandated COVID-19 Safe Plans. Phase 4 will allow reopening of mass gatherings such as conventions and concerts, as well as international tourism, and is conditional on the introduction of widespread vaccination and community immunity. The Provincial Health Officer implemented an order on province-wide restrictions, which will be in effect from November 19 to December 7 which suspends all events and social gatherings , with an exception to weddings, funerals, baptisms, support group meetings and business meetings. All workplaces are encouraged to make every effort to provide work from home options, and it is expected that travel to British Columbia be for essential trips only.