Memo #5: New Online Models Helping Main Street Businesses during COVID-19
“This is a perfect time for small business to pivot to online since many businesses are closed and people have time. If you’re not going to go digital, now…then when?” Karen Wong, Co-Founder & CEO of TakuRetail
The pre-COVID reality for most brick and mortar main street businesses was largely an in-person, on-premises sales model. The small, family-run samosa shop, a staple for community regulars, never really needed to be online. The kitchen supplies store relied on heavy foot traffic and beautiful window displays to sell kettles and tea towels. The artisan gift shop could count on a strong seasonal tourist clientele to purchase handmade candles and other wares.
During the current pandemic, an entirely new reality quickly emerged: if you’re not online, you’re probably not open. And if you did not have an online presence pre-pandemic, then likely the challenge of moving to a quick digital solution and getting savvy with social media might seem overwhelming.
Out of necessity has come great resilience and innovation along many main streets across Canada in rapidly going digital. A large number of businesses have quickly launched websites, online sales models, home delivery services, and marketing and promotion efforts.
According to the Canadian Survey on Business Conditions 11.6% of businesses are testing e-commerce. [1]
Ubiquitous services like the Amazon marketplace, Apple Pay, credit and debit tap technologies, and digital food delivery have played a part. Turnkey platforms, like Canada’s own Shopify, are being used by thousands of businesses in Toronto alone to create their own e-commerce services. [2]
“COVID-19 has reinforced the need for business owners to have an omni-channel experience, and seamlessly connect offline and online selling capabilities.” Satish Kanwar, VP of Product, Shopify.
While this ‘main street goes online’ story has received a lot of the attention, there are great local, digitally enabled innovations popping up to support Canada’s main streets during COVID-19. They are helping small businesses with basic survival during the crisis, but could they also offer the potential to underpin new, digitally enabled business models for the main street recovery to come? This Memo from Main Street profiles five of these great initiatives from across Canada.
1. Services to help small businesses to transition online
In Victoria, YYJLocalForLocals is a group of over 70 tech and marketing volunteers that offer free support for small businesses to help them digitally transform. They have focused on basic steps for businesses to transition quickly, like building a single-page website, writing COVID-19 related messaging, and marketing help to promote delivery services.
A local tech accelerator, Innovation Island Technology Association (IITA), has started the Digital Economy Response Program (DER3), providing one-to-one business & technical expertise for companies on Vancouver Island, North of the Malahat, on the Sunshine Coast, or Gulf Islands that need to consider changes to their business models, or action plans to better engage with the digital economy.
In Halifax, a business improvement area created a "virtual shopping mall"—an online version of the street’s shops and services at www.quinpool.shop. The initiative is also assisting businesses that currently lack online shopping capability to quickly create and launch their own e-commerce shop at no charge.
Digital Main Street is a program that connects main street businesses to the most innovative digital providers. The program was originally created in the City of Toronto and was subsequently supported by a Provincial grant opportunity for main street businesses and municipalities across Ontario. Key components of the program include:
free workshops and training on topics relevant to e-commerce learning
a virtual retail tech incubator that helps build partnerships between startups and BIAs to pilot new technologies with main street businesses
a DMS Squad that helps businesses complete their assessments, and review recommendations
a list of tools, how-to guides and tutorials to assist all main street business in embracing digital technology
2. Online directories of local small businesses
Edmonton’s ShopYEG contains a directory of small businesses that can support online sales and delivery, with the aim of encouraging the community to shop local while maintaining social distancing and staying at home. Businesses can reach out on Twitter to be added to the database, and citizens can recommend or refer a local business in their neighbourhood.
Winnipeg's Bold Commerce created buylocal.ly, a free directory to communicate to Winnipeggers businesses that are open, their hours, pickup and delivery instructions and location information. Businesses are encouraged to add their own business and information, and the community is encouraged to share buylocaly.ly with business owners in their area to get them to add their listing. The site also includes a set of resources to help merchants get set up with what they need to adapt to new buying behavior.
3. ‘Support local’ social media campaigns
“Support local” social media campaigns have sprung up all across the country, urging people to spend their dollars locally. Clever hashtags and handles abound, with each local campaign having a slightly different flavour. Examples include: #EatWithMeYEG; #SUPPORTLOCALYYJ #LOCALLOVE #SUPPORTLOCALYYC #RISEUPSJ #J’ACHETE BLEU #HOMETOWNHUB #LOVEOURLOCALS @STAYHOMETORONTO #SHOPINTHEHEART #DOWNTOWNTOGO @SupportRetailTO #TogetherApart
4. Local alternatives to expensive food delivery apps
While food delivery apps like Uber Eats and Skip the Dishes have been a salve for many restaurants, the high fees—often 20%-30% of the order— have been a huge challenge for many, especially smaller establishments. In response, a number of local alternatives have quickly emerged.
Ambassador is an IT and e-commerce start-up that launched out of Toronto to help restaurants self-manage delivery and takeout, while holding on to more money than with other food delivery apps. The company has plans to support restaurants across Canada get set-up with the technology. WhatsForDinner is a food delivery service in Innisfil which provides online ordering and delivery for local restaurants that do not normally provide these services themselves. Ottawa’s Love Local Delivery offers a curated list of local restaurants offering responsible delivery. A major local taxi company has even stepped up, offering the option of a $10 flat fee for delivery within 3 km.
5. Creative local alternatives to gift cards
Locals for Locals TO is a community initiative to support a main street in Toronto. “Goodie bags” are on offer at $75 or $100 levels made up of products from local shops. Each bag might contain fresh fruit & veggies, fresh flowers, sweets, sauces, granola, coffee or other products, so you can get a nice mix of things from your favourite local spots, all-in-one one transaction. A food bank donation is also included in the cost. The platform is put together in a simple way for people who are looking to support a main street community, but still get and give something back.
It is important to recognize that “going digital” is not a silver bullet for main street businesses. For some, online sales and digital tools can help to weather the storm over the short-term—but will not replace the bricks and mortar model over the medium- and longer-terms. Other businesses, like hair salons, dentists or gyms, simply cannot offer their services online. Moreover, for our communities, digital will never replace the essential place-based aspects of our main streets. But the rapid shift online, and the launch of these and other creative local initiatives, offer promise for main street businesses today and for sustainable models into the future.
[1] https://www150.statcan.gc.ca/n1/daily-quotidien/200429/dq200429a-eng.htm
[2] https://news.shopify.com/shopify-empowering-3000-small-businesses-in-toronto-through-shophere-partnership#