Government Street Downtown Victoria
Summary
Pre-COVID, this block of Government Street had a healthy mix of local retail and was a busy destination for daytime workers, tourists and locals. It includes 67 business, 61% of which are independently owned.
During the COVID shutdown, many businesses on this block pivoted to online, curb-side pick-up, and new product offerings. The businesses with a strong local following and good social media presence fared the best.
Revenues of tourism-focused retail businesses are down around 95%. Other businesses that relied on international tourists, such as the restaurants and high-end retailers, are also struggling.
Many of the businesses on this block also relied on daytime office workers and government employees for their daily customers. If people continue to largely work from home during the next phases of recovery, many of the businesses on this block will continue to face unsustainably low revenues.
The City of Victoria has recently opened part of Government Street to patios and pedestrians, providing an opportunity to support local businesses and animate the downtown safely and with physical distancing.
About This Block
Downtown Victoria serves as the city centre and the central business district for the City of Victoria and the Greater Victoria region. The downtown has a healthy and vibrant economy, that includes a mix of retail, accommodation, and food service businesses.
Government Street is perhaps the most recognizable street in Victoria. The historical architecture, tree-lined sidewalks, shops and restaurants typically attract both locals and visitors from around the world.
This block includes a combination of tourism-focused retail (think, t-shirts and maple syrup), as well as traditional retail. There are both chain stores such as the Running Room, Patagonia and independent retailers like the Kamboodles toy store and the well-loved Munro’s books. A few restaurants and two pubs (Earls and Irish Times) draw both tourists and locals throughout the day. This block also includes one of the entrances to the main downtown mall, The Bay Centre.
Pre-COVID, Government Street was a popular lunch and shopping destination for day-time workers, working at nearby at government offices. It was also a main pedestrian route and destination for cruise ship passengers throughout the summer months. The nearby Summer Market was a big draw on weekends.
Provincial COVID Context
British Columbia has fared best among Canadian provinces, with 13.2% of Canada’s national population and only 2.1% of Canada’s national case count. 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 venue, providing that they develop provincially mandated COVID-19 Safe Plans. People can take part in ‘smart, safe and respectful’ travel within B.C.
Government Street During COVID-19
Key Impacts:
Many businesses on Government Street had to temporarily or permanently lay-off employees during the lockdown. During the reopening, retail and food services businesses had a hard time bringing back former employees. Some of the reasons employees might not have been willing to return could be due to a combination of low interest in part-time work, satisfaction with CERB payments, childcare/eldercare/health issues, etc..
Four of the businesses on this block have permanently closed since COVID, including: a general store, a clothing store, a law office, and a souvenir gift shop.
Tourism businesses on this block have been hit the hardest. Many had built up their inventory of primarily tourist fare over the winter in preparation for “cruise ship season” but are now looking at almost no international tourists. Revenues have been down around 95%.
There has not been a high uptake of the commercial rent subsidy program (CECRA). Tenants voiced trepidation about potential audits the cumbersome application process. Landlords on this block, expressed concerns about the risk if the tenant was later found to be ineligible. Landlords with multiple properties were also reluctant to have to complete multiple applications.
With local office workers and government employees continuing to work from home, restaurants and other retail shops are experiencing decreased revenues. In April during the lockdown, visitation levels were down 78% from the previous year. While the number of visits to the area has increased (43% from April to June), foot traffic is still much lower than previous years.
Bright Spots:
Businesses on this block such as the well-loved Munro’s books that had a strong local following and good social media presence were able to keep a steady stream of revenues coming in.
Many of the businesses on this block pivoted online, to curb-side pick-up and to other products people were looking for during the pandemic (like puzzles and “happy hour” take-out).
A group of over 70 tech and marketing volunteers, under the banner YYJLocalsForLocals, came together to offer pro-bono support for small businesses in Victoria. Many businesses on this block took advantage of this service.
In early June, the City of Victoria temporarily closed a section of Government Street to traffic. They enabled conversion of on-street parking to patio and enlarged pedestrian areas, and created new parking zones for food trucks as part of restart efforts.
Local landlords, from Victoria or the Vancouver region, were generally supportive of local businesses during the pandemic – with some deferring rent payments outside of the federal government program.
What’s Next:
DVBA suspects that once the government financial aid programs, like the wage subsidy (CEWS) end, there may be an impact in terms of what businesses can continue to operate.
The City initiative to open Government Street to patios and pedestrians was initiated as a way to help local businesses get back in operation by providing more room to serve customers safely, but also an opportunity to animate the downtown.
Four businesses have permanently closed. A second wave of the pandemic, with extensive lockdowns, would likely to result in further closures.
DVBA is working to encourage large employers like the provincial government, to get back to work (with appropriate public health protections) in order to support downtown businesses.
Key Takeaways for Main Streets
Main street businesses that relied on tourism pre-COVID will struggle with the major decrease in international tourism. Now that B.C. is in stage 3 of recovery (which allows travel within B.C.), an opportunity exists to support and promote local tourism.
Continuing to support small businesses to build developing marketing and social media skills that allow them to connect to local customers, can help to ensure long-term resilience and success of main streets.
Main streets like Government Street that rely on daytime workers to support local businesses are struggling. Work-from-home policies of big employers, including government will continue to impact local businesses and main streets.
Governments will need to consider how response to the second wave will impact small and independent businesses. The impact will be greater as many businesses are still recovering and operating with reduced revenue.
Local governments should consider prioritizing opening streets to patios and pedestrians as a way to help local businesses get back in operation. This could provide room to serve customers safely, but also an opportunity to animate the downtown. This may not work for every main street and so careful study and engagement is recommended.