Coronavirus: ’Drastic’ drop-off in sales as pandemic fear hits Illawarra businesses

Businesses are already reporting a huge drop-off in sales and customers as people choose to isolate in the midst of the coronavirus pandemic.

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Residents across the Illawarra have been urged to support their local shops, cafes, pubs and restaurants, as businesses start to feel the extreme economic impact of the coronavirus pandemic.

Shoppers described Wollongong’s CBD as “eerie” on Friday, as people opted to stay home rather than visit their usual shops and coffee stores.

Kelly Kreilis, who owns designer women’s boutique Frolic in Wollongong’s CBD, has weathered her fair share of storms when it comes to slow trade in the Illawarra, but on Friday, said she hadn’t seen business this bad in her 18 years of operation.

“Since the announcement (on Tuesday) that we should start hiding out a little bit, we’ve seen a drastic drop-off, drastic,” she said.

Kelly Kreilis has asked people who are well and healthy to keep visiting her boutique- Frolic.

“The shops along here have gone from treading water to not even being able to pay our bills.”

In an effort to cut back costs, Ms Kreilis has cut down on staff, and plans to work a seven day roster on her own.

“That means I have to juggle running a business seven days a week and be a sole parent,” she said.

“So it’s definitely going to impact our day-to-day, our social lives, and long term, probably our mental state.”

While NSW Health has urged people to limit social interaction where possible and practise social distancing, Ms Kreilis has joined a chorus of other small businesses urging the government to implement further measures to keep small business and sole traders afloat.

“I am concerned about business right along the mall, and our rents,” she said.

“Something needs to be done, because we can’t let things get worse than they are.”

Illawarra Business Chamber executive director Adam Zarth said while Commonwealth stimulus packages had been announced for small businesses, more needed to be done at a local level, with between one and 15 employees in the Illawarra already reporting “immense” financial strain.

“Commercial landlords, particularly the operators of large Illawarra shopping centres, must consider rent relief to help keep their tenants in business. Larger businesses must put hardship provisions in place for debtors to keep their business customers operating,” he said.

Adam Zarth, executive director of the Illawarra Business Chamber.

“In turn, we’ve called on councils to come forward with immediate rate relief for commercial landlords to ensure all contractors are rapidly paid and to bring forward all capital expenditure to keep the construction sector moving.”

Mr Zarth said the community also played a huge role in the survival of the region’s business at such a trying time.

“Most importantly, we the community need to support our businesses if we want to see them survive,” he said.

“They are working particularly hard right now to adjust their business models to the emerging environment, and we need to reward them with our custom.”

Larger scale businesses are also taking a hit, with clubs like the Steelers in Wollongong cutting back on hours and considering other measures, like shorter operating hours, to remain financially viable.

Sharon Arrow, general manager of Illawarra Steelers Club, said the next few weeks would be challenging.

General manager Sharon Arrow said with the club now having to limit the number of patrons to 100 per floor, the next few weeks, if not months, would be difficult.

“We understand the safety of our patrons and our staff is paramount but this is unprecedented, and obviously tough,” she said.

“We have taken 50 per cent of rostered hours off, that’s going to affect the uni students who need to pay rent, it’s going to affect workers that have children and have mortgages … the domino effect will be huge.”

While numbers will be limited, Ms Arrow said the club had a loyal customer base, and encouraged people to keep visiting for a meal or a drink.

“All I can say is we are complying by every rule and all the health and safety guidelines so if you’re healthy and fit and you want to go out, come on down,” she said.

“We are open for business, we value everyone that’s walking through the door, we understand it’s trying times but we have to support each other.”