Inside Gold Coast’s small business cash flow crisis as local retailers forced into permanent closure

The severity of Gold Coast’s small business cash flow crisis has been revealed as a local retailer of over a decade has been forced into closure. Find out more.

The Gold Coast business community fears a looming “cashflow” crisis could cripple small operators battling against the tide of online shopping.

Concerns about the Coast’s small business community were heightened this week after confirmation a popular Southport furniture store will close its doors after 12 years.

Found on Ferry has been operating since 2012 and will close on July 20.

Owner Winnie Chin said it’s been a struggle since Covid as more people turn to shopping online, making cash flow and sales volumes a headache for businesses.

“As a small business, we have always operated on a model of low margins, unique products and promoted by word of mouth.

“[But now] people are lured by online and big retailers with their inflated margins and continued sales campaigns thanks to their large marketing budgets,” she said.

Found on Ferry is closing down after 12 years due to cash flow crisis. Owner Winnie Chin and her dog Lolly inside the store for one last sale where everything must go. Picture Glenn Hampson

President of Gold Coast Central Chamber of Commerce Laura Younger said there are currently around 73,000 active and GST registered businesses in the city.

“The Gold Coast is the small business capital of Australia, and as with most small businesses, the owners are generally local families with very long and entangled local community roots.

“The growing costs of business are no different to those costs we have as individuals. We find that a number of small business are often reluctant to pass on those costs to their local and loyal customers,” she said.

Ms Chin said there were many factors that led to her decision to shut down, including the rising cost of living.

“Another major factor has been rising interest and unaffordable house prices, our regulars would renovate, furnish in the latest style and sell their houses.

“But people can’t afford to buy or renovate anymore with both housing and material costs sky rocketing these past few years,” she said.

Ms Younger said they anticipate that businesses would increasingly struggle to stay afloat as living costs rise.

“Higher costs can erode profit margins, and reduced consumer spending due to personal financial pressures which can decrease revenue, making it challenging for small businesses to survive.

“General inflation erodes the purchasing power of both businesses and consumers,” she said.

Laura Younger, the new president of the Gold Coast Central Chamber of Commerce. Picture Glenn Hampson

Ms Chin said the future of small Gold Coast businesses was not looking good and gave advice to those considering opening their own.

“It’s a real shame Gold Coast is losing small businesses like us because it wasn’t just about making a sale, we made connections with our customers,” she said.

“I cannot see small business retail improving anytime soon, I would hold off if anyone was thinking of going into retail right now unless you have a unique product or service.”

Ms Younger said small businesses provide the circular economy that allows cash to come back into their tills.

“Small businesses are essential for creating vibrant, dynamic, and economically robust local communities.

“They are often the first ones to sponsor the local footy teams, donate prizes to charity fundraisers as well as providing employment to all members of these communities through good times and bad,” she said.

Ms Younger also said that if small businesses are forced to close their doors, the Gold Coast could be in trouble.

“We could see growth in unemployment, reduced consumer spending and lower overall economic activities given people’s reduction in disposable income.

“The diversity of the local small businesses also brings a diversity which helps buffer the economy against larger economic shifts offering more stability.

“It would be good to see a revival of the State small business support grants we saw during Covid, and some federal stimulus to support of all businesses and a genuine intent to listen and consult with business in general,” she said.