Merritt’s economy has been hit particularly hard in the last few years. Like many small towns in the BC Interior, Merritt’s economy is based heavily on the natural resource industry. Once a booming lumber town, the downturn in the forest sector, increased stumpage and production costs and a decrease in several areas of Allowable Annual Cut (AAC) and market revenue, gradually led several local mills to close.
Coal and copper mining were also once a driving force of Merritt’s economy, with the Craigmont Mine, located 15kms northwest of Merritt and operating from 1961 to 1982 employing roughly 5000 people over the years and paying out nearly $112 million in wages.
Many locals began to notice a decline in ‘mom and pop shops’ and business in the downtown core as big box stores moved in and online shopping became the norm. For several years the City of Merritt has been working on a ‘Downtown Revitalization Plan’, aimed at drawing traffic and tourists downtown from Gasoline Alley and keeping locals shopping local instead of taking their money to Kamloops or Kelowna, with mixed results.
Now, small businesses across BC and Canada, including those in Merritt, are facing another hurdle with the COVID-19 pandemic.
According to StatCan data, there were 131,074 active businesses in BC in Jan. 2020 and 117,005 in April, a drop of more than 14,000, and those figures do not include May, June or July which saw more businesses struggle through lockdown and restrictions.
An Insights West poll conducted in April surveyed 580 small business owners in BC and found the COVID-19 pandemic had 65% of them ‘very worried’ about negative overall financial impact. 31% were unsure their business would survive and 9% believed they would close permanently. 7% of surveyed business owners believed the pandemic would force them to declare bankruptcy.
Locally, many businesses have been forced to reduce their hours or lay off staff. Several have closed their doors permanently.
Mary Holgate, of Mary’s Corner Café and Catering, has closed the doors of her Garcia St. restaurant, citing COVID-19 as a major factor.
“COVID altered our lives on March 17,” said Holgate.
“On March 22 I was broken into, it’s one thing after another. Restaurants, bars and catering almost shut down. At first, we did okay because people were coming home from out of country and had to self-isolate, so we did a pretty good business with frozen meals. Then we were lucky enough to have crews staying at the hotels and they were ordering meals, then they left. Catering jobs were cancelled, I didn’t know what we were going to do. The frozen meals kept us going, but I didn’t qualify for the wage subsidy, the 40-thousand-dollar loan the government offered businesses didn’t work for me, and my landlord hadn’t agreed to apply for rent relief. Fast forward four months, bills were piling up and my stress level was out of control. I decided I couldn’t carry on, especially with the threat of another wave coming. Once I said I was closing my landlord did bring me the paperwork for rent relief but by that time it was way too late.”
Holgate planned to close at the end of August, as of the 25 she is no longer open for business, although she will continue to offer frozen meals and catering.
Similarly, B’s Bath closed their doors on July 29, after first enduring a temporary closure due to COVID-19 pandemic regulations.
“COVID-19 has been hard on all of us,” reads a post on B’s Baths social media.
“In many different ways, for many different people. With tears in my eyes and a heavy weight in my heart, this post is to announce that B’s Bath will be closing its doors for good.”
With a second wave predicted as summer ends and cold and flu season hits the community many other local businesses are bracing for layoffs, lockdown, loss of income or permanent closure in the months ahead.
