THUNDER BAY – BUSINESS – The COVID-19 pandemic, which swept across the globe in early 2020, has profoundly impacted businesses in Canada, leading to unprecedented challenges and changes.
This article explores the various dimensions of these impacts, looking at different sectors and the evolving business landscape along with ideas for your business to adapt and thrive.
In Thunder Bay, Adex Marketing in the Arthur Street Mall has joined a list of companies which are closing their doors. Mars Clothing on Court Street has announced their closure recently. A long time Thunder Bay business on Cumberland Street South, Zaba’s has closed their doors.
While the City of Thunder Bay as a hub community for Western and Northern Ontario should be looking to the opportunities, it is increasingly hard for many companies.
Pre-Pandemic companies like Skip the Dishes, Door Dash, and Uber Eats have become common-place.
Door Dash has been around for ten years, but the COVID-19 pandemic changed the company.
DoorDash started out as a restaurant delivery platform, the company has expanded beyond fast food delivery to offer consumers all the best of their neighbourhood.
It’s safe to say we all got into cooking, for better or for worse, in 2020. DoorDash began offering grocery delivery right when people needed it most, getting us all the fresh staples delivered on demand, especially when we were mid-recipe and realized we couldn’t finish dinner without cilantro.
The changes in the market place since the start of the global pandemic are a major factor for many businesses facing difficult hurdles in their efforts to keep their doors open.
Overview: The Pandemic’s Transformative Impact
The arrival of COVID-19 brought immediate and far-reaching consequences for Canadian businesses. Lockdowns and health concerns drastically altered consumer habits, leading to a seismic shift in how businesses operate and compete.
Small Businesses vs. E-Commerce Giants
Small businesses faced a dual challenge: navigating the pandemic’s economic hardships and competing with e-commerce giants like Amazon. The surge in online shopping created a highly competitive environment, where adaptability and digital presence became crucial for survival.
For many consumers, shopping from the comfort of their home or office and having Amazon Prime for delivery to their homes has become part of their lifestyle.
Amazon’s Growing Footprint in Canada
Amazon’s expansion in Canada during the pandemic exemplifies the e-commerce boom. Its convenience, vast product range, and efficient delivery systems attracted a significant portion of Canadian consumers, impacting local retailers and reshaping the competitive landscape.
The Remote Work Revolution
The pandemic also hastened the adoption of remote work, altering the commercial real estate sector and technology investments. This shift had a ripple effect across various industries, influencing business operations, employee engagement, and workplace culture.
Retail Industry: Adapting to the New Normal
Traditional retail stores, particularly those without a strong online presence, struggled with reduced foot traffic and stringent safety measures. In response, many retailers accelerated their digital transformation, enhancing their online platforms and integrating e-commerce to remain competitive.
Government Interventions: Supporting Businesses through the Crisis
In response to these challenges, the Canadian government rolled out several aid programs aimed at supporting businesses through grants, loans, and wage subsidies. These measures were essential in stabilizing the economy and aiding businesses in their transition to the new market realities.
Forward-Thinking: Embracing Change and Innovation
Canadian businesses are now focusing on resilience and innovation to thrive in the post-pandemic era. Strategies include diversifying supply chains, prioritizing digital literacy, and adopting flexible work arrangements. The pandemic’s long-term impact has set the stage for a more digital and adaptable business environment.
In conclusion, the COVID-19 pandemic has significantly altered the business landscape in Canada, particularly highlighting the impact of online shopping and the rise of platforms like Amazon. As Canadian businesses navigate these changes, their ability to adapt and innovate will be key to their success in the evolving market.
What Can a Small Local Business Do to Survive?
In the new economy, where online shopping, led by giants like Amazon, has gained significant traction, companies need to adopt innovative strategies to boost sales and remain competitive.
Here are some effective approaches that small to medium size businesses can implement:
- Enhancing Online Presence: Establishing or improving an online store is essential. Companies should focus on user-friendly website design, mobile responsiveness, and seamless checkout processes. Investing in Search Engine Optimization (SEO) can also improve visibility in online searches.
- Leveraging Social Media: Utilizing social media platforms for marketing can help businesses reach a wider audience. Engaging content, targeted ads, and influencer collaborations can drive traffic to both online and physical stores.
- Personalization and Customer Experience: Offering personalized experiences can set a company apart from online giants. This includes personalized recommendations, customer loyalty programs, and excellent customer service. Personalization makes customers feel valued and increases brand loyalty.
- Utilizing Data Analytics: Understanding customer preferences and buying patterns through data analytics can help in tailoring product offerings and marketing strategies, leading to more effective targeting and increased sales.
- Offering Unique Products or Services: Providing products or services that are not easily available online can attract customers to physical stores or exclusive online platforms.
- Creating an Omni-channel Experience: Integrating online and offline channels provides a seamless customer experience. For example, offering options like online ordering with in-store pickup can attract online shoppers to physical locations.
- Community Engagement and Local Focus: Engaging with the local community and emphasizing local products can create a loyal customer base. Small businesses can leverage their local identity as a unique selling point against larger online competitors.
- Hosting Events or Workshops: Physical stores can host events, workshops, or classes related to their products or services, creating an experiential aspect that online stores cannot replicate.
- Flexible Payment Options: Offering various payment options, including digital wallets and financing options, can make purchases more accessible and convenient for customers.
- Adapting to Changing Consumer Behaviours: Staying informed about trends and adapting to changing consumer preferences is crucial. This may involve updating product lines, adopting sustainable practices, or embracing new technologies.
- Competitive Pricing and Offers: While competing with online giants on price can be challenging, strategic pricing, promotions, and exclusive offers can attract price-sensitive customers.
- Building a Strong Brand Narrative: Developing a compelling brand story and values can resonate with customers, creating an emotional connection that goes beyond transactional relationships.
By employing these strategies, companies can not only survive but thrive in the new economy, effectively competing against the convenience and range of online shopping platforms.