Covid-19 impacting Southland small businesses

Retail card spending figures reflect the impact of the Covid-19 lockdown on Southland businesses, Invercargill MP Penny Simmonds says, and she encourages people to support local businesses now more than ever.

“In August retail card spending in New Zealand fell 19.8 percent, as we went into lockdown in the second half of the month, according to Stats NZ.

“It’s no wonder, when you take these figures into account, that many businesses in Invercargill, and around our rural towns, are now finding times tough. 

“Even under level 2, local business owners tell me they’re struggling. For some it will be tough to come back from lockdown, while for others the only option has been to close down.

“We all want to retain the services of local cafes and retailers, and we all want our economy to thrive, so now more than ever buying local and shopping local is incredibly important.

"Support from the Government, in the form of its wage subsidy is also crucial, but I am currently hearing stories of terrible delays in payments which are also adding unnecessary stress.

“Not surprisingly consumables like groceries and alcohol saw a 9.3 percent increase in August, but spending in the hospitality sector fell by almost 30 percent, with apparel down a whopping 40.7 percent.

“These figures again reflect the huge revenue declines that many businesses will be facing, from the Invercargill Licensing Trust and small cafes, local restaurants and bars, to retailers like florists, gift shops and women’s fashion stores.

"Online shopping is tempting - but getting out and actually spending money in your community, when you can afford to, will make a huge difference to our local economy."