Yelp’s recently released Economic Impact Report found that between March and August of this year, an estimated 163,735 U.S. businesses closed their doors, with 60% shutting down permanently. Unsurprisingly, the most impacted businesses were those in the retail and dining sectors. The Coronavirus has also shifted consumer spending, resulting in a $49 billion decline in sales tax this year; a projected $45 billion next year; and $46 billion in 2022. As a result cities and counties who heavily rely on sales and income taxes to operate have taken hits.
The Small Business Economic Impact Study from American Express found that on average, half to two-thirds of every dollar spent at small businesses in the U.S. stays in the local community. This means a consumer’s local impact during the holiday shopping season can be significant. Mayor Jeff Hall of the City of Alexandria, LA, paints an accurate picture: “Retail stores and other small businesses are the heart and soul of our community. As we work to recover from the shutdown and adjustments made due to COVID-19, it’s especially important to do all that we can to support our local businesses and help revitalize our local economy.”
With the holidays quickly approaching, local governments throughout the U.S. are working diligently to support their local economies.
While shopping locally is not a new concept, many cities and counties are getting on-board with the “Shop Local” trend in response to COVID-19 and in preparation for the holidays by partnering with local businesses and nonprofits to implement official “Shop Local” campaigns with a wide array of incentive structures.
Tis the season for holiday markets, tree lighting ceremonies, and light parades. Not only are they a festive way to spend time with loved ones but are also a great way to give back to the community. This year, there have been many attempts to keep the holiday spirit alive while simultaneously bringing foot traffic to local businesses.
A simple measure many local authorities took at the start of the pandemic was waving on-street parking fees to promote picking up food from local eateries. Now, local leaders are taking a similar approach by offering free designated parking for the holiday season.
In order to help local economies bounce back from this pandemic, it is on local governments, businesses, and residents to continually collaborate and provide each other with mutual support. In what’s sure to be a first-of-its-kind holiday season, we look forward to seeing the various ways communities across the world are adapting and responding with creativity and innovation.
Find out how Zencity can help you in your efforts to support your local economy this holiday season, here.