Not only catering businesses, but also shops are tasting the consequences of the coronavirus outbreak in the Netherlands. The number of customers is decreasing sharply, so that retailers are selling a lot less and have to decide whether it costs less to close shops completely or to continue.
The turnover of non-food retailers fell sharply in recent days due to the virus outbreak. “The Dutch shopping streets are empty,” said spokesman Paul te Grotenhuis of retail sector organization INretail.
Last weekend, the organization asked more than eighty affiliated companies how sales were going. Not good, was the answer. Turnover was 50 to 70 percent lower compared to a normal weekend. “And it was also extremely quiet on Monday and Tuesday,” said Te Grotenhuis.
Especially in the inner cities, there are fewer visitors, says the spokesperson. This is also evident from figures from market researcher Locatus. The Dutch city centers received 45 percent fewer visitors last Friday and Saturday and even 65 percent less on Sunday than last year.
Neighborhood shopping centers, especially supermarkets, were busier. Driven by the hamster rage of concerned Dutch people, they received 8 percent more visitors.
Keeping shops open or closing them anyway?
Because of the lack of customers, stores now have the choice whether to keep doors open, with higher wage costs as a result, or whether they have to close completely, which means that all sales are lost if a store is not active online. The rent still has to be paid in both cases.
Te Grotenhuis notes that because of the problems, entrepreneurs are becoming increasingly creative in order to still generate some extra turnover. “They are going to deliver, or try to get customers through social media channels,” said the spokesperson. “I also saw a photo of an entrepreneur who walked the shelves with a customer via Facetime.”
These retail chains have temporarily closed their doors in the Netherlands (but are still available online)
- The Beehive
- Coolblue
- IKEA
- KPN
- Apple
- VodafoneZiggo
- T-Mobile
- C&A
- Zara
- Nespresso
- WE
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Emergency measures must keep entrepreneurs upright
To prevent entrepreneurs from falling over massively due to the virus outbreak, the cabinet presented a package of emergency measures on Tuesday. It has been agreed, among other things, that if a company loses more than 20 percent of its turnover, the government can knock on the door for a contribution towards wage costs. If the conditions are met, the government pays a maximum of 90 percent of the salary, which was 75 percent.
In addition to the extension of the working hours reduction, affected entrepreneurs may be entitled to a one-off amount of 4,000 euros and tax payments are postponed by three months.
A package that certainly offers support for the retail industry, says industry organization INretail. “It is good that tax payments are deferred and advances paid quickly. The arrangements should become operational as soon as possible.”
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