Hamilton’s struggling brick-and-mortar businesses shift online to recover from pandemic losses

After small-business owner Saji Kollanthara was forced to close Folk Art Prints, a textile shop at the Hamilton Farmers' Market, he began to build his own website - his COVID-19 challenge, he says - to try and generate revenue.

I was worried about how I was going to sell all my inventory," he said. I had to sell it somehow, so that's why I was looking for different avenues."

After weeks with no online sales, Kollanthara decided to get some help.

Through a partnership between the Hamilton Business Centre (HBC) and Google Canada, small businesses and artists in Hamilton will now be able to sell online through ShopHERE, an e-commerce platform developed by Toronto-based Digital Street Media that helps brick-and-mortar establishments digitize.

Folk Art Prints is one of the first businesses to participate in the program.

With COVID, I think the viability of many businesses depends on e-commerce," said Judy Lam, manager of commercial districts and small business at the City of Hamilton.

Because of physical distancing and other regulations, brick-and-mortar establishments will have to adapt to a new business environment, and selling online is one way to do that.

When you have e-commerce, you can balance out that drop in in-person visits with online sales, which really helps the business survive in the long run," she said.

To date, 40 businesses are participating in the ShopHERE program in Hamilton. The goal is to get at least 200 businesses online in the next few months.

For a lot of small business owners, they don't have the expertise," Lam said. I think they recognize that e-commerce is important, but it's just so overwhelming they don't know how to get started."

Lam said the program includes website setup, and training on inventory management and digital marketing, among other things.

To be eligible, the business must be registered, have a commercial location or be home-based, and have fewer than 10 employees (25 for restaurants and bars.) Artists are also welcome to apply.

The program is being rolled out in a number of municipalities to help struggling businesses recover amid COVID-19.

We're super excited to get live and launched in Hamilton as part of our expansion across the country," said Fab Dolan, director of marketing for Google Canada.

On June 25, the International Village BIA launched its own platform for its 100-plus members. The site, HamiltonInternationalVillage.ca, is the province's first e-commerce marketplace owned and operated by a BIA.

This is 2020 and businesses must have an online presence," Susie Braithwaite, executive director of the International Village BIA, said in a press release.

The site was built by graphic design studio the Laundry Design Works, one of the BIA's members. Braithwaite estimates the in-house platform saves each business more than $1,000 a year in fees from third-party hosting sites.

Bricks and clicks is the new reality for small business survival, but not everyone has the resources or capacity to build it themselves," she said.

Currently, there are about 10 businesses on the new platform, including a clothing boutique, pet supply store, and a high-end jewelry shop. Braithwaite expects many more will make the shift online in the coming months.

To me, the marketplace is a virtual store window that can give potential shoppers an idea of what's inside," said Maja Prvanovic-Kogut, owner of Zoran Designs Jewellery. Much like if they were taking an actual stroll through the neighbourhood."

BIAs in the city are adopting a range of strategies to help businesses recover from the impacts of COVID-19.

The Barton Village BIA has allocated $15,000 of its reserve funds to support our small businesses directly right now," executive director Rachel Braithwaite said in an email.

This east-end BIA is purchasing gift cards from local retailers for social media giveaways, and hiring local services like the Workshop on Barton to photograph neighbourhood businesses.

The Concession Street BIA on the Mountain is gifting a PPE care package" that includes four litres of hand sanitizer and 100 disposable masks - all made in Hamilton - to 120 businesses, many of which have struggled to get by during the pandemic.

On top of many being closed for months, their restart-up overhead costs also went up with all this required personal protective equipment," said executive director Cristina Geissler.

Kerry Jarvi, executive director of the Downtown Hamilton BIA, said they are providing members with reopening kits" that include physical distancing and we're open" decals.

Kate McCullough is a Hamilton-based reporter at The Spectator. Reach her via email: kmccullough@thespec.com