Durban - The number of businesses that are closing as a result of Covid-19 are growing. Empty shops in once-busy shopping centres and “to let“ signs outside commercial buildings are signs of how many didn’t make it.
The businesses that survived the first wave had hoped that the December holiday season would help. But it did not happen, due to the second wave and the intensified lockdown that followed.
While the tourism and aviation industries have been worst hit, almost all business owners the POST interviewed said the continued future of their business was uncertain.
Most owners have not taken a salary since March last year and most have had to retrench workers.
TONGAAT
Sushila Bheem, of Bheem's Hiring Service & Catering, said: "It's difficult to tell you just how bad things are. It is usually the busiest from mid-December to the first week of January.
“We used to do big functions, like the summer festivals in Ballito but everything was cancelled. Our business was a dead loss and we have had to give our clients, who had bookings with us, refunds."
Bheem said she could no longer afford to keep her staff of about 40 people. Her son had to get a job as a truck driver to earn money.
She tried to get a loan from a bank but was declined.
"We can’t make it anymore. We have had no income since March and we sometimes have to skip a meal because we cannot afford bread. When I go to the market, I have to put some vegetables back because I don't have enough money. We tried to make an honest living but now everyone is calling, saying I owe them money. This is no way to live.”
Logan Govender, the owner of Moon's Tyres, said: "Never in the history of this 21-year-old business did we experience such a low in December. Our profit in 2020 compared to 2019 is worlds apart. Sales dropped by about 60%.
"In 2019, I treated my staff to a Christmas party and I gave them a good bonus. Last year, they got a small bonus. Now, we are trying to catch up on unpaid bills.
Govender said that at the start of this month he reduced the number of hours his staff worked.
A liquor store owner in Tongaat, who declined to be named, said: "My business has virtually been closed since March. At first liquor sales were prohibited. Then you could buy alcohol on certain days and at certain times. Now I cannot sell alcohol. Even if the government allows us to reopen, it will take a while for us, if ever, to recoup that money. We have had a dramatic loss in turnover.
“In the past, I used to have a reserve fund for emergencies but these days I don’t."
A jewellery store owner, who had to dip into his savings to survive, said: “We are in a luxury business, so there’s no passing trade. We normally do well over December but not this time. However, charity begins at home, so I am doing everything I can to keep our staff."
The owner of a spice shop said last month and this month had been the worst trading months he had experienced in his 35 years of being in business.
“We had a dramatic drop in sales, which affected our turnover. We are still having difficulty paying our bills.”
PHOENIX
Imraan Zahid, a grocery store owner, said he was not making enough to meet his rent and utility bills of about R20 000 a month.
"I am struggling to keep my business afloat. People don't have money and, as a result, I am not ordering a lot of stock. In December, some people asked if they could buy items on account because they could not put food on the table. I really hope things turn for the better.”
A businesswoman who specialises in décor said she would close if business did not pick up within the next three months.
"December is a time for weddings, parties and engagements. My business is generally fully booked from the 1st to the 24th. But we ended up doing only four small events. It is the first time in 15 years that I made no profit in December."
She said she retrenched three of her five employees and told the other two to look for other jobs because she could not guarantee them work.
Rana Hoosen, a home-based salon owner, went from doing 30 haircuts a week to five.
"My business has not recovered since the hard lockdown when salons were not allowed to open. Fortunately, I don't have to pay a monthly rental but my finances have been impacted and I am struggling to pay my household bills. I am in a difficult position. If I close, there is no guarantee that I will get a job. I will wait and see how things go."
Fazila Zahid, of Geo Café, said: "We are only open by the grace of God. In December customers flocked to the cafée but since the level 3 lockdown, we have only a handful of them."
Zahid said they would, however, continue to operate.
"I have staff that need their jobs. I need to make an income. All we can do is hope and pray things turn around."
CHATSWORTH
Kristell Moodley, the owner of Kristell's Hair and Beauty, said: "From August until November when the number of new infections fell, I started to see more clients. However, they stopped coming in December.
“In the past this was our busiest time. I used to see client after client and I sometimes worked a 12-hour shift. But after this December, the lack of income has put me under financial strain.”
Salim Khan, the owner of Salim’s Phone Repair Shop, said: "I used to have one or two customers a day but, on most days during December, it was quiet.
“People were hesitant to leave their homes because the infections in Chatsworth were high. While business has improved slightly, I am nowhere near to getting 12 jobs a week.
“I have rent to pay and if I don't make the money for the rent, I won't be able to operate. At the moment, it looks like I will have to use my savings to keep the shop open."
A fruit and vegetable seller said her customers opted to buy fresh produce from shops and supermarkets instead of visiting her home-based business in Arena Park.
"I still have customers that support me. They live on the same road and others are from nearby but business is not the same," said Samantha Nadasen.
"I started buying less stock, so the fruit and veg don’t go bad in the heat. My son is the breadwinner at home, so he sees to all our needs. I use the money I make for odds and ends like bread and milk."
To increase foot traffic to her business, Dolly’s Tuckshop, Dolly Naicker started selling hand sanitiser and masks.
"At first, the customers started buying these products but that trade soon ended. The customers come but mostly for bread and milk. I am sitting with chips, chocolates and biscuits because my customers consider these items luxuries and not essential. At the moment, I am not really making a profit."
OVERPORT
The owner of a plumbing and hardware store said sales had decreased by 40%.
“People avoided going to stores or they did not allow us into their homes if they needed repairs. If it wasn’t urgent, they waited.”
He said his operation was family run and, as a result, he did not have to pay wages.
“Right now, our major expense is rent and we are fortunate we have been able to cover it."
The businessman said this month trading was worse than last month.
“We are in uncertain times. All we can do is hope that eventually things return.
A beauty salon owner said they had seen their turnover drop by 40% in December, a month that was traditionally their best.
"Many clients cancelled their appointments because they were either infected with the virus or they were in contact with someone who tested positive. We are currently just about breaking. However, we did not pay end-of-year bonuses. It has been a tough time for everyone and we are just trying to get by.”
The Durban Chamber of Commerce and Industry said a growing number of businesses in the city were being negatively affected.
“SMMEs are in severe cash flow distress with many of our member businesses practically in ICU,” said Palesa Phili, the chief executive of the Durban Chamber of Commerce and Industry NPC.
She said that while the adjusted lockdown level 3 had helped keep the economy open, the chamber anticipated long-term consequences following the loss of economic activity due to beach closures.
Overall, that had resulted in lower levels of spending during the festive season.
The Post