Local Entrepreneurs Face Challenges as Support for Purchasing Local Declines

2023-09-08 23:18:13

The strong calls from politicians to stimulate local purchasing seem to have disappeared from the public space, deplore local entrepreneurs, who have the impression of experiencing a real “wake-up call”. After experiencing strong growth, many face a decline in their sales, so much so that some even resign themselves to going out of business.

Posted at 7:18 p.m.

And the waltz of closures has already begun. “With COVID, people have let off steam a bit in purchasing products online. It was incredible,” recalls Marina Dubois, owner of the company Inédit du Nord, whose boutiques sell home accessories, jewelry and clothing made in Quebec.

“When you have experienced all that and come back to reality, you fall from a height. »

And reality had the effect of a cold shower for Ms. Dubois who made the tough decision to end her activities within the next few weeks. “I think the craze for buying local has really run out of steam. It was too much. I think people got tired of it. [Les politiciens] don’t talk regarding it at all anymore,” she said, adding that she now feels “abandoned.”

PHOTO HUGO-SÉBASTIEN AUBERT, THE PRESS

The Inédit du Nord boutiques sell home accessories, jewelry and clothing made in Quebec.

PHOTO HUGO-SÉBASTIEN AUBERT, THE PRESS

The Inédit du Nord boutiques sell home accessories, jewelry and clothing made in Quebec.

PHOTO HUGO-SÉBASTIEN AUBERT, THE PRESS

The Inédit du Nord boutiques sell home accessories, jewelry and clothing made in Quebec.

PHOTO HUGO-SÉBASTIEN AUBERT, THE PRESS

The Inédit du Nord boutiques sell home accessories, jewelry and clothing made in Quebec.

PHOTO HUGO-SÉBASTIEN AUBERT, THE PRESS

The Inédit du Nord boutiques sell home accessories, jewelry and clothing made in Quebec.

PHOTO HUGO-SÉBASTIEN AUBERT, THE PRESS

The Inédit du Nord boutiques sell home accessories, jewelry and clothing made in Quebec.

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For the record, Marina Dubois opened her first store in Sainte-Thérèse in 2018. When the pandemic hit Quebec in the spring of 2020, sales at Inédit du Nord experienced meteoric growth. In April of that year, Ms. Dubois recorded triple the sales generated in December, normally her most lucrative period.

“We have had incredible growth,” she emphasizes. Result: the businesswoman took what she describes today as “great decisions”. “I had the idea of ​​opening several stores in Quebec. We say that, in the worst case scenario, sales will stabilize. There might be a small decrease, but we will be correct. »

She therefore opened a second store in Saint-Sauveur, then a third with an area of ​​4,000 square feet in Blainville, which will also become her head office. By her own admission, with this third opening, she signed her death warrant.

PHOTO HUGO-SÉBASTIEN AUBERT, THE PRESS

Marina Dubois, owner of the company Inédit du Nord

The craze for local purchasing has led to many small shops opening. So those who were there before had to face a lot more competition. The products of several local companies were also found in supermarkets, which diluted the market.

Marina Dubois, owner of the company Inédit du Nord

So, a year ago, she closed her boutique in Sainte-Thérèse. Now she must resolve to completely put an end to her activities.

And she’s not the only one. Juliette & Chocolat, CRémy and more recently La Boîte à vins, specializing in the sale of Quebec products, have also announced their total or partial closure. “We exploded during the pandemic. Now is the time to take stock and we realize that we are no longer viable,” explained the owner of La Boîte à vins, Louis-Philippe Mercier, in an article published in The Press a few days ago.

PHOTO DOMINICK GRAVEL, LA PRESSE

The Mauvaises Herbes boutique is located on Plaza Saint-Hubert in Montreal

The end of recess

This loss of steam for local purchasing, Marie Beaupré, co-founder of Mauvaises Herbes, as well as some 300 local entrepreneurs saw it coming. In May 2022, they signed an open letter in which they affirmed that local purchasing was in danger. “At the start of the pandemic, SMEs welcomed the mobilization to encourage local purchasing, in particular through campaigns such as that of the infamous Blue Basket,” they wrote. However, this desire to promote locavorism is slowly dying out at the end of the pandemic and the beginning of the economic crisis. »

“We’ve been saying for a while that something is happening post-pandemic,” adds Ms. Beaupré, on the other end of the line. We have plenty of fellow entrepreneurs who are ending their activities or closing a branch. »

PHOTO DOMINICK GRAVEL, LA PRESSE

The company Les Mauvaises Herbes specializes in the preparation and sale of natural body and household care products.

PHOTO DOMINICK GRAVEL, LA PRESSE

The company Les Mauvaises Herbes specializes in the preparation and sale of natural body and household care products.

PHOTO DOMINICK GRAVEL, LA PRESSE

The company Les Mauvaises Herbes specializes in the preparation and sale of natural body and household care products.

PHOTO DOMINICK GRAVEL, LA PRESSE

The company Les Mauvaises Herbes specializes in the preparation and sale of natural body and household care products.

PHOTO DOMINICK GRAVEL, LA PRESSE

The company Les Mauvaises Herbes specializes in the preparation and sale of natural body and household care products.

PHOTO DOMINICK GRAVEL, LA PRESSE

The company Les Mauvaises Herbes specializes in the preparation and sale of natural body and household care products.

PHOTO DOMINICK GRAVEL, LA PRESSE

The company Les Mauvaises Herbes specializes in the preparation and sale of natural body and household care products.

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Ms. Beaupré’s company, which specializes in the preparation and sale of natural body and household care products, is still alive. But she and her team were forced to make difficult decisions.

They had to put aside certain eco-responsible values ​​to survive. “Some of our ingredients were in glass bottles, now we changed to plastic. We ditched some of our compostable bags for recyclable bags. »

The company, whose store is located on Plaza Saint-Hubert in Montreal, has also made job cuts. We even thought regarding getting rid of the workshop which seemed to have become too big.

And like several other SMEs, Les Mauvaises Herbes received assistance from the federal government as part of the Canadian Emergency Business Account (CEBA). They all have until December 31 to pay two-thirds of the loan, if they want to keep the financial aid for the last third. After this date, they will have two years to repay the entire amount, with interest.

According to a report published in June by the Canadian Federation of Independent Business (CFIB), 4 out of 10 businesses “risk not being able to repay their CEBA loan before the end of 2023 and losing the subsidy portion. According to CFIB projections, the situation might result in the closure of a quarter of a million businesses in 2024.”

PHOTO MARCO CAMPANOZZI, ARCHIVES LA PRESSE

Marie Beaupré, co-founder of Mauvaises Herbes

All the investments we made, the loans we had…. And then the sales are no longer there, the message is no longer there and there are no longer any support measures.

Marie Beaupré, co-founder of Mauvaises Herbes

“In the end, maybe it wasn’t that helpful, all the messages regarding local business. It generated artificial growth. It forced us to grow much too quickly. »

“We understand that at the moment, the context is difficult for consumers,” she admits. But what will it take? I have the impression that no one sees the urgency. It is the Quebec entrepreneurial landscape that is at stake right now. »

With the collaboration of Karyne Duplessis Piché, special collaboration

Learn more

50% Among businesses that intend to repay the loan granted under the Canadian Emergency Business Account (CEBA), almost half say that the exercise will be difficult.

Source: Canadian Federation of Independent Business

72% Proportion of companies that want the repayment deadline to be extended by one year.

Source: Canadian Federation of Independent Business

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