COVID-19 gutted these storefronts and they'll never be the same

Small businesses had to find creative ways to adapt their business models to stay afloat during COVID-19, but many say the changes will be permanent.

For Ottawa sporting goods store KunstadtSports, the pandemic sped up its shift from brick-and-mortar to online sales. With new staffing in place, it has no plans to revertback.

Monica Kunstadt, financial controller at Kunstadt, says its e-commerce team grew from two to upwards of 15 people.

"We don't see that ever shrinking," she said.

The company has now committed to a 10-year lease on a 3,200-square-foot warehouse in Carleton Place where it will keep orders before shipping.But that doesn't mean there's no place for physical storefronts in the new model.

Kunstadt says a third of the company's business remains brick-and-mortar, which she describes as "100 per cent still needed" at its three locations.

"Sometimes change pushes us outside of our comfort zones. I don't think we can go back. We've all evolved in ways that will never be the same," said Kunstadt.

Why the pandemic has changed the way this Ottawa entrepreneur operates

4 years ago

Duration 1:20

Fashion designer Stacey Martin says the combined blows of the pandemic and racial injustice in 2020 spurred her to change the way she does business, prioritizing online sales over brick-and-mortar retail.

'I was gutted,' says designer

For Stacey Martin, 2020 was a shock to the system, forcing the closure of her ByWard Market women's clothing boutique.

"I was gutted," said the fashion designer whostarted KANIA Couture in 2003 while still a dancer on Broadway.

"Your business is your baby. All the hard work ... has come to zero, and you don't have any control," said Martin.

"You're dug in this hole and you cannot get out," said Martin."The only real way to survive is to pivot."

Martin decided to rebrand as Stacey Martin Lifestyle, with an emphasis on online sales.

But she struggled to bankroll the change, which she says is an obstacle for Black female entrepreneurs seeking venture capital funding.

"The racial inequalities?The store closing? It was just like being hit over and over again," said Martin, who admits she flirted with throwing in the towel. "But that's not who I am."

Instead,she decided to raise her own venture capital through equity crowdfunding, and plans to use the proceeds to increase production, inventoryand marketing, with a goal of reaching 70 per cent online sales.

"That is the way of the world. This is really the way that we're going to be connecting in the future after COVID is over," she said.

Martin still intends to keep her 500-square-foot storefront on York Street as a showroom and design studio. Meantime, alarger storage area in the same building will act as a fulfilment centre for online shoppers.

A culinary business goes online

Prior to COVID-19, The Urban Element'sfood educators and chefs offered classes, catering and team-building events at itsculinary venuein a renovated fire station in Hintonburg.

"People were shoulder to shoulder with the chefs," said co-owner Carley Schelck.

We're getting small so we can get big again.- Carley Schelck

Though the company had considered adding virtual classes in the past, COVID-19 forced its hand. It has since givenup that prime real estate on Parkdale Avenue, opting for online classes only.

"That was a hard decision," said Schelck."I've heard clients say, 'there'snothing better than having a chef look over your shoulder and help you properly sear that scallop.'"

Now, recipe kits are sent to clients, who connect virtually with instructors,albeit in real time.

Schelck plans to continue offering online courses post-pandemic.Down the road, she hopes to return to a physical kitchen, though likely in a smaller location.

"We're looking at things differently now," said Schelck."We're getting small so we can get big again."

One door closes, another opens

Last spring, an old adage came true for Craig Hall, co-owner of Equator Coffee Roasters.

"When we had to shut the front door of the caf in March, we were able to open the drive-thru," said the entrepreneur fromAlmonte, Ont. "It couldn't have been better timing."

In fact, the wheels were in motion long before the pandemic, as a fix to the annual post-Christmas slowdown in coffee sales.

"Every year we noticed a big drop in sales in January and February," said Hall, who decided to create an online ordering platformfor the cafe when the pandemic hit both changes he sees outliving the pandemic.

"We're focusing more on online sales and where we think the business will be more reliable in the future,"he explained, adding that unreliability is behind the company's decision to close its location in the National Arts Centre.

Still, Hall finds himself eyeing 'for lease' signs downtown.

"There are some potentially good sites for a cafe. But I don't think the landlords have figured it out that they can't charge what they did before."

For more stories about the experiences of Black Canadians from anti-Black racism to success stories within the Black community check out Being Black in Canada, a CBC project Black Canadians can be proud of. You can read more stories here.