The retail sector has taken yet another $2 billion blow, following the announcement of a two-week lockdown in Sydney.
Similar to the recent Victorian lockdown, the Australian Retailers Association is estimating that Sydney's two-week lockdown will result in $2 billion lost retail trade.
Residents in the local government areas of Greater Sydney, the Blue Mountains, Central Coast and Wollongong are now subject to the four reasons to leave home (essentials shopping, medical care/compassionate needs, exercise and essential work or study if unable to be completed from home) until 11.59pm on July 09.
ARA CEO Paul Zahra said that while the lockdown will work to bring down case numbers, the severity of its impact on retailers can't be forgotten.
"Whilst the NSW Government has done an admirable job keeping the state economy open throughout the pandemic, the latest outbreak is of great concern, and we respect [the decision to lockdown].
"However, we can’t ignore the fact that the announcement is a devastating blow for retailers, in particular small businesses who were already struggling due to the ongoing COVID impacts.
"The restrictions will result in around $2 billion in lost retail trade.
"While some businesses can still open, with the consumer restrictions in place, there simply won’t be the usual number of people out shopping," he said.
Zahra added that government support will be greatly welcomed by the retail sector.
"The NSW Government has indicated there will be measures in place from the State and the Commonwealth to support businesses affected by the restrictions.
"We look forward to seeing those support measures available as soon as possible.
"Without a safety net like JobKeeper and with consumer confidence severely impacted, many small businesses will be pushed to breaking point.
"The vaccine rollout is critical to ensure we avoid further instances of lockdowns and restrictions," he said.
Sydney's lockdown was announced on June 26.
Support numbers and resources available below:
Mental health support:
Lifeline: 13 11 14
Beyond Blue's NewAccess free mental health service for small business owners: 1300 22 4636
Business Support:
National Retail Association: 1800 RETAIL (738 245)
Australian Retailer's Association: 1300 368 041
Australian Small Business and Family Enterprise Ombudsman: 1300 650 460