The inevitable autumn spike in COVID-19 is happening, more stringent public orders are being put in place, and the federal government is making little progress in passing another round of stimulus to cover the estimated four-month period between the holidays and the mass distribution of a COVID vaccine. Retailers and restaurants faced that chilling reality as they entered the most important time of year for sales revenue — the holiday season — so we decided to contact a local spokesman to take their temperature. In this Take Five interview, we chatted with Jason Ilstrup, president of Downtown Madison Inc., to gain more understanding about their coping mechanisms.
What can you tell us about the retailers’ mindset going into the holidays, given COVID-related public orders, the recent unrest, and safety concerns about going down to State Street?
“Well, I think they are approaching it apprehensively. There are so many things happening right now in the world, so many things that the retailers and restaurateurs don’t control. Any good business, particularly small and local businesses, wants to work off of a plan. Right now, that’s hard to do. They don’t know what’s going to come next. Every time you think you’re in a groove, something changes on a myriad of levels.
“While they are apprehensive, they are still optimistic. The holiday season is important for local businesses downtown. Many in the Madison community understand how important it is to support local businesses through purchasing their gifts throughout the city. I’ve heard really cool ideas during these times.”
Such as?
“Many people are adopting local stores. They’ve made it their mission to buy all of their gifts and other daily items from certain local stores. Whether it’s from Fromagination or Little Luxuries or The Soap Opera, they are doing everything they can to support the business most important to them.
“On the merchant side, many are getting very creative connecting with their customers. This connection can happen in a myriad of ways. It can manifest itself in new e-commerce platforms. It can manifest itself in expanded delivery or a takeout system with the restaurants. It can manifest itself in using new spaces, like the public right of way or parking lot spaces within the city’s Streatery program.
“Local businesses are adapting to the times in creative ways because everything has changed. We’re not working in the same paradigms anymore. Many of these changes are helping answer existential questions of whether they can remain open. They are doing everything they can to keep their employees employed and to keep the bills paid. And so, as apprehensive as they are, there is some optimism.
“Another way that businesses are being creative is by creating the safest environment possible for their guests and employees. With extra cleanings, proper distancing, and mask regulations, the businesses are saying, ‘Look, we are a safe place to come down and shop, we’re following set protocols, and using these measures to ensure people’s safety.’ They are trying to create consumer confidence on an individual basis with their guests, clients, and patrons.”
What are you hearing about what the city is providing in terms of more timely police service in the event there’s more unrest? A tragic event that can happen outside of Madison, as we saw with George Floyd in Minneapolis or Jacob Blake in Kenosha, can affect what happens here.
“Yes, there are a couple of different projects we’re working on. First, it’s our job as an organization to make the connection between the local business owners and city officials, policymakers, alders, the mayor, and so on and so forth. DMI is hosting and facilitating a series of discussions between MPD [Madison Police Department], city officials, and the business owners. DMI tries to open the lines of communication so those different bodies can connect, discuss, and obtain information in real time. Certainly, we’re working with the police to make sure they’re doing everything to keep everybody safe, including the protestors, and to prevent property destruction.”
Have you been heartened somewhat by retailers increased and different use of e-commerce?
“The retailers are using more tools in their tool chest. A great example is The Soap Opera, an institution in Madison. They’ve always done an amazing job with their website, but now they’ve really ramped it up. They are selling a tremendous amount of soap online and creating a great way for people to support their local business. We’re seeing more and more people working on their own business and finding different revenue streams for their existing goods.
“Certainly, restaurants are providing a lot of more takeout and delivery. The city, to its credit, has been helpful, creating pickup zones in parking spots. Restaurants are using some of these new regulations, like Streatery, to create some revenue streams. I must admit, even with strong takeout and delivery, and even having some seating outside, it’s only going to add up to about 50% of the normal revenue. For many restaurants, this amount of revenue does not keep the doors open. Even with this help from the city, restaurants and retailers quickly need more support to ensure they stay open through the winter. Plus, our whole community must step up now and support our favorite local businesses. Now, more than ever, they need your help. If we don’t, sadly, many will close before you know it.”
That would include more Paycheck Protection Program dollars.
“Many businesses are advocating that they need more resources from the federal government. They are going to need more PPP for them to survive, particularly when we get to the winter, when some of these Streatery options and outdoor dining are closed because of the temperatures and the weather outside. These businesses are going to need help or a lot more of them are going to close, and that means a lot more employees will be out of work.”
Say the current public health order stays in effect for a while longer. Can local retailers and restaurants make do with it? Everyone was hoping we’d see more improvement, more relaxation by now, but positive tests are spiking up, so we seem to be taking a step back instead of a step forward.
“All businesses and organizations are hoping we’d all be doing better by now because that means less people are affected by COVID. If COVID is rampant throughout our community, then it is going to affect their businesses. It’s a win-win for our community and business when the COVID situation gets under control. The businesses know they are going to be working through COVID for quite a while. The businesses are doing everything they can to ensure they create a safe environment for patrons. They want to ensure customers feel confident in visiting their store or restaurant.
“We need more innovative approaches, with everyone working together, in our health regulations to ensure customers remain safe and businesses remain open. Through innovative ideas and the support of the entire community, we can keep the balance in the equilibrium between safety and the economy.”
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