People are scared to come out Sydneys shopping divide revealed
A huge gap has opened in the fortunes of Sydneyâs small retailers with spending down by 70 per cent at that type of business in the cityâs south-west since lockdowns were imposed compared with a strong increase in the eastern suburbs and north shore.
Many of Sydneyâs high street traders are struggling due to pandemic restrictions but the pain is greatest where lockdowns are hardest in the cityâs west and south-west.
Spending at small retailers in Sydneyâs west and southwest has plunged due to lockdowns Credit:Photo Louise Kennerley SMH
Analysis of purchasing patterns by AlphaBeta, a part of Accenture, and credit bureau illion shows spending at small retailers in the outer south-west of Sydney has plunged by 70 per cent compared with before the lockdown.
Spending in the Blacktown district has fallen by more than 50 per cent in that period and in the inner south-west, which takes in the Canterbury-Bankstown council hotspot, purchases made at small retailers are 36 per cent lower than before lockdown.
It is a different story across town â" spending at small retailers on Sydneyâs north shore is 33 per cent higher than pre-lockdown levels and up by 25 per cent in the eastern suburbs.
The analysis, based on the weekly spending by 250,000 Sydney consumers, covers purchases made at small independent businesses such corner shops, cafés, bakeries, butchers, grocers and convenience stores.
Andrew Charlton, the director of analytics firm AlphaBeta who undertook the spending analysis, said one factor supporting small retailers in the cityâs east and north was that a large share of employees in those areas work from home and this has driven a âtrade diversionâ away from major job hubs, especially the central business district, in favour of local shops.
Lockdown restrictions have also been lighter so people have been able to move around more easily.
In western and south-western Sydney, remote work is less common so the shift to local spending has been less pronounced.
The strict lockdown rules in western Sydneyâs âareas of concernâ have hit household incomes and limited the movement of people more than in other parts of the city. Both factors have been negative for small local retailers.
There has also been a surge in online shopping in areas under the strictest lockdowns.
Dr Charltonâs analysis shows online spending is up by 75 per cent in western Sydney since the lockdowns began compared to a rise of 25 per cent in the east of the city.
âThatâs partly because of the stronger lockdown in western Sydney and partly because of the higher base in eastern Sydney,â he said.
Ly Tran is one of the shop owners hit hard by the stringent lockdowns in Sydneyâs south-west. She has run the Dat Loi Fish Shop on Campsieâs shopping strip for 20 years but the last eight weeks has made the future uncertain.
âBusiness is down by 50-60 per cent,â she said. âIt has been very quiet.â
Ly Tran and her son Ray Tran at Dat Loi Fish Shop in Campsie Credit:Photo: Louise Kennerley SMH
Ms Tran closed down for three weeks when the latest outbreak began and since reopening she has only been able to serve customers at the store entrance.
âSelling seafood from the front door is very difficult,â said Ms Tranâs son, Ray, who also works at the business.
Thai Nguyen, who lives in Lakemba but shops for food at Campsie, says many retailers in the district have closed.
âThis is a hotspot and people are scared to come out,â he said.
The analysis by Alpha Beta and illion shows overall spending at small retailers across Sydneyâs west and south-west regions in the two weeks ending August 8 was down by 42 per cent compared with pre-lockdown levels, while purchases at that type of business across the eastern regions of the city was up by an average of 2 per cent.
âThis spending data clearly shows how lockdown Sydney will operate in the coming weeks - and the impact on spending in areas which are significant hotspots,â said Simon Bligh, chief executive of illion.
Matt Wade is a senior economics writer at The Sydney Morning Herald.
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