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Pixabay
Des Moines business owners have experienced a drastic change in the way that customers shop.
In March, U.S. store sales went down by more than 8% overall. Iowa stores are experiencing less walk-in customers. Rory Brown, owner of Allspice Culinarium in Des Moines’ East Village, commented on how it was affecting his business, according to the Des Moines Register. He said sales were down by 25%.
Lack of foot traffic has Iowa businesses experiencing a decrease in sales higher than what the national average is. The U.S. Department of Commerce reported a decline in sales up to 8.7%.
“With the amount of commerce and business that is shut down, if Iowa is in that (8.7% decline in retail sales) area, I would say that would be somewhat positive news," said Jim Henter, president of the Iowa Retail Federation, according to the Des Moines Register.
Consumer buying patterns shifted, with grocery store sales increasing by nearly 26%. More people are cooking at home, and they are also stocking up for the pandemic.
Iowa organizations are working together to provide support to local businesses at this time. Greater Des Moines Partnership and Catch Des Moines started the #DSMLocalChallenge.
As of April 15, the hashtag has been used more than 2,300 times. Iowans are encouraged to buy gift cards, shop local and to order takeout or delivery from local restaurants.
Jay Byers is the CEO of the Greater Des Moines Partnership.
"Any business that relies on face-to-face customer interaction is facing a challenging time and needs our community’s support," Byers said, according to the Des Moines Register. "This includes restaurants and retail, businesses that provide business-to-business services, hotels, cultural venues, the airport, and those who provide a service that requires customers to be physically present."
Local stores are challenged with closures, while big-box stores are allowed to stay open. Since March, more than 250,000 stores have been closed nationwide. According to Neil Saunders, managing director of GlobalRetail Research, this is 60% of stores.