NC economy could see gradual reopening soon. But are people eager to go out and shop?
As North Carolina prepares for the possibility of easing some COVID-19-related restrictions next week, some businesses are planning for their reopening. But the critical question remains: when that happens, will people go out?
The new coronavirus has uprooted people’s lives, as people have lost loved ones and millions of Americans remain out of work. Others are adjusting to working from home and homeschooling.
Last week, Gov. Roy Cooper extended the statewide stay-at-home order, but outlined a three-step plan to gradually reopen North Carolina based on additional testing and a decrease in the growth of cases of COVID-19, the disease caused by the new coronavirus. The N.C. stay-at-home order is in place now until at least May 8.
Some consumers are eager to get back out to shops and restaurants once that happens, while others say they will be hesitant even when limits are lifted.
Diana Rugg, a Charlotte resident who works in public relations, said she likely would not visit a retailer like a clothing store for another month at least.
She is being extra cautious because she was diagnosed with breast cancer in August and finished chemotherapy in January. But Rugg, who is also a swim coach at the YMCA, said she will get back in a pool the moment they reopen.
Experts expect some pent up consumer demand once restrictions are lifted.
Retailers are looking to the businesses that stayed open during the pandemic for advice on how to enact measures to help keep customers safe, said Andy Ellen, president and general counsel for the North Carolina Retail Merchants Association.
That includes boosting cleaning routines, limiting the number of customers and offering curbside pickup.
“These are great businesses out there that have in most cases done everything the right way for decades,” Ellen said. “We just hope ...that people will come out and support those businesses, that people will come out when it’s time and feels safe.”
Expecting a ‘ghost town’
Even after restrictions are eased, Billy Maddalon, owner of the Morehead Inn in Dilworth, is trying to figure out the right moment to reopen.
Not only is he worried about the safety of his employees and guests, he also fears it could take longer for the travel industry to bounce back. If he opens, and there’s no demand, he will have spent money to bring back his staff and stock up on food and beverages for nothing.
And that could be even more devastating for his business.
“When you’re in a weakened position and you guess wrong, it could be a tipping point that is hard to bounce back from,” he said.
He still has events booked for August, but he’s assumed that the rest of the year is going to be a wash financially.
It’s also unclear how fast the economy will bounce back when it starts to reopen as tens of millions of Americans are out of work. In North Carolina, over 875,000 people have applied for unemployment since March 15, according to the state.
Rhonda French, who lives in Mint Hill with her husband and two children, said she is going to be frugal with her money because of the economic uncertainty. She said she’s not desperate to buy items she doesn’t need, and the family won’t be taking any beach vacations.
“If there is a way for me to patronize a small business without putting my family at risk, I would do that even if I didn’t really need to, because of their struggle,” she said. “But I’m not going to run out and go to Marshalls.”
Still, there are some necessary purchases that many consumers need to make, Ellen said, such as replacing clothing their children have outgrown. Others may not have a credit card and can’t order online.
Gavin Toth, partner and general manager at Divine Barrel Brewing in NoDa, said the brewery will be slow and cautious about opening the taproom. And he’s worried about keeping his staff safe amid shortages of personal protective equipment such as gloves and masks.
“I don’t think we’re going to see a return to normal for quite some time, and I’m kind of OK with that, “ he said. “Because it still is a big risk.”
