In the awakening of this new 2021 It is still a question of understanding the dimensions of the immense ‘crater’ that the COVID pandemic leaves the economy of the Big Apple 19. Everything shows that the bankruptcy and the closure of businesses, unfortunately, will continue to be present in the horizon of the next months.
Icons of the New York City like chain stores on every corner, its diverse array of restaurants and even the “hornet’s nest” of yellow cabs on the urban scene, are experiencing a real crash.
Already some academic reports describe what happened in 2020 with famous chains of fast food restaurants, sale of smartphones, pharmacies and at least 200 types of retail business models.
The Center for an Urban Future published a study where specifies that the pandemic forced the permanent or temporary closure of more than 1, 000 stores of this category in the five counties.
“The number of retailers in these chains decreased from a total of 7, 948 in 2018 to 6, 618 stores in 2021 , a decrease of the 13, 3 percent ”, details the extensive report product of a data collection between November and December of the pandemic 2020.
Overall, 2% of these store categories in New York City have reported that their measures are temporary and a 11, 3 percent have not specified if the closures are permanent.
198 stores closed in Queens
Just an example. When last September the “economic” clothing chain Century 21 announced the closure of its nine warehouses in New York City, after reporting their bankruptcy due to the effects of the coronavirus, at least 1, 400 people were unemployed . One of them was the Colombian Giselle Matos, from 45 years , who worked as a cashier in one of their huge warehouses.
“I had 10 years working in that chain and we cried a lot when they told us they couldn’t take it anymore. We top it all off. It’s been three months and it doesn’t look easy to get another job. Rather, you feel that every time you walk down a street there is a new business that has closed ”, shares Matos who lives in Forrest Hill in Queens.
And it was precisely in Queens, the second county after Manhattan, where more closures were confirmed. There a total of 198 stores of well-known chains or franchises closed their doors. This represents a 11, 2 percent of the total number of businesses of this type in that locality.
Some neighborhoods were hit the hardest, according to the report.
Specifically more than one 25% of chain stores in the zip code 11102 that belongs to Astoria and zip code 11413 of Springfield Gardens did not continue to operate commercially in 2020.
Other numbers show the economic loss: the 28 by Hundreds of JFK airport stores also went out of business or put a pause in the face of the abysmal decrease in visitors to the Big Apple.
“Last year was marked by a unprecedented economic volatility in most sectors across all city counties, the national retail market experienced an unprecedented contraction as a result of the COVID outbreak – 19 “, highlighted the authors of the report of the ‘Center for Urban Future’.
The most affected: minority youth
The Dominican José Miguel Feliz, from 22 years, worked as a maintenance assistant in a branch of the gym chain New York Sport Club, in the Upper West Side of Manhattan. When these establishments were allowed to reopen last summer, the young man expected to be called to rejoin. But the communication he received is that this headquarters like others 25, would not open “for now”.
“I helped my family. I had the dream of starting to study at the university, but that plan will have to wait, “said Feliz.
With an average unemployment rate of around 14, 5% at the end of last year , other investigations report who have suffered the most from the calamity of the closure business in general.
In a report published by The New York Times , Stephanie Aaronson, director of economic studies at the Brookings Institution ‘concludes that job losses due to the pandemic have particularly affected young workers who are black, Hispanic or do not have a college degree.
“They have even higher unemployment rates than younger workers in general. They are also more likely to have difficulties because their families do not have the resources to support them , ”said Aaronson.
Also, as can be seen from an analysis of ‘The New School ‘ at the Center for New York City Affairs, the 19 percent of adults under 25 years in the city had lost their jobs compared to the 14 percent of all workers.
Although workers under 24 years constituted only the 10 percent of the city’s total workforce of 4.8 million before the pandemic, had the 15 percent of jobs in service industries plus affected , including restaurants, retail stores, entertainment and recreation.
The agony of restaurants
If an industry defines the life of the city of skyscrapers, it is bars and restaurants. After a long agony that began in the spring for this sector, where more than 60% of the workforce is of Hispanic origin, all winds are directed with force to consider that much of this industry will barely survive this year.
A new survey conducted by the Association of Restaurants of the State of New York, in conjunction with the National Restaurant Association, states that these New York businesses suffered the most in 2020 due to the economic crisis if compared to the industry in the whole country.
According to the query that hit the reality of 6, 000 restaurant operators, including 238 in New York, during the last two weeks of November, on 54 percent of homeowners in the Big Apple said they are likely to close in the next six months , if they don’t have a federal aid package.
Compared to 37 percent nationwide, almost 60 percent of New York operators say who are considering closing until waiting for “better times”, compared to the 36 percent nationwide.
In general, the National Restaurant Association estimates that one in six restaurants nationwide has already closed permanently due to the economic crisis amid the pandemic. Based on this estimate that means that so far, 8. 333 restaurants, including 4. 500 establishments in New York have closed permanently.
“However, the actual number of small neighborhood restaurant closings may not be fully known for years, ”said Eater New York a publication specialized in restaurants.
The desperation of the taxi drivers
If before the pandemic and the traditional ones yellow taxis that are part of the city’s stamp faced the depreciation of the value of their permits (medallions ) and the irruption of transport services such as Uber and Lyft, now COVID – 19 put them in a “free fall” that keeps 80% of these entrepreneurs almost with their engines off.
With $ 54 dollars of average daily income in the last quarter, these 21, 000 wheel workers are doomed bankrupt, according to the latest data shared by the New York Taxi Workers Alliance (NYTWA).
Already on January 1, Bhairavi Desai, leader of this guild, warned in his twitter account: “the fight continues after so many months of pain.”
This union aspires to receive economic relief from the Taxis and Limousine Commission of the New York City and the possibility of renegotiating its debts for the acquisition of the medallions. Otherwise at the end of this new year we would be at the forefront of the burial of this sector.
In detail: closures in the year of the pandemic
- 50% shopping of chains such as Starbuck, Dunkin, Subway, Duane Reade, Modell’s or Baskins Robbins to mention just a few that temporarily or permanently closed their doors in 2020 were located in Manhattan, according to the balance of ‘Center for an Urban Future’.
- 520 of the total of 1, 057 establishments under the category of ‘chains’ that stopped operating last year were in Manhattan.
- 3.7 percent of these establishments closed in 2019 and only 0.3 percent in 2018.
- 11,2% of this category of businesses closed in Queens
- 11 , 6% of these c Trades registered decrease of their units in Brooklyn and The Bronx
- 18 Dunkin stores closed across all counties, although still the largest retailer with 618 establishments.
- 70 stores of Duane Reade pharmacies have closed, from 247 that offered service in the Big Apple.
- 25, 520 Restaurants of different categories serve in New York City, half could turn off their kitchens this year, according to inquiries made in the sector.
49 Starbucks stores stopped operating, 46 in Manhattan and 4 in Queens.