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November 24, 2020

Canadian Officials Implement New Restrictions

The measures instituted in response to climbing numbers of COVID cases across the country have perpetuated economic uncertainty.

By  Sara Lavenduski

COVID-19 cases are surging in Canada, putting a strain on the healthcare system and throwing the economy and business recovery into limbo, including promotional products.

New lockdown measures come as the government institutes the Canada Emergency Rent Subsidy (CERS), which offers funds to cover ongoing commercial rent or property expenses until June 2021, without requiring landlord participation.

In Ontario, cases numbered 1,589 (a new 24-hour high) with 19 additional deaths on Monday, Nov. 23. The province is now in varying states of lockdown under its COVID-19 Response Framework and will be so for at least the next 28 days. Notably, the city of Toronto and Region of Peel are now in the “lockdown-grey” stage of the Framework, the most restrictive. Those in red and gray zones may only leave their homes for essential work, school, grocery shopping, exercise and doctor’s appointments, and should not travel into other zones within Ontario.

“These measures will have to be tough in the hardest-hit areas,” said Premier Doug Ford during a recent press conference. “We have some difficult but necessary decisions to make.” Ford also announced the creation of the Ministers’ COVID-19 Vaccine Distribution Task Force, for a more streamlined delivery of the vaccine when it becomes available, as well as financial relief for ongoing PPE expenses.

Quebec has also seen an increase in cases, as people have relaxed social distancing measures over the past few weeks. On Nov. 23, the province had 1,164 new cases and 13 additional deaths. In reaction, officials implemented new restrictions for three regions (including Montreal) for at least 28 days, under which people will not be allowed to have houseguests, excluding caregivers and maintenance personnel; museums, libraries and bars will be closed; houses of worship will be limited to 25 attendees; and people outside will have to maintain two meters’ distance between themselves and others. However, schools, gyms, hotels and hair salons will remain open with social distancing measures in place.

While Ontario and Quebec have been virus hotbeds since the beginning, other provinces that managed to maintain lower numbers are now seeing surges. What’s been known as the Atlantic “bubble” pact since the beginning of the pandemic (under which premiers in Prince Edward Island, Nova Scotia, New Brunswick and Newfoundland and Labrador allowed residents to move freely between the provinces without quarantine requirements because of the low number of virus cases) has now popped. Citing rising cases in Nova Scotia and New Brunswick, Premiers Dennis King and Andrew Furey, of P.E.I. and Newfoundland and Labrador respectively, have now instituted 14-day quarantine requirements for anyone entering those provinces.

Eyes have also turned to Manitoba, which saw 546 new cases on Nov. 23 and seven more deaths. It’s a similar story in neighboring Saskatchewan, which has ordered a mask mandate for all indoor public places.

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Meanwhile, the promo industry across Canada is stuck in limbo as the future of business and the economy still remains unclear after eight months of restrictions and mandated closures. Russell Bird, owner of The Promo Addict (asi/302225) is in Sherwood Park, AB, a province that saw 1,549 new cases on Nov. 23, for a total of more than 13,100. Bird says his company’s year-over-year sales fell about 50% in Q2 2020 and 20% in Q3, though he expects numbers to be up about 10% by the end of Q4. Uniform items, such as coveralls, work shirts, pants and safety items, have helped to shore up sales. While promo products contributed to about 70% of business pre-COVID, that number is down to less than 20%.

“Suppliers seem to be really struggling to keep up with production timelines due to overwhelming demand and staffing challenges,” Bird says. “I think that will actually increase next year if they successfully launch the vaccine. Travel and events will come back with a vengeance and there simply won’t be [adequate] production capacity to keep up with all of the celebratory gifting that’s going to happen.”

To further shore up operations, Bird tapped into a long-term personal interest: barbecue. He’s an experienced participant in competitive barbecuing, and he decided to open a B2C barbecue retail store in the company’s reception area. They’ve been selling sauces, thermometers and injectors as self-promo, along with grills, accessories and sauces and seasonings imported from the U.S. The business has grown every month, and the initiative even earned the distributor a Business Resiliency award from the Sherwood Park Chamber of Commerce.

Meanwhile, British Columbia reported 1,933 new cases between Nov. 20 and 23, and 17 deaths for a total of 348. Officials there now prohibit nonessential cross-provincial travel and have suspended community events and religious gatherings, though bars and restaurants are allowed to remain open, which has caused confusion. Many patrons who weren’t sure what was permitted stayed home. The BC Restaurant and Foodservices Association says that, as a result, restaurant sales have dropped 30% to 40% just in the last 10 days.

Full Line Specialties (asi/199688) in Surrey, BC, has been doing well with medical PPE, leading to Q4 sales that were better than a year ago. It’s helped the company not only work with clients they may not have partnered with otherwise, but also created inroads with marketing and safety departments at existing clients when much of their normal promo spending fell significantly.

“Going into Q1 2021, I honestly don’t see a major improvement in sales compared to previous years,” says Sam Singh, president and CEO. “The companies that took the time to invest and streamline in terms of infrastructure, staff, procedures, technology and e-comm solutions, will be the ones that recover faster than those who decided to stay status quo.”

Along with production anxieties, Kate Plummer, vice president of sales and marketing at Clearmount (asi/45440), in Scarborough, ON, says her main concern is a human one; she and her supplier peers have had to contend with negative treatment from customers in recent months. “I know it’s hard to find patience as we’re all going through our unique struggles,” she says, “but now’s not the time to berate customer service, nickel and dime suppliers and not be understanding of the many and exceptional hardships that we’re all facing. Be kind and have patience.”