Resilience on show as businesses bounce back from lockdown

Bankwest’s Spend Trends analysis of business turnover in WA’s lockdown regions have shown the resilience of impacted sectors, with those hardest hit by restrictions closing in on, or surpassing, regular trading levels.

Bankwest analysed turnover for the five days of lockdown (1-5 Feb) in Perth, Peel, and the South West, and a week of eased restrictions, comparing results to a control range to show how businesses adapted.

The extent of the impact of restrictions on sectors reliant on in-person services was clear, with many, such as massage parlours and beauty spas, at or nearing a 100 per cent decline in turnover during lockdown.

However, the results also highlighted the resilience of those sectors, with the Top 5 declining businesses bouncing back strongly during the first five days of eased restrictions, with some surpassing regular trade.

Massage parlours and miscellaneous recreation services – such as laser tag and mini golf – both flatlined in lockdown but recovered to be at about 70 per cent of normal trade as restrictions eased.

Health and beauty spas experienced a 99 per cent fall in turnover in lockdown, before bouncing back to exceed regular trading levels by 22 per cent.

Sports clubs and promoters, and charities and fundraising societies fell 96 and 91 per cent, respectively, as restrictions set in and, while rebounding strongly, remained below normal turnover.

Pharmacies (28%) and liquor stores (22%) experienced an increase in turnover during the lockdown period, however, the growth ended there, with all other sectors in decline.

Bankwest Chief Customer Officer Paul Vivian said: “WA faced a unique set of challenges, as the COVID lockdown was followed by a devastating bushfire, and our thoughts remain with all those affected.

“Premier Mark McGowan urged West Australians to safely support small businesses and the economy as he outlined the state’s transition out of lockdown, and these numbers show why he made those comments.

“There were only four sectors that experienced increased turnover for the lockdown week, and they were the businesses that were always likely to grow in the situation, while all others declined – many significantly.

“However, as we saw last year, it was those same impacted sectors that rebounded rapidly as restrictions began easing, and that is a testament to the resilience of WA business and community support.

“These businesses employ West Australians, they help people live their lives, drive our economy, and make our communities what they are, so it’s important we support them safely and in line with health guidelines.”