Courtesy / Retail Association of Maine
Curtis Picard, president and CEO of the Retail Association of Maine
Updated: April 13, 2020
Maine retail group chief worried about crisis-hit sector, welcomes new customer limits
Photo / Renee Cordes
Maine retail stores deemed non-essential, like this secondhand book store on Congress Street in Portland, remain closed during the public health crisis.
Details about the new in-store customer limits
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With all but so-called essential retailers shut down in Maine for at least two more weeks, the head of the state's retail association is worried that many smaller businesses won't make it.
"It's rough," Curtis Picard, president and CEO of the Augusta-based Retail Association of Maine, told Mainebiz. "Most folks are shut down, and can't do curb-side pickup."
As of April 2, all businesses except those deemed essential by Gov. Janet Mills have been ordered closed through at least April 30.
Picard says his group has weighed in on what is considered an essential business, and looked at what other states have done. But he said Maine's rural economy makes it different from many of them.
Retail establishments in Maine allowed to stay open include those selling groceries and household goods, such as convenience stores, home repair and hardware stores, pharmacies and animal feed and supply stores.
Picard welcomed an adjustment to in-store gatherings under an executive order issued late Friday with immediate effect.
Under the latest order, stores with 60,000 or more square feet of retail space must limit the number of customers to 100. There are also customer limits for stores in five other size categories, including those below 7,500 square feet.
Picard said the changes provide more flexibility and clarity based on a store's square footage, and achieve a good balance between protecting people's health and letting essential stores provide necessary goods and services.
But it's the small ones which remain shut that have Picard most concerned, even if they're still able do some business online.
"Maybe it's a little bit of cash flow," Picard said, "but consumers are really pulling back regardless. In households where both individuals have lost jobs, spending is going to be way down. Both my wife and I are thankfully employed, but we've really pulled back our expenses as well."
He's equally concerned about small retailers' ability to get outside financing, whether through the federal Paycheck Protection Program, which offers forgivable loans for small businesses during the crisis, or through the Finance Authority of Maine. The agency says on its website that its $5 million COVID-19 Relief Business Direct Loans Program is already nearing the funding limit.
"Loans are kind of the last thing people need right now," Picard said. "Taking on more debt when you don't have an income is a scary proposition."
Nevertheless, he said that his group has spent a lot of time in the last few weeks helping members navigate the various federal relief programs and pointing them to experts who can answer their questions.
'Going to be rough'
On Monday, Picard reported that he had some positive feedback regarding business who have applied for federal Paycheck Protection Program loans or through Economic Injury Disaster Loans, offered by the U.S. Small Business Administration.
"I have heard from a solid handful of folks that have applied for and have started to receive the funds from some of the federal programs like payroll protection and EIDL," he said. "Many have said the process was not bad and most worked with their local bank to make it happen. It certainly does not make them whole, but the hope is that it will provide some resources as we all try to navigate this situation."
But he also underscored that for many businesses, loans are "kind of the last thing people need right now."
Asked about his long-term outlook for the sector, Picard said, "It's going to be rough for small stores or even larger stores who don't have a lot of reserves."
He added: "You've gone from an economy that was really moving in the right direction and very robust to zero activity. Now you're essentially talking a full month without zero revenue. If that extends to a second month and then becomes six, I don't know a business that can weather that."
New in-store customer limits
Photo / Renee Cordes
Customers wait outside a Home Depot store in South Portland on Saturday, a day after new in-store gathering restrictions took effect statewide.
Under an order that took effect Friday, the following restrictions limit the maximum number of customers allowed inside Maine stores at one time.
60,000-plus square feet: 100 customers
40,0001-60,000 square feet: 70 customers
18,001-40,000 square feet: 45 customers
12,001-18,000 square feet: 35 customers
7,500-12,000 square feet: 15 customers
Less than 7,500 square feet: 5 customers
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