It is an old-fashioned street fight between landlord and merchants. Feuding between them is at a fever pitch. The world of retail changed forever in April when our retailers started telling their landlords they could not pay rent because COVID-19 forced them to shut down; landlords, however, have to pay their debt services. While I navigate this dilemma at our marketing agency, I hear horror stories from both sides. As I see it nobody wins this war, but it is heart breaking to see retailers go down the drain and lose everything they worked so hard to build. Research shows most small businesses only have enough cashflow to last 90-days. Most will not survive long enough to see SBA emergency loans arrive. Our small downtowns are what makes life creative, interesting and different. I cannot imagine my life without unique boutiques, restaurants and art galleries. It is a whole new world -- how do we navigate through this? There is no easy answer, but perhaps learning to adapt and learning to be kind may help.

The Corona Virus is sparing few retailers. The numbers go up every day. Those who survive may be those who can adapt and create a new business model. I’ve been impressed with restaurants who go beyond curbside and find a creative way to package their product. Some are packaging an entire meal—complete with a bottle of wine—using a take-and-bake format. Consumers can take home things such as pasta, sauce, bread and salad to prepare at their convenience. Another bistro in our Sacramento downtown turned the restaurant into a neighborhood grocery store and stocked paper goods, fresh fruits and veggies, cheeses, flour, garlic, and other difficult items to pick-up at the local store. Others are offering free gifts with every gift card purchase.

Perhaps another answer lies in a concept that is too often seen as incompatible with business—kindness. Landlords might go beyond rent deferral—perhaps considering a rent holiday or rent forgiveness. Otherwise a small mom and pop may be better off to default on their lease rather than loans.

And perhaps adaptability and kindness can both apply. Take the Palladio in Folsom as an example. The property manager canceled her summer concert series—but instead of pocketing the money for the landlord, she went to her restaurants, purchased food and delivered it to the frontline workers. Other shopping center owners have provided funding to allow CMA to purchase thousands of dollars of merchant gift cards to be given away on social media.

At CMA, we have decided to shed clients who demand our time but don’t return kindness—we are getting lean and mean. As a team we have decided to work with those clients who appreciate us and know we have a good fight inside us to get their merchants through these times. We survived 9/11 and came back stronger after the 2008 implosion -- we will get through this as well. It is tough to let clients go, but when the 80/20 suck takes place you must say “goodbye.”

“When the 80/20 suck takes place —
you must say ‘goodbye.’ ”

I have learned a lot about how my clients are reacting in a pandemic and have chosen to work with those who are kind to their tenants and are finding ways to give more to their stores and community. There is so much kindness in our industry and our clients. The future will be bright for CMA. Our standards will continue to work with the brightest, kindest and supportive human beings in the industry. I appreciate all of them every day. When we let a few go, the initial hit in cashflow hurts, but when you let go is when the reward comes. We will always do the right thing. Our clients and landlords realize the small stores are the ones who bring the character to property and the unique uses they serve is the reason most come to our shopping centers.