OKC retail market poised for a strong post-pandemic rebound

Just like in many communities across our state and nation, the pandemic has also taken its toll on Oklahoma City’s retail industry over the past 12 months, even forcing many businesses to shut their doors for good. But as springtime rolls on and summer beckons, the industry seems to be making a rebound, especially as COVID numbers decrease, restrictions soften and more people get vaccinated.

Prior to the pandemic, sales tax collections were strong and Oklahoma City’s economy was reaping the benefits. But throughout the pandemic’s duration, especially when restrictions were at their highest, businesses large and small suffered. The retail industry was hit especially hard.

“[The pandemic] definitely had a huge impact on retail,” said Tammy Fate, senior manager of retail development and recruitment at the Greater Oklahoma City Chamber. “Retailers had to reposition their strategy and creatively utilize omni channel and technology to offset the lack of in-store traffic due to limitation and restrictions. The goal was to pivot, adapt and survive to the changing climate as quickly as possible to stay relevant.”

According to recent data provided to the Chamber by Dun and Bradstreet, the Oklahoma City metro experienced a 5% closure rate for businesses during the pandemic between March 2020 and January 2021 (across all business types). A typical closure rate is between 3-4% annually. Out of those businesses that closed, 93% were companies with fewer than 10 employees. Approximately 15% of all the closures were in either the retail trade or accommodation and food service sectors.

“The retail commercial districts took a really hard hit. Luckily, the district managers were able to help them prioritize, collaborate and create digital opportunities to showcase their product. Many unique ideas were born during COVID. In addition, the OKC Small Business Continuity Program helped many retailers stay afloat during this challenging time,” Fate said. The SBCP’s framework was developed in a partnership between the Greater OKC Chamber, the Alliance for Economic Development of Oklahoma City, and the City.

The pandemic has also affected how the Chamber and others recruit businesses and developers to the Oklahoma City market. One national event the Chamber has attended for many years is the International Council of Shopping Center’s RECon conference. Typically held in May, this annual event in Las Vegas attracts developers, owners, brokers and retailers from across the nation; however, due to the pandemic, this year’s RECon was pushed back until December. Organizers expect the conference will return to its normal May time frame in 2022.

“This year, the format is going to change because it’s a little harder to get retailers to go to a show when it’s in the peak of their busy time of year between Thanksgiving and Christmas,” Fate said. “It is an opportunity for brokers to get together and touch base, and us from a city’s standpoint to push sites and get them out there in front of people. We have a massive presence at RECon.”

Despite the business closures the Oklahoma City metro experienced early in the pandemic, Oklahoma City’s economy has steadily rebounded as people are getting more comfortable about going out in public, especially as COVID numbers continue to decrease and more people are getting vaccinated. The employment picture has also improved with March’s preliminary unemployment rate standing at 4.0%, ranked as the nation’s fourth-lowest unemployment rate among large metros (more than 1 million in population). Time will tell if unemployment can reach pre-pandemic levels when Oklahoma City’s unemployment rate was 2.7% in March 2020.

Fate is confident the Oklahoma City market will continue to improve and will be strong once again. Much of that belief rests on consumers.

“From a traditional economic development standpoint, there are a lot of companies looking here, which will really help increase the amount of spending that is available within the Oklahoma City market. Consumer confidence is key. Optimistically, I think retailers are encouraged that there is a lot of pent-up demand out there. People are still a little cautious, but we are seeing more traffic and people out and about, especially within the last month,” Fate said.

This article originally appeared in the May 2021 edition of The Point.