The parcel + prose stationery boutique is closing at the end of July due to challenges its owner said stemmed primarily from a costly pandemic loan — though this may not be the end of the store.
"That took literally everything out of my bank account," owner Tracy Losey told Taproot about her January repayment of a $40,000 Canada Emergency Business Account loan. "I didn't have anything left over, so the landlord knew I was in a difficult situation. We struggled through February, and then finally in March I just said, 'I think you need to start looking for someone to take over the lease because I just can't afford to stay.'"
HomeLife Guaranteed Realty, Losey's landlord, agreed to let her out of the lease at the end of July despite the contract extending for two additional years. She paid $4,767 per month by the end of her tenancy.
Losey said the CEBA repayment was the main factor behind her decision to close the shop, which she opened in January 2017. But she pointed out other factors that played a role, too, including what she said is dissatisfaction with the 124 Street and Area Business Association. Losey said she "100%" feels the organization could provide more support in exchange for the member dues she paid through a tax levy.
"I know I'm not alone (among business owners) in asking for things that they could do to help us," Losey said. "They always say they're 'Working on things, and things are going to get better, and we're doing this, and we're doing that,' but we don't really see any of that, so I'm not sure how much of it actually happens."
The business association is one of 13 business improvement areas that are partly funded through the City of Edmonton. It organizes commerce-generating events such as the All is Bright festival, provides a business directory, promotes businesses on the @shop124street Instagram account, and offers a parking guide, among many other things. A summary of its 2023 work is in its annual report submitted to city council on June 19. The report details that the organization accessed $35,000 in savings in 2023 to avoid forcing a levy increase onto its members.
The association did not respond to three requests from Taproot for an interview. Taproot also spoke to additional sources to try to gain context about the association's perspective.
Losey said she's heard about the tough times from her regular conversations with other business owners, including the artisans whose wares she sold at the shop, distribution representatives in the industry, and her neighbours on 124 Street. The tough times on the street are evident: Powerage Wine & Spirits closed last year, followed shortly after by Northern Chicken, which closed each of its locations on 124 and 104 streets in the core. Credo Coffee has closed its 124 Street NW outpost, but owner Geoff Linden told Taproot that was simply because its 10-year lease ended on June 30.
Losey has lived in the area for years and doesn't want to see its small businesses struggle. She said the community feels the same way. "Another local business owner … she called me and said, 'I don't want to see your store leave.'"
Thankfully, Losey said she is in talks to reboot parcel + prose as a shop-within-a-shop partnership in the vicinity of 124 Street NW.
Tracy Losey, owner of stationery boutique parcel + prose, is closing her shop due to financial woes at the end of July. However, she's in talks with another business owner in the 124 Street NW area about partnering up and sharing a space. (Supplied)
Losey declined to give concrete details because it's not a done deal. "I will say it's still in the neighbourhood," she said. "Nothing's been signed or sealed. I'm a little hesitant to announce it just yet."
Losey's lament for the state of small business on one of Edmonton's signature high streets, and in Edmonton in general, is linked to the pandemic. She said the COVID-19 pandemic shifted shopping habits off of streets, once buyers realized they could get whatever they wanted online whenever they wanted it.
She said that hurts shoppers and businesses alike. "A lot of people are missing out on just walking down your street and talking to shop owners, and knowing the people that are around you," Losey said. "That's just such a human experience, and I feel like that's really lacking with online shopping."
Losey hopes those with means to create change on 124 Street place a renewed focus on creating foot traffic on the street in areas other than those close to 108 Avenue NW and Helen Nolan Park. Her business is located at 10524 124 Street NW.
She also suggested business-creation activities like cash mobs and other events could be thought of as ways to bring people back to 124 Street.
Losey said the challenges businesses on 124 Street are facing are likely no different to those faced by those in any other business district across the city. "I think it's just hard everywhere," she said.