SMEs are getting out of pandemic. CBM has analysed how small business survived restrictions


Credit Bank of Moscow (CBM) has analysed the restrictions' impact on SMEs' turnovers and business activity.

Revenues channelled through payment terminals during the 1st half-year show how small businesses have survived the pandemic. On average, monthly acquiring turnover per one SME has even risen by 4% compared to 2019 to RUB 1,069,742, while the average check across the segment has grown by 1% yoy to RUB 825. Some SMEs have benefited from the pandemic, some recovered very quickly in June.

SMEs that have successfully withstood the pandemic

Food stores saw a minor decrease in turnovers: 10% in April, while the June turnover even exceeded the February level by 14%. Smaller filling stations also had higher turnovers in June than in February, while their income fell by 27% in April and rose by 30% in May, with minor variations of the average check. Liquor stores earned 20% more in June than in February. This segment's turnover dropped by 16% in April as there were fewer purchases, then began recovering in May and recovered fully already in June. Smaller taxi companies' turnover soared by 2.6 times in June compared to February, having grown during the entire period of restrictions and slowing down somewhat only after they were lifted. Homeware stores witnessed a strong surge in consumer activity after the restrictions were lifted. Their revenues plummeted by 60% in April, then began recovering in May, exceeding finally the February level by 32%. Small book stores had 60% higher turnovers in June than in February, after an 88% fall in April compared to March, followed by a rapid recovery. Delivery services are expectedly winners, too, with their June revenue being 2.3 times higher than in February.

SMEs in red

It is tough to cope with the current situation for small fitness and sports clubs, which got in June as little as 14% of their February revenues, while cafes and restaurants earned in June only 30% of their pre-coronavirus turnover. June brought to shoe and jewellery stores only a half of their February turnovers. About 30% lower revenues (June vs February) were observed across fast-food, medical clinics, women's clothing stores, beauty salons and hairdressers'. Having lost so much of their turnover in the period of restrictions, companies in these sectors have to struggle particularly hard to overcome the pandemic. The June revenues were comparable with the February figures for cosmetics stores, dentists, and opticians.

Closed for good

The pandemic was not survived by all SMEs, even in some sectors that are not considered affected. "The restrictions broke some "food chains", sweeping away those who should not technically have been affected," notes Victor Zhidkov, Head of CBM's SME Department.
Closure befell 11% of food stores, 24% of cafes, 27% of fast-food outlets, 18% of beauty salons, 40% of furniture and clothing stores, 28% of flower sales outlets, 25% of shoe stores and 17% of cosmetics stores. Casualties, at least minor, were observed across all sectors (save for taxis and courier services).