'How can we adapt': Local businesses moving online amid rising challenges

Tiber River, known for its natural body care products, is dropping its ambassador program due to numerous business challenges.

The company said the program, where people sell products based on commission, is no longer sustainable.

"Our economy is heading into a recession, supply chain issues are numerous, interest rates are at an all-time high and people have to make choices between necessities and desires when making purchasing decisions," read a joint statement from Adriana De Luca and Michelle Lalonde, Tiber River's owners.

"Costs are going up, but the ability people have to pay for consumer goods and services is going down."

The company will now focus on direct-to-consumer online sales but will still have a Winnipeg store.

The Winnipeg Chamber of Commerce said many of the hardships Tiber River is experiencing are being felt by the wider business community.

"Part of that ongoing experience of being a business owner, you're always looking at your model and how you operate, saying, 'how can we adapt to an ever-changing environment,'" said Loren Remillard, the chamber's president and CEO.

In a recent survey of chamber members, two thirds say they are optimistic about 2023, but the majority are expecting slower growth and a much smaller profit margin.

Remillard said many businesses were already expanding their online presence prior to the pandemic, but COVID-19 and subsequent challenges accelerated the process.

"You're now able to sell your wares all around the world, but you're also competing on the internet with every business around the world," explained Remillard. "How do you differentiate? How do you make sure you're connecting to potential audiences?"

Even with more businesses moving online, Remillard doesn't see physical stores going away.

THRIVING ONLINE

Radiance Gifts decided to give up its brick-and-mortar location last year after 27 years on Corydon Avenue.

Lisa Tjaden, the store's owner, said she made the move due to increased overhead costs and ongoing safety challenges.

"The significant cost that sort of drove us to this was actually shrinkage, the shoplifting, so that made the decision more palatable."

Now operating out of a warehouse, Tjaden said the change in business model was a success, being able to offer more items at a reduced price.

She noted the transition was still bittersweet for loyal customers.

"It was sad for them and does take a bit of adjusting. To realize it is still us and it's still the same business," said Tjaden.

She said she offers same or next-day delivery, and customers can still use the chat feature if they want to communicate with staff.

"We are still a local business. That's the perspective that is sometimes difficult for people to understand," Tjaden said. "We're still contributing to our community."