Now that some degree of normalcy is returning to Canadian communities after the horrific past three years, municipal leaders are able to better assess the real damage that has occurred.

It is a daunting task. And one that remains fluid. Sometimes hidden implications will take time to be revealed. A weakened retail chain, for example, may see a painful, slow decline in the next year or two until they are ultimately shuttered. The sad closing of a mom-and-pop store or restaurant is visible to all.

Looking at the health of a community's retail core is always important to civic leaders. Downtowns remain vital to a vibrant local economy, but there is still much uncertainty about how many officer workers will actually return on a five-day-a-week basis. Their presence drives business at many small local stores, coffee shops, and restaurants.

The hospitality industry has suffered greatly during the past three years. While travel seems to be roaring back, the economic impact for cities and for various segments of the hospitality industry is varied. Airlines have cut routes and reduced service to many cities. Some hotels are being repurposed as rental apartments or condos. Business travel may never recover to pre-pandemic levels. These things impact a city's convention and tourism industry.

Shopping malls are another health indicator for many cities—and the news is mixed. In the US, the number of shopping malls has declined from about 2,500 at the peak many years ago to about 600 today. The key factor in a mall's demise is the uprooting of an anchor tenant. In Canada, that has meant Eaton's, K-Mart, Woolco, Sears and others. As those retailers closed, shoppers became less interested in going to the mall. It can be a vicious downward spiral.

Today, many malls are being repurposed. Often civic projects are part of that—a neighbourhood library, for example, or medical offices or clinics. Civic departments are sometimes moved to the mall—space is relatively inexpensive, there is free parking, and indoor malls are weather-protected.

Another possibility is residential. All communities are desperate for new housing and for improved social and affordable housing. Some malls offer a solid opportunity to develop new housing. Malls can also provide space for recreation, fitness, dining, parking, and so on. Often, they are close to schools.

The strength of the local economy is still a critical factor in promoting and ensuring a strong local retail economy. Downtowns must be attractive, creative, fun, lively, tree-lined and offer unique services and stores.

City councils can influence these things through some of the tools they possess—tax policies, zoning regulations, assistance in retail marketing efforts, supporting major festivals and street events, and so on. We need partnerships between business, government, BIAs, and other community sectors to ensure downtowns and retail districts are pulsating with lots of people having lots of fun.

The health of the retail sector is an important factor in the overall economic strength of a town or city. Now is the time for municipalities to assess the temperature and future of their retail communities.