Post Covid-19 pandemic, the City of Cambridge faced a rapidly changing commercial landscape, with shifting consumer behavior, such as remote working and declining foot traffic. Cambridge Econometrics led a comprehensive study to assess the city’s economic and retail performance, evaluate emergency preparedness for small businesses, and develop recommendations to enhance economic vibrancy focused on the wide variety of commercial districts in Cambridge.

The findings from this analysis will support policy makers, business associations, local businesses, and other stakeholders in making informed economic recovery decisions, while also shaping placemaking strategies, economic development planning, and emergency preparedness.

The data-driven economic analysis drew upon public and private datasets including Replica, which allowed for a detailed and granular analysis of local retail spending (in person and online) in each commercial district. The project also assessed the physical attributes of each district, such as public realm, branding, activation, outdoor dining, and the general pedestrian experience. 

Commercial District Findings and Recommendations

• Cambridge’s post-pandemic economic performance has been strong to recover in terms of employment growth, however most of these new jobs have been in the professional and scientific industries, with a large share of remote workers. This decline in non-resident visitors (i.e., people who previously commuted to Cambridge for work but now work from home) is a driving force behind the slow recovery of in-person retail spending.
• The total amount of in-person retail spending by Cambridge residents is greater than it was pre-pandemic. When considered alongside the finding that Cambridge’s resident population is still below pre-pandemic levels, it implies that in-person retail expenditures per resident is higher now than it was before the pandemic.
• Cambridge’s retail sector is dominated by food and drink businesses. Although they represent the majority of businesses and jobs, they don’t bring in the majority of in-person spending. That said, restaurants, cafes, and bars do have a retail surplus, meaning they attract spending from customers beyond Cambridge itself.
• Entertainment and recreation businesses are an emerging strength for Cambridge. This retail segment is small in terms of number of businesses, but it is the fastest growing post pandemic.

Recommendations to support the city’s ground floor commercial districts include:

• Promoting the multi-modal transit accessibility of Cambridge’s commercial districts
• Marketing Cambridge as a fun and vibrant place to visit with diverse attractions
• Developing a ‘shop local’ program for residents and businesses
• Strengthening unique district identities through placemaking and district-specific public realm investments
• Attracting businesses offering in-person experiences that will drive foot traffic and activate commercial districts
• Establishing an online ‘one stop shop’ for businesses to access information

Covid-19 Relief Programs Analysis and Recommendations

• Cambridge’s programs targeted support to specific industries, which were known to be most vulnerable during the pandemic, such as restaurants, cafes, and local shops. The program was successful in reaching this segment of the local business community, with over half of all grants and loans going to retail businesses in the city.
• The programs reached a diverse group of business owners, far surpassing state averages for minority and women owned businesses.
• Cambridge’s programs responded to the greatest area of need identified by businesses, which was paying their mortgage, rent, and other bills. Over 70% of businesses used the support for this purpose. 

Recommendations for future emergency preparedness plans include:

• Improving access to capital and strengthening the resiliency of small businesses so they are more prepared with fundamental skills, particularly in the areas of basic accounting, fluency in English, and digital literacy.