Carmel’s retail outlook was rocky even before pandemic wiped out tourists and Car Week.

On a recent sunny morning in downtown Carmel, the smell of bacon wafted out of the Village Corner restaurant. Normally on a day like this, the restaurant’s outdoor patio would be full of diners. But the shelter-in-place order is still in full force, and the patio and surrounding sidewalks are empty as two cooks worked inside alone, preparing food for takeaway service.

As an essential business, Village Corner can still serve meals to-go, but many of its retail neighbors are closed and there are signs that some are never coming back. An empty storefront sits just down the block from the restaurant. Around the corner on Carmel’s main street, Ocean Avenue, the Bohemian Boutique closed its doors the day before, after a U-Haul truck was filled with goods from inside the store.

Carmel entrepreneur Todd Tice watched as the truck was loaded – it wasn’t the first rental truck he’s seen in town since shelter-in-place took effect on March 17. That day, Tice laid off 14 of his employees working among the five stores he operates in Carmel, most notably The Club located on Ocean Avenue. He says three of his four landlords are willing to work with him on decreasing his rent and he’s had some success with running online specials.

“I believe we will weather it,” he says of the economic storm brought by the Covid-19 pandemic, including canceled Car Week events in August.

Losing a major event like Car Week – which brings in more than $50 million to the Monterey Peninsula’s hotels, restaurants and stores annually – will be felt, but Carmel Chamber of Commerce Executive Director Jenny Macmurdo calls it a “mixed bag.” Some businesses (like Tice’s, which do special Car Week events) might feel the loss, but other retail outlets don’t see an increase in sales even with the surge of visitors that week.

Trio Carmel, an olive oil, vinegar and wine store, owned by Tammy Ward is one business that typically doesn’t experience a Car Week bump. Covid-19 is another story: Sales have dropped 70 percent. Ward is still doing business by offering curbside pickup and deliveries and says online deals and social media blasts saved her this past month Yet even before Covid-19, sales were not robust.

“I don’t know if our business will be able to continue. I have a for lease sign in the window,” she says. “I’m looking to move to a different location. The rent on Dolores is very expensive.”

Macmurdo says sales have been flat for a couple of years, reflecting a national trend among retail businesses. She sees some hope for Carmel moving forward with its mix of artists and craftspeople creating products that can’t be purchased anywhere else.

The chamber launched an initiative called Carmel Rising for businesses and residents to rally around for recovery.

City Administrator Chip Rerig confirms the city expects a loss in sales and hotel taxes. Sales tax for this fiscal year, ending June 30, had been projected at $2.6 million; that’s been moved down to $2 million. The city had estimated $3 million in revenue from its 1-percent Measure D tax; that’s been revised to $2.5 million.