Surviving the Storm: Retail Resilience on Laugavegur

Amidst the dip in international tourism, Laugavegur, Reykjavik's renowned shopping street, bears the scars of closure for numerous businesses. Yet, in the vacant spaces, a burst of imaginative social, creative, and retail projects are blossoming.

On a chilly November morning, Anna de Matos, key-juggling at the Tool Library's shop window, greets me with a warm smile. The Tool Library, her brainchild, lets people rent tools and gear that's often underused. Not too long ago, it was nestled in a industrial basement in Grandi. However, a prime spot recently freed up on Laugavegur – the heart of what was once tourist-ville – has given it a dream location.

A "For Rent" sign can still be seen in the window of a nearby vacated store. Just last month, city authorities discovered that approximately 14 percent of retail properties on Laugavegur lay empty, affecting those who rely heavily on tourism.

But don’t let the empty shops and "For Rent" signs fool you. The absence of tourists has fostered a wave of resourcefulness among locals, and enterprises such as Anna's Tool Library are swiftly filling the void.

Sæunn Osk Unnsteinsdottir, a project manager for Reykjavik's mayor's office, spearheads collaboration with local businesses in the city center. She has an up-close look at retail operations on Laugavegur and acknowledges the hardship faced by local businesses but also shares inspiring tales of resilience.

One such story is that of Hjarta Reykjavikur, a design and craft boutique that originally catered to tourists with souvenirs featuring pictures of old houses in Reykjavik. When the tourists disappeared, Hjarta Reykjavikur started to focus on Icelandic customers, offering jigsaw puzzles and setting up a gallery inside the shop. With the newfound demand, they expanded to a larger location in the midst of the crisis.

Not only retail businesses, but innovative social projects and art are also taking center stage in Laugavegur. Musicians like Rósa Birgitta Ísfeld are bringing music to the heart of the city with pop-up performances like 'Talið í Tónum', a musical advent calendar event that ran from December 1st to the 23rd.

Reykjavik's creative community is receiving support from initiatives like Sköpum líf í lokun, a project by Prikið Kaffihús' manager Geoffrey Thor Huntingdon-Williams. Sköpum líf í lokun provides assistance to projects aimed at revitalizing the city, helping it weave its way through the pandemic-induced challenges and ensuring that the spirit of Iceland's creative community continues to flourish.

From the Tool Library to Swap Shops, these collective efforts are guiding Laugavegur through the tumultuous COVID era and steering it towards a future brimming with creativity. Anna, the Tool Library's founder, sees the pandemic as a positive catalyst for evolution on Laugavegur. "It's pushing us in the right direction," she says. "Whether or not Covid-19 has directly helped us, we are definitely moving forward."

Amidst the decline in tourism, Anna de Matos's Tool Library, previously hidden in an industrial basement, now occupies a prime location on Laugavegur, once the heart of tourist-ville.
On Laugavegur, a notable number of retail properties remain vacant, with approximately 14 percent lying empty, impacting businesses heavily dependent on tourism.
Despite the empty storefronts and "For Rent" signs, enterprises like Anna's Tool Library are thriving and filling the void left by the absence of tourists.
Sæunn Osk Unnsteinsdottir, project manager for Reykjavik's mayor's office, recognizes the challenges faced by local businesses but also shares stories of resilience, such as Hjarta Reykjavikur's transformation.
Originally offering tourist souvenirs, Hjarta Reykjavikur pivoted to serve Icelandic customers during the tourism slump, offering jigsaw puzzles and establishing a gallery inside the store, even expanding to a larger location amidst the crisis.
Musicians like Rósa Birgitta Ísfeld are contributing to Laugavegur's cultural scene with events like 'Talið í Tónum', a musical advent calendar that ran from December 1st to the 23rd.
Reykjavik's creative community is receiving support from initiatives like Sköpum líf í lokun, which helps projects aimed at revitalizing the city, ensuring Iceland's creative spirit endures despite pandemic-induced challenges.
From the Tool Library to Swap Shops, these collaborative efforts led by local entrepreneurs are steering Laugavegur through the COVID-19 era, guiding it towards a future filled with creativity and resilience, with Anna viewing the pandemic as a positive catalyst for progress.