Are Groningen’s Small Businesses Facing Extinction?

Diezijner Store on Zwanestraat, Groningen © Emma Hizette

The aftermath of COVID-19, coupled with rising rent prices, is driving many small businesses to closure. In the final quarter of 2024, 687 businesses closed with 23 going bankrupt. Diezijner, a sustainable concept store in Groningen’s city center, experienced the consequences of economic challenges first hand. 

Government support during COVID was limited and difficult to obtain, only available to businesses that suffered a loss of 30% or more in income. Those who received the financial aid were later required to repay it. Businesses that remained financially stable but still faced challenges were left without assistance. Diezijner was one of them, struggling with accumulating debt from outstanding taxes and supplier payments.

For owner Nynke Kloosterman, these financial pressures became impossible to ignore. “With all the debts and the uncertainties in the world, I thought it was wiser to close down rather than hope it will get better next year,” she says.

Disagreements with the landlord regarding the lease added to Kloosterman’s challenges. She had repeatedly sought to extend her stay and negotiate a temporary rent reduction since the onset of COVID-19, but her landlord showed little sympathy for her situation. “They prefer long-term contracts and the highest rent possible, but I need flexibility because I don’t know what next year will look like,” she says. 

The cost of sustainability

As the owner of a sustainable shop, Kloosterman faces unique challenges that many other businesses do not. Sustainable consumers tend to buy less and shop mindfully. “It’s a different kind of shopper,” says Kloosterman, adding that most of her customers make a conscious choice to support local businesses. With rising costs and lack of government intervention, that effort feels increasingly futile. 

Fast fashion makes it even harder for sustainable shops to compete. More and more shops are opening in Groningen, selling cheap, low-quality clothing, often produced without regard for environmental impact or ethical concerns.  “In my head, it’s mind-blowing that someone can just open a store like that. I don’t get it,” says Kloosterman.

Many of Diezijner’s customers were sad and disappointed to see the store closing. “Small businesses make the city unique. They’re what gives it character,” says Kloosterman, emphasizing what makes them so special is that they foster personal connections with customers—something many people value. 

In light of this, she emphasizes the importance of small businesses supporting each other, noting that having a strong network can make a significant difference. Independent businesses should see each other as allies, not rivals, where open communication about the struggles they face is key.

Fair and sustainable fashion is a slow movement, but Kloosterman remains optimistic: “I believe this—along with secondhand and repair shops—is the future.”