How COVID-19 Is Impacting Businesses on Barracks Row
Presented by Barracks Row Main Street
The COVID-19 pandemic has severely impacted businesses across the country. The following analysis was conducted to understand what it has meant for businesses on Barracks Row. As the pandemic continues, Barracks Row Main Street is using this information to help support its businesses and play a proactive role in the corridor's economic recovery.
The findings presented below are a summary of an in-depth analysis conducted on behalf of Barracks Row Main Street using a blend of emerging data sources including monthly customer spending and traffic data provided through credit card and geospatial cell phone data. Data reflects a geographic area bounded by 7th Street SE, Pennsylvania Avenue SE, 11th Street SE, and Virginia Avenue SE. Importantly, these findings focus on 'retail businesses' which include merchandise stores, food and beverage establishments, and businesses providing neighborhood goods and services. Additional information regarding the methodology used in this analysis is included at the end of this report.
Key Takeaways
Retail sales on Barracks Row declined $20.4 million between March and December of 2020. While sales have picked up since bottoming out in April, they remain 30% less than 2019 levels.
While some area businesses experienced an increase in sales during the pandemic, such as grocery stores, home improvement stores, and pet stores, most retailers saw a decline. Unsurprisingly, entertainment establishments and restaurants were hit the hardest.
A surge in neighborhood resident support has helped keep many businesses afloat.
Despite the pandemic, retail on Barracks Row outperformed many other neighborhoods in the District. Although the number of visitors and customers from outside of the neighborhood decreased dramatically (47% reduction), a surge in customer traffic from local residents (75% increase) has helped keep almost every Barracks Row business in operation to date.
Barracks Row Main Street is committed to providing resources to all of its businesses while prioritizing establishments with the greatest need.
Barracks Row Main Street (BRMS) focused its efforts during the pandemic on continuing to attract customers to the corridor and connecting its businesses with PPE, financial assistance, and other types of business assistance.
Barracks Row businesses were severely impacted by COVID-19. Here's what we know...
Retail spending on Barracks Row decreased $20.4 million in 2020.
The total retail spending on Barracks Row dropped from $71.5 million in 2019 to $51.1 million in 2020.
Since August 2020, sales and transactions are at 71% of pre-COVID levels.
Total spending and the number of transactions on Barracks Row dropped to 52% of pre-COVID levels from April through June.
While all businesses on Barracks Row were impacted, the pandemic affected different industries in different ways.
Grocery and home improvement stores saw a positive increase in sales while restaurants and eating establishments lost significant revenue during COVID.
Note: The above figures reflect businesses located between 7th St SE, Pennsylvania Ave SE, 11th St SE, and Virginia Ave SE, and may include the operations of some businesses not directly on Barracks Row and/or businesses whose administrative offices are on Barracks Row and that have additional activity elsewhere.
Nearby residents have become Barracks Row's predominant customer base.
Barracks Row experienced a net increase in customer traffic from nearby residents during the pandemic while customer traffic from tourists and visitors from outside of the District dramatically declined.
From May through October 2020, monthly customer traffic from nearby residents in the surrounding 20003 zip code was 25-75% higher than 2019 levels.
However, since May 2020, Barracks Row has been able to capture a steadily increasing number of customers coming from outside DC. However, as of October 2020, the amount of customer traffic from non-District residents is still down over 50% compared to 2019.
Prior to the pandemic, Barracks Row attracted a large amount of visitors and tourists to dine and shop at its businesses.
Before the COVID-19 pandemic, more than half of the collective Barracks Row customer base lived outside of the District of Columbia.
However, during the pandemic, nearly half of all Barracks Row customers live within the immediate zip code.
Somewhat surprisingly, the pandemic has had little impact on the time of day and day of week that customers come to Barracks Row businesses.
Customer traffic is highest during the day and most customer traffic occurs throughout the week. These traffic patterns have changed little from 2019 to 2020.
How Changes in Barracks Row Compare to Other Neighborhoods and DC Overall
Exploring how Barracks Row compares with the District's retail trends and comparable neighborhoods helps contextualize the pandemic's impacts and show what makes Barracks Row special.
How Barracks Row Compares with Commercial Nodes in Other Residential Neighborhoods in DC
Total Retail Sales in Barracks Row vs. Other Residential Neighborhoods
Barracks Row has maintained a relatively high concentration of total retail business sales (merchandise stores, restaurants, and neighborhood goods and services).
Restaurant Sales in Barracks Row vs. Other Residential Neighborhoods
Restaurant and bar sales in Barracks Row experienced a resurgence in restaurant and bar sales in Summer 2020, outpacing similar residential neighborhoods and DC overall.
However, like the rest of the city, Barracks Row restaurants and bars have been hurt by the cold weather, with sales declining in the fall and winter of 2020.
How Barracks Row Compares with Retail Clusters in Other Destination Neighborhoods in DC
Retail Sales in Barracks Row vs. Other Destination Retail Areas
Throughout the pandemic, Barrack Rows' local customer base has allowed it to outperform more destination-oriented commercial areas, such as Gallery Place, U Street, and Navy Yard.
Additionally, driven by increased local spending, Barracks Row did not experience quite as drastic of a decline in sales in the early months of the pandemic, compared to Georgetown, Gallery Place, Navy Yard, and U Street.
Restaurant Sales in Barracks Row vs. Other Destination Neighborhoods
Restaurant sales in Barracks Row have kept pace or performed slightly better than other top dining destinations in the District, compared to 2019 levels. Restaurant sales in Barracks Row have also recovered more quickly than the District restaurants as a whole.
Changing Customer Bases
How Comparable Neighborhoods Are Seeing Increased Traffic from Nearby Residents During COVID-19
During the pandemic, local residents supported their local businesses - especially on Barracks Row.
The COVID-19 pandemic created dramatic shifts in customer bases of commercial areas throughout the District - including on Barracks Row. Compared to other District neighborhoods, Barracks Row steadily grew the amount of customer traffic from the nearby area.
Barracks Row's nearby residents stepped up to support its local businesses.
Between social distancing and remote working and learning, residents in comparable neighborhoods to Barracks Row also supported their local establishments. This is evident by the increase in transactions between 2019 and 2020 that occurred by neighborhood residents. Compared to Eastern Market, Georgetown, and Mount Pleasant, Barracks Row experienced the largest growth of this customer base segment.
Barracks Row Main Street is committed to helping our businesses survive these challenging times.
Providing Resources to All of Our Businesses
Barracks Row Main Street has focused its efforts on connecting its businesses with PPE, financial assistance, and other types of business assistance.
Supporting and Attracting Our Local Customer Base
Our marketing efforts are aimed at showing potential customers what our businesses have to offer and creating a safe and inviting shopping and dining experience. Importantly, we must continue to reward neighborhood residents for their overwhelming support. With the loss of tourist and destination customers, its our own community who has kept Barracks Row afloat.
Directing Targeted Assistance to Those Most in Need
All of our businesses have been impacted by the pandemic and need significant support. However, our restaurants and entertainment-oriented businesses are in particular need. Fewer businesses on Barracks Row have ceased operations during the pandemic than most DC neighborhoods. We will do everything we can to keep it that way.
Our businesses still need your support. Get involved with Barracks Row Main Street to help support our local establishments.
731 8th Street, SE, Suite 201, Washington, DC 20003
Tel: 202-544-3188
About These Findings
Looking for a summary version of these findings? Check out the snapshot link below.
This analysis uses a blend of emerging data sources with data as recent as January 2021: Master Card Local Retail Insights (credit card data); SafeGraph (phone GPS data); and ESRI Business Analyst (detailed business information based on economic census and other sources). The analysis focuses on 'retail businesses' including merchandise stores, food and beverage establishments, and businesses providing neighborhood goods and services. Data is collected from a geographic area bounded by 7th Street SE, Pennsylvania Avenue SE, 11th Street SE, and Virginia Avenue SE, and may include the operations of some businesses not directly on Barracks Row and/or businesses whose administrative offices are on Barracks Row and that have additional activity elsewhere. Some charts do not have units on the Y axis because Master Card Retail Location Insights chooses to depict sales as benchmarked ratios as opposed to raw numbers. For the purposes of this study, local residents are defined as customers who reside in the same zip code as a given business district. Sales figures represent all sales at area businesses-- not just transactions made with a Mastercard credit card. This study assumes that the change in sales by Mastercard users over time is proportionally similar to those paying in cash or using other types of credit cards.
Geographic Coverage of Data Used for This Analysis
Please note, the findings and data presented in this analysis reflect the impact of COVID-19 pandemic through the end of 2020 while the pandemic is still ongoing. The analysis and findings to date may change as the pandemic continues.
