Snapshot: How COVID-19 Impacted Barracks Row Businesses

The COVID-19 pandemic has severely impacted businesses across the country - including businesses on Barracks Row. This snapshot summarizes key takeways of how Barracks Row businesses were impacted by the pandemic in 2020. Barracks Row Main Street continues to help support our businesses and plays 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.

While sales picked up since bottoming out in April, aggregate sales along the corridor remain 30% less than 2019 levels.

Barracks Row's 2020 retail sales were only 50% of the 2019 sales in April and May - the months most dramatically affected by COVID-19 partly attributable to business shutdowns that occurred at that time. Despite revenue improving during the later months of 2020, the collective retail revenue was still less than the previous years.

Local grocery stores, home improvement stores, and pet stores experienced an increase in sales during the pandemic. Unsurprisingly, entertainment establishments and restaurants were hit the hardest.

Regardless of the business type, Barracks Row businesses quickly pivoted to meet the changing needs of customers and respond to health and safety concerns while navigating regulatory changes and requirements.

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.

Between social distancing and remote working and learning, residents in comparable neighborhoods to Barracks Row also supported their local establishments. This is evident through 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.

Somewhat surprisingly, the pandemic has had little impact on the time of day and day of the 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. Nearly three-fourths of the corridor's collective revenue occurs between Monday and Friday with about two-thirds of the sales occurring during daytime hours. Barracks Row's popular brunch crowd and restaurant scene bolsters weekend sales and spreads customer activity into the evening hours.

Barracks Row Main Street has focused its efforts on connecting its businesses with PPE, financial assistance, and other types of business assistance.

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, it is our own community that has kept Barracks Row afloat.

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.

731 8th Street, SE, Suite 201, Washington, DC 20003

 info@barracksrow.org 

Tel: 202-544-3188

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. This page represents a significantly condensed summary of findings. Data is reflects 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. Data sources include Mastercard Retail Location Insights, SafeGraph, and ESRI Business Analyst. 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. Sales figures represent all sales at area businesses-- not just transactions made with a Mastercard credit card.