Saturday, February 4, 2012
Snowstorm heaps more economic misery on stores

By Ylan Q. Mui, V. Dion Haynes and Thomas Heath, The Washington Post

In the long run, the record snowfall that has assailed the Washington region will go down as a mere blip in an economic landscape dominated by the recession, the experts say. But that is cold comfort to many local businesses forced to shut down and dig out over the weekend just as they hoped to turn the corner toward recovery.

"It's insult to injury," said Mauro Farinelli, part-owner of clothing store Denim Bar in Pentagon Row. "People are already having a hard time selling their wares, and we get dumped on."

Sara Damelio, management consultant for the Still Point in Takoma Park, estimated that the holistic spa lost as much as $17,000 after closing its doors Saturday and Sunday. Entrepreneur David Von Storch put the weekend's losses at his three Capitol City Brewing Co. restaurants at $200,000. Aaron Gordon, who owns the Red Velvet cupcake shop in the District's Penn Quarter and two Tangysweet frozen yogurt stores, calculated his hit between $10,000 and $15,000.

"Let's put it this way: Frozen yogurt is not the first thing that comes to mind in a snowstorm," he said. "I think we're going to be affected for the next week."

Stephen S. Fuller, director of the Center for Regional Analysis at George Mason University, said the Washington region's economy measures about $400 billion annually and estimated that the storm cost firms hundreds of millions in potential sales -- for now. An analysis he performed after a crippling snowstorm in January 1996 showed that much of the loss was recouped over the next few months. He said another recovery is likely to happen this time.

Another bright spot, however small: February tends to be a slow month for businesses anyway. In addition, Scott Bernhardt, chief operating officer of Planalytics, which forecasts weather for businesses, said the storm could have caused more damage if it had derailed Valentine's Day or the Presidents' Day weekend.

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LAST MONTH'S WEATHER-DRIVEN DEMAND SNAPSHOT: January 2012

What is Weather-Driven Demand?

Events

Sunday, Feb 5, 2012
NARUC Winter Meetings (Washington D.C.)
Thursday, Feb 9, 2012
WEBCAST: Winter Energy Market Update
Thursday, Feb 16, 2012
WEBCAST: Business Weather Intelligence 101
Tuesday, Feb 28, 2012
Planalytics Breakfast in Bentonville
Wednesday, Feb 29, 2012
Planalytics Lunch & Learn (Dallas)

More...