JOURNALISM: Weather & Business   [Download .doc version]

Cover Story: Weather & Business, by Jeffrey Reed

Special to BUSINESS MONDAY, THE LONDON FREE PRESS

March 29, 2004

We’ve heard the tale of the opportunistic entrepreneur who, after hearing the weather forecast for rain, buys all the local umbrellas and then sells them at the street corner for double their original price.

Turning a profit on Mother Nature’s tip isn’t exactly insider trading, but a number of local businesses do gage the ups and downs of sales figures concurrently with the highs and lows of the thermometer.

While winter weather closes campgrounds and shuts down golf courses, it opens up a whole new set of local money-making opportunities. In fact, many local businesses see dollar signs as snowflakes fall to the ground.

This winter has produced more traditional-type weather patterns than the winters we have experienced during recent global warming. Not until early January 2004 did winter literally arrive in a flurry, with sub-zero temperatures and heavy snowfalls reminding us of our childhood winter wonderlands.

Then, March arrived like a lamb, with a record-smashing 18 C recorded on March 5. Bicycles and blades replaced snowboards and skis – for a few days. The thermometer was hard pressed to climb to 2 C on March 6.

André Cyr, a forecaster with Environment Canada, says he is very much aware that business operators "watch the forecasts very closely." He says, March produces "a constant battle – rain, cold, rain, cold. Weather can dictate whether people buy or don’t buy."

Although artificial snow boosts operations for the London Ski Club at Boler Mountain, you would be hard pressed to find another local operation whose intake relies more on cold temperatures. The non-profit club spent almost $1 million this season on installation of a new quad chair lift on the ski hill, and a new tube lift.

The club opened as planned on December 16, but when temperatures climbed to 12 C early in the New Year, just four of nine runs operated for skiers and snowboarders. Then arctic air hit a few days later, prompting marketing manager Tim Oliver to exclaim, "It couldn’t have come any sooner." Ski school director Wayne Alexander says Boler Mountain "will end up with a little bit of money in the bank this year. It has been a very good season."

Ditto at Source For Sports on Wharncliffe Road, according to owner Colin Hopper. Just as Alexander only has to look out onto the slopes for an indication of how brisk business will be, Hopper says he only needs to look out the store window to predict what items will go out the door.

Hopper says the record-breaking temperatures during the first week of March saw baseball equipment sales increase 271 per cent over 2003 figures, and soccer equipment rise 50 per cent.

"Hockey is not affected by the weather, at all. But clothing sales have been out of this world! Outerwear has been unreal, flying off the racks," says Hopper, relating sales to a cold winter.

Source For Sports doubled its snowboard section to 2,000 square feet and added a custom-fitting ski boot department to its 14,000 square feet of retail space, in order to meet a higher demand for such goods – in part, directly tied to the colder winters we’ve experienced in recent years, says Hopper. He says snowboards and related gear now rivals ski equipment. "Kids save their money all year and think nothing of paying $700 for a board," Hopper says.

Rental of cross-country skis in January and February provides a strong source of income for the Upper Thames River Conservation Authority at Fanshawe Conservation Area. Steve Musclow, supervisor of park programs and services, says the two-month period saw "booming business."

The Fanshawe Ski Centre and 10 kilometres of trails, plus tobogganing at the beach, attracted families who paid park entrance fees and rented 50 pairs of skis, plus snowshoes, every weekend through February 29. Come March Break, the Fanshawe Sugar Bush opened for business.

The city of London offered additional free skating at its indoor arenas during March Break, but Janie Romoff, director of recreation and neighbourhood services, says business at the 11 city-operated arenas isn’t affected by weather. The city recently poured millions of dollars into upgrades and additions to local arenas, including $6.4 million at Nichols Arena, and $6.8 million at Stronach Arena. The city maintains outdoor ice pads at Victoria Park, Covent Garden Market and Storybook Gardens, but only Storybook amongst the trio charges admission at its new winding ice path.

Yet, the two downtown ice pads create numerous economic spinoffs. Marie Labiris, owner of Williams Coffee Pub at Richmond Street and Central Avenue, says she can’t keep the hot chocolate and coffee flowing fast enough for ice skaters who duck into her café for some relief from the cold. "Every weekend is very busy," says Labiris. "There aren’t as many of the 9-to-5 crowd in here during lunch hours when it’s cold, but no matter how cold, we’re busy with skaters."

Sandra Baker, manager of Ice Creamery in Covent Garden Market, tells a similar story. She says, "The outdoor rink here really helps business. And it doesn’t matter how cold it is, people come in for ice cream. It’s a comfort food. I suppose people say, ‘If I am surviving this terrible winter weather, then I’m treating myself to ice cream.’"

Special events, like the London Snowfest in late January, snowball into instant spinoffs for the market. The 10^th annual event saw an estimated 50,000 people visit the market district this year. Like all outdoor events, the Snowfest’s success is weather-dependent.

Outdoor events at the market square, and on a larger scale, London Knights hockey plus concerts at the bigger pond across the street – the John Labatt Centre – obviously create economic spinoffs for the market, says general manager Bob Usher. "We have no vacant space here any longer. We have been able to fill up," he says.

The market’s 53 vendors saw sales increase about seven per cent in January and February compared to the same period in 2003. Usher says during a Knights game, each of the market’s 454 underground parking spots are full, and the doors stay open later to accommodate extra traffic. Baker says the evening of a Knights contest, fudge flies out the door faster than a slapshot.

Suburban shopping centres, like White Oaks Mall, are almost immune to weather fluctuation, according to mall manager Jim Hewer. Barring a blizzard, Hewer says it’s business as usual during winter months – and obviously booming leading up to the Christmas season. With all of its 185 retail spaces leased, the mall depends on one-third of its business from out-of-town shoppers who would only cancel or postpone their shopping expeditions if local highways were hammered by Old Man Winter.

Special events, like the Ontario Winter Games, also see thousands of visitors stay at local hotels, which spin off into shopping and restaurant revenue. And Hewer says during the March Break, "Our food court is booming."

At Boler Mountain and London Ski Club, Alexander says, "Every year, our goal is to make it through the March Break." Rain and a lack of snow during this year’s March break slowed business, before a new snowfall saw business increase, he added.

Winter also pays instant dividends for local businesses operating indoors, and some say March Break is a huge revenue generator. At Adventures On Wonderland, an indoor playground for children 13 and under, hands-on activities including climbers, laser tag and video games provide a popular winter escape for entire families.

Paul Noon, general manager at Adventures (across from the former Wally World site) says, "We do more business during March Break than what we would do in a good month. It’s our bread and butter. We’re filled to capacity by 11 a.m., with 500 people (including parents). On a normal weekday we would have 100 people come through the door. During March Break, I call in every one of my 45 staff."

Same story at Fleetway Bowling Centre, which general manager Del Tucker calls "the bee hive" every weekend from January through mid-April, his busiest period. "The people are just in and out of here all day long," Tucker says.

Fleetway spent $2 million on renovations in late 2000. Owner Esam Group added 10,000 square feet to the Oxford Street West site, increasing the number of 10-pin lanes from 12 to 24, in addition to 28 five-pin lanes, as well as billiards tables and arcade games.

During March Break, regular afternoon bowling leagues shut down from Monday to Wednesday in order to accommodate young bowlers. Explains Tucker, "It’s the highest revenue week for us. And besides," adds Tucker, "what else is there to do on a winter day?"

Some would answer, skating at Victoria Park, where bowling may not be their cup of tea – but a steaming cup of hot chocolate is waiting for them just around the corner.