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Sample Study All American City, America

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Table of Contents
Page Executive Summary .......................................................................................................................1 Three Year Growth Pattern.......................................................................................................2 Trade Area Delineation.............................................................................................................3 Economy ...................................................................................................................................3 Road Changes ...........................................................................................................................5 Population/Demographics.........................................................................................................5 Competition ..............................................................................................................................8 Site Evaluation – Site 1000.....................................................................................................15 Analysis .........................................................................................................................................17 Assumptions ...........................................................................................................................17 Competitor Information & Evaluation....................................................................................18 Trade Area Data by Sector .....................................................................................................19 Appendix.......................................................................................................................................20 Current Market Reports ..........................................................................................................20 Scenarios/Projections..............................................................................................................22 Definitions ..............................................................................................................................26 Qualifier..................................................................................................................................27 Source Data.............................................................................................................................28

Supermarket Strategies, Inc. 12 Round Hill Road • Kimberling City, MO 65686 Telephone 417.739.2897 www.supermarketstrategies.com

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Executive Summary
The purpose of this study is to project the sales for a new store at the south corner of Main Street and First Avenue in All American City, America. The store would be part of a proposed strip center with approximately 36,000 square feet of retail shops with the supermarket acting as the anchor tenant. The site is tested at 12,000 and 15,000 square feet, and the property is designated as Site 1000 in this study. The trade area encompasses the southeast section of All American City, and includes a portion of the unincorporated areas of U.S.A. County. All American City is located in the central portion of the state, and is the seat of government for U.S.A. County. Long known for its tourist related activities, All American City has become the employment and economic hub for a four-county area. Both All American City and U.S.A. County have experienced significant population growth over the past 17 years as new residents find a relaxed lifestyle, a moderate cost of living, and an expanding employment base. Although retirees continue to dominate the new resident demographics, there are an increasing number of younger families moving into the area, working at non-tourism related jobs. Over the past six years, All American City has added better than 800 new residential units, while U.S.A. County has seen 3,400 new homes constructed. Much of the new housing development in All American City has been on the southeast side of the city, while most new homes in the County have been in the vicinity of Lake Scenic. City and County planners expect these areas to continue to be the focal point for residential construction for the foreseeable future. There are five stores identified as the primary competitors for the trade area consumer’s food dollars. Company A, with two stores serving the trade area, is the market share leader followed closely by Company B. The other two stores, Company C and Company D have only minimal influence on the overall trade area. Company A offers a conventional merchandising plan with a strong selection of specialty departments and enhanced service levels to attract and retain customers. Company B caters to the more price driven consumer and offers the convenience of one-stop shopping. The Company A store on south Central Avenue is viewed as the primary competitor to a store at Site 1000. Site 1000 sits just south of U.S. Highway 000, south of the intersection of Main Street and First Avenue. There is a full interchange with Main Street and U.S. Highway 000, which gives the local residents high-speed access to other parts of All American City. Main Street connects with Lake Scenic to the south and with Jones Avenue to the north. Currently, Main Street is 2 lanes and carries a 35-mile per hour posted speed limit. Traffic counts taken in 2005 show 6,500 vehicles pass the site on Main Street. First Avenue is little more than a two-lane local street, but does give the site access to persons living to the east, and the road ultimately connects with Central Avenue to the west. First Avenue has a posted speed limit of 35 miles per hour. At this time, Main Street is undergoing a major improvement with much of the existing roadway being relocated in an attempt to straighten out what is now a windy and difficult road for the traffic to navigate. When completed in 2008, Main Street should take some of the local traffic from Central Avenue, and will open the area to additional housing development. Overall, the two streets give the site good access to the trade area residents. Direct visibility of the site is limited due to the topography, so it will be imperative that the store have a pylon sign readily visible to
Supermarket Strategies, Inc. 12 Round Hill Road • Kimberling City, MO 65686 Telephone 417.739.2897 www.supermarketstrategies.com

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all directions of traffic. Ingress and egress will be from Main Street only, and the single access point should be sufficient for the center. There are 144 spaces shown on the preliminary plot plan, which should be ample for the proposed center. All other physical aspects are rated good, and the site is in a strong intercept position to the current growth areas of All American City and the east side of U.S.A. County. Overall, this is viewed as a good long-term location for a new convenience oriented store. The first year average weekly sales for a 12,000 square foot store at Site 1000 will be $61,643 or $5.14 per square foot. The 15,000 square foot footprint yields a projected volume of $74,713 or $4.98 per square foot. The 15,000 square foot prototype is the recommended size given the accelerated population growth that the area should experience over the next few years. Table 1 Three-Year Growth Pattern Average Weekly Sales 2011 2012 $61,643 $64,953 $74,713 $78,725

Scenario 1 Scenario 2

2013 $68,348 $82,840

Scenario 1: Scenario 2:

Open a new 12,000 square foot store at Site 1000. Open a new 15,000 square foot store at Site 1000.

Three-Year Growth
$90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 2011 2012 2013

Scenario 1 Scenario 2

Supermarket Strategies, Inc. 12 Round Hill Road • Kimberling City, MO 65686 Telephone 417.739.2897 www.supermarketstrategies.com

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Trade Area Delineation
The trade area is located in southeast All American City and includes a small portion of the unincorporated areas of U.S.A. County. The Missouri Pacific Railroad tracks act as the northern boundary and the trade area extends south to Lake Scenic. Central Avenue forms the western boundary while the Blue River acts as the eastern boundary. Approximately 80% of the projected sales for Site 1000 will come from the defined trade area, with the remaining sales coming from the residents living on the south shores of Lake Scenic. The trade area was defined by analysis of current traffic count data, the availability of supermarket facilities in other parts of All American City and U.S.A. County, and the analyst’s judgment. The current estimate of population in the trade area stands at 15,280 persons, producing a weekly food dollar potential of $542,728. The trade area is expected to increase in population by approximately 12.04% or 1,840 persons over the next five years.

Economy
Mention All American City to most persons living in the mid section of the country and they immediately bring up championship caliber golf courses, lazy days on Lake Scenic, and horse racing. Indeed, tourism plays a major role in the local economy with one in four persons employed in a tourist related industry. However, there is also a vibrant local economy centered around light manufacturing, health services and retail services. St. John’s Mercy Health Center is the area’s largest employer with better than 1,600 employees, while Race Track Park is the largest private sector employer with 750 employees. In total, there are six firms or agencies that employ 500 or more people. U.S.A. County has experienced a steady growth in both the number of persons in the labor force and the number employed, while the unemployment rate has declined by almost 2% over the past four years. Local planners site the area’s ability to attract small to mid-sized companies as the primary engine driving the current economic expansion, and they are confident that the local economy will continue to expand at an accelerated rate over the next five to ten years.

Supermarket Strategies, Inc. 12 Round Hill Road • Kimberling City, MO 65686 Telephone 417.739.2897 www.supermarketstrategies.com

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Dec. 2008 2007 Average 2006 Average 2005 Average

Table 2 Employment/Unemployment U.S.A. County, America Labor Employment Unemployment Rate Force 44,196 42,236 1,960 4.4% 42,313 40,160 2,153 5.1% 40,804 38,418 2,386 5.8% 39,251 36,839 2,412 6.1%

State Rate 4.9% 5.1% 5.6% 5.8%

Unemployment Rate Comparison
7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Dec. 2008 2007 Average 2006 Average 2005 Average County Unemployment State Unemployment

Supermarket Strategies, Inc. 12 Round Hill Road • Kimberling City, MO 65686 Telephone 417.739.2897 www.supermarketstrategies.com

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Road Changes
Construction is currently underway for the straightening and relocation of Main Street from U.S. Highway 000 south to the Blue River. When completed in late 2008, the new road will offer travelers easier access from U.S. Highway 000 south to Scenic Dam. Part of the project’s expectations is to relieve some of the local traffic from Central Avenue by offering residents an alternative to traveling along this highly congested street. A by-product should be additional housing development along the Main Street corridor. There are also major changes underway to the U.S. Highway 000/Central Avenue interchange. While this project will not have a major impact on the traffic patterns within the trade area, it will reduce congestion at this intersection.

Population/Demographics
White, middle to moderate income families are the primary demographic group residing in the trade area, with most of the new housing construction catering to the upper end of this demographic group. The 2000 Census showed that 91.31% of the population was classified as Caucasian, with African Americans the largest minority at 4.80% of the population, while Hispanics represented 4.50%. A relatively modest 20.00% of the population was under the age of 18, while better than 25% was over the age of 65, producing an average household size of 2.26 persons. The average income per household was $34,948, and ranged from a high of $56,863 in sector 2, and to a low of $20,588 in sector 1. The demographics indicate an aging population, probably with a high majority living on a fixed income that will be more value oriented than the norm. This group will also be more demanding in terms of service levels and perishable department quality and variety, and will have the time to comparison shop. The store should emphasize small package sizes, nutritional value, and present a strong price image with a wall of values, mass displays, and a strong shelf tag program. Table 3 Population & Potential Summary April 2009 Potential $352,728 P.C.E. 2000 Estimated Population 2009 Estimated Population 2014 Estimated Population $35.52 13,322 15,280 17,120

Supermarket Strategies, Inc. 12 Round Hill Road • Kimberling City, MO 65686 Telephone 417.739.2897 www.supermarketstrategies.com

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Between 1990 and 2000, U.S.A. County added 14,671 new residents, with 3,299 coming in All American City. These increases produced an annualized growth rate of almost 2% County wide, and better than 1% within All American City. Since 2000, U.S.A. County has added 3,458 owner occupied residential units while All American City has added 888 new homes. Most of the housing growth in U.S.A. County has been centered around Lake Scenic, All American Village, and in the areas immediately adjacent to All American City. Within the city, the southern and eastern sections have been the focal points for residential growth. New housing units in the County are evenly divided between single-family and multi-family dwellings, while housing growth in All American City is primarily in the form of single-family homes. Planners and building officials site a low cost of living, amenities related to a rural lifestyle, and a strong local economy as the primary factors for the current growth trends, and foresee much the same trends for the immediate future.

All American City U.S.A. County Trade Area

Table 4 Population Trends 1990 2000 32,462 35,750 73,397 88,068 11,456 13,322

2009 37,900 96,700 15,280

2014 40,000 108,000 17,120

Population Trends
120,000 100,000 80,000 60,000 40,000 20,000 0 1990 2000 2009 2014 All American City U.S.A. County Trade Area

Supermarket Strategies, Inc. 12 Round Hill Road • Kimberling City, MO 65686 Telephone 417.739.2897 www.supermarketstrategies.com

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All American City U.S.A. County

Table 5 Residential Building Permits # of New Housing Units 2000 2001 2002 2003 106 117 129 105 275 283 419 464

2004 140 539

2005 156 707

2006 135 771

Building Permit Comparison
800 700 600 500 400 300 200 100 0 2000 2001 2002 2003 2004 2005 2006 All American City U.S.A. County

Supermarket Strategies, Inc. 12 Round Hill Road • Kimberling City, MO 65686 Telephone 417.739.2897 www.supermarketstrategies.com

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Table 6 Facility Profile Number of Facilities – Total Total Trade Area Potential Facility Sales Within Trade Area Percent of Sales from Trade Area Float Percent Float Highest Volume Facility Company B (Map Key 4) Largest Facility Company B (Map Key 4) & Company A (Map Key 5) Sales Per Square Foot – Average High (Company B - Map Key 4) Low (Company C – Map Key 1) 2009 5 $542,728 $470,875 86.76% $71,853 13.24% $600,000 66,000 SF $6.45 $9.09 $3.75

Title of Chart
Market Share By Chain
Company A 41.6

Company D 2.95 Company C 3.52

Company B 38.69

Float 13.24

Supermarket Strategies, Inc. 12 Round Hill Road • Kimberling City, MO 65686 Telephone 417.739.2897 www.supermarketstrategies.com

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There are five stores that derive a portion of their business from the defined trade area. The stores have an average size of 45,060 square feet, and the average volume is $290,500 or $6.45 per square foot, which is consistent with similar sized markets in America. Company A, with two stores impacting the trade area is the market share leader, capturing better than two in five of the available food dollar potential. Company B is second with a 38.69% market share, while Company C receives a 3.52% share and Company D 2.95%. The stores are reasonably representative of the greater All American City market, and for the most part representative of each company’s stores in central America. Company A combines above average perishable departments with a strong selection of specialty departments and good overall store operations. Company B attracts customers with a very strong price image and the convenience of one-stop shopping. Company C is more convenience driven and has little appeal beyond the nearby neighborhoods. Company D is perhaps the most price-driven of the local competitors and caters to those customers seeking price over other amenities. The Company A store at Map Key 5 and the Company B store at Map Key 4 are viewed as the primary competitors in the market, and each store is reported to be the highest volume unit of each company in the All American City market. There are no known competitive changes that will impact the market over the forecast period, and it is doubtful that there will be any major competitive moves in the foreseeable future. Company A has been rumored to be looking for additional locations on the west side of All American City but have not settled on any particular parcel of land.

Supermarket Strategies, Inc. 12 Round Hill Road • Kimberling City, MO 65686 Telephone 417.739.2897 www.supermarketstrategies.com

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Company C, Map Key 1, anchors a small strip center with an assortment of small shops rounding out the tenant mix. This is an older store that serves the immediate neighborhoods, and has a racially mixed clientele. The store offers a small deli and bakery, a pharmacy, and a small floral area. The perishable departments were rated average in their variety and presentation. Company C is selectively discounting manufacturer’s allowances, which are identified by “Big Buy Savings” shelf tags.

Supermarket Strategies, Inc. 12 Round Hill Road • Kimberling City, MO 65686 Telephone 417.739.2897 www.supermarketstrategies.com

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Company D, Map Key 2, is located in the Freeway Center with Alco, New Park Pharmacy, and several small shops. The Jones Company is the franchisee, and they have five other Company D stores in America. This store is typical of the America Company D stores, presenting a strong price image, but offering little else other than convenience to attract shoppers.

Supermarket Strategies, Inc. 12 Round Hill Road • Kimberling City, MO 65686 Telephone 417.739.2897 www.supermarketstrategies.com

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Company A, Map Key 3, is the primary tenant in an older strip center located on Central Avenue. Family Dollar and several small shops round out the tenant mix. A vacant Wal-Mart building is located on the back of the center. This unit is an older Company A unit, and little has been done to modernize the facility since the store opened in the late 1970’s. Specialty departments include a hot and cold deli with a seating area, a bakery, a pharmacy, a service meats counter, a floral area, and a natural foods/organics section. The perishable departments were rated slightly above average in terms of variety and presentation. Company A ties all advertised specials to their frequent shopper program. Discounted manufacturer’s allowances are highlighted by “Buy it Right” shelf tags, and the company offers triple value on manufacturer’s coupons to 39 cents and double value to 50 cents. This store has a total facility volume of $280,000, with $35,000 in pharmacy sales.

Supermarket Strategies, Inc. 12 Round Hill Road • Kimberling City, MO 65686 Telephone 417.739.2897 www.supermarketstrategies.com

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Company B, Map Key 4, is located on south Central Avenue in a freestanding location. This is a three-year old Supercenter, and is the only competitor open 24 hours. The store is typical of Company B’s newer stores and follows the American Company B merchandising plan.

Supermarket Strategies, Inc. 12 Round Hill Road • Kimberling City, MO 65686 Telephone 417.739.2897 www.supermarketstrategies.com

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Company A, Map Key 5 is the anchor of the New Center. Hobby Lobby and small shops comprise the other center tenants. This is the newest of the All American City Company A stores, and is entering its eighth year of operation. The store offers a full complement of specialty departments including a very nice bakery, a cold deli, a pharmacy, service meats and sea foods, the area’s best floral department, an olive bar, a natural foods/organics section, and a fuel center. The perishable departments were rated the best in the trade area in terms of variety and presentation. This store experiences a sales increase of approximately 10% during the summer months. The store has a total volume of $540,000 with $100,000 in fuel sales and $40,000 in pharmacy sales.

Supermarket Strategies, Inc. 12 Round Hill Road • Kimberling City, MO 65686 Telephone 417.739.2897 www.supermarketstrategies.com

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Total Area Location Type Proposed Parking

Table 7 Site Evaluation SC Main Street and First Avenue Site 1000 12,000 or 15,000 square feet. Proposed strip center with approximately 36,000 square feet of shops. Preliminary plot plan shows 144 spaces for the center, which should be ample. Primarily residential, with only limited retail in the immediate area. Middle income neighborhoods catering to many demographic groups. There is substantial housing growth in the area, particularly south of U.S. Highway 000. New housing units offer a blend of multi-family units on Lake Scenic and singlefamily homes in most other areas. Main Street – 2 lanes, 35 miles per hour. First Avenue – 2 lanes, 35 miles per hour. Main Street – 6,500. Currently stop signs on both streets. The intersection will be upgraded with a traffic signal and protected turning lanes with completion of the improvements to Main Street. Adequate, but the topography limits sight distance in all directions. A pylon sign near the intersection is recommended to aid in site identification. Good north/south access, while Lake Scenic and the street network limit the east/west access. Fair, with only one ingress/egress point shown on the preliminary plot plan. Will become very good with the completion of improvements to Main Street.

Adjacent Land Use Conditions of Area

Street Conditions Traffic Counts 2005 ADT Traffic Controls

Visibility

Accessibility Ingress/Egress Transient Exposure

Analysis
This is primarily a neighborhood location that will serve the immediate neighborhoods, but the store should also gain some business from the persons living on the south side of Lake Scenic. There is also a strong potential for sales growth with the new housing planned or proposed for the area. Overall, this appears to be a good long-term location for a new convenience oriented store.

Supermarket Strategies, Inc. 12 Round Hill Road • Kimberling City, MO 65686 Telephone 417.739.2897 www.supermarketstrategies.com

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Site 1000 Aerial

Supermarket Strategies, Inc. 12 Round Hill Road • Kimberling City, MO 65686 Telephone 417.739.2897 www.supermarketstrategies.com

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Analysis Assumptions
The sales projections presented in this study are based on the following key assumptions: • The store will offer a deli and bakery, or nationally recognized specialty departments such as Subway or Dunkin’ Doughnuts. The perishable departments will be on a par in terms of variety and quality with the Company A at Map Key 5. Pricing in the store will be comparable to Company A, and the store will present a competitive price image through mass displays of relevant products and a strong sign program. The store will also discount manufacturer’s allowances and these savings will be readily identifiable to the consumer. A pylon sign will be constructed that will be easily visible from all directions of traffic on both Main Street and First Avenue. The population trends will occur at or above the rate projected. All store personnel will be fully trained in their respective job functions, and a dress code will be implemented and enforced. The store will be similar in layout to the preliminary fixture plan reviewed by the analyst. All sales projections assume an April 2010 opening, and there are no adjustments for inflation.

• •

• • • • •

Supermarket Strategies, Inc. 12 Round Hill Road • Kimberling City, MO 65686 Telephone 417.739.2897 www.supermarketstrategies.com

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Competitor Analysis
Map Key 1 Name/Address Company C Great Avenue/Jones Avenue 2 Company D Jones Avenue/Leaf Street 3 Company A Central Avenue/Michaels St. 4 Company B Central Avenue/Blue Road 5 Company A Central Avenue/Timberlake St. Totals: Averages: 225,300 45,930 155,600 32,720 $1,422,500 $5.89 S.F. 66,000 46,000 400,000 *** 12 Ample Major 6am - Midnight, Daily 66,000 * 42,000 * 600,000 ** 37 Ample Freestanding 24 hours, Daily 41,400 31,900 245,000 *** 10 Limited Strip Center 17,900 11,500 50,000 4 Ample Strip Center 8am - 8pm Mon - Sat, 10am - 9pm Sunday 6am - Midnight, Daily Total Size 34,000 Selling Area 24,200 Weekly Volume $127,500 Prime Reg. Park. 6 Location Type 7am - 10pm, Daily Store Hours

Ample Strip Center

* Reflects supermarket area only ** Reflects supermarket volume only *** Excludes fuel and/or pharmacy sales.

Supermarket Strategies, Inc. 12 Round Hill Road • Kimberling City, MO 65686 Telephone 417.739.2897 www.supermarketstrategies.com

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Trade Area Description
Census Tract 116.01 116.01 116.01 116.01 116.02 116.02 117 117 117 117 2000 Pop. 1,103 1,982 1,428 888 1,863 2,158 1,727 840 596 737 13,322 Est. 2009 Pop. 1,120 2,230 1,450 1,120 2,190 2,530 1,750 1,060 880 950 15,280 Est. Ave. 2014 % % % % % % Hhld. Pop. White Black Hisp Asian < 18 >65 Size 1,140 89.5 4.1 2.3 2.3 24.5 18.1 2.4 2,540 95.2 1.6 2.3 0.9 28.2 13.6 2.76 1,490 82.1 13.3 2.9 1.1 17.8 36.5 1.97 1,300 88.1 5.6 4 1.5 29.9 14.9 2.57 2,570 94.8 1.6 3.4 0.6 22.5 26.5 2.49 2,780 94.7 2.4 2.3 0.8 26.3 14.7 2.64 1,770 84.8 10.9 17.5 0.2 21.2 14.8 2.12 1,230 91.1 5.5 3 0.6 13.8 36.3 2.03 1,200 95.1 1.7 0.8 0.5 5.4 51.5 1.74 1,100 97.7 0.4 1.1 0.5 10.6 26.6 1.88 17,120 91.31 4.8 4.5 0.9 20 25.4 2.26 Ave. Hhld. Income $20,588 $56,863 $29,352 $40,000 $43,163 $36,827 $20,724 $33,013 $28,672 $35,064 $34,948

Sector

1 2 3 4 5 6 7 8 9 10 Totals: Averages:

P.C.E. $31.94 $37.08 $35.97 $35.57 $36.35 $34.80 $33.00 $36.49 $36.90 $37.60 $35.52

Supermarket Strategies, Inc. 12 Round Hill Road • Kimberling City, MO 65686 Telephone 417.739.2897 www.supermarketstrategies.com

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CURRENT MARKET SIMULATION APRIL 2009 TRADE AREA TOTALS Trade Area Population Potential Facility Volume Float Amount Float Percent P.C.E. Apr 2009 15,280 542,728 470,875 71,853 13.24% 35.52

STORES IN OPERATION Facility Map Key 1 2 3 4 5 Total Average ---Apr 2009 --Volume /SqFt C D A B A 127,500 80,000 245,000 600,000 400,000 1,452,500 290,500 3.75 4.47 5.92 9.09 6.06 Total Area 34,000 17,900 41,400 66,000 66,000 225,300 45,060

Name Company Company Company Company Company

Draw 15 20 35 35 35

Image 53 52 120 146 129

6.45

100

CHAIN SUMMARY Chain Name Company Company Company Company Totals Averages C A D B # of Facs 1 2 1 1 5 ---------------------Chain Total-------------------Volume Average Size Average 127,500 645,000 80,000 600,000 1,452,500 290,500 127,500 322,500 80,000 600,000 34,000 107,400 17,900 66,000 225,300 45,060 6.45 34,000 53,700 17,900 66,000 Vol/ SqFt 3.75 6.01 4.47 9.09 Avg Image 53 125 52 146 Market Share 3.52 41.60 2.95 38.69 86.76

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CURRENT MARKET SHARES Apr 2007 1 Facility Comp.C Sector --M.S.-1 2 3 4 5 6 7 8 9 10 Total 9.84 4.62 7.33 2.70 1.81 1.54 5.09 2.04 .79 .30 3.52 2 Comp.D --M.S.-7.66 4.32 6.17 2.74 1.64 1.61 3.14 1.49 .59 .21 2.95 3 Comp. A --M.S.-16.24 13.39 18.09 12.54 17.68 12.90 22.87 21.75 13.90 8.02 15.80 4 Comp. B --M.S.-32.22 39.65 33.54 42.30 40.01 43.43 32.91 36.63 42.42 40.05 38.69 5 Comp. A --M.S.-20.88 24.44 21.84 26.00 25.69 26.74 23.19 25.38 29.61 38.52 25.80

Total --M.S.-86.84 86.43 86.96 86.27 86.84 86.22 87.20 87.29 87.31 87.10 86.76

SECTOR SUMMARY Sector Map Key 1 2 3 4 5 6 7 8 9 10 Total Average -----Apr 2009---Population PCE 1,120 2,230 1,450 1,120 2,190 2,530 1,750 1,060 880 950 15,280 35.52 31.94 37.08 35.97 35.57 36.35 34.80 33.00 36.49 36.90 37.60 -------Float------Percent Amount 13.16 13.57 13.04 13.73 13.16 13.78 12.80 12.71 12.69 12.90 4,707 11,224 6,800 5,470 10,479 12,134 7,394 4,915 4,122 4,608 71,853 13.24

Potential 35,773 82,688 52,157 39,838 79,606 88,044 57,750 38,679 32,472 35,720 542,728

Supermarket Strategies, Inc. 12 Round Hill Road • Kimberling City, MO 65686 Telephone 417.739.2897 www.supermarketstrategies.com

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PROJECTED MARKETPLACE TRADE AREA TOTALS Trade Area Population Potential Facility Volume Float Amount Float Percent P.C.E. Apr 2009 15,280 542,728 470,875 71,853 13.24 35.52 Apr 2011 16,016 569,448 494,064 75,384 13.24 35.55 % Change 4.82 4.92 4.92 4.91 .10

SCENARIO 1 OPEN A NEW 12,000 SQUARE FOOT STORE AT SITE 1000 SC MAIN STREET AND FIRST AVENUE Forecast ---Apr 2011 --Volume /SqFt C D A B A 126,257 78,903 240,396 588,039 392,779 61,643 1,488,017 248,003 3.71 4.41 5.81 8.91 5.95 5.14 Current ----Apr 2009 ---Volume /SqFt 127,500 80,000 245,000 600,000 400,000 0 1,452,500 290,500 3.75 4.47 5.92 9.09 6.06 0.00 Fcst Total Area 34,000 17,900 41,400 66,000 66,000 12,000

Facility Map Key 1 2 3 4 5 1000 Totals Averages

Name Copmany Copmany Company Company Company Site

T.A. Diff. -1,243 -1,097 -4,604 -11,961 -7,221 49,315 23,189

% Chg -1 -1 -2 -2 -2 0

Draw 15 20 35 35 35 80

Image 53 52 120 146 129 120

6.27

6.45

39,550

103

CHAIN SUMMARY Chain Name Site Company Company Company Company Totals Averages # of Facs 1 1 2 1 1 6 ---------------------Chain Total-------------------Volume Average Size Average 61,643 126,257 633,176 78,903 588,039 1,488,017 248,003 61,643 126,257 316,588 78,903 588,039 12,000 34,000 107,400 17,900 66,000 237,300 39,550 6.27 12,000 34,000 53,700 17,900 66,000 Vol/ SqFt 5.14 3.71 5.90 4.41 8.91 Avg Image 120 53 125 52 146 Market Share 8.66 3.14 37.57 2.62 34.78 86.76

C A D B

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STORE VOLUME BY SECTOR – SITE 1000 12,000 SQUARE FOOT STORE Facility Map Key = 1000 Market Share Cutoff = 2 Sector Map Key 1 2 3 4 5 6 7 8 9 10 Sub Total Other Sectors TA Total Outside TA Sales Forecast Sector Share 6.38 10.90 6.38 13.45 9.53 15.48 4.32 4.26 3.01 2.02 8.66 .00 8.66 Apr 2011 Draw = 80

Expected Volume 2,298 9,518 3,367 5,703 8,112 14,166 2,507 1,753 1,121 769 49,315 0 49,315 12,329 61,643

Population 1,128 2,354 1,466 1,192 2,342 2,630 1,758 1,128 1,008 1,010 16,016 0 16,016

Potential 36,028 87,286 52,732 42,399 85,132 91,524 58,014 41,161 37,195 37,976 569,448 0 569,448

Float 13.16 13.57 13.04 13.73 13.16 13.78 12.80 12.71 12.69 12.90 13.24 .00 13.24

Miles 2.33 1.93 1.93 1.60 .66 1.07 2.21 1.77 2.45 3.64

THREE-YEAR GROWTH PATTERN – SITE 1000 12,000 SQUARE FOOT STORE Facility Map Key = 1000 Apr 2011

Sales Forecast Weekly Sales /SqFt 1st Year 2nd Year 3rd Year 61,643 64,953 68,348 5.14 5.41 5.70

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SCENARIO 2 OPEN A NEW 15,000 SQUARE FOOT STORE AT SITE 1000 Forecast ---Apr 2011 --Volume /SqFt C D A B A 125,856 78,549 238,568 583,235 389,710 74,713 1,490,632 248,439 3.70 4.39 5.76 8.84 5.90 4.98 Current ----Apr 2009 ---Volume /SqFt 127,500 80,000 245,000 600,000 400,000 0 1,452,500 290,500 3.75 4.47 5.92 9.09 6.06 0.00 Fcst Total Area 34,000 17,900 41,400 66,000 66,000 15,000

Facility Map Key 1 2 3 4 5 1001 Totals Averages

Name Company Company Company Company Company Site

T.A. Diff. -1,644 -1,451 -6,432 -16,765 -10,290 59,771 23,189

% Chg -1 -2 -3 -3 -3 0

Draw 15 20 35 35 35 80

Image 53 52 120 146 129 120

6.20

6.45

40,050

103

CHAIN SUMMARY Chain Name Site Company Company Company Company Totals Averages # of Facs 1 1 2 1 1 6 ---------------------Chain Total-------------------Volume Average Size Average 74,713 125,856 628,278 78,549 583,235 1,490,631 248,439 74,713 125,856 314,139 78,549 583,235 15,000 34,000 107,400 17,900 66,000 240,300 40,050 6.20 15,000 34,000 53,700 17,900 66,000 Vol/ SqFt 4.98 3.70 5.85 4.39 8.84 Avg Image 120 53 125 52 146 Market Share 10.50 3.07 36.71 2.55 33.93 86.76

C A D B

Supermarket Strategies, Inc. 12 Round Hill Road • Kimberling City, MO 65686 Telephone 417.739.2897 www.supermarketstrategies.com

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STORE VOLUME BY SECTOR – SITE 1000 15,000 SQUARE FOOT STORE Facility Map Key = 1001 Market Share Cutoff = 2 Sector Map Key 1 2 3 4 5 6 7 8 9 10 Sub Total Other Sectors TA Total Outside TA Sales Forecast Sector Share 7.83 13.21 7.84 16.18 11.59 18.52 5.34 5.26 3.73 2.52 10.50 .00 10.50 Expected Volume 2,820 11,534 4,133 6,861 9,870 16,947 3,096 2,165 1,389 956 59,771 0 59,771 14,943 74,713 Apr 2011 Draw = 80

Population 1,128 2,354 1,466 1,192 2,342 2,630 1,758 1,128 1,008 1,010 16,016 0 16,016

Potential 36,028 87,286 52,732 42,399 85,132 91,524 58,014 41,161 37,195 37,976 569,448 0 569,448

Float 13.16 13.57 13.04 13.73 13.16 13.78 12.80 12.71 12.69 12.90 13.24 .00 13.24

Miles 2.33 1.93 1.93 1.60 .66 1.07 2.21 1.77 2.45 3.64

THREE-YEAR GROWTH PATTERN – SITE 1000 15,000 SQUARE FOOT STORE Facility Map Key = 1001 Apr 2011

Sales Forecast Weekly Sales /SqFt 1st Year 2nd Year 3rd Year 74,713 78,725 82,840 4.98 5.25 5.52

Supermarket Strategies, Inc. 12 Round Hill Road • Kimberling City, MO 65686 Telephone 417.739.2897 www.supermarketstrategies.com

Sample Study

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Definitions
Trade Area The area containing the majority of the population that could contribute to the sales of a store or a proposed site, also referred to as the study area.

Pulling Power

The attraction a store exerts upon the population.

Draw

The portion of a store’s total business that is derived from the trade area.

Image

Representations of a store’s relative acceptance levels in a defined trade area.

P.C.E.

Per capita weekly expenditure for food.

Float

That portion of the food dollar potential within the trade area that is not captured by the identified stores.

Barriers

Physical or psychological obstacles that make it more difficult to travel from one area to another. Average Daily Traffic.

ADT

Supermarket Strategies, Inc. 12 Round Hill Road • Kimberling City, MO 65686 Telephone 417.739.2897 www.supermarketstrategies.com

Sample Study

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Qualifier
In the use of this market analysis, client acknowledges that while it believes the services to be performed hereunder by Supermarket Strategies, Inc. will be a valuable tool in management decision-making, it also understands that an important part of said services involves subjective judgment, which is dependent upon the correctness of the information made available to Supermarket Strategies, Inc. Therefore, client further acknowledges its understanding that Supermarket Strategies, Inc. does not guarantee any result from the use of the analysis or other services performed hereunder, nor shall Supermarket Strategies, Inc. be responsible for any loss incurred as a result of the use of said analysis or other services. Furthermore, these projections are based on the conditions identified in the survey. Any change within the trade area, such as the opening or closing of a competitive store or changes in economic conditions, could cause significant variation between these projections and actual sales. The possibility of this occurring increases with time.

Supermarket Strategies, Inc. 12 Round Hill Road • Kimberling City, MO 65686 Telephone 417.739.2897 www.supermarketstrategies.com

Sample Study

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Source Data
“Number of Inhabitants,” America, 2000 Census of Population, U.S. Department of Commerce, Bureau of the Census. “Area Statistics,” America, 2007 Census of Retail Trade, U.S. Department of Commerce, Bureau of the Census. Editor & Publisher, Inc., 2008 Market Guide. Progressive Grocer, 2008 Marketing Guidebook. City Offices: All American City, America. County Offices: U.S.A. County, America. America Department of Transportation.

Supermarket Strategies, Inc. 12 Round Hill Road • Kimberling City, MO 65686 Telephone 417.739.2897 www.supermarketstrategies.com

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