5.4B. SR 07-22-2002Item 5.4.B.
River
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
Mayor and City Counc~_
Pat Klaers, City Ad~
July 22, 2002
CIP - Westbound Liquor Store
In January 1997, the City purchased 1.5 acres of land in the northwest corner of the Highway
1 O/Joplin Avenue intersection for a future second municipal liquor store. Ever since this
acquisition, the City has had inquiries as to when the "Westbound" liquor store would be
constructed. In an attempt to help answer the question, the City Council authorized a
feasibility study. Dakota Worldwide completed the second liquor store feasibility study and the
results were presented to the City Council in early 2002. Questions about when a second store
should be undertaken were left unanswered and additional financial information is required in
order for the City Council to reach any conclusions. This issue was put aside until the budget
discussions, which are now underway.
Attached for your review is the Dakota Worldwide feasibility study and cover letter. The
executive summary of the feasibility study indicates that based on a 4000 square foot sales area
store, the first year gross sales are expected to be about $1.65 million and the sales at
Northbound would decrease by about $400,000 (page 2). This results in a net of about $1.25
million in gross sales. By the third year of operation, the City will net about $1.87 million.
These figures would be lower if a state law was passed which allows the selling of wine in
grocery stores. On the other hand, I believe that a Westbound would be somewhat of a
catalyst for other commercial development out west along Highway 10, which in turn, may
help the total sales picture at a Westbound.
The feasibility study states at the end of page 2 that a profit/loss analysis and break-even pro
forma is needed in order to help determine if a store is financially feasible. The report goes on
to say that "If not now, Elk River should have sufficient potential in several years if
population growth continues at the expected rate, to be able to support a second store".
On Monday evening, Finance Director Loft Johnson and Liquor Store Manager David Powin
will be at the meeting to present some revenue/expenditure projections for Westbound liquor
store. Key figures in the financial projections from Loft and Dave will be the liquor sales
figure, the loss at Northbound figure, and the debt service figure. (The operating expenses will
be based on actual expenses at Northbound.) Two of the important issues related to the
proposed store are whether or not the City can afford the construction project/debt and will
the store make money without impacting sales at Northbound. The short answer is "yes" we
can afford some type of new store in 2004, but the answer on "profit" is less certain.
Without picking apart the Dakota Worldwide study, I think that there are some issues that
need to be reviewed. Certainly Dakota Worldwide is the expert and we have to rely on their
information but I was surprised at the market area that was evaluated, the lack of emphasis on
Highway 10 traffic, and the analysis done at Northbound as it relates to customers generated
by pass through traffic on 169.
This item is on the City Council agenda for discussion independent of the other CIP-budget
issues that will be presented on August 12, 2002, as this issue may generate a lot of discussion.
Also, a Westbound Liquor store would be funded with liquor store funds and in this regard, is
unlike various street projects that are in competition for the same funds or unlike various
equipment items which are in competition for equipment certificates or reserve funds.
s:\council\pat\westboundstudy, doc
CITY OF ELK RIVER, MINNESOTA
MUNICIPAL LIQUOR FUND
COMPARATIVE BALANCE SHEETS
DECEMBER 31, 2001 AND 2000
EXHIBIT E-7
2001 2000
ASSETS
CURRENT ASSETS
Cash and investments
Receivables:
Interest
Accounts
Inventories
TOTAL CURRENT ASSETS
1,805,708 $ 1,416,935
18,115 11,722
2,595
373,278 411,238
2,199,696 1,839,895
FIXED ASSETS
Land and improvements
Buildings
Equipment, furniture and fixtures
TOTAL FIXED ASSETS, COST
LESS ACCUMULATED DEPRECIATION
TOTAL FIXED ASSETS, NET
TOTAL ASSETS
823,761 823,761
1,394,887 1,394,887
154,012 149,203
2,372,660 2,367,851
517,145 443,128
1,855,515 1,924,723
$ 4,055,211 $ 3,764,618
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES
Accounts payable
Salaries and benefits payable
Bonds payable, current portion
TOTAL CURRENT LIABILITIES
$ 204,413
31,342
140,000
375,755
$ 207,695
28,537
80,000
316,232
LONG-TERM LIABILITY
Bonds payable, less current portion above
TOTAL LIABILITIES
780,000
1,155,755
920,000
1,236,232
FUND EQUITY
Retained earnings -
Unreserved
TOTAL LIABILITIES AND FUND EQUITY
2,899,456
$ 4,055,211
2,528,386
$ 3,764,618
?2
CITY OF ELK RIVER, MINNESOTA
MUNICIPAL LIQUOR FUND
COMPARATIVE STATEMENTS OF REVENUE, EXPENSES
AND CHANGES IN RETAINED EARNINGS
YEARS ENDED DECEMBER 31,2001 AND 2000
EXHIBIT E-8
% of
2001 Sales
2OOO
% of
Sales
OPERATING REVENUE
Sales
Less cost of sales
GROSS PROFIT
OPERATING EXPENSES
Personal services
Professional services
Utilities
Maintenance and repairs
Insurance
Depreciation
Printing and advertising
Supplies and miscellaneous
TOTAL OPERATING EXPENSES
OPERATING INCOME
NONOPERAT1NG REVENUE (EXPENSE)
Interest income
Miscellaneous revenue
Interest expense
Loss on disposal of fixed assets
TOTAL NONOPERATING REVENUE (EXPENSE)
INCOME BEFORE TRANSFERS
OPERATING TRANSFERS OUT
NET INCOME
RETAINED EARNINGS, JANUARY
RETAINED EARNINGS, DECEMBER 31
$ 3,981,509 100.00
2,962,967 74.42
1,018,542 25.58
310,016 7.79
2,982 0.07
27,051 0.68
15,305 0.38
5,083 0.13
74,017 1.86
21,577 0.54
46,625 1.17
502,656 12.82
515,886 12.96
60,412 1.52
4,O32 0.10
(60,960) (1.53)
- 0.00
3,484 0.09
519,370 13.05
(148,300) (3.72)
371',070 9.33
2,528,386
$ 2,899,456
$ 3,788,048
2,846,326
941,722
279,743
2,100
23,825
6,548
4,366
75,664
14,251
44,700
451,197
490,525
78,782
4,106
(66,040)
(10,871)
5,977
496,502
(146,400)
350,102
2,178,284
$ 2,528,386
100.00
75.14
24.86
7.38
0.06
0.63
0.17
0.12
2.00
0.38
1.18
11.92
12.94
2.08
0.11
(1.74)
(0.29)
0.16
13.10
(3.86)
9.24
?3
DAK OTA
February 22, 2002
Mr. Dave Potvin
Northbound Liquor
19348 Evans Street
Elk River, MN 55330
Dear Dave:
Enclosed please find four copies of the Northbound Liquor Store study to determine the feasibility
of opening a second municipal liquor store in Elk River. One location (Site 1000) was tested at
the northwest quadrant of Joplin and U.S. Highway 10 on the outbound side of the highway on
the west side of Elk River.
This property should be available for immediate development, but these projections assume that
the second store will not likely be constructed until mid 2004 to allow for a reduction of the debt
load from the construction of the existing store. One size of 4,000 sales area square feet (8,000
total square feet) was tested for this location.
There are numerous market changes affecting the trade area. Currently, the cities of Monticello
and St. Francis are constructing additional space for their municipal stores and Rogers is expected
to start construction with/n the next year on a replacement unit'that will be located adjacent to the
Super Target that is now under construction. In addition, Riverview Liquor in Ostego may have a
much needed remodel. Wiser's Liquor in Ramsey has been open for approximately six months
and for the projections, this store will have a matured image in the marketplace. A second
scenario is included to show the effects on the Northbound Liquor Stores by the addition of wine
sales in the grocery stores in the trade area.
A second municipal liquor operation allows Northbound Liquor to better compete with its
improved sister municipal liquor stores to the south and southwest, and remain competitive in the
marketplace. A second store will also expand Elk River's gross sales by approximately
$1,200,000 annually.
Thank you for selecting Dakota Worldwide for this market study. It was a pleasure meeting with
you and the rest of the city's staff a few weeks ago. Please call if you have any questions or if
Dakota Worldwide can be of further assistance.
Sincerely,
Len Sage
Enclosures
4801 81st Street, Suite 105' Minneapolis, MN 55437
Telephone 952.835.4505 · Fax 952.835.4461
Internet: www. dakotaww, com E-mail: dakotaww~dako~aww, com
DAKOTA
Elk River, Minnesota
Prepared for: Northbound Liquor/City of Elk River
By: Dakota Worldwide Corporation
February 2002
CRO002
4801 81st Street, Suite 105 · Minneapolis, MN 55437
Telephone 952.835.4505 ° Fax 952.835.4461
Internet: www. dakotaww, com E-mail: dakotaww~dakotaww, com
Elk River, Minnesota Market Study (CRO002 - February 2002) Page i
Table of Contents
Page
Executive Summary ......................................................... 1 ,
Decision Matrix ........................................................... 2
Trade Area Delineation .................................................... 4
Population/Demographics .................................................. 4
Competition ........... .................................................. 5
Market Shares by Chain .................................................... 6
Site Evaluation/Analysis ....................... : ........................... 25
Analysis ................................................................. 26
Assumptions ........................................................... 26
Future Considerations .................................... ' ................ 26
Methodology .............. ~ .......................................... ~. 27
Competitor Information & Evaluation ........................................ 28
Trade Area Data by Sector ................................................. 30
Appendix .................................. '~ ............................. 32
Current Market Reports ................................................... 32
Market Change Reports ................................................... 39
Scenarios/Projections ..................................................... 41
Definitions ............................................................. 49
Qualifier .............................................................. 50
Source Data ............................................................ 51
Dakota Worldwide Corp.
4801 81~ Street, Suite 105 · Mim~eapolis, MN 55437
Telephone 800.475.4505 · Fax 952.835.4461
Page
Elk River, Minnesota Market Study (CRO002 - February 2002)
Executive Summary
The purpose of this study is to evaluate the feasibility of opening a second municipal liquor store
in Elk River. One location (Site 1000) was tested at the northwest quadrant of Joplin and U.S.
Highway 10 on the outbound side of the highway on the west side of Elk River.
Site 1000 is currently the center lot of three vacant parcels of land awaiting future commercial
development. There is limited new housing growth occurring just to the north, but this part of
Elk River is less developed than the east side, which also has the prime shopping area of Elk
River. A new Holiday Station store is located at the southeast quadrant of Joplin and U.S.
Highway 10. U.S. Highway 10 is a major arterial between St. Cloud and Metropolitan
Minneapolis-St. Paul. Accessibility to the north and south of the site is possible by the
neighborhood street network. The majority of Elk River's population growth in the 1990's has
occurred on the east side, but some growth is now starting to the north of the site in Sector 10.1.
Physical site characteristics including, accessibility, visibility and ingress/egress are rated from
good to very good. This location, like the existing stores', is in an excellent position to capture
westbound traffic and transient traffic heading west via Highway 10 to "lake country."
Elk River and its surrounding townships and communities constitute one of the fastest growing
areas in the metro area and the state. Its population increased from 11,143 people in 1990 to
16,447 people in 2000 or 4.76% per year. Current increases are projected to be at least 4% per
year for the next several years. Most of this growth will be on the east side in Sector's 7, 8.3 and
9, and in the west in Sector 10.1. The surrounding communities and townships are also
experiencing strong growth, and this trend is also expected to continue for at the next several
years. Overall growth, based on the number of planned developments in the trade area is
projected to be just over 5% for the next several years
Three stores dominate the area's liquor store business, and they are all municipal stores.
Northbound Liquor, one of the better municipal operations in the state, is the market share leader
followed by Lake Center Liquor (Big Lake) and Hi-Way Liquor (Monticello). The other 14
stores affect the trade area to a lesser degree, with the best market share of these stores
belonging to Riverview Liquorette because of its location in the center of Ostego.
There are a number of market changes that will affect the trade area. Monticello and St. Francis
are now undergoing major expansions and improvements for their municipal stores and the City of
Rogers is expected to start construction within the next year of a replacement off-sale liquor store
adjacent to the new Super Target. In addition, Riverview Liquor in Ostego may remodel, and
Wiser's Liquor in Ramsey (newly opened) will mature its image in the marketplace. In the next
several years wine sales in Minnesota grocery stores may be allowed and a test is included in this
study to show the effects on the marketplace and Northbound Liquor if this takes place.
Dakota Worldwide Corp.
4801 81~ Street, Suite 105 · Minneapolis, MN 55437
Telephone 800.475.4505 · Fax 952.835.4461
Elk River, Minnesota Market Study (CRO002- February 2002) Page 2
In summation, the first year sales for Site 1000 with 4,000 sales area square feet are $1,651,733
or $412.93 per square foot, and grow to $1,868,131 or $467.03 per square foot in the third year
of operation. The existing Northbound Liquor will have sales of $3,558,025 during the stores
first year of operation and increase to $3,938,347 in the third year, nearly the same as its current
sales. Much of the existing stores strength are due to its location in the primary shopping district
in the area and its position near the Elk River's primary growth area.
A profit and loss analysis and break-even pro forma will best determine the feasibility of either site
and optimal size. If not now, Elk River should have sufficiem potential in several years if
population growth continues at the expected rate to be able to support a second store.
I
Map Key 1 Sales $4,000,000 $4,501,222 $3,558,025 $3,224,688
$/SF $888.89 $1,000.27 $790.67 $716.60
Market Share 25.23% 23.33%' 18.44% 16.71%
Site 1000 Sales $1,651,733 $1,521,956
$/SF N/A N/A $412.93 $380.49
Market Share 9.09% 8.3 8%
Totals $859,000 $986,432 $5,209,758 $4,746,644
$/SF $917.74 $1,053.88 $612.91 $558,43
Market Share 11.67% 12.72% 27.53 % 25.09%
Dakota Worldwide Corp.
4801 81~ Street, Suite 105 · Minneapolis, MN 55437
Telephone 800.475.4505 · Fax 952.835.4461
Elk River, Minnesota Market Study (CRO002 ~ February 2002) Page 3
Market Changes:
Scenario 1:
Scenario 2:
Estimated population is growth realized.
Hi-Way Liquor in Monticello upgrades and expands to approximately
6,000 sales area square feet at Map Key 3.
St. Francis Liquor upgrades and expands to approximately 2,200 sales area
square feet at Map Key 8.
Riverview Liquor (Map Key 10) upgrades at its present size.
Roger's Liquor relocates to a new 10,000 square foot facility with 7,100
sales area square feet adjacent to Super Target at Map Key 15.
Wiser's Liquor (open for 6 months) image matures in the market place at
Map Key 16.
A second Northbound Liquor opens with 4,000 sales area square feet
(8,000 total square feet) at Site 1000 on the northwest quadrant of Joplin
and U.S. Highway 10, with market changes in effect.
Grocery wine sales are allowed and wine selections are opened in the
following supermarkets: Cobums at Map Key 100 and Cub Foods at Map
Key 200 in Elk River, Stevens SuperYalu at Map Key 300 in Big Lake,
Cub Foods at Map Key 400 and Maus Foods at Map Key 500 in
Monticello, Stevens SuperValu at Map Key 600 and Super Target at Map
Key 1300 in Rogers, County Market at Map Key 700 in St. Francis,
Letoumeau's SuperValu at Map Key 800 in Ramsey, Coburn's at Map Key
900 and Freichel's SuperValu at Map Key 1200 in Princeton, and Cobum's
at Map Key 1100 in Albertville.
A second Northbound Liquor opens with 4,000 sales area square feet
(8,000) total square feet) at Site 1000 on the northwest quadrant of Joplin
and U.S. Highway 10, with market changes in effect.
Dakota Worldwide Corp.
4801 81~ Street, Suite 105 · Minneapolis, Mlq 55437
Telephone 800.475.4505 · Fax 952.835.4461
Elk River, Minnesota Market Study (CRO002 - February 2002)
Page 4
Trade Area Delineation
The trade area is defined by natural boundaries, the existing road network and the sites'
relationship to competition. The trade area is located in Sherbume and Hennepin Counties and
extends from County Roads 11 and 75 in the west to Now Then Boulevard in the east, and from
27 l't Avenue in the north to the Mississippi River and 60th Street in the south. At its widest
points, the trade area extends 15.6 miles north to south and 18 miles east to west.
Personal checks for purchases the weekend prior to the start of field work were monitored to
assist in the determination of the draw of Northbound Liquor. From the subsequent list it was
determined that approximately 79% of the customers lived with the designated trade area. A
draw of 80 was used in the LOCUSTM 2000 model.
Population/Demographics
i:!:: i:i:!: ::::::::::::::::::::::: !: !:!: i: i:!:!:!: !: !: i:i:i:i:i: i: !:!:!:i: i:i: !:!:! :i:!:!:! :: :!:!:!:i: !:5: !: !:!: i:: i:: !: !: ::::::::::::::::::::: :!:!:!:i: :!: i:!:! :!:i:i :i :i:i: !: i: i:i:!:!:!:!:!:!:! :i:!:}:}:i :!:i:i:!: i: i: i:i:i:!:!:i:i:i:!:i:i;
Potential $12,681,701
P.C.E.
1990 Census Population
2000 Estimated Population
2002 Estimated Population
2005 Estimated Population
$217.97
33,904
52,644
58,180
69,356
The current population in the trade area is 58,180 people and the average P.C.E. is $217.97,
ranging from a high of $233.37 in Sector 3 to a low of $209.47 in Sector 12. The total potential
is $12,681,701, and the 17 facilities identified are receiving $9,461,500 or a 74.61% market share.
Total float, which consists of stores located outside the study area, small off-sales areas in bars,
minor facilities and leakage is $3,220,201 or 25.39%.
The 1990 median income for the trade area is $41,966 with an average family size of 3.1 people.
Its demographic makeup is 96.8% white, 0.3% black, 1.2% Hispanic and 0.5% Asian, with 5.7%
under the age of 18, 3.1% over the age of 65, 0.0% college and 0.1% military.
Elk River and its surrounding townships and communities constitute one of the fastest growing
areas in the metro area. Elk River increased its 1990 population from 11,143 people to 16,447
0
people in 2000 or 4.76% per year. Elk River' s current increases are expected to be 4 Vo p, er year
for at least the next several years. Most of this growth will be on the east side, in Sector s 7, 8.3
and 9, and on the west side in Sector 10.1. In the surrounding communities of Big Lake and
Zimmerman and Ostego, growth has been strong, as well as the surrounding townships. The
entire trade area is projected to increase by more than 5% per year in the next several years.
Dakota Worldwide Corp.
4801 81~ Street, Suite 105 · Minneapolis, MN 55437
Telephone 800.475.4505 · Fax 952.835.4461
Ell' River, 3Iinnesota Market Study (CRO002 ~ February 2002)
Page 5
Competition
Number of Facilities - Total
Total Trade Area Potential
Facility Sales Within Trade Area
Percent of Sales from Trade Area
Float
17 '
$12,681,701
$9,461,500
74.61%
$3,220,201
25.39%
Highest Volume Facility
Northbound Liquor (Map Key 1)
Largest Facility
Northbound Liquor (Map Key 1)
$4,000,000
4,5OO SF
Sales Per Square Foot - Average - Sales Area..
High (Hacks- Map Key 12)'
Low (P&A- Map Key 6)
$536.00
SI,200.00
$142.86
Combined, the 17 facilities contain a total of 37,700 square feet with total sales of $20,230,000.
The facilities average 2,218 square feet and $1,190,000 in sales. The average sales per square
foot are $536.60. Northbound Liquor, currently the largest facility in the trade area, is the market
share leader with a 25.23% market share, followed by Lake Center Liquor (Big Lake) with a ·
10.41% market share and Hi-Way Liquor (Monticello) with a 9.94 % market share. The other 14
stores affect the trade area to a lesser degree, with the best market share of these stores
belonging to Riverview Liquorette (5.24% market share) because of its location in the center of
Ostego.
Dakota Worldwide Corp.
4801 81~ Street, Suite 105 · Mi;meapolis, lvl3q 55437
Telephone 800.475.4505 · Fax 952.835.4461
Elk River~ Minne,'ota ~arkei Study (CRO002 ~ Februao, 2002) Page 7
Map Key 1
Northbo~d Liquor
193~a/Hwy~ 169
Elk ~veq MN
Weekly Volume - $4,000,000 or $888.89 ~r s% ft.
l~arke~ Share - 25.23%
Total Area - 8,000 sq. ~.
Sales Area - 4,500 sq~ ft.
Check @uts ~ 3
Primary Parking - 60
Store ~ours ~ 9-10 Mon-Fri, 8-10 Sat
Draw - 80
Image - 161
~age Rank - 1 of 17
Adjacent Retail ~ Freestanding
Adjacent Retail 2 - Cash Wise
E×terual Conditioa~ ~ 5
lateraal Conditions - 4
geer - 5
Wine - 3
Liquor = 4
Misc~ - 4
Product ~owledge - 4
Northbound Liquor is one of the best municipals in the state, and is loca'md in a facility' that is as
modem and competitive as any private high volume leader, its reputation allows it to pt~l business
over distance.
Evaluation Ratings: 0~N/A; 1-Poor; 2-Below Average; 3-Average; 4-Above Average; 5-Excellem
Dakota Worldwide Corp.
4801 8P~ Street, Suite 105 ~ Mimaeapolis, MN 55437
Telepho~e 800.475.4505 - Fax 952.835.4461
Elk River, Minnesota Marl,:et Stgdy (CRO002 ~ ~¢bruary 2002) Page 8
5~ap Key 2
Lake Center Liquor
Fem'Hwy. l0
gig Laker MN
Weekly Volume - $1,650,000 or $634.62
Market Share - 10.41%
Total Area - 4,600 sq. fL
Sales Area - 2~600 sq. ~L
Check Outs - 2
Primary Parking - 12
;tore Hours - 9-10 Moa-Sat
Draw ~ 80
Image- 143
Image Rank - 3 of 17
Operations - 3
Ex~teraal Conditions - 3
l~eer - ~
Wine - 3
Liquor = 3
Product Knowledge - 3
Adjacent Retail - Stevens SuperValu, Hardware Hank
Adjacem Retail 2 - Auto Parts, shops
Lake Center Liquor, Big Lake's murdcipal umt is a small store with limited ex, sure to the h~ghway.
However, it is a well run unit that does very well for its size, es~cially since it competes with two
larger municipals, Monticello and Elk R~ver,
Evaluation Ratings: O-N/A; l =Poo e; 3-Avera~ 4~Above Avera~ 5-Excellent
Dakota Worldwide Corp.
4801 81a Street, Suite 105 * Mmeapolis, 1L&q 55437
Telephone 800.475.4505 . Fa_x 952.835.446~
River, M#mesota Market Study (CRO002 ~ Februao' 2002) Page 9
Map Key 3
Hi-Way L~quors
6~/Co~ Rd. 25
,000 or $666.67 per sq. a.
Market Share - 9~94%
T{~tal Area - 6,400 sq. ft~
Sales Area - 4,200 sq~ ft
Check O~ts - 2
Primary Parking - 20
Store Holm - 9-10 Mon~Sat
Draw - 45
Image- 145
Image ~nk - 2 of 17
Adjacem Retail - Fr~smn~ng
A~jacem Retail 2 - Cub & Maus Foo&s nea~;
External Cond~tioas - 3
Iaternal Coaditions- 3
13eer - 5
Wine ~ 4
Liquor ~ 4
Mi~c - 3
Pmdac~ ~ow~edge ~ 4
Tiffs Monticello municipal umt takes advantage of ~ts location near Interstate 94 and features
aggressive pricing on ~er and key ~tems~ It ~s well merchan&se& and has (he advantage of~ng the
only liquor facili¢~ in a ci~, wSth good ~pulation ~o~h. This sram is m~dergoing a major ex~nsion
and mm~el.
EYaluatio -Above Ave
Dak¢~ta Worldwlde C~r£.
4801 81~t Street, Suite 105 ~ ~Mirmeapolis, MN 55437
Telephone 800A75o4505 ~ Fax 952.835 ~4461
Elk River, Minaesota Market Study (CRO002 ~ Febr~,aO, 2002) Page
I~lap Key 4
Princetnn Liquor
6WRum River
Weekly Volume - $1,400,000 or $583.33 per sq. fl~ Rating_~
Market Share - 0.55%
Total Area - 3,700 sq.
Sales Area - 2,400 sq. fL
Check Outs - 2
Primary Parking ~ 15
Store Hours - 8-10 Moa-Sat
Draw' ~ 5
Image 1 89
Image ~k - 12 of 17
Adjacent Retail - Freestanding
Operations - 4
External Conditious - 4
Internal Conditions = 4
geer - 4
Wine - 3
Liquor - 3
Misc - 2
Product Knowledge - 3
This is a fairly new buildirtg ia good condition that serves the Princeton area. The ma~iority o~
Princeton's business ia the trade area will come kom the northern sectors.
Evaluation Ratin~-N/A: 1-Poor: 2-Below Aver e Avers eat
Dakota Worldwlde Corp,
4801 g 1~ Street, Suite 105 , l~6mrteapolis, N~;r 55437
Telephone g00.475.4505 * Fax 952.835.4461
Elk River, Minnesota Marke~ 5¥~,dy (CRO002 ~ February 2002) Page
Key 5
Frontier
Fremont/Hwy. 169
Weekly Volume - $900,000 or $473.68 l~r
Market Share - 4.97%
Total Area ~ 3,600 sq
Sales Area - 17900 s% ft.
Check Oats ~ 2
Primary Parking -
Draw - 70
Image - 111
Image ~nk - 4 of 17
Adjacent Rel~l - Hi,way Sthp
Adjacent Retail 2 ~ Lon~om Cafe
Frontier is the best of the small stores ia Zimmerman. its strength is ia the merchand/sing of beer and
name reco~tioa.
Evaluation R~ati elow e Avera~ 5-Excellent
Dakota Worldwide
4801 8~a Street, Suite '~05 * Mhmeapolis~ 1~ 55437
Telephone 800.475~4505 . Fax 952.835.446 ~
l~ap Key 6
P&A
Zimmerm~ ~$N
Weekly Volume - $500,000 or $14Z86 per sq. ft.
Market Share ~ 3.15%
·otal Area - 4~300 s% ~.
Sale~ Area ~ 3~500 s% ft.
Check O~t~ - 1
Primary Parking - 17
Store ~our~ - Sd0 Mon-Sa~
Draw - 80
~age ~nk ~ 17 of 17
A~jaceat Retail - shops
Operations - 2
External Conditions - 4
Internal ConSitions - 3
geer - 3
Wine - 2
Liquor - 3
Mist - 2
Prod=ct ~owledge - 2
Th~s is the newest l~quor operation in Z~mmerman, and while ~t ~s easily ,risible from ~ghway 169~
2s regress/egress ~s ~kom the frontage road or s~de streets. It also emphasizes beer sales~ This unit has
the lowest sales per square foot of all the competitors.
Evaltmtion Ratin~z. low' Aver 4-Abo've -Excellem
Dakota worldwade Cotb
4801 81~ Streeh Suite 105 ~ Minneapolis, ~k~4 55437
Telephone 800.475,4505 * Fax 952.835.4461
Elk River, Minnesota Market 3¥udy (CRO002 ~ February 2002) Page
~lap Key 7
Uptown
2"a Ave/2aa St
Zimmem~
Weekly Volume ~ $400,000 or $181.82 ~r sq.
Market Share - 2.52%
Total Area - 4.$00 sqo fL
Sales Area - 2200 sq.
Check Oats - 1
Primary Parking - 18
Store Hours - 8~10 Mort-Sat
Draw - 80
~age - 74
Image ~ak - 16 of 17
Adjacent Retail - Fmestan~ng
Adjacent Retail 2 = Near city ball fields
Operations - 2
External Conditions - 3
internal Conditions - 3
Wine ~ 2
Liquor - 3
Misc ~ 2
Product Knowledge - 2
This is a new replacement umt for a store that was in a smaller location in Zimmerman's CBD. TI,A~
store gave up a small, but Yqsible location for an adequate sized building that has limited visibility an;
ingress/egress.
Evaluation Ra -Below Aver Above Ay -Excellent
Dakota Worldwide C~
4801 81a Slreet, Suite 105 ~ ~eapolis, MN 55437
Telephone 800~475.4505 * Fax 952.835.4461
Elk River~ Min~e,~ota Market 3¥u~dy (CRO002 ~ February 2002) Page
No Photo Available
Map Key 8
St. Frands L~qaor
Co. Rd~ 81/Hwy. 47
850,000 or $1062.50 per s%
Market Share ~ 0.34%
Total Area ~ 1,200 sq.
Sales Area ~ 800 sq.
Check Oats ~ 1
Primary Parkiag - 20
Store Hoars - %10 Moa-Sat
Draw - 5
~age - 90
Image Raak - 11 of 17
ASjacent Reta~ - Fmes~a~ng
Operations - 3
E~eraal Conditions - 3
Iaternal Coadafions ~ 3
lgeer = 3
W~ne ~ 3
L~qaor ~ 3
~lisc ~ 2
Prodac~ Kaowledge = 3
This ~s a very small bat saccessihal marfic~pal store ~n St. Fraac~s that is the process of upgrading
expanding~ This aaWs sales from the ~rade area are primarily from Sector 17.
Evaluation 2-Below Aver -Above Aver Excellent
Dakota Worldwide Cortb
4801 8Pt Street, Suite 105 - ~eapolis, MN 55437
Telephone 800.475~4505 , Fax 952.835~4461
Ell{ River~ Mi~ne~ota Marke~ Study (CRO002 ~ February 2002) Page 15
Map Key 9
M&L L~qaors
167a/Hwy. 47
~maey~ MN
Weekly Volume - $800~000 or $363.64 ~r sq. fi.
Market Share - 1.58%
Total Area - 4,700 s% ft.
Sales Area - 2,200 sq. ft~
Check Outs - 2
?r~mary ?ark~ng - 10
Store Hour~ - 8~].0 Mort-Sat
Draw - 25
Image ~ 78
Image Rank - 14 of 17
Adjacent Retail - Sho~
A~jaceat Retail 2 - Letoumeau Su~rValu
Ratings
Operations - 3
External Conditions - 3
imemal Conditions - 3
Beer = 3
Wine - 3
Liquor - 3
Mist - 3
Produc~ Knowledge - 3
This is a neighborhood store located in a rural shopping area of P, amsey. It is located ac:ross the street
kom Letoumeau's SuperValu~ a p~mary draw in t?fis area ~br years. Th~s is an average store with
decem neighborhood appeak
Evaluation Ratin 2-Below Ave -Above Aver~5-Excellent
Dakota Worldwide Corp.
4801 81a S~eeL Su~e 105 - Mkmeapolis~ ~'¢~'q 55437
Telephorte 800.475~4505 ~ Fax 952.8354461
E~ River, Minnesota Market St~4v (CRO002 ~ Febru~ 2002) Page ;[6
Map Key 10
l~ve~iew Liqoarette
90a/Co. Rd. 42
Ostego~ MN
Weekly VolUme - $700,000 or $411~76 per sq.
l~arket Share - 5~24%
Tot~ Area - 2,900 s% ft.
Sales Area - 1~700 sq..ft.
Check On~s - 2
?rimary ?arking - 15
Store Honm - %10 Mort-Sat
Draw - 95
Image- 105
Image Rank - 5 of 17
Adjacent Retail - Shops, Tom Th~b
Operations - 3
Beer ~ 3
Wine - 2
L~qaor - 3
Mist - 2
Product Knowledge - 2
This umt ~s located off of Highway 101 in a small retail area in Otsego, just south of Elk ~ver. Its
merchandising has improved sli&htly mqer the store was sold approx~mate¢ a year ago. Its internal
conditions still need ]mprovemenL and an upgrade is ~ssibte m the next year.
Evalvsatio ow Aver e Aver xcellent
Dakota Worldwide
4801 81~ Street, Suite 105 * Mmxteapolis, l~4~q 55437
Telephone 800.475.4505 * Fax 952.835.4461
Elk River, Minnesota Market Study (CRO002 ~ February 2002) Page
No Photo Available
l~ap Key 11
Co. Rd. 4 ,101
W~kly Volume - $550,000 or $}75.00 per sq. fL ~tin~
Market Share - 3.90%
Total Area - 4,200 sq. a~
Sales Area - 2,000 sq. fi~
Check Ores - 2
P~mary ?arkiag - 10
Store ~o~rs ~ %10 Mon~Sat
Draw - 90
~age- 103
~age Rank - 6 of 17
Adjacent Ret~l - C-Store, shops
Wine - 4
Liquor ~ 3
Prodnct ~owle~ge ~ 3
This store in a small strip center on Hi,way 101 in Otsego that emphasizes ~ts vdne selection. Sales
have improved w~thin the last year.
Evaluation Ra Ave e Avera~ 5-Excellent
Dakota W¢~rldw~de Cor~.
4801 81a StreeL Sa~te 105 ~ }~rrmeapolis~ 1~~ 55437
Telephone 800~475.4505 ~ Fay: 952.835A461
River, Minnesota Marke~ $tu43~ (CRO002 ~ February 2002) Page
Map Key 12
~acks
Co .RtL 37/I-94
Weekly Volume ~ $900,000 or $1200.00 per sq. ft.
Market Share - 0.71%
Total Area - 1,400 sq. iL
Sales Area - 750 sq. fi.
Check Outs ~ 1
Primary Parking ~ 10
Store Hours - 9-10 Mon-Sat
Draw- 10
Image - 94
Image Rank - 8 of 17
Adjacent Retail - C-Store/Conoco
Exter~aat Conditkms - 2
Internal Conditions ~ 2
geer - 4
Wine - 3
L~qaor - 3
M~c ~ 2
Product ~owledge - 3
Tl~s is a very small store that has been in business for approxim:ately 20 years. Its visibility is limited
except from Chanty Road 37 north of I~94. However, it is well known in the Albertville area.
ellent
Dakota Worldwide Corp.
4801 81a StreeL Suite 105 * Minneapolis, Nfi'~ 55437
Telephone 80&475.4505 , Fax 952~835~4461
ES River~ Mintwsota Market Study (CRO002 ~ February 2002) Page
Map Key 13
Albe~lle Liqoar
$481.48 per sq.
Market Share - 1 ~03%
Total Area - 3,700 sq~
Sales Area = 2,700 sq.
Check Onts - 2
Primary Parking ~ 25
Store Hoars - 9-10 Mort-Sat
Draw- l0
Image ~ 92
Image Rank - 9 of 17
Adjacent RetMl - CBD
l~eer - 4
W~ne - 3
L~qnor - 3
Prodnct Knowledge - 3
Albert-Alle Liquor is located in a pole barn-constructed commercial/retail strip in the central business
· str~ct of Alber~ille. While it is not the best la~d out facility, it has a fairly good offer/ng ¢[
merchandSse, especial¢ beer. Its location near Interstate 94 and the new Albert~qlle Outlet Mall is
a plus ~br this facility. Sales ha~,e been increasing sinc~ its opemng a few years ago.
Evaluation elow 4-Above Avera~ 5-Excellent
Dakota World ~
4801 81~ Streei~ Suite 105 , Mhmeapol]s, MN 55437
Telephone 800.475.4505 ~ Fax 952.835.4461
River, Minnesota Marke~ Study (CRO002 ~ Febru~ 2002) Page 20
Map Key 14
HI IOl Liquor
Rd~ 36~wy,
Weekly Volume - $1,200,000 or $363.64 per sq. ft
Market Share - 3~31%
Total Area - 3,800 sq. fi.
Sales Area - 3~300 sq. ft
Check Outs - 2
Primary, Parking - 20
Store Hours - %10 Moa-Sat
Draw - 35
Image- 102
Image Rank - 7 of 17
Adjacent Retail - Freestanding
Ratin~
Operations - 3
geer - 3
Wine - 3
Liquor - 3
Misc- 2
Product Kuowledge- 2
~ 101 is located On Highway 10l north of the Crow River and has very difficult ingress/egress~ Its
attraction is the emphasis on its beer section. The only sign visible from the highway is "BEER,'
without which the store would easily be passed
Evaluation Rati or; 2-Below Aver Above Avera~-Excellent
Dakota Worldwide Corp.
4801 8ta Street~ Suite 105 ~ Minneapolis, MN 55437
Telephone 800.475.4505 , Fax 952.835.4461
Elk River, Minnesota Market Study (CRO002 ~ February 2002) Page 21
Map Key 15
Rogers Liquor
Rogers~ r~N
Weekly Volume - $930,000 or $978.95 l~r sq.
Market Share - 0.37%
17otai Area - 2,200 sq. fl.
Sales Area - 950 sq. ft.
Check {)ms - 2
Primary Parking ~ 25
Store Hours - 9-10 Mon~Sat
Draw - 5
Image - 90
~age Rank - 10 of 17
A~acent Retail - Combined On/Off Sale
RatinAk~
{)perations - 3
Exteraai Conditions - 3
lnternai Conditions - 3
Beer - 3
Wine - 3
Liquor ~ 3
Mist ~ 2
Product Knowledge - 3
Rogers Liquor's is small for its sales and available potential, and it has very good production ~r
square foot. Much of this store's current success is also due to its location just off of I~94 at Highway
101 and it's adjacent on sale ihcility. This unit is scheduled to relocate within the next year.
Evaluation Rati !-Pqor5 2-Below Ave rage_; 4~Above Aver~ 5-Excellem
Dakota Worldwlde Corp.
4801 81~ S~eet, Suite 105 ~ Minneapolis, MN 55437
Telephone 800.475.4505 ~ Fax 952.835~4461
Map Key 16
Wiser*s L~qaor
A y, l0
Ramsey~
Weekly Volume - $750,000 or $681.82 ~r sq. rt.
Market Share - 0.89%
Total Area - 1,800 s% fL
Sales Area - 1,100 sq. ft.
Check Oul~ - 2
Primao, Parking - 15
Store ~o~rs - %10 MomSat
Draw~ 15
Image ~ 85
Image Rank - 13 of 17
Adjacem llet~l ~ Freestanding
Operatinu~ - 3
Exter~ml Comlitions
geer - 3
Wine - 3
Liquor - 3
Pm~l~ct Knowledge
This unit is approximately six months old and still increasing in name reco~tion and roles. It is
:located just off U,S. Highway 10 and serves somhem Rams~-.
Evaluation Ratin w Ave Above ellem
Dakota Worldwlde
4801 81~ Street, Suite 105 , Mimq~polis, MN 55437
Telephone 800.475~4505 . Fax 952~835~4461
Elk River, Minnesota Market Study (CRO002 ~ February 2002) Page 23
No Photo Available
Map Key 17
Discount 10 Liquor
Ramsey/Hwy. 10
Ramsey, MN
Weekly Volume - $600,000 or $666.67 per sq. ft.
Market Share - 0.47%
Total Area - 1,500 sq. ft.
Sales Area - 900 sq. ft.
Check Outs - 1
Primary Parking - I0
Store Hours - 8-10 Mon-Sat
Draw- 10
Image - 75
Image Rank - 15 of 17
Adjacent Retail - Freestanding
Ratings
Operations - 3
External Conditions - 2
Internal Conditions - 3
Beer - 3
Wine - 2
Liquor - 2
Misc- 2
Product Knowledge - 2
This is a small store on U.S. Highway 10 that emphasizes beer sales. Much of its trade is from Ramsey
and transient traffic on U.S. Highway 10.
Evaluation Ratings: 0 - N/A; 1 - Poor; 2 - Below Average; 3 - Average; 4 - Above Average; 5 - Excellent
Dakota Worldwide Corp.
4801 81~ Street, Suite 105 · Minneapolis, MN 55437
Telephone 800.475.4505 · Fax 952.835.4461
Em Ri**er, Minnesota Market Study (CRO002 ~ Februao' 2002) Page 24
Site
NWQ
Dakota Worldwide
4801 81~ Street, Suite 105 * lis, MN 55437
Telephone 800.475.4505 ~ Fax 952.835~4461
Elk River, Minnesota Market Study (CRO002 ~ February 2002) Page 25
JoPlinand US ~ghway I0
site lo0o
Total Area
Sales Area
Proposed Parking
Co-Tenants
Grade of Lot
Current Land Use
Adjacent Land Use
Street Conditions
Traffic Counts
1990 Counts
Traffic Controls
Traffic Flow
Visibility
Accessibility
Ingress/Egress
Transient Exposure
8,000 square feet
4,000 square feet
Assumed Good
Unknown
Level
Vacant
Residential/Light Retail
U.S. Highway 10: 4-lane divided highway
Joplin: 2-lanes city street (30 MPH)
U.S. Highway 10 east of Procter: 24,700 vehicles
Waco Street: 18,700 vehicles
Lighted semaphore at the intersection
East/West
Good
Good
Good
Very Good
Analysis
This site is the center lot of three undeveloped parcels on the outbound side ofU. S. Highway 10
on the west side of Elk River. This is a good location physically and geographically for a second
municipal liquor store in Elk River. Like the original store, it has the advantage of being on the
"lake destination" commuter side of the highway. There is a small new housing development now
under construction just north of the site. This location will have good exposure to transient
traffic, but it does not have the support of the major shopping area of Elk River that the original
location does. There is a Holiday Station Store on the south side of the highway which will allow
for some limited adjacent help. Limited, because this station is on the other side of U.S. Highway
10. Most of the new housing growth is on the east side of Elk River, but the growth that's in
process on Elk River's west side can easily access this location.
Dakota WorLdwide Corp.
4801 81~ Street, Suite 105 · Minneapolis, MN 55437
Telephone 800.475.4505 · Fax 952.835.4461
Elk River, Minnesota Market Study (CRO002 ~ February 2002) Page 26
Analysis
Assumptions
The sales projections for the second Northbound Liquor are based on the following key
assumptions:
· Population trends will continue to occur at rates projected by the local government
offices. The various city population estimates/projections are primarily based on actual
building information rather than growth models.
· The store will have 4,000 sales area square feet, with 8,000 total square feet.
· The store will mirror the operations and physical conditions of the existing Northbound
Liquor Store, with good beer presentation, well-merchandised wine, specialty departments
and courteous employees with good product knowledge.
· Both Northbound Liquor stores will maintain a good price image in the trade area.
· Hours will be the same as the existing store, 9:00 a.m. to 10:00 p.m. Monday through
Friday and 8-10 on Saturday.
· Projections are based upon constant 2002 dollars, with no adjustments made for inflation
and an opening date of mid 2004 is assumed.
Future Considerations
There are several market changes planned or underway that will affect the trade area. Monticello
and St. Francis are now constructing additional space for their municipal stores, and the City of
Rogers is expected to start construction within the next year on a replacement off-sale unit that
will be located adjacent to the Super Target now under construction. In addition, Riverview
Liquor in Ostego may remodel, and Wiser's Liquor in Ramsey (open approximately six months)
will mature its image in the marketplace. In the next several years, wine sales in Minnesota
grocery stores may be allowed and a test is included in this study to show the effects on the
Northbound Liquor Stores with wine in the supermarkets of the trade area.
Dakota Worldwide Corp.
4801 81~ Street, Suite 105 · Minneapolis, MN 55437
Telephone 800.475.4505 · Fax 952.835.4461
Elk River, Minnesota Market Study (CRO002 ~ February 2002) Page 27
Methodology
The sales forecasts generated in this report are based on the use of a gravity model (LOCUSTM
2000). This is done via a market simulation of a site's primary trade area using important demand
and supply information. Once a simulation is created, changes to equilibrium can be introduced
for redistributing sales, forming the basis of a sales forecast.
Demand information includes determining retail potential by defining where consumers live and
what they spend for food-at-home purchases. Population sectors (combinations of census block
groups) form the basic grouping of population. Sectors normally range in size between 1,500 and
3,500 people. Sector boundaries fall within the boundaries of census tracts and usually follow
geographic features such as major roads, rivers, city limits and the like.
Each population sector is assigned a retail liquor expenditure level. Major determinants include
family sizes and household incomes. Income is assumed to have a positive relationship with retail
liquor spending and family size is assumed to have an inverse relationship with spending.
Combining a sector's population with its expenditure level yields liquor potential, typically
formulated on a per week basis.
The supply components of the gravity model are store sales and an estimate of how much business
a particular store generates from inside the trade area. Based on a store's location, relative to an
identified trade area and store size or format, the unit will receive a certain percentage of its
business from this defined area. In the case of Northbound Liquor, the existing store has 80% of
its business shown coming from the trade area, and the projected site (Site 1000) is estimated to
receive 85% of their business from the identified trade area.
The gravity model distributes store sales throughout the trade area based on certain parameters
assigned to the store. These include store size, volume, draw (business inside the trade area),
pulling power and image. Stores such as specialty stores have "flatter" market shares over
distance than normal mainstream supermarkets.
Store image is based on customer acceptance of a unit as exhibited by store performance. This
value is fairly subjective and relates heavily to the strength of other competitors in the area, their
distances to one another and their distances to the various population sectors. An image of 100
represents an average image. Stores with above average images are attracting more business than
average, and those with below average images exhibit a weakness in consumer acceptance.
The projected Northbound Liquor site is simulated with a 150 store image to reflect its
performance, uniqueness and acceptance in the community/trade area. This compares with the
established existing unit with a 161 image.
Dakota Worldwide Corp.
4801 81~ Street, Suite 105 · Minneapolis, MN 55437
Telephone 800.475.4505 · Fax 952.835.4461
Elk River, Minnesota Market Study (CRO002 ~ February 2002) Page 28
Competitor Information & Evaluation
Map Name Total Sales Weekly Check Prim Ext Iht Pro- Bak-
Key Address Area Area Volume Outs Park Ops Cond Cond Meat duce Deli ery Rx Adjacent Retail
1 Northbound Liquor 8,000 4,500 $4,000,000 3 60 5 5 4 5 3 4 4 4 Freestanding
193rd/Hwy. 169 Cash Wise
2 Lake Center Liquor 4,600 2,600 1,650,000 2 12 3 3 3 3 3 3 3
Fem/Hx~?. I0
Store Hours
9-10 Mon-Fri,
8-10 Sat
3 Stevens SuperValu, Hardxvare Hank, 9-10 Mon-Sat
Auto Parts, shops
3 Hi-Way Liquors 6,400 4,200 2,800,000 2 20 4 3 3 5 4 4 3 4 Freestanding
6th/Co. Rd. 25 Cub & Maus Foods nearby
4 Princeton Liquor 3,700 2,400 1,400,000 2 15 4 4 4 4 3 3 2 3 Freestanding
6th/Rum River
5 Frontier 3,600 1,900 900,000 2 12 3 3 3 4 2 3 2 2 Highway Strip
Fremont/Hxvy. 169 Longhorn Cafe
6 P&A 4,300 3,500 500,000 1 17 2 4 3 3 2 3 2 2 Shops
2nd/3rd
7 Uptown 4,800 2,200 400,000 1 18 2 3 3 3 2 3 2 2
2nd Ave./2nd St.
8 St. Francis Liquor 1,200 800 850,000
Co. 81/Hx~?. 47
1 20 3 3 3 3 3 3 2 3
Freestanding
Near city ball fields
9-10 Mon-Sat
8-10 Mon-Sat
8-10 Mon-Sat
8-10 Mon-Sat
8-10 Mon-Sat
Freestanding 9-10 Mon-Sat
9 M&L Liquor 4,700 2,200 800,000 2 10 3 3 3 3 3 3 3 3 Shops
167th/Hxx?. 47 Le Turneau SuperValu
10 Riverview Liquorette 2,900 1,700 700,000 2 15 3 3 2 3 2 3 2 2 Shops, Tom Thumb
90th/Co. Rd 42
8-10 Mon-Sat
9-10 Mon-Sat
EVALUATION RATINGS: 0 - N/A; 1 - Poor; 2 - Below Average; 3 - Average; 4 - Above Average; 5 - Excellent
Dakota Worldwide Corp.
4801 81~ Street, Suite 105 · Minneapolis, MN 55437
Telephone 800.475.4505 · Fax 952.835.4461
Elk River, Minnesota Market Study (CRO002 ~ February 2002) Page 29
Map Name Total Sales Weekly Check Prim Ext Int Pro- Bak-
Key Address Area Area Volume Outs Park Ops Cond Cond Meat duce Deli ery Rx Adjacent Retail
Store Hours
11 D&R Liquor 4,200 2,000 $550,000 2 10 3 3 3 3 4 3 2 3 C-Store, shops 9-10 Mon-Sat
Co. Rd. 42/Hwy. 101
12 Hacks 1,400 750 900,000 I 10 3 2 2 4 3 3 2 3 C-Store/Conoco 9-10Mon-Sat
Co. Rd. 37/I-94
13 Albertville Liquor 3,700 2,700 1,300,000 2 25 3 3 3 4 3 3 2 3 CBD 9-10 Mon-Sat
Co. Rd. 19/Co. Rd. 37
14 HI 101 Liquor 3,800 3,300 1,200,000 2 20 3 3 3 3 3 3 2 2 Freestanding 9-10 Mon-Sat
Co. Rd. 36/Hx~?. 101
15 Rogers Liquor 2,200 950 930,000 2 25 3 3 3 3 3 3 2 3 Combined On/OffSale 9-10 Mon-Sat
Industrial/Main
16 Wiser's Liquor 1,800 1,100 750,000 2 15 3 3 3 3 3 3 3 3 Freestanding 9-10 Mon-Sat
Armstrong/Hx~% 10
17 Discount 10 Liquor 1,500 900 $600,000 1 10 3 2 3 3 2 2 2 2 Freestanding 8-10 Mon-Sat
Ramsey/Hxvy. 10
Totals: 62,800 37,700 $20,230,000
Averages: 3,694 2,218
$/SF: $322.13 $536.60
Total Stores = 17
EVALUATION RATINGS: 0 - N/A; 1 - Poor; 2 - Below Average; 3 - Average; 4 - Above Average; 5 - Excellent
Dakota Worldwide Corp.
4801 81~ Street, Suite 105 · Minneapolis, MN 55437
Telephone 800.475.4505 · Fax 952.835.4461
Elk River, Minnesota Market Study (CRO002 ~ February 2002) Page 30
Trade Area Data by Sector
Census 2000
Sector Tract Pop.
1
2
3
4
5
6
7
8
8.1
8.2
8.3
9
10
10.1
I1
12
13
14
15
16
17
18
19
19.1
19.2
20
21
Est.
Est. Jan. 1990 1990 2000 2000 2000 2000 2000 1990 1990 1990 1990
2002 %Growth 2005 %Growth % % % % % % % % % Avg. Hhld Median
Pop. 2000-2002 Pop. 2002-2005 College Military White Black Asian Other Hisp. < 18 > 65 Size Income
1.0 1,713
1.0 2,899
1.0 1,243
1.0 2,519
4.0 3,141
7.6 5,203
1.1 1,975
1.0 2,358
15.8 1,277
4.9 934
433.5 1,809
1.0 601
1.0 2,437
0.9 780
10.0 2 385
22.8 2
11.1 1
12.9 1
12.3 3
2.1 1
12.7 1
11.0 2
8.1 1
33.5 2
24.7 1,760
13.2 3,704
11.5 2,432
O52
522
5O4
125
974
365
982
423
24O
305.02 1,673 1,689
305.01 2,829 2,857
305.01 1,213 1,225
305.01 2,459 2,483
1001.00 2,500 2,600
1001.00 2,877 3,097
305.02 561 567
305.02 2,199 2,220
305.02 976 1,130
305.02 831 872
305.02 176 939
305.02 491 496
305.01 2,378 2,402
305.10 464 468
304.02 1,908 2,099
1001.00 1,335 1,640
1001.00 999 1,110
502.23 1,136 1,282
502.23 2,389 2,682
502.23 1,651 1,686
501.16 1,034 1,165
301.00 2,302 2,555
302.00 1,233 1,333
302.00 1,476 1,971
302.00 1,236 1,541
302.00 2,729 3,090
304.01 1,991 2,219
1.4 0.0 0.0 96.7 0.7 0.1 0.0
1.5 0.0 0.0 96.7 0.2 0.5 0.1
1.5 0.0 0.0 97.4 0.4 0.4 0.0
1.4 0.0 0.0 94.4 1.0 0.4 0.0
20.8 0.0 0.0 97.1 0.2 0.8 0.0
68.0 0.0 0.0 93.8 0.4 1.1 0.0
248.3 0.0 0.0 98.0 0.0 0.2 0.0
6.2 0.0 0.0 95.7 0.5 0.9 0.1
13.0 0.0 0.0 95.7 0.5 0.9 0.1
7.1 0.0 0.0 95.7 0.5 0.9 0.1
92.7 0.0 0.0 95.7 0.5 0.9 0.1
21.2 0.0 0.0 99.6 0.0 0.2 0.0
1.5 0.0 0.0 97.3 0.1 0.4 0.0
66.7 0.0 0.0 97.3 0.1 0.4 0.0
13.6 0.0 0.4 96.5 0.2 1.1 0.2
25.1 0.0 0.0 98.5 0.0 0.6 0.0
37.1 0.0 0.0 97.8 0.6 0.0 0.0
17.3 0.0 0.0 96.7 0.4 0.9 0.0
16.5 0.0 0.0 96.9 0.3 0.3 0.3
17.1 0.0 0.0 97.5 '0.1 0.3 0.1
17.2 0.0 0.0 98.8 0.3 0.1 0.0
16.7 0.0 0.0 98.8 0.0 0.3 0.1
6.8 0.0 0.0 96.8 0.2 0.4 0.1
13.6 0.0 0.0 96.8 0.2 0.4 0.1
14.2 0.0 0.0 96.8 0.2 0.4 0.1
19.9 0.0 0.3 97.3 0.1 0.4 0.0
9.6 0.0 0.0 97.4 0.1 0.5 0.1
1.4 25.7 2.5 2.46
1.1 2.9 3.1 3.08
0.4 11.2 2.8 2.75
2.7 6.4 3.0 3.02
1.0 2.7 3.5 3.45
2.6 5.1 3.0 3.04
1.4 3.0 3.0 3.03
1.1 3.0 3.0 3.03
1.1 3.0 3.0 3.03
1.1 3.0 3.0 3.03
1.1 3.0 3.0 3.03
0.0 3.0 3.0 3.03
1.5 4.2 3.2 3.21
1.5 4.2 3.2 3.21
1.1 4.3 3.4 3.38
0.5 6.7 3.6 3.62
1.0 3.9 3.0 3.03
0.6 0.9 3.5 3.49
0.8 1.3 3.6 3.63
0.9 2.2 3.5 3.48
0.1 5.1 3.1 3.13
0.3 8.0 3.1 3.12
1.1 8.0 3.1 3.12
1.1 8.0 3.1 3.12
1.1 8.0 3.1 3.12
1.I 5.6 3.1 3.11
0.9 6.7 2.9 2.86
$28,245
46,252
44,621
42,875
43,049
36,368
45,116
45,116
45,116
45,116
45.116
45~ 116
50 446
50 446
50097
43.180
38529
54038
52,853
46,423
36,948
36,378
36,378
36,378
36,378
37,520
39,417
Dakota Worldwide Corp.
4801 81'~ Street, Suite 105 · Minneapolis, MN 55437
Telephone 800.475.4505 · Fax 952.835.4461
Elk River, Minnesota Market Study (CRO002 ~ February 2002) Page 31
Est.
Est. Jan.
Census 2000 2002 %Growth 2005 %Growth
Sector Tract Pop. Pop. 2000-2002 Pop. 2002-2005
21.1 304.01 1,990 2,260 13.6 2,508 11.0
21.2 304.01 1,629 1,899 16.6 2,070 9.0
22 304.02 1,828 2,056 12.5 2,269 10.4
23 304.02 1,707 1,833 7.4 2,205 20.3
24 304.02 2,444 2,714 11.0 2,947 8.6
Totals: 52,644 58,180 69,356
Averages: 10.5 19.2
1990 1990 2000 2000 2000 2000 2000 1990 1990 1990 1990
% % % % % % % % % Avg. Hhld Median
College Military White Black Asian Other Hisp. < 18 > 65 Size Income
0.0 0.0 97.4 0.1 0.5 0.1 0.9 6.7 2.9 2.86 39,417
0.0 0.0 97.4 0.1 0.5 0.1 0.9 6.7 2.9 2.86 39,417
0.0 0.3 97.0 0.2 0.3 0.0 1.2 5.6 3.2 3.19 46,355
0.0 0.0 96.3 0.2 0.0 0.0 1.7 7.9 2.8 2.78 33,542
0.0 0.3 96.8 0.0 0.4 0.0 1.9 4.2 3.2 3.24 45,938
0.0 0.1 96.8 0.3 0.5 0.1 1.2 5.7 3.1 3.10 $41,966
Dakota Worldwide Corp.
4801 81~ Street, Suite 105 · Minneapolis, MN 55437
Telephone 800.475.4505 · Fax 952.835.4461
Elk River, Minnesota Market Study (CRO002 ~ February 2002) Page 32
CURRENT MARKET SIMULATION
TRADE AREA TOTALS
Trade Area Jan 2002
Population 58,180
Potential 12,681,701
Facility Volume 9,461,500
Float Amount 3,220,201
Float Percent 25.39~
Facility
Map Key
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Total
Average
Name
Northbound Liq
Lake Center Liq
Hi-Way Liquors
Princeton Liquor
Frontier
P&A
Uptown
St. Francis Liq
M&L Liquor
Riverview Liquor
D&R Liquor
Hacks
Albertville Liq
HI 101 Liquor
Rogers Liquor
Wiser's Liquor
Discount 10 Liq
STORES IN OPERATION
---Jan 2002 --- Sales
Volume /SqFt Area
4,000,000 888.89 4,500
1,650,000 634.62 2,600
2,800,000 666.67 4,200
1,400,000 583.33 2,400
900,000 473.68 1,900
500,000 142.86 3,500
400,000 181.82 2,200
850,000 1062.50 800
800,000 363.64 2,200
700,000 411.76 1,700
550,000 275.00 2,000
900,000 1200.00 750
1,300,000 481.48 2,700
1,200,000 363.64 3,300
930,000 978.95 950
750,000 681.82 1,100
600,000 666.67 900
20,230,000 37,700
1,190,000 536.60 2,218
Draw
80.00
80.00
45.00
5.00
70.00
80.00
80.00
5.00
25.00
95.00
90.00
10.00
10.00
35.00
5.00
15.00
10.00
Image
161
143
145
89
111
61
74
90
78
105
103
94
92
102
90
85
75
100
Dakota Worldwide Corp.
4801 81't Street, Suite 105 · Minneapolis, MN 55437
Telephone 800.475.4505 · Fax 952.835.4461
Elk River, Minnesota Market Study (CRO002 ~ February 2002) Page 33
Chain
Name
CHAIN SUMMARY
# of ..................... Chain Total .................... Vol/ Avg Market
Facs Volume Average Size Average SqFt Image Share
Northbound Liq 1
Lake Center Liq 1
Hi-Way Liquors 1
Riverview Liquor 1
Frontier 1
D&R Liquor 1
HI 101 Liquor 1
P&A 1
Uptown 1
M&L Liquor 1
Albertville Liq 1
Wiser's Liquor 1
Hacks 1
Princeton Liquor 1
Discount 10 Liq 1
Rogers Liquor 1
St. Francis Liq 1
Totals
Averages
4,000,000 4,000,000 4,500
1,650,000 1,650,000 2,600
2,800,000 2,800,000 4,200
700,000 700,000 1,700
900,000 900,000 1,900
550,000 550,000 2,000
1,200,000 1,200,000 3,300
500,000 500,000 3,500
400,000 400,000 2,200
800,000 800,000 2,200
1,300,000 1,300,000 2,700
750,000 750,000 1,100
900,000 900,000 750
1,400,000 1,400,000 2,400
600,000 600,000 900
930,000 930,000 950
850,000 850,000 800
4,500 888.89
2,600 634 62
4,200 666 67
1,700 411 76
I 900 473 68
2 000 275 O0
3 300 363 64
3 500 142.86
2.200 181.82
2.200 363.64
2.700 481.48
1.100 681.82
7501200.00
2,400 583.33
900 666.67
950 978.95
8001062.50
17
161
143
145
105
111
103
102
61
74
78
92
85
94
89
75
9O
90
25.23
10.41
9.94
5 24
4 97
3 90
3 31
3 15
2 52
1.58
1.03
.89
.71
.55
.47
.37
.34
20,230,000 37,700 74.61
1,190,000
2,218 536.60
Dakota Worldwide Corp.
4801 81a Street, Suite 105 · Minneapolis, MN 55437
Telephone 800.475.4505 · Fax 952.835.4461
Elk River, Minnesota Market Study (CRO002 ~ February 2002) Page 34
FACILITY MARKET SHARES BY SECTOR
Jan 2002 1 2 3 4 5 6 7
Facility Northbou Lake Cen Hi-Way L Princeto Frontier P&A Uptown
Sector --M.S.-- --M.S.-- --M.S.-- --M.S.-- --M.S.-- --M.S.-- --M.S.--
i 51.39 1.74 1.44
2 58.90 2.37 1.76
3 51.17 2.62 2.12
4 46.77 6.67 5.47
5 8.70 .27 1.00
6 6.45 .20 .61
7 43.96 1.04 1.24
8 56.50 1.54 1.25
8.1 59.75 1.63 1.25
8.2 56.76 1.50 1.18
8.3 53.75 1.11 .95
9 52.24 2.91 2.02
10 49.39 8.09 5.70
10.1 42.38 9.60 5.87
11 35.20 17.85 12.53
12 8.42 1.32 11.78
13 6.87 .20 1.50
14 29.89 .68 .94
15 27.56 .51 .74
16 43.18 .79 1.00
17 37.96 1.15 .99
18 13.33 1.22 .94
19 4.35 1.26 .96
19.1 6.25 1.90 1.37
19.2 4.33 1.74 1.34
20 10.91 20.42 13.85
21 1.71 28.38 40.79
21.1 2.91 35.00 32.80
21.2 18.52 27.66 16.02
22 6.37 39.17 25.79
23 2.34 33.18 36.37
24 2.36 31.01 38.83
.07
.12
.08
.08
.01
.01
.06
O8
14
33
10
46
15
5O
16
01
01
.'05
07
09
i 55
2 35
2 72
2 19
3 67
1 98
12
18
55
12
O8
O6
.92 .18 .17
1.65 .41 .40
1.00 .19 .19
.93 .14 .14
.12 .01 .01
.09 .01 .01
.73 .10 .10
1.10 .23 .23
1.95 .51 .49
4.24 1.31 1.21
1.18 .22 .22
6.70 2.73 2.49
1.98 .45 .44
7.13 2.81 2.60
1.90 .38 .37
.12 .01 .01
.09 .01 .01
.51 .04 .05
.60 .06 .06
.91 .12 .12
13.14 4.51 3.95
23.85 17.11 13.73
24.41 23.52 17.31
23.41 21.93 17.39
25.12 21.64 16.14
14.08 5.82 5.08
.63 .08 .08
1.05 .17 .17
5.80 1.87 1.73
1.01 .17 .17
.55 .07 .07
.43 .05 .05
Market 25.23 10.41 9.94 .55 4.97 3.15 2.52
FACILITY MARKET SHARES BY SECTOR (CONT.)
Jan 2002 8 9 10
Facility St. Fran M&L Liqu Rivervie
Sector --M.S.-- --M.S.-- --M.S.--
11 12 13 14
D&R Liqu Hacks Albertvi HI 101 L
--M.S.-- --M.S.-- --M.S.-- --M.S.--
1 .17 .43 6.60 3.76 .33 .98 6.67
2 .19 .26 2.91 1.48 .10 .31 4.13
3 .14 .31 5.95 3.28 .30 .90 6.48
Dakota Worldwide Corp.
4801 81~t Street, Suite 105 · Minneapolis, MN 55437
Telephone 800.475.4505 · Fax 952.835.4461
Elk River, Miunesota Market Study (CRO002 ~ February 2002) Page 35
FACILITY MARKET SHARES BY SECTOR (CONT.)
Jan 2002 8 9 10 11 12 13 14
Facility St. Fran M&L Liqu Rivervie D&R Liqu Hacks Albertvi HI 101L
Sector --M.S.-- --M.S.-- --M.S.-- --M.S.-- --M.S.-- --M.S.-- --M.S.--
4 .11
5 .03
6 .02
7 .36
8 .21
8.1 .32
8.2 .91
8.3 .42
9 .49
10 .13
10.1 .21
11 .08
12 .03
13 .02
14 .59
15 1.05
16 .86
17 5 47
18 90
19 18
19.1 19
19.2 16
20 10
21 01
21.1 01
21.2 08
22 .02
23 .01
24 .01
Market .34
.20 4.19 2.11 .23 .71
.09 37.27 21.64 .49 1.48
.07 29.38 31.94 .42 1.24
2.26 7.63 4.25 .38 1.15
.43 4.66 2.52 .24 .71
.42 2.56 1.28 .15 .44
.69 1.42 .67 .10 .31
1.24 4.92 2.64 .26 .77
.23 .95 .43 .04 .13
.13 2.27 1.10 .06 .20
.08 .67 .30 .02 .08
.07 1.19 .55 .09 .28
.05 2.24 1.72 18.75 20.33
.06 27.85 25.36 3.75 3.52
10.94 3.02 1.46 .20 .60
20.59 1.86 .88 .14 .42
7.49 4.02 2.02 .24 .72
.87 .34 ~15 .04 .13
.07 .06 .03 .01 .00
.01 .01 .01 .00 .01
.01 .02 .01 .00 .01
.01 .01 .00 .00 .01
.01 .04 .02 .01 .03
.00 .01 .00 .05 .23
.00 .01 .01 .02 .10
.02 .17 .06 .02 .07
.01 .07 .03 .03 .11
.00 .01 .01 .05 .23
.00 .02 .01 .06 .28
6.15
4.20
5.05
8.57
5.29
3.95
3.44
6.15
2.70
4.24
2.14
3.25
10.05
6.77
6.43
4.96
6.88
2.24
.67
.22
32
23
51
19
26
i 06
58
23
25
1.58 5.24 3.90 .71 1.03 3.31
FACILITY MARKET SHARES BY SECTOR (CONT.)
Jan 2002 15 16 17
Facility Rogers L Wiser's Discount
Sector --M.S.-- --M.S.-- --M.S.--
1 .70 .37 .18
2 .43 .18 .09
3 .68 .31 .15
4 .63 .23 .11
5 .48 .11 .05
Dakota Worldwide Corp.
4801 81~ Street, Suite 105 · Minneapolis, MN 55437
Telephone 800.475.4505 · Fax 952.835.4461
Elk River, Minnesota Market Study (CRO002 ~ February 2002) Page 36
FACILITY MARKET SHARES BY SECTOR (CONT.)
Jan 2002 15 16 17
Facility Rogers L Wiser's Discount
Sector --M.S.-- --M.S.-- --M.S.--
6
7
8
8.1
8.2
8.3
9
10
10.1
11
12
13
14
15
16
17
18
19
19.1
19.2
20
21
21.1
21.2
22
23
24
60
9O
55
41
35
64
28
43
22
33
i 52
87
66
51
71
23
O7
O2
O3
02
05
03
03
12
06
03
04
.08 .04
1.88 .86
.31 .15
.22 .12
.23 .13
.68 .34
.10 .06
.13 .07
.05 .03
.08 .04
.05 .03
.06 .03
12.08 5.74
8.64 5.07
3.60 1.84
.15 .11
.02 .01
.'00 .00
.00 .00
.00 .00
.01 .00
.00 .00
.00 .00
.02 .01
o01 .00
.00 .00
.00 .00
Market .37 .89 .47
Dakota Worldwide Corp.
4801 81~ Street, Suite 105 · Minneapolis, MN 55437
Telephone 800.475.4505 · Fax 952.835.4461
Elk River, Minnesota Market Study (CRO002 ~ February 2002) Page 37
NORTHBOUNO LIQUOR MARKET SHARES BY SECTOR
Facility Map Key = 1
Jan 2002
Market Share Cutoff = i
Sector Sector
Map Key Share
Expected
Volume Population
Potential
1 51.39 187,752 1,689
2 58.90 383,696 2,857
3 51.17 146,292 1,225
4 46.77 261,843 2,483
5 8.70 48,045 2,600
6 6.45 42,296 3,097
7 43.96 55,535 567
8 56.50 279,482 2,220
8.1 59.75 150,418 1,130
8.2 56.76 110,265 872
8.3 53.75 112,443 939
9 52.24 57,727 496
10 49.39 266,499 2,402
10.1 42.38 44,553 468
11 35.20 163,235 2,099
12 8.42 28,914 1,640
13 6.87 16,398 1,110
14 29.89 85,276 1,282
15 27.56 161,784 2,682
16 43.18 156,837 1,686
17 37.96 93,252 1,165
18 13.33 71,631 2,555
19 4.35 12,184 1,333
19.1 6.25 25,903 1,971
19.2 4.33 14,046 1,541
20 10.91 71,512 3,090
21 1.71 8,344 2,219
21.1 2.91 14,421 2,260
21.2 18.52 77,259 1,899
22 6.37 28,942 2,056
23 2.34 9,139 1,833
24 2.36 14,075 2,714
365,364
651,396
285,878
559,842
552,084
656,130
126,328
494,616
251,764
194,282
209,209
110,509
539,561
105,127
463,774
343,531
238,583
285,258
587,009
363.181
245.687
537.342
280.343
414.521
324.088
655.173
487.337
496,341
417,058
454,129
390,667
595,587
Sub Total
Other Sectors
TA Total
25.23 3,200,000 58,180 12,681,701
.00 0 0 0
25.23 3,200,000 58,180 12,681,701
Outside TA
Total Sales
800,000
4,000,000
Draw:
Float
23.91
24.31
24.14
25.10
24.02
23.78
24.52
24.00
24.42
25.23
24.43
25.04
25.04
25.31
25.64
23.57
23.01
26.10
26.30
25.42
27.03
25.64
25.00
24.97
25.56
27.10
27.69
27.29
26.22
26.29
26.74
26.53
80
25.39
.00
25.39
Miles
1.06
.88
1.71
3.92
4.38
4.24
3.49
.53
1.02
3.13
2.40
2.85
3.85
4.79
6.12
9.34
5.81
6 72
7 65
5 38
7 19
7 17
8 95
8 33
9 65
t0.78
15.76
13.97
8.62
11.03
14.03
13.81
Dakota Worldwide Corp.
4801 81~ Street, Suite 105 · Minneapolis, MN 55437
Telephone 800.475.4505 · Fax 952.835.4461
Elk River, Minnesota Market Study (CRO002 ~ February 2002) Page 38
Sector
Map Key
1
2
3
4
5
6
7
8
8.1
8.2
8.3
9
10
10.1
11
12
13
14
15
16
17
18
19
19.1
19.2
20
21
21.1
21.2
22
23
24
Total
Average
SECTOR
..... Jan 2002 .....
Population PCE
1,689 216.32
2,857 228.00
1,225 233.37
2,483 225.47
2,600 212.34
3,097 211.86
567 222.80
2,220 222.80
1,130 222.80
872 222.80
939 222.80
496 222.80
2,402 224.63
468 224.63
2,099 220.95
1,640 209.47
1,110 214.94
1,282 222.51
2,682 218.87
1,686 215.41
1,165 210.89
2,555 210.31
1,333 210.31
1,971 210.31
1,541 210.31
3,090 212.03
2,219 219.62
2,260 219.62
1,899 219.62
2,056 220.88
1,833 213.13
2,714 219.45
DATA
Potential
365,364
651,396
285,878
559,842
552,084
656,130
126,328
494,616
251,764
194,282
209,209
110,509
539,561
105,127
463,774
343,531
238,583
285,258
587-,009
363,181
245,687
537,342
280,343
414,521
324 088
655 173
487 337
496 341
417 058
454 129
390 667
595 587
58,180 12,681,701
217.97
....... Float .......
Percent Amount
23 91 87,357
24 31 158,378
24 14 68,999
25 10 140,525
24 02 132,591
23 78 156,041
24 52 30,979
24.00 118,722
24.42 61,493
25.23 49,020
24.43 51,120
25.04 27,671
25.04 135,092
25.31 26,604
25.64 118,915
23.57 80.973
23.01 54895
26.10 74 453
26.30 154 356
25.42 92 323
27.03 66411
25.64 137 765
25.00 70 080
24.97 103 490
25.56 82 831
27.10 177 531
27.69 134 928
27.29 135 440
26.22 109 343
26.29 119 393
26.74 104 481
26.53 158 000
3,220,201
25.39
Dakota Worldwide Corp.
4801 81~ Street, Suite 105 · Mim~eapolis, MN 55437
Telephone 800.475.4505 · Fax 952.835.4461
Elk River, Minnesota Market Study (CRO002 ~ February 2002) Page 39
PRO3ECTED MARKETPLACE
PROJECTIONS ASSUME A JUNE 2004 OPENING
TRADE AREA TOTALS
Trade Area Jan 2002 Jun 2005 ~ Change
Population 58,180 70,906 21.87
Potential 12,681,701 15,438,212 21.74
Facility Volume 9,461,500 11,528,816 21.85
Float Amount 3,220,201 3,909,396 21.40
Float Percent 25.39 25.32
*0.07~ change in float reflective of population changes
MARKET CHANGES
ESTIMATED POPULATION GROWTH IS REALIZED
HI-WAY LIQUOR IN MONTICELLO UPGRADES AND EXPANDS TO APPROXIMATELY 6,000 SALES AREA SQUARE FEET AT MAP KEY 3
ST. FRANCIS LIQUOR UPGRADES AND EXPANDS TO APPROXIMATELY 2,200 SALES AREA SQUARE FEET AT MAP KEY 8
RIVERVIEW LIQUOR UPGRADES AT ITS PRESENT SIZE MAP KEY 10
ROGER'S LIQUOR RELOCATES TO A NEW 10,000 SQUARE FOOT FACILITY WITH 7,100 SALES AREA SQUARE FEET ADJACENT TO
SUPER TARGET AT MAP KEY 15.1
WISER'S LIQUOR (OPEN 6 MONTHS) IMAGE MATURES IN THE MARKET PLACE AT MAP KEY 16
Forecast Current Fcst
Facility ---Jun 2005 ....... Jan 2002 .... T.A. ~ Sales
Map Key Name Volume /SqFt Volume /SqFt Diff. Chg Area Draw Image
i Northbound Liq 4,501,222 1000.27 4,000,000 888.89 400,978 13 4,500 80.00 161
2 Lake Center Liq 1,615,344 621.29 1,650,000 634.62 -27,725 -2 2,600 80.00 143
3 Hi-Way Liquors --closed ....... 2,800,000 666.67 -1,260,000 45.00 145
3.1 Hi-Way Liquors 0 0.00 1,804,474 0 6,000 45.00 150
4 Princeton Liquor 1,565,607 652.34 1,400,000 583.33 8,280 12 2,400 5.00 89
5 Frontier 1,009,299 531.21 900,000 473.68 76,510 12 1,900 70.00 111
6 P&A 564,542 161.30 500,000 142.86 51,634 13 3,500 80.00 61
7 Uptown 451,587 205.27 400,000 181.82 41,270 13 2,200 80.00 74
8 St. Francis Liq --closed ....... 850,000 1062.50 -42,500 5.00 90
8.1 St. Francis Liq 0 0.00 100,049 0 2,200 5.00 95
9 M&L Liquor 932,365 423.80 800,000 363.64 33,091 17 2,200 25.00 78
10 Riverview Liquor --closed ....... 700,000 411.76 -665,000 95.00 105
10.1 Riverview Liquor 956,395 562.59 0 0.00 908,575 0 1,700 95.00 110
11 D&R Liquor 781,595 390.80 550,000 275.00 208,435 42 2,000 90.00 103
12 Hacks 1,032,969 1377.29 900,000 1200.00 13,297 15 750 10.00 94
13 Albertville Liq 1,520,737 563.24 1,300,000 481.48 22,074 17 2,700 10.00 92
Dakota Worldwide Corp.
4801 81a Street, Suite 105 · Minneapolis, MN 55437
Telephone 800.475.4505 · Fax 952.835.4461
Elk River, Miunesota Market Study (CRO002 ~ February 2002) Page 40
MARKET CHANGES (CONT.)
14 HI 101 Liquor
15 Rogers Liquor
15.1 Rogers Liquor
16 Wiser's Liquor
16.1 Wiser's Liquor
17 Discount 10 Liq
1,444,360 437.68 1,200,000 363.64 85,526 20 3,300 35.00
--closed ....... 930,000 978.95 -46,500 5.00
0 0.00 316,297 0 7,100 10.00
--closed ....... 750,000 681.82 -112,500 15.00
140,656 127.87 0 0.00 140,656 0 1,100 15.00
703,960 782.18 600,000 666.67 10,396 17 900 10.00
Totals * 26,394,524 20,230,000 2,067,316
Averages 1,552,619 560.99 1,190,000 536.60 2,768
* Forecast total includes low draw stores whose volumes are not shown.
102
9O
95
85
90
75
102
Chain
Name
Northbound Liq
Hi-Way Liquors
Lake Center Liq
Riverview Liquor
Frontier
D&R Liquor
HI 101 Liquor
P&A
Uptown
*Rogers Liquor
*M&L Liquor
*Albertville Liq
*Wiser's Liquor
*Hacks
*St. Francis Liq
*Princeton Liquor
*Discount 10 Liq
Totals
Averages
CHAIN SUMHARY
# of ..................... Chain Total .................... Vol/ Avg Market
Facs Volume Average Size Average SqFt Image Share
1 4,501,222 4,501,222 4,500 4,5001000.27 161 23.33
1 4,009,942 4,009,942 6,000 6,000 668.32 150 11.69
I 1,615,344 1,615,344 2,600 2,600 621.29 143 8.37
I 956,395 956,395 1,700 1,700 562.59 110 5.89
i 1,009,299 t,009,299 1,900 1,900 531.21 111 4.58
1 781,595 781,595 2,000 2,000 390.80 103 4.56
1 1,444,360 1,444,360 3,300 3,300 437.68 102 3.27
i 564,542 564,542 3,500 3,500 161.30 61 2.93
i 451,587 451,587 2,200 2,200 205.27 74 2.34
1 3,162,973 3,162,973 7,100 7,100 445.49 95 2.05
i 932,365 932,365 2,200 2,200 423.80 78 1.51
1 1,520,737 1,520,737 2,700 2,700 563.24 92 .99
1 140,656 140,656 1,100 1,100 127.87 90 .91
i 1,032,969 1,032,969 750 7501377.29 94 .67
i 2,000,974 2,000,974 2,200 2,200 909.53 95 .65
1 1,565,607 1,565,607 2,400 2,400 652.34 89 .51
1 703,960 703,960 900 900 782.18 75 .46
17 26,394,526 47,050 74.68
1,552,619 2,768 560.99
Dakota Worldwide Corp.
4801 81~ Street, Suite 105 · Minneapolis, MN 55437
Telephone 800.475.4505 · Fax 952.835.4461
Elk River, Minnesota Market Study (CRO002 ~ February 2002) Page 41
SCENARIO 1
MARKET CHANGES IN EFFECT
A SECOND NORTHBOUND LIQUOR OPENS WITH 4,000 SALES AREA SQUARE FEET (8,000 TOTAL SQUARE FEET) AT SITE 1000
NWQ JOPLIN AND U.S. HIGHWAY 10
Forecast Current Fcst
Facility ---Jun 2005 ....... Jan 2002 .... T.A. ~ Sales
Map Key Name Volume /SqFt Volume /SqFt Diff. Chg Area Draw Image
i Northbound Liq 3,558,025 790.67 4,000,000 888.89
2 Lake Center Liq 1,426,883 548.80 1,650,000 634.62
3 Hi-Way Liquors --closed ....... 2,800,000 666.67
3.1 Hi-Way Liquors 0 0.00
4 Princeton Liquor 1,473,503 613.96 1,400,000 583.33
5 Frontier 946,318 498.06 900,000 473.68
6 P&A 541,539 154.73 500,000 142.86
7 Uptown 431,837 196.29 400,000 181.82
8 St. Francis Liq --closed ....... 850,000 1062.50
8.1 St. Francis Liq 0 0.00
9 M&L Liquor 894,235 406.47 800,000 363.64
10 Riverview Liquor --closed ....... 700,000 411.76
10.t Riverview Liquor 883,525 519.72 0 0.00
11 D&R Liquor 731,042 365.52 550,000 275.00
12 Hacks 1,007,418 1343.22 900,000 1200.00
13 Albertville Liq 1,447,218 536.01 1,300,000 481.48
14 HI 101 Liquor 1,268,394 384.36 1,200,000 363.64
15 Rogers Liquor --closed ....... 930,000 978.95
15.1 Rogers Liquor 0 0.00
16 Wiser's Liquor --closed ....... 750,000 681.82
16.1 Wiser's Liquor 130,939 119.04 0 0.00
17 Discount 10 Liq 659,545 732.83 600,000 666.67
1000 Northbound Liq 1,651,733 412.93 0 0.00
-353,580
-178,493
-1,260,000
1,638,023
3,675
32,423
33,231
25,470
-42,500.
95,935
23 559
-665 000
839 349
162 938
10 742
14 722
23938
-46500
281018
-112.500
130 939
5 955
1,403 973
-11 4,500 80.00 161
-14 2,600 80.00 143
45.00 145
0 6,000 45.00 150
5 2,400 5.00 89
5 1,900 70.00 111
8 3,500 80.00 61
8 2,200 80.00 74
5.00 90
0 2,200 5.00 95
12 2,200 25.00 78
95.00 105
0 1,700 95.00 110
33 2,000 90.00 103
12 750 10.00 94
11 2,700 10.00 92
6 3,300 35.00 102
5.00 90
0 7,100 10.00 95
15.00 85
0 1,100 15.00 90
10 900 10.00 75
0 4,000 85.00 150
Totals * 25,421,096 20,230,000 2,067,316
Averages 1,412,283 497.96 1,190,000 536.60
2,836 104
* Forecast total includes low draw stores whose volumes are not shown.
Dakota Worldwide Corp.
4801 81~ Street, Suite 105 · Minneapolis, MN 55437
Telephone 800.475.4505 · Fax 952.835.4461
Elk River, Minnesota Market Study (CRO002 ~ February 2002) Page 42
Chain ~ of
Name Facs
Northbound Liq 2
Hi-Way Liquors 1
Lake Center Liq 1
Riverview Liquor 1
Frontier 1
D&R Liquor 1
HI 101 Liquor 1
P&A 1
Uptown 1
*Rogers Liquor 1
*M&L Liquor 1
*Albertville Liq 1
*Wiser's Liquor 1
*Hacks 1
*St. Francis Liq 1
*Princeton Liquor 1
*Discount 10 Liq i
Totals 18
Averages
CHAIN SUMMARY
..................... Chain Total .................... Vol/ Avg Market
Volume Average Size Average SqFt Image Share
5,209,758 2,604,879 8,500 4,250 612.91 156 27.53
3,640,050 3,640,050 6,000 6,000 606.68 150 10.61
1,426,883 1,426,883 2,600 2,600 548.80 143 7.39
883,525 883,525 1,700 1,700 519.72 110 5.44
946,318 946,318 1,900 1,900 498.06 111 4.29
731,042 731,042 2,000 2,000 365.52 103 4.26
1,268,394 1,268,394 3,300 3,300 384.36 102 2.88
541,539 541,539 3,500 3,500 154.73 61 2.81
431,837 431,837 2,200 2,200 196.29 74 2.24
2,810,181 2,810,181 7,100 7,100 395.80 95 1.82
894,235 894,235 2,200 2,200 406.47 78 1.45
1,447,218 1,447,218 2,700 2,700 536.01 92 .94
130,939 130,939 1,100 1,100 119.04 90 .85
1,007,418 1,007,418 750 7501343.22 94 .65
1,918,709 1,918,709 2,200 2,200 872.14 95 .62
1,473,503 1,473,503 2,400 2,400 613.96 89 .48
659,545 659,545 900 900 732.83 75 .43
25,421,094 51,050 74.68
1,412,283 2,836 497.96
Dakota Worldwide Corp.
4801 81~ Street, Suite 105 · Minneapolis, MN 55437
Telephone 800.475.4505 · Fax 952.835.4461
Elk River, Minnesota Market Study (CRO002 ~ February 2002) Page 43
NORTHBOUND LIQUOR MARKET SHARES
Jun-05 1 1000
Facility Northbound Northbound Sector
Sector --M.S.-- --M.S.-- Totals
1 39.12 14.69 53.81
2 47.28 12.48 59.76
3 32.03 25.48 57.51
4 17.9 39.94 57.84
5 6.44 5.17 11.61
6 5.85 3.77 9.62
7 38.77 3.96 42.73
8 46.99 9.81 56.79
8.1 53.66 5.15 58.81
8.2 53.48 1.42 54.89
8.3 48.32 3.97 52.28
9 48.63 2.77 51.4
10 25.61 30.07 55.68
10.1 29.83 19.43 49.26
11 11.78 35.99 47.76
12 2.68 4..48 7.15
13 3.7 4.01 7.7
14 23.68 11.73 35.41
15 26.03 0.25 26.29
16 39.96 1.1 41.06
17 33.86 0.09 33.95
18 13.04 0.04 13.08
19 4.21 1.67 5.88
19.1 5.97 2.53 8.5
19.2 4.18 1.88 6.06
20 8.8 8.63 17.43
21 0.17 2.64 2.8
21.1 0.39 4.32 4.71
21.2 13 16.31 29.31
22 1.36 9.97 11.34
23 0.31 3.82 4.13
24 0.32 4.03 4.35
Total 18.44 9.09 27.53
Dakota Worldwide Corp.
4801 81~ Street, Suite 105 · Minneapolis, IvIN 55437
Telephone 800.475.4505 · Fax 952.835.4461
Elk River, Minnesota Market Study (CRO002 ~ February 2002) Page 44
Facility Map Key = 1000
MARKET SHARE BY DISTANCE
Distance Pop. M.S. Volume
2,524
0
0
1,245
4,867
0
0
1,716
6,121
8,695
2,094
3,878
0
1,535
4,276
4,187
10,611
0
2,462
2,893
1,435
1,790
943
0
2,014
0
0
0
0
0
0
0
3,186
0
0
0
0
0
1,393
0
3,041
39.94
0.00
0.00
25.48
32.99
0.00
0.00
14 69
8 77
7 02
16 31
7 58
0 O0
11 73
4 38
3.89
5.79
0.00
2.64
2.58
1.67
1.88
1.42
0.00
1.10
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.25
0.00
0.00
0.00
0.00
0.00
0.09
0.00
0.04
0.00- 0.50
0.50- 1.00
1.00- 1.50
1.50- 2.00
2.00- 2.50
2.50- 3.00
3.00- 3.50
3.50- 4.00
4.OO- 4.50
4.50- 5.00
5.0O- 5.5O
5.50- 6.00
6.00- 6.50
6.50- 7 O0
7.00- 7 50
7.50- 8 O0
8.00- 8 50
8.50- 9 O0
9.00- 9 50
9.50-10.00
10.00-10.50
10.50-11.00
11.00-11.50
11.50-12.00
12.00-12.50
12.50-13.00
13.00-13.50
13.50-14.00
14.00-14.50
14.50-15.00
15.00-15.50
15.50-16.00
16.00-16.50
16 50-17.00
17 00-17.50
17 50-18.00
18 00-18.50
18 50-19.00
19 00-19.50
19.50-20.00
20.00-20.50
Jun 2005
~Sales
Draw : 85
............. Cumulative ..........
Pop. M.S. Volume ~Sales
227,280
0
0
74,039
357,755
0
0
54,534
117,924
131,792
75,012
64,248
0
40,053
41,244
35,444
132,373
0
14,254
15,922
5,032
7,087
2,974
0
4,771
0
0
0
0
0
0
0
1,756
0
0
0
0
0
253
0
228
13
0
0
4
21
0
76 2,524
O0 2,524
O0 2,524
48 3,769
66 8,636
O0 8,636
0 O0 8,636
3 30 10,352
7.14 16,473
7.98 25,168
4.54 27.262
3.89 31140
0.00 31140
2.42 32 675
2.50 36 951
2.15 41 138
8.01 51 749
0.00 51 749
0.86 54,211
0.96 57104
0.30 58539
0.43 60329
0.18 61272
0.00 61.272
0.29 63.286
0.00 63.286
0.00 63,286
0.00 63,286
0.00 63,286
0.00 63,286
0.00 63,286
0.00 63,286
0.11 66,472
0.00 66,472
0.00 66,472
0.00 66,472
0.00 66,472
0.00 66,472
0.02 67,865
0.00 67,865
0.01 70,906
39.94
39.94
39.94
35.05
33.90
33.90
33.90
30.82
22.72
17.39
17.31
16.11
16.11
15.90
14.56
13.49
11.93
11.93
11.51
11.07
10.85
10.59
10.45
10.45
10.15
10.15
10.15
10.15
10.15
10.15
10.15
10.15
9.68
9.68
9.68
9.68
9.68
9.68
9.49
9.49
9.09
227,280
227,280
227,280
301,319
659,074
659,074
659,074
713,608
831,532
963,324
1,038 336
.1,102 584
1,102 584
1,142 638
1,183 882
1,219.325
1,351699
1,351.699
1,365953
1,381 875
1,386 906
1,393 993
1,396 967
1,396 967
1,401 737
1,401 737
1,401,737
1,401,737
1,401,737
1,401,737
1,401,737
1,401,737
1,403,493
1,403,493
1,403,493
1,403,493
1,403,493
1,403,493
1,403,746
1,403,746
1,403,973
13.76
13.76
13.76
18.24
39.90
39.90
39.90
43.20
50.34
58.32
62.86
66 75
66 75
69 18
71 68
73 82
81 84
81 84
82 70
83 66
83 97
84 40
84 58
84 58
84.86
84.86
84.86
84.86
84.86
84.86
84.86
84.86
84.97
84.97
84.97
84.97
84.97
84.97
84.99
84.99
85.00
Dakota Worldwide Corp.
4801 81~ Street, Suite 105 · Minneapolis, MN 55437
Telephone 800.475.4505 · Fax 952.835.4461
Elk River, Minnesota Market Study (CRO002 ~ February 2002) Page 45
Facility
Map Keys Name
1000 Northbound Liq
Inflation is OK
THREE-YEAR GROWTH PATTERN - SITE 1000
Forecast Forecast Forecast
---Jun 2005 ...... Jun 2006 ...... Jun 2007---
Volume /SqFt Volume /SqFt Volume /SqFt
1,651,733 412.93 1,758,176 439.54
1,868,131 467.03
Draw
85.00
Image
150
Dakota Worldwide Corp.
4801 81~ Street, Suite 105 · Minneapolis, MN 55437
Telephone 800.475.4505 · Fax 952.835.4461
Elk River, Minnesota Market Study (CRO002 ~ February 2002) Page 46
SCENARIO 2
MARKET CHANGES IN EFFECT
TEST WITH GROCERY WINE SALES BEING ALLOWED
A SECOND NORTHBOUND LIQUOR OPENS WITH 4,000 SALES AREA SQUARE FEET (8,000 TOTAL SQUARE FEET) AT SITE 1000
NWQ JOPLIN AND U.S. HIGHWAY 10
WINE SECTIONS ARE OPENED IN THE FOLLOWING SUPERMARKETS:
COBURNS-MAP KEY IO0,ELK RIVER
CUB FOODS-MAP KEY 200,ELK RIVER
STEVENS SUPERVALU-MAP KEY 300, BIG LAKE
CUB FOODS-MAP KEY 400, MONTICELLO
MAUS FOODS-MAP KEY KEY 500, MONTICELLO
STEVEN'S SUPERVALU-MAP KEY 600, ROGERS
COUNTY MARKET MAP KEY 700, ST. FRANCIS
LETOURNEAU'S SUPER VALU-MAP KEY 800, RAMSEY
COBURNS-MAP KEY gOO, PRINCETON
COBURNS-MAP KEY 1100, ALBERTVILLE
FREICHEL'S SUPERVALU MAP KEY 1200, PRINCETON
SUPER TARGET-MAP KEY 1300, ROGERS
Facility
Map Key
Name
Forecast Current
---Jun 2005 .... Jan 2002 .... T.A. ~
Volume /SqFt Volume /SqFt Diff. Chg
Fcst
Sales
Area
Draw
Image
1
2
3
3.1
4
5
6
7
8
8.1
9
10
10.1
11
12
13
14
15
15.1
16
16.1
17
100
20O
300
400
5OO
Northbound Liq
Lake Center Liq
Hi-Way Liquors
Hi-Way Liquors
Princeton Liquor
Frontier
P&A
Uptown
St. Francis Liq
St. Francis Liq
M&L Liquor 807,874
Riverview Liquor --closed--
Riverview Liquor 845,870
D&R Liquor 704,930
3,224,688 716.60
1,310,066 503.87
--closed .......
1,394,539 581.06
894,549. 470.82
518,315 148.09
412,613 187.55
--closed .......
367.22
497.57
352.46
Hacks
Albertville Liq
HI 101 Liquor
Rogers Liquor
Rogers Liquor
Wiser's Liquor
Wiser's Liquor
Discount 10 Liq
Coburn's
Cub Foods
Stevens Super Va
Cub Foods
Maus Foods
939,421 1252.56
1,348,684 499.51
1,169,711 354.46
--closed .......
--closed .......
118,739 107.94
597,740 664.16
4,000,000
1,650,000
2,800,000
0
1,400,000
900,000
500,000
400,000
850,000
0
800,000
700,000
0
550,000
900,000
1,300,000
1,200,000
930,000
0
750,000
0
600,000
0
0
0
0
0
888.89
634.62
666.67
0.00
583.33
473.68
142.86
181.82
1062.50
0.00
363.64
411.76
0.00
275.00
1200 O0
481 48
363 64
978 95
0 O0
681 82
0 O0
666 67
0.00
0.00
0.00
0.00
0.00
-620,250 -19 4,500
-271,947 -21 2,600
-1,260,000
1,503,362 0 6,000
-273 0 2,400
-3,815 -1 1,900
14,652 4 3,500
10,090 3 2,200
-42,500
86,432 0 2,200
1,968 i 2,200
-665,000
803,576 0 1,700
139,437 28 2,000
3,942 4 750
4,868 4 2,700
-10,601 -3 3,300
-46,500
260,331 0 7,100
-112,500
118,739 0 1,100
-226 0 900
225,947 0 600
319,633 0 600
33,862 0 200
132,034 0 600
80,862 0 400
80.00
80.00
45.00
45.00
5.00
70.00
80 O0
80 O0
5 O0
5 O0
25 O0
95 O0
95 O0
90 O0
10 O0
10 O0
35 O0
5 O0
10 O0
15 O0
15 O0
10.00
80.00
80.00
80.00
45.00
45.00
161
143
145
150
89
111
61
74
90
95
78
105
110
103
94
92
102
90
95
85
9O
75
100
110
60
110
100
Dakota Worldwide Corp.
4801 81~ Street, Suite 105 · Minneapolis, MN 55437
Telephone 800.475.4505 · Fax 952.835.4461
Elk River, Minnesota Market Study (CRO002 ~ February 2002) Page 47
SCENARIO 2 (CONT.)
6OO
7OO
800
9O0
1000
1100
1200
1300
Stevens Super Va
County Market
Letourneau's SV
Coborns Super Ma
Northbound Liq
Coburns
Freichels Super
Super Target
1,521,956 380.49
0 0.00 3,566
0 0.00 17,741
0 0.00 15,069
0 0.00 3,129
0 0.00 1,293,663
0 0.00 11,334
0 0.00 1,267
0 0.00 15,424
0 200 10.00 5O
0 600 10.00 90
0 200 25.00 60
0 200 5.00 50
0 4,000 85.00 150
0 400 10.00 60
0 200 5.00 40
0 600 10.00 60
Totals * 25,308,690 20,230,000 2,067,316
Averages 843,623 453.15 1,190,000 536.60
1,862
* Forecast total includes low draw stores whose volumes are not shown.
94
Chain
Name
Northbound Liq
Hi-Way Liquors
Lake Center Liq
Riverview Liquor
D&R Liquor
Frontier
Cub Foods
P&A
HI 101 Liquor
Uptown
*Rogers Liquor
*Coburns
*M&L Liquor
*Albertville Liq
*Wiser's Liquor
*Hacks
*St. Francis Liq
Maus Foods
*Princeton Liquor
*Discount 10 Liq
*SuperValu
*County Market
*Super Target
Totals
Averages
CHAIN SUMMARY
# of ..................... Chain Total .................... Vol/ Avg Market
Facs Volume Average Size Average SqFt Image Share
2 4,746,644 2,373,322
1 3,340,805 3,340,805
1 1,310,066 1,310,066
1 845,870 845,870
1 704,930 704,930
1 894,549 894,549
2 692,951 346,475
i 518,315 518,315
I 1,169,711 1,169,711
i 412,613 412,613
1 2,603,307 2,603,307
3 458,348 152,783
1 807,874 807,874
1 1,348,684 1,348,684
1 118,739 118,739
1 939,421 939,421
i 1,728,637 1,728,637
i 179,694 179,694
1 1,394,539 1,394,539
i 597,740 597,740
4 163,603 40,901
1 177,408 177,408
1 154,243 154,243
8,500
6,000
2,600
1,700
2,000
1,900
1.200
3500
3.300
2200
7100
1 200
2 200
2 700
1,100
750
2,200
400
2,400
9OO
800
6OO
600
4,250 558.43 156
6,000 556.80 150
2,600 503.87 143
1,700 497.57 110
2,000 352.46 103
1,900 470.82 111
600 577.46 110
3,500 148.09 61
3,300 354.46 102
2,200 187.55 74
7,100 366.66 95
400 381.96 70
2,200 367.22 78
2,700 499.51 92
1,100 107.94 90
7501252.56 94
2,200 785.74 95
400 449.24 100
2,400 581.06 89
900 664.16 75
200 204.50 53
600 295.68 90
600 257.07 60
3O
25,308,689 55,850
843,623
1,862 453.15
25.09
9.74
6.79
5.21
4.11
4.06
2.93
2.69
2.65
2.14
1.69
1.56
1.31
.87
.77
.61
56
52
45
39
35
11
10
74.68
Dakota Worldwide Corp.
4801 81~ Street, Suite 105 · Minneapolis, MN 55437
Telephone 800.475.4505 · Fax 952.835.4461
Elk River, Minnesota Market Study (CRO002 ~ February 2002) Page 48
Facility
Map Keys Name
1000 Northbound Liq
Inflation is O~
THREE-YEAR GROWTH REPORT - SITE 1000
Forecast Forecast Forecast
---Jun 2005 ...... Jun 2006 ...... Jun 2007---
Volume /SqFt Volume /SqFt Volume /SqFt
1,521,956 380.49 1,620,326 405.08
1,721,947 430.49
Draw
85.00
Image
150
Dakota Worldwide Corp.
4801 81~ Street, Suite 105 · Minneapolis, MN 55437
Telephone 800.475.4505 · Fax 952.835.4461
Elk River, Minnesota Market Study (CRO002 ~ February 2002) Page 49
Definitions
Trade Area
The area containing the majority of the population that could contribute to
the sales of a store or stores located at a proposed site or sites, 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 stores' acceptance levels in the trade area.
P.C.E.
Per capita yearly expenditure for liquor.
Float
That portion of the 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.
ADT
Average Daily Traffic.
Dakota Worldwide Corp.
4801 81~ Street, Suite 105 · Minneapolis, MN 55437
Telephone 800.475.4505 · Fax 952.835.4461
Elk River, Minnesota Market Study (CRO002 ~ February 2002) Page 50
Qualifier
In the use of this market analysis, client acknowledges that while it believes the services to be
performed hereunder by Dakota Worldwide Corporation 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 Dakota
Worldwide Corporation. Therefore, client further acknowledges its understanding that Dakota
Worldwide Corporation does not guarantee any result from the use of the analysis or other
services performed hereunder, nor shall Dakota Worldwide Corporation 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.
Dakota Worldwide Corp.
4801 81~ Street, Suite 105 · Minneapolis, MN 55437
Telephone 800.475.4505 · Fax 952.835.4461
Elk River, Minnesota Market Study (CRO002 ~ February 2002) Page $1
Source Data
"Number of Inhabitants," Minnesota 1990 Census of Population, U.S. Department of Commerce,
Bureau of the Census.
"Area Statistics," Minnesota 1997 Census of Retail Trade., U.S. Department of Commerce,
Bureau of the Census.
Editor & Publisher, Inc., 2000 Market Guide.
City Offices: Elk River, Big Lake, Ostego, Ramsey and Zimmerman.
Planning Offices - Sherburne County.
Department of Transportation: State of Minnesota.
Metropolitan Planning Council.
Dakota Worldwide Corp.
4801 81~ Street, Suite 105 · Milmeapolis, MN 55437
Telephone 800.475.4505 · Fax 952.835.4461