21 ATTACHMENT 11 - Laserfiche WebLink

Ms. Emily Wagner October 2007 Page 5 of 6 Upon the opening of the Proposed Store, sales from the surrounding competition are impacted once again and the home improvement dollars currently generated in Pleasanton will be re-allocated. The largest impact (15%) will be felt by the existing Home Depot and overall we estimate that combined approximately $6.6 million dollars will be transferred from the Johnson Drive Home Depot, Richert Lumber and True Value stores, with a majority of that ($5.8 million) coming from the Johnson Drive Home Depot. Although it is difficult to quantify, sales transfers will occur from the other home improvement businesses operating in Pleasanton. Currently there is nearly $155 million dollars in home improvement sales potential in the trade area, however with the addition of the Dublin Lowe's and with the three Pleasanton companies, overall sales potential remaining in this market is approximately $85 million. If we assume a sales transfer of 6% on this remaining sales potential, that equates to approximately $5.1 million of these sales dollars transferring to the Proposed Store. In addition, the Proposed Store will re-capture dollars from the Livermore Orchard Supply and Home Depot stores and the Dublin Lowe's. In total, the new store will generate approximately $18.5 million dollars in new sales for the City of Pleasanton, as noted in this table: Summarv Sales Table_(in 2007 dollars) Estimated Home Im rovement Sales Dollars in ro osed south Pleasanton Home De of tar et Area $154,548,400 Less loss of revenue to Lowe's Dublin -from existin HD, Richert and TrueValue $10,049,600 Less 11% Loss of revenues to Lowe's Dublin -from remainin home im rovement businesses $10,520,532 Sub-total $133,978,268 Estimated Sales Dollars enerated from ro osed south Pleasanton Home De of $26,311,700 Sub-total $160,289,968 Less Dollars transferred from existin ma'or com etition to Pro osed Home De of Existin Home De of $5,796,000 Richert Redwood $819,400 TrueValue $23,700 Less 6% Loss of revenues to ro osed Home De of -from remainin home im rovement businesses $5,107,240 Sub-total $148,543,628 Plus Sales Dollars reca tured from Livermore HD and OSH and Dublin Lowe's $3,940,822 Total Home Im rovement Sales Dollars in Tar et Area after Pro osed Home De of O ens $152,484,450 New Growth in Sales Dollars to Pleasanton from Pro osed Home De of $18,506,182 Net Loss of sales dollars to Pleasanton from Dublin Lowe's and no ro osed Home De of $20,570,132 Summary In summary, with the opening of the new Lowe's store in Dublin the City will lose $20 million annually in home improvement sales revenue. With the addition of the proposed new Home Depot store, the City will gain nearly $18.5 million in new home improvement sales dollars during the first year of operation of the store (2009). For more detail see Exhibit D.