21 ATTACHMENT 12 - Laserfiche WebLink

Ms. Emily Wagner October 2, 2007 Page 4 of 6 photos and more detail concerning competition. Implications to the City of Pleasanton It is our opinion that a new Yard Birds in this area will impact the surrounding home improvement competitors to a certain degree. Somewhat easier to quantify is the impact on the conventional or "main stream" home improvement retailers such as Lowe's, and of course the sister Home Depot units. The Orchard Supply store in Livermore will be impacted some but due to its smaller size, sales impacts are reduced. Retail operators such as Work Bench True Value on Santa Rita Road are very convenience driven and carry a limited assortment of product. Customers that shop this store are not likely to switch or transfer their business to the new Yard Birds, especially given the presence of a large format store such as the Johnson Drive store. The Richert Lumber store on Sunol Boulevard serves a higher end customer, including designers and contractors. This is evidenced by its limited store hours, the fact that it is closed on Sundays, and that it offers higher end specialty products not readily available at conventional home centers. Stores of this nature draw from a greater area than a typical home improvement retailer. A November 2004 survey conducted by the U.S. Small Business Administration) found that most small hardware stores that compete with large format home improvement retailers experience either no decline in sales or at the very most a 10%2 decrease in sales depending on their proximity to the large format store. In addition to these retailers, there are several other businesses in Pleasanton that would be included in the home improvement business category. These stores typically specialize and focus on specific retail categories such as plumbing, lighting, landscaping, and paint. The impact of a new conventional home improvement store on these specialty stores is difficult to quantify due to their tight focus and small size. Our experience has shown, however, that an increase in home improvement expenditures due to a new store is often a benefit to these operators. Before analyzing the impact on Pleasanton businesses from the Proposed Store it is important to understand any prior impacts that will disrupt shopping patterns throughout the trade area. Most significant is Lowe's in east Dublin. Once open, this facility will impact the existing home improvement stores in Pleasanton and the smaller home improvement businesses as well. Lowe's greatest impact will be felt by the Johnson Drive Home Depot and to a much lesser extent by the True Value Work Bench store and Richert Lumber. In total the opening of Lowe's in Dublin could transfer over $20 million dollars in home improvement revenue from existing Pleasanton businesses. 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. We estimate that combined, approximately $3.7 million dollars will be transferred from the Home Competitive, Economic and Fiscal Impacts for a Large Format Retailer at the Burnside Bridgehead. Evaluation of a Prospective Costco, Home Depot or Tazget Store. Prepazed by EcoNorthwest for the Portland Development Commission dated November 8, 2004. ZThe SBA report did not take into account businesses that went out of business.