Laserfiche WebLink
CONF7D1:'N'I'!AL & YRat'ILF CTF..I) Regency Centers -Pleasanton <br />~~'ORi;. PRUI)I.;CT Evaluation of PRC Site & Sales Analysis <br />October 8, 2007 <br />Page 4 of 10 <br />Sales Leakage <br />• Approximately $63.25 million in annual building materials and hardware sales are <br />leaking from Pleasanton. <br />o This suggests that there is sufficient capacity for the new Home Depot to <br />operate without significantly encroaching on the sales of existing home <br />improvement retail operations. PRC's estimates (although calculated <br />outside of their report by a different methodology) indicate even higher <br />levels of leakage at $74.67 million. <br />o Further, a comparison of actual hardware and building materials sales in <br />2006 for the each of the three cities in the trade area indicated the potential <br />for "leakage" and supports a conclusion that this area experiences an <br />exchange of sales dollars. <br />Net New. Sales <br />:, ~_~ • Approximately $50 million in net new sales. Based on the amount of sales <br />P~,'~ y & <br />`"~~aag ~ leakage from Pleasanton. Overlapping sales with the Johnson Drive location will <br />s, :^:.. be compensated by recapture of the leakage. <br />ro~ R <br />`"`~ g `"F~ ~ Actual Pleasanton HardwareBuilding Material Sales <br />• $96.932 million. <br />Effect on Local Competitor Sales <br />• Based on $63.25 million of leakage in Pleasanton, Kosmont anticipates minimal, <br />shift in sales dollars from local retailers to the new Home Depot. To the extent <br />any shift does occur, it will likely be short term (1 to 2 years). <br />Local Impact <br />• The existing Johnson Drive store will likely not relocate or close its operations <br />based on the addition of the new Home Depot to Pleasanton. <br />Customer Base Concentrations <br />The New Store's business will primarily be generated from those households <br />immediately to the south and west of the site as well as from east Pleasanton. <br />Demand Growth <br />$16.758 million increase by 2011 in Pleasanton's building/supply annual sales <br />DISCUSSION OF KEY ASSUMPTIONS AND FINDINGS <br />Kosmont generally concurs with the findings in PRC's Analysis whereby the new Home <br />Depot location represents a net benefit to the current retail base in the Pleasanton area. <br />Kosmont finds that the proposed New Store, which would operate concurrently with the <br />Johnson Drive location, provides an opportunity for Home Depot to expand market share <br />?TUS anNyNs n for tlNStrativa Wrposes antl ~ not s 9wrsnfse d ar?uat aM/or tawe rgsutts. Prgsq Wo rorma and te+ awyses aro <br />prgeaiorro onty. eawt rcsuas may dita. msteriasy kom moss axpresaea :+ tros s~+styas. <br />kosmon ,rssotvenarasroe. soites+'I Encino CeS~rnie si4as Pna+e,9e~.eriu ra~aia.eat.asea www.rosrtarx,com <br />