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McCOMB GROUP,, Ltd. <br /> <br />RETAIL CONSULTANTS <br /> <br />January ll, 2002 <br /> <br />Mr. Dave Potvin, Manager <br />NORTHLAND LIQUOR <br />19348 Evans Street <br />Elk River, Minnesota 55330 <br /> <br />Dear Mr. Potvin: <br /> <br />In response to your request, we have prepared revised a work program to conduct market <br />analysis for a second Elk River liquor store. We have expanded the work program to include <br />evaluating the impact of supermarket wine sales if it is approved by the Legislature. <br /> <br />We understand that the City of Elk River is considering a second liquor store. The City is <br />interested in knowing the sales increase that a second liquor store would generate, and any sales <br />impact on the existing store. We have prepared a work program to estimate sales volumes that <br />could be achieved at a second location. <br /> <br />WORK PROGRAM <br /> <br />The work program outlined below is designed to identify the market potential for a second liquor <br />store in Elk River. <br /> <br />· Site Location <br /> <br />Locations of the existing liquor store and the proposed second store will be evaluated. <br />Factors to be studied include, but are not limited to: access, ingress and egress, visibility, <br />traffic counts, site configuration and size, and relationship to adjacent land uses and <br />traffic generators. <br /> <br />· Define Trade Area <br /> <br />Geographic distribution of existing liquor store customers will be plotted by zip code to <br />determine the store's trade area. Customer zip codes will be obtained from a survey of <br />customers performed by store employees under the direction of McComb Group, Ltd. <br />The trade area for the Elk River liquor store will be delineated and the proportion of retail <br />sales derived from the trade area will be identified. Sales derived from inflow customers, <br />or shoppers living outside the trade area, will also be identified. The trade area for the <br />proposed second liquor store will be delineated. This information will be used as part of <br />the process to evaluate the increase in retail sales that could occur with two stores and the <br />likely impact that a second store would have on trade area size and/or market penetration. <br /> <br />3001 Hennepin Avenue South Suite 30lB Minneapolis, Minnesota 55408 · (612) 339-7000 Fax: (612) 338-5572 <br /> <br /> <br />