Laserfiche WebLink
Mr. Dave Potvin <br />January 11, 2002 <br />Page 2 <br /> <br />Demographic characteristics of both trade areas will be evaluated including population, <br />households, age distribution, and household income. Liquor store retail purchasing <br />power available within each trade area will be calculated using McComb Group's <br />proprietary technology. Purchasing power will be estimated from 1995 to 2009 to <br />determine future trends in retail spending. Historic sales of the existing Elk River liquor <br />store will be compared with purchasing power to determine historic market share from <br />the trade area as well as inflow sales by visitors. The income and expense statement for <br />the Elk River liquor store for the last five years will be reviewed to identify trends in <br />sales. <br /> <br />· Retail Sales Estimates <br /> <br />Future sales potential of the existing liquor store and the proposed new store will be <br />estimated based on the analysis of purchasing power, market share, and the potential for <br />increased retail sales. Future sales potential for a second store will be estimated for low, <br />mid, and high range sales. <br /> <br />· Supermarket Wine Sales <br /> <br />Sales transfer resulting from wine sales at supermarkets competitive with Northland <br />Liquor and a new store will be estimated. This will require identifying the likely <br />competitive supermarkets and their likely wine sales. If available, the number and sales <br />volume of wine only purchases and wine and beer purchases at Northland Liquor would <br />be helpful along with sales volume by type of beverage. This estimate will be stated in <br />sales dollars lost to Northland Liquor and a new store. <br /> <br />The results of our work will be documented in a final report designed to meet client needs. The <br />report will contain appropriate graphics and explanations of our principal findings, conclusions, <br />and recommendations. <br /> <br />MEETINGS <br /> <br />Two meetings are planned during the course of the evaluation to keep the client informed of our <br />progress and findings. These meetings include the following: <br /> <br />Start-Up meeting at the beginning of the engagement to finalize research objectives for <br />the engagement and obtain client-provided information. <br /> <br />Final Report meeting to present results of work tasks and recommendations. This <br />meeting will cover all aspects of the market research program. <br /> <br />The budget provides for two client meetings as described above. Any additional meetings will <br />be billed at our normal hourly rates plus expenses. <br /> <br /> <br />