Professional Documents
Culture Documents
Copyright 2008 by the University of Virginia Darden School Foundation. All rights reserv
Revised 3.18.2010
Foundation. All rights reserved.
Timothy R. Baer
Michael R. Francis
John D. Griffith
Jodeen A. Kozlak
Troy H. Risch
Janet M. Schalk
Douglas A. Scovanner
Terrence J. Scully
Gregg W. Steinhafel
Robert J. Ulrich
Chairman and CEO Bob Ulrich, 62. Ulrich began his career at Dayton-Hudson as a merchandising traine
position of CEO of Target Stores in 1987 and to the position of Dayton-Hudsons CEO in 1994
EVP and CFO Doug Scovanner, 49. Scovanner was named Target CFO in February 2000 after previous
Hudson.
President of Target Stores Gregg Steinhafel, 50. Steinhafel began his career at Target as a merchandising
president in 1999.
EVP of Stores Troy Risch, 37. Risch was promoted to EVP in September 2006.
EVP of Property Development John Griffith, 44. Griffith was promoted to EVP in February 2005 from
president of Property Development he had held since February 2000.
Executive Officers and Capital Expenditure Committee Members
O Bob Ulrich, 62. Ulrich began his career at Dayton-Hudson as a merchandising trainee in 1967. He advanced to the
Target Stores in 1987 and to the position of Dayton-Hudsons CEO in 1994
g Scovanner, 49. Scovanner was named Target CFO in February 2000 after previously serving as CFO of Dayton-
Stores Gregg Steinhafel, 50. Steinhafel began his career at Target as a merchandising trainee in 1979. He was named
evelopment John Griffith, 44. Griffith was promoted to EVP in February 2005 from the position of senior vice
ty Development he had held since February 2000.
CEC
CEC
CEC
CEC
CEC
dvanced to the
FO of Dayton-
9. He was named
enior vice
Retail Company Financial Information
Market Capitalization
Debt Rating Fiscal Year as of Oct. 31, 2006
(S&P) Beta Ended ($ billions)
Liabilities
Accounts payable 6,268
Current portion of LT debt and notes payable 753
Income taxes payable 374
Other current liabilities 2,193
Total current liabilities 9,588
Long-term debt 9,119
Other liabilities 2,083
Total liabilities 20,790
Shareholders equity
Common equity 2,192
Retained earnings 12,013
Total liabilities and shareholders equity 34,995
atements ($ millions)
29-Jan-05 31-Jan-04
2,245 708
5,069 4,621
5,384 4,531
1,224 3,092
13,922 12,952
16,860 15,153
1,511 3,311
32,293 31,416
5,779 4,956
504 863
304 382
1,633 2,113
8,220 8,314
9,034 10,155
2,010 1,815
19,264 20,284
1,881 1,609
11,148 9,523
32,293 31,416
CAPITAL PROJECT REQUEST B/(P) Proto => Better or Poorer relative to
the prototype
Capital Expenditure Committee:
FINANCIAL SUMMARY
TOTAL R&P SALES Project B/(P) Proto NPV & Investment
1st year 2006 Equivalent $27,000 $2,588 25.0
5th year 2006 Equivalent $34,155 $3,279
Sales maturity 1.27 0.00 20.0
15.0
INCREMENTAL R&P SALES Project B/(P) Proto
1st year 2006 Equivalent $23,000 ($1,412) 10.0
30
VALUE IRR NPV B/(P) Proto
Store 12.8% $12,860 $1,860
25
Credit 10.2% $3,767 $322
TOTAL 12.6% $16,626 $2,182
20
STORE SENSITIVITIES
HURDLE ADJUSTMENT NPV IRR 15
Sales (3.0%) 1.0% 1 2 3
Gross Margin (0.55) 0.19
Construction (Building & Sitework) $2,398 ($498)
Full Transfer Impact 4.0% 7.5% 2007 COMPETITION
COMPETITION
RISK/OPPORTUNITY
10% sales decline ($6,259) (1.8)
1 pp GM decline ($3,388) (1.0) 33%
INVESTMENT DETAIL
NPV & Investment Land Acres: 11.00
PSF: $7.93
Closing: 10/2007
Options None
BUILDING COST VS. PROTOTYPE
Subgeographic
Proto Update
Market Conditions
Government Fees
Architectural
Project Prototype Technical
Inv estment NPV -10% Sales +10% Sales
Procurement
A/E Fees
Signs
SALES Contingency
Total Variance
INCENTIVE SUMMARY
None Available
DEMOGRAPHICS
Total Characteristics MSA
Incremental 2005 Population (000's) 0
Prototy pe
2000-2005 Growth 0.0%
2 3 4 5 Median HH Income $0
# HH +$50,000 (000's) 0
% Adults 4+ Yrs. College, 2005 0%
007 COMPETITION
COMPETITION 2009 COMMENTS
22%
33% 33%
45%
TARGET TARGET
Wal-Mart Wal-Mart
WMSC WMSC
Sam's Club 3.3 Sam's Club
Kmart Kmart
Other SF/Cap Other WMSC = Wal-Mart Super Center
Other Other
ey - Dashboard Example
Open:
Size: 126,842
Own/Lease: Own
ESTMENT DETAIL
Sitework N/A
RE Tax-Per Corp Tax $222
B/(P) Proto ($8)
EMOGRAPHICS
Trade Area 3-Mile Radius
0 0
0.0% 0.0%
$0 $0
0 0
0% 0%
COMMENTS
Dashboard Sensitivities Key (use with "Sensitivities Key - Dashboard Example")
Dashboard Example: P04; Store NPV: $12,860; Store IRR: 12.8%
HURDLE ADJUSTMENT (CPR Dashboard)
Sales Land
NPV ($219)
IRR 1.0%
Full Transfer Impact Prototype Assumption: A nearby store transferring sales to a new store, fully recovers these s
Sensitivity Assumption: If transfer sales are NOT fully recovered by the transferring store in y
NPV 4.0%
IRR 7.5%
RISK/OPPORTUNITY
10% Sales Decline
NPV ($6,259)
IRR (1.8)
VARIANCE TO PROTOTYPE
The example dashboard with a Store NPV of $12,860 is $1,860K above Prototypical Store NPV. The f
Land
NPV ($219)
IRR (0.1)
Non-Land Investment
NPV ($2,660)
IRR (1.5)
Sales
NPV $4,818
IRR 1.4
Sales could decrease (3.0%) and still achieve Prototype Store NPV
Sales would have to increase 1.0% to achieve Prototype Store IRR
rototype Assumption: A nearby store transferring sales to a new store, fully recovers these sales by the 5th yr.
ensitivity Assumption: If transfer sales are NOT fully recovered by the transferring store in year 5:
Sales would have to increase 4.0% to achieve Prototype Store NPV IRR: $3,436; Target could only pay
Sales would have to increase 7.5% to achieve Prototype Store IRR $3,436 to achieve Proto Store IRR.
th a Store NPV of $12,860 is $1,860K above Prototypical Store NPV. The following items contributed to the varia
Real Estate Taxes contributed a negative ($79) to the variance from Prototype.
Real Estate Taxes contributed a negative (0.0) pp to the variance from Prototype.
Approx $ IMPACT ON STORE NPV
Cost NPV %
Land: $100K $100K 110%
Sitework: $100K $100K 70%
*
NPV is computed using 9.0% as discount rate for store cash flows and 4.0% for credit-card cash flows.
**
Trade area is the geographical area from which 70% of store sales will be realized.
ummary of Project Proposals
Trade Area**
Population % Adults
Increase Median 4+ yrs
Population 2000-2005 Income college
70,000 27% $56,400 12%
632,000 3% $48,500 45%
151,000 3% $38,200 17%
222,000 16% $56,000 24%
N. Ap. N. Ap. $65,931 42%
FINANCIAL SUMMARY
TOTAL R&P SALES Project B/(P) Proto NPV & Investment
1st year 2005 Equivalent $26,000 $2,745 25.0
5th year 2005 Equivalent $35,100 $5,688
Sales maturity 1.35 0.09 20.0
15.0
INCREMENTAL R&P SALES Project B/(P) Proto
1st year 2005 Equivalent $22,800 ($455) 10.0
30
VALUE IRR NPV B/(P) Proto
Store 12.7% $13,201 $2,493
25
Credit 8.1% $3,554 $544
TOTAL 12.3% $16,755 $3,038
20
STORE SENSITIVITIES
HURDLE ADJUSTMENT NPV IRR 15
Sales (5.3%) 2.2% 1 2 3
Gross Margin (0.72) 0.29
Construction (Building & Sitework) $3,102 ($751)
Full Transfer Impact 2.3% 9.3% 2006 COMPETITION
COMPETITION
RISK/OPPORTUNITY
10% sales decline ($4,722) (1.3)
1 pp GM decline ($3,481) (0.9)
10% Const. cost increase ($1,494) (0.6)
Market margin, wage rate, etc. ($5,434) (1.5)
10% sales increase $4,621 1.2
VARIANCE TO PROTOTYPE
Land $287 0.1
Non-Land Investment ($4,741) (2.6)
Sales $6,331 1.9
Real Estate Tax $615 0.2 0.0
P&L SUMMARY SF/Cap
EBIT IMPACT Project B/(P) Proto
Thru Open Yr ($567) ($97)
5th Yr $4,452 $886
Project: "Gopher Place"
Market: Gopherville
Prototype: P04.383-MSP
Developer: Henderson Associates
Address: SWC of Hudson and Elk
Anchors: Freestanding
INVESTMENT DETAIL
NPV & Investment Land Acres: 9.78
PSF: $7.52
Closing: 11/2006
Options Garden Center, Seismic
BUILDING COST VS. PROTOTYPE
Subgeographic
Proto Update
Market Conditions
Government Fees
Architectural
Project Prototype Technical
Inv estment NPV -10% Sales +10% Sales
Procurement
A/E Fees
Signs
SALES Contingency
Total Variance
INCENTIVE SUMMARY
None Available
DEMOGRAPHICS
Total Characteristics MSA
Incremental 2005 Population (000's) 650
Prototy pe
2000-2005 Growth 15.0%
2 3 4 5 Median HH Income $46,700
# HH +$50,000 (000's) 97
% Adults 4+ Yrs. College, 2005 15%
06 COMPETITION
COMPETITION 2008 COMMENTS
- Target currently operates 5 stores in the market.
- Transfer Sales: T-1526: 8% (7 miles E) derives 19% of sales from the pro
24% trade area.
- R&P Sales assume Wal-Mart relocates a store to a Supercenter in 2007;
Wal-Mart adds an additional Supercenter in Badgerville in 2008.
76%
TARGET
Wal-Mart
WMSC
6.5 Sam's Club
Kmart
SF/Cap Other
Other
opher Place"
Open: October, 2007
Size: 127,000
Own/Lease: Own
ESTMENT DETAIL
Sitework Pro Rata, Maximum
RE Tax-Per Corp Tax $136
B/(P) Proto $62
EMOGRAPHICS
Trade Area 3-Mile Radius
70 16
27.0% 20.0%
$56,400 $59,400
11 3
12% 11%
COMMENTS
o a Supercenter in 2007;
gerville in 2008.
CAPITAL PROJECT REQUEST
Capital Expenditure Committee: November 2006
FINANCIAL SUMMARY
TOTAL R&P SALES Project B/(P) Proto NPV & Investment
1st year 2005 Equivalent $86,000 $52,185 140.0
5th year 2005 Equivalent $111,800 $69,031 120.0
Sales maturity 1.30 0.04 100.0
80.0
INCREMENTAL R&P SALES Project B/(P) Proto
60.0
1st year 2005 Equivalent $79,600 $45,785
40.0
5th year 2005 Equivalent $111,800 $69,031
20.0
Sales maturity 1.40 0.14
0.0
RISK/OPPORTUNITY
10% sales decline ($16,611) (1.0)
1 pp GM decline ($11,494) (0.7)
10% Const. cost increase ($2,178) (0.1)
Market margin, wage rate, etc. ($16,877) (1.1)
10% sales increase $16,647 1.0
VARIANCE TO PROTOTYPE
Lease ($78,912) (15.1)
Non-Land Investment ($10,168) (7.9)
Sales $99,963 22.9
Real Estate Tax ($637) (0.2) 0.0
P&L SUMMARY SF/Cap
EBIT IMPACT Project B/(P) Proto
Thru Open Yr ($1,599) ($1,136)
5th Yr $14,034 $8,509
Project: "Whalen Court"
Market: Buildback
Prototype: Unique Single Level
Developer: Sawicky and Co.
Address: NWQ of Gopher and High Investment Blvd.
Anchors: Home Depot, Best Buy
INVESTMENT DETAIL
NPV & Investment Lease Type: Building Lease
Rent: Prepay+$3.3K
Closing: 10/2006
Options L4: Unique Risk Security, District Office, 13k sf Exp. S
BUILDING COST VS. PROTOTYPE
Subgeographic
Proto Update
Market Conditions
Government Fees
Architectural
Project Prototype Technical
Inv estment NPV -10% Sales +10% Sales
Procurement
A/E Fees
Signs
SALES Contingency
Total Variance
INCENTIVE SUMMARY
DEMOGRAPHICS
Total Characteristics MSA
Incremental 2005 Population (000's) 18,768
Prototy pe
2000-2005 Growth 2.0%
2 3 4 5 Median HH Income $57,200
# HH +$50,000 (000's) 3,750
% Adults 4+ Yrs. College, 2005 30%
06 COMPETITION
COMPETITION 2009 COMMENTS
See attached for additional information.
100%
TARGET
Wal-Mart
WMSC
0.5 Sam's Club
Kmart
SF/Cap Other
Other
halen Court"
Open: October, 2008
Size: 173,585
Own/Lease: Lease
STMENT DETAIL
Sitework N/A
RE Tax (net of abatement) $358
B/(P) Proto ($60)
District Office, 13k sf Exp. Stock, 2nd Lvl Stock
COST VS. PROTOTYPE
($1,200)
(124)
0
0
0
(7,927)
(2,429)
(428)
(18)
(3,000)
($15,128)
NTIVE SUMMARY
Vendor Fee $92
Legal Fee $0
MOGRAPHICS
Trade Area 3-Mile Radius
632 1,248
3.0% 2.0%
$48,500 $43,800
143 238
45% 37%
COMMENTS
PROJECT SUMMARY
Capital Expenditure Committee: November 2006
PROJECT SUMMARY
Project Information
Store Square Footage Level 2
Sales Level 113,489
Stock 3,586
Support 10,397
Total 127,472
- Stock Capacity: Additional stock space will be required in the first year of operation. Stock square foot ca
- District Office: Project includes a District Office on mezzanine level.
- CAM: CAM expense assumed at $6 psf to cover operating costs and taxes on parking structure commen
- Legal Fees: $175K for external counsel.
Incentives
- ICIP: First full year real estate taxes reduced to $358K for 15 years. In years 17-25, taxes phased in to g
Gross Benefit: $56.6M; NPV Impact: $15.3M; Vendor Fees: $20K.
- Zone: Wage Tax Credits: Gross Benefit: $188K, NPV Impact: $112K.
Income Tax Credit: Gross Benefit: $750K, NPV Impact: $308K.
Sales Tax Exemption: Gross Benefit: $380K, NPV Impact: $378K. Exemption on construc
Vendor Fees: $72K
Market / Sales
- Target currently operates 45 stores in this market. Total Target buildout for this market is currently estima
159 stores, of which 30 are active/near term opportunites.
- Transfer Sales: 5% (2 miles N) scheduled to open 10/2009.
- R&P Sales assume Target joins a new retail development co-anchored by Home Depot.
Project: "Whalen Court"
Market: Buildback
Prototype: Unique Single Level
Developer: Sawicky and Co.
Address: NWQ of Gopher and High Investment Blvd.
Anchors: Home Depot, Best Buy
n years 17-25, taxes phased in to get to fully assessed taxes of $5M in year 26.
d by Home Depot.
"Whalen Court"
Open: October, 2008
Size: 173,585
Own/Lease: Lease
CAPITAL PROJECT REQUEST
Capital Expenditure Committee: November 2006
FINANCIAL SUMMARY
TOTAL R&P SALES Project B/(P) Proto NPV & Investm
1st year 2005 Equivalent $24,000 $2,043 30.0
5th year 2005 Equivalent $30,500 $2,729
25.0
Sales maturity 1.27 0.01
20.0
15.0
10.0
5.0
0.0
RISK/OPPORTUNITY
23%
10% sales decline ($4,066) (1.9)
1 pp GM decline ($3,111) (1.5)
10% Const. cost increase ($988) (1.0)
Market margin, wage rate, etc. ($2,999) (1.4) 10%
10% sales increase $4,096 1.9
67%
VARIANCE TO PROTOTYPE
Land $3,675 3.2
TARGET
Non-Land Investment ($570) (0.3) Wal-Mart
Sales $3,603 1.4 WMSC
Real Estate Tax $617 0.2 5.7 Sam's Club
Kmart
SF/Cap Other
Other
TARGET
Wal-Mart
WMSC
Sam's Club
Kmart
SF/Cap Other
Other
Project: "The Barn"
Market: Moose Land
Prototype: P04.383-MSP
Developer: Hulbert Ventures
Address: NWQ of Badger and Wolverine
Anchors: Lowe's
INVESTMENT DETAIL
NPV & Investment Land Acres: 11.48
PSF: $0.02
Closing: 4/2006
Options L3: Enhanced Risk Security
BUILDING COST VS. PROTOTYPE
Subgeographic
Proto Update
Market Conditions
Government Fees
Architectural
Project Prototype Technical
Inv estment NPV -10% Sales +10% Sales
Procurement
A/E Fees
Signs
SALES Contingency
Total Variance
INCENTIVE SUMMARY
None Available
DEMOGRAPHICS
Total Characteristics MSA
Incremental 2005 Population (000's) 135
Prototy pe
2000-2005 Growth 3.0%
2 3 4 5 Median HH Income $36,600
# HH +$50,000 (000's) 20
% Adults 4+ Yrs. College, 2005 16%
06 COMPETITION
COMPETITION 2008 COMMENTS
- Target is entering a new small market. The nearest Target stores are 80 m
13% NE, 80 miles S, 90 miles NW.
20%
- R&P Sales assume Target is part of a major retail development of 600K s
- See attached Resubmission Summary.
9%
67%
58%
TARGET TARGET
Wal-Mart Wal-Mart
WMSC WMSC
Sam's Club 6.4 Sam's Club
Kmart Kmart
Other SF/Cap Other
Other Other
TARGET TARGET
Wal-Mart Wal-Mart
WMSC WMSC
Sam's Club Sam's Club
Kmart Kmart
Other SF/Cap Other
Other Other
The Barn"
Open: March, 2007
Size: 126,842
Own/Lease: Own
ESTMENT DETAIL
Sitework Fixed Cost
RE Tax-Per Corp Tax $136
B/(P) Proto $62
EMOGRAPHICS
Trade Area 3-Mile Radius
151 19
3.0% 7.0%
$38,200 $47,300
22 4
17% 34%
COMMENTS
rest Target stores are 80 miles
Resubmission: This project is being resubmitted due to the change in developer. Negotiations between Target and
(Naughton & Co.) fell through after the project was approved in 2001 due to a disagreement regarding co-tenancy
no longer apart of the deal, the shopping center development was put on hold.
Land $1,510
Sitework $1,503
Building $7,121
Other $1,067
Total Investment $11,201
Current
Request B/(P)
$10 $1,500
$2,303 ($800)
$9,705 ($2,584)
$998 $69
$13,017 ($1,591)
$24,000 $4,713
$30,500 $4,533
$17,406 $13,080
17.5% 6.0%
"The Barn"
Open: March, 2007
Size: 126,842
Own/Lease: Own
CAPITAL PROJECT REQUEST
Capital Expenditure Committee: November 2006
FINANCIAL SUMMARY
TOTAL R&P SALES Project B/(P) Proto NPV & Investment
1st year 2005 Equivalent $34,000 ($10,304) 30.0
5th year 2005 Equivalent $42,000 ($14,036) 25.0
Sales maturity 1.24 (0.03) 20.0
15.0
INCREMENTAL R&P SALES Project B/(P) Proto
10.0
1st year 2005 Equivalent $25,900 ($18,404)
5.0
5th year 2005 Equivalent $42,000 ($14,036)
Sales maturity 1.62 0.36 0.0
(5.0) Project
INVESTMENT Project B/(P) Proto (10.0)
Land $3,615 $1,385
Inv estment NPV -10% S
Sitework 3,695 (425)
Subtotal $7,310 $960
Building 14,969 (313) 60 SALES
Other 1,660 48 55
Total Net Investment $23,939 $694 50
45
VALUE IRR NPV B/(P) Proto 40
Store 8.1% ($3,319) ($18,222) 35
Credit 8.1% $3,635 ($1,294) 30
TOTAL 8.1% $317 ($19,516) 25
STORE SENSITIVITIES 20
HURDLE ADJUSTMENT NPV IRR 15
Sales 45.1% 47.2% 1 2 3
Gross Margin 4.64 4.91
Construction (Building & Sitework) ($22,167) ($14,576)
Full Transfer Impact 62.5% 63.1% 2006 COMPETITION
COMPETITION
RISK/OPPORTUNITY
10% sales decline ($4,073) (1.1) 20%
INVESTMENT DETAIL
NPV & Investment Land Acres: 11.69
PSF: $7.10
Closing: 8/2006
Options None
BUILDING COST VS. PROTOTYPE
Subgeographic
Proto Update
Market Conditions
Government Fees
Project Prototype Architectural
Technical
Procurement
Inv estment NPV -10% Sales +10% Sales
A/E Fees
Signs
SALES Contingency
Total Variance
INCENTIVE SUMMARY
None Available
DEMOGRAPHICS
Total Characteristics MSA
Incremental 2005 Population (000's) 1,415
Prototy pe
2000-2005 Growth 13.0%
2 3 4 5 Median HH Income $56,100
# HH +$50,000 (000's) 291
% Adults 4+ Yrs. College, 2005 36%
06 COMPETITION
COMPETITION 2008 COMMENTS
- Target currently operates 12 stores in the market. Total Target buildout fo
17%
market is currently estimated at 24 of which 7 are active/near term opport
20% Build out will include 12 SuperTarget units, 50% of the total.
- Transfer Sales: 25% from a store located 2.1 miles NE; 4% from a store
7 miles N; 25% of sales from a store 4 miles away.
14% - General Merchandise/Hardlines C Mix: 82/18.
- Alternatives to this buildback scenario:
>Relo: T-683 closes when Goldie's Square opens: Total NPV: $6M; Total
83% >T-683 closes 1 yr after Goldie's Square opens: Total NPV: $3.9M; Tota
>T-683 closes 2 yrs after Goldie's Square opens: Total NPV: $3.6M; Total
TARGET TARGET
Wal-Mart Wal-Mart
WMSC WMSC
Sam's Club 3.0 Sam's Club
Kmart Kmart
Other SF/Cap Other
Other Other
die's Square"
Open: October, 2007
Size: 173,770
Own/Lease: Own
ESTMENT DETAIL
Sitework Fixed Cost
RE Tax-Per Corp Tax $539
B/(P) Proto ($269)
EMOGRAPHICS
Trade Area 3-Mile Radius
222 67
16.0% 4.0%
$56,000 $50,000
41 12
24% 26%
COMMENTS
t. Total Target buildout for this
e active/near term opportunities.
of the total.
iles NE; 4% from a store located
FINANCIAL SUMMARY
TOTAL R&P SALES Project B/(P) Proto NPV & Investment
1st year 2005 Equivalent $64,000 $19,677 40.0
5th year 2005 Equivalent $64,000 $7,940 35.0
Sales maturity 1.00 (0.26) 30.0
25.0
20.0
INCREMENTAL R&P SALES Project B/(P) Proto 15.0
1st year 2005 Equivalent $9,300 ($35,023) 10.0
5th year 2005 Equivalent $9,300 ($46,760) 5.0
Sales maturity 1.00 (0.26) 0.0
Status Quo Proposed New Total N
INVESTMENT Project B/(P) Proto
Land $0 $5,000
Inv estment NPV -10% S
Sitework 1,173 2,097
Subtotal $1,173 $7,097
Building 12,411 2,245 75 SALES
Other 3,271 (1,618) 65
Total Net Investment $16,855 $7,724
55
VALUE IRR NPV
45
Store 12.5% $14,911
Credit 4.6% $828 35
TOTAL 10.8% $15,739
STORE SENSITIVITIES 25
HURDLE ADJUSTMENT NPV IRR 15
Sales 1 2 3
Gross Margin Remodel
Construction (Building & Sitework)
RISK/OPPORTUNITY
10% sales decline ($7,854) (1.8)
1 pp GM decline ($6,457) (1.5)
10% Const. cost increase ($910) (0.3)
Market margin, wage rate, etc. ($11,317) (2.7)
10% sales increase $6,216 1.5
P&L SUMMARY
EBIT IMPACT Project B/(P) Proto
Thru Open Yr ($6,103) ($4,812)
5th Yr $1,272 ($4,025)
Project: "Stadium Remodel"
Market: Boardwalk
Scope: Interior Remodel
Prototype Before & After: SUP1.1 / S04
Expansion Availability: Not Site Constrained
Offsite Whse/Dist Office: N/A
PROJECT DETAIL
NPV & Investment Write Off
RE Tax-Per Corp Tax
B/(P) Proto
SQUARE FOOTAGE
Original Sq Ft
Quo Proposed New Total New Store Prototype Additional Sq Ft
Total Sq Ft After Remodel
Inv estment NPV -10% Sales +10% Sales
SUP04 Prototype
B/(P) Prototype
SALES B/(P) Guide 1st FY
DEMOGRAPHICS
Characteristics
2005 Population (000's)
2000-2005 Growth
Median HH Income
Total # HH +$50,000 (000's)
Incremental % Adults 4+ Yrs. College, 2005
Prototy pe
COMMENTS
2 3 4 5 - Entered market in 1972. Currently operate 8 stores in this market.
- A successful store at a strong long-term location serving an affluent family
area.
- 2006 YTD Sales Trend: -0.9%.
- Post-remodel sales assume a 17% sales lift over R&P base case sales. B
sales assume a (10)% impact from buildback (3.3 miles, October 2007);
the store is also in the process of being impacted by Park Place South.
- Current Value of T-0530: $18.8M; R&P base case sales; Prototypical Inter
2007; Tax benefit of depreciable property write-off: $0.4M; Rank: 783 of 1
- General Merchandise/Hardlines C Mix: 68/32; based on T-0530 historical
- Options: New Entrance System, Relocate Pharmacy, Relocate Electrical R
- Scope: Refrigeration Replacement, 4 Phases of Grocery Staging, Flooring
Roof Replacement, Temp Pharmacy, New Food Avenue, New Starbucks,
New Portrait Studio, New Signage.
"Stadium Remodel"
Remodel Cycle: Cycle 3 2007
Last Remodel: NA
Own/Lease: Own
Sides Before & After: 484 / 455
POG Length: 24'/28'
PROJECT DETAIL
$1061 ($657 Bldg, $43 Roof, $361 Other)
$332
($62)
SQUARE FOOTAGE
DEMOGRAPHICS
MSA Trade Area 3-Mile Radius
806 113 84
5.0% 16.0% 15.0%
$50,774 $65,931 $64,597
158 29 21
28% 42% 44%
COMMENTS
tly operate 8 stores in this market.
ng-term location serving an affluent family-oriented trade