Nacogdoches, TX. As a Location For OLD NAVY CLOTHING CO

Transcription

1 Nacogdoches, TX As a Location For OLD NAVY CLOTHING CO Prepared May 2009

2 4002 NE Stallings Dr, Nacogdoches, TX Table of Contents Retail Snapshot Executive Summary Retail Matching Methodology OLD NAVY CLOTHING CO Match Report Site Trade Area Map Site Trade Area Demographic Maps Retail Leakage / Surplus Report Demographic Report Secondary Trade Area Household Segmentation About Buxton and CommunityID Copyright 2009 Buxton Company. All Rights Reserved. PRIZM is a registered trademark of Nielsen Claritas. PRIZM segment names (Blue Blood Estates, Big Sky Families, Country Squires, etc.) are trademarks of Nielsen Claritas.

3 4002 NE Stallings Dr, Nacogdoches, TX Retail Snapshot Retail Trade Area & Site Characteristics Retail Trade Area 15-minute drive time Site Traffic Count (average daily volume) Key Trade Area Demographics (15-minute drive time) Total Population (2007) 45,489 Total Households (2007) 16,959 Population Growth ( 00 07) 4.5% Projected Pop. Growth ( 07 12) 3.8% Household Growth ( 00 07) 5.5% Total Workplace Population (2007) 28,118 Average Household Income (2007) $47,363 Retail Potential Annual Retail Surplus $94,645,936 Highest Leakage Index by Store Type Sporting Goods, Hobby, Book, & Music Stores $-3,205,275 Furniture & Home Furnishings Stores $-1,280,883 Electronics & Appliances Stores $-1,142,905 Building Material & Garden Equipment & Supply Dealers $-3,182,520

4 4002 NE Stallings Dr, Nacogdoches, TX Executive Summary Purpose of This Report On behalf of Nacogdoches, TX, Buxton conducted a study to determine the viability of Nacogdoches as a location for OLD NAVY CLOTHING CO. Buxton, based in Fort Worth, Texas, is a leading retail site location firm with clients including The Container Store, FedEx Office, California Pizza Kitchen, PETCO and hundreds of other national retailers and restaurants. This report is intended to demonstrate the viability of Nacogdoches as a location for consideration by OLD NAVY CLOTHING CO. Further, it is meant to serve as a foundation for discussion between representatives of Nacogdoches and OLD NAVY CLOTHING CO. Determination of Nacogdoches Potential as a Location for OLD NAVY CLOTHING CO Buxton identified a number of OLD NAVY CLOTHING CO locations in markets that are similar to Nacogdoches. We analyzed the demographic and psychographic characteristics of households in those markets where OLD NAVY CLOTHING CO currently has locations. We compared the results with characteristics of households comprising Nacogdoches retail trade area in order to determine if Nacogdoches is a good match for OLD NAVY CLOTHING CO. This report encapsulates the results of our analysis and documents the potential for OLD NAVY CLOTHING CO to establish a successful location in Nacogdoches. The following are some reasons OLD NAVY CLOTHING CO should consider Nacogdoches as a potential location: The potential site possesses large numbers of households with a mix of dominant segment households that appeal to a wide variety of retailers and restaurants The potential site benefits from large traffic counts on NE Stallings Drive Within the potential trade area, the category with the highest leakage index is Sporting Goods, Hobby, Book, & Music Stores, with a total leakage of $-3,205,275. The category with the highest surplus index is Clothing & Clothing Accessories Stores, with a total surplus of $19,806,835. Overall, this Nacogdoches, TX site is well situated to attract a quality mix of desired retailers and restaurants. This is an excellent opportunity for OLD NAVY CLOTHING CO to achieve its expansion goals.

5 4002 NE Stallings Dr, Nacogdoches, TX Retail Matching Methodology Nacogdoches Site Trade Area Profile Nacogdoches site trade area profile is created by analyzing the household segmentation (lifestyles and behavior patterns) of the residents within the trade area. The site s trade area profile is what distinguishes it from other areas in the community. The household profile of a trade area provides retailers/restaurants with the necessary information for screening potential locations for the placement of new stores/restaurants. OLD NAVY CLOTHING CO Trade Area Profile The trade area profile for OLD NAVY CLOTHING CO is created by analyzing their existing locations in markets that are similar to Nacogdoches. Drive time trade areas are generated around all existing OLD NAVY CLOTHING CO locations in similar markets to Nacogdoches. A household profile is computed for each of these locations, forming an overall average trade area profile for OLD NAVY CLOTHING CO. Profile Matching Buxton uses a proprietary profile matching algorithm to determine if OLD NAVY CLOTHING CO should be considered a match for the site trade area. By analyzing the household segmentation (psychographics), demographics, and the existing retail landscape, Buxton is able to recommend if OLD NAVY CLOTHING CO matches the site trade area. The following page highlights several of the key elements when determining a match.

6 4002 NE Stallings Dr, Nacogdoches, TX Retail Matching Methodology (continued) The two example match reports below illustrate a match and a non-match. Match The Retailer ABC profile is similar to the site trade area profile Line graph represents the site trade area profile Bar graph represents the retailer s average trade area profile Your Community, USA There is a greater number of Retailer ABC s dominant segment households in the site trade area than the average Retailer ABC retail trade area Non Match The Retailer XYZ profile is not similar to the site trade area profile Your Community, USA There are much fewer Retailer XYZ dominant segment households in the site trade area than the average Retailer ABC retail trade area

7 Profile Match Report Company: OLD NAVY CLOTHING CO Report Date: 5/6/2009 Site: 4002 NE STALLINGS DR Nacogdoches, TX Segmentation Profile (1) (15 Minute Drive Time) (2) 24% 21% 18% % Composition 15% 12% 9% 6% 3% 0% Company Profile (Dominant Segments)(3) Company Profile (All Other Segments) Site Profile(4) Trade Area Comparison (15 Minute Drive Time) Total Population Total Households Company Dominant Segment Households OLD NAVY CLOTHING CO Average Trade Area (5) 48,885 19,589 10,544 Nacogdoches, TX Site Trade Area 45,489 16,959 10,150 (1) Segmentation Profile Ev ery U.S. household is classif ied into one of 66 distinct segments described by that household's lif estyle and spending habits. (2) Drive Time Driv e time is used to def ine the trade area. (3) Dominant Segments Any segment that makes up at least 3 percent of a retailer's targeted prof ile (RED BARS). (4) Site Profile Those segments within the site's driv e time trade area (BLUE LINE). (5) Average Trade Area OLD NAVY CLOTHING CO trade areas used in this comparison are similar in population and market ty pe to Nacogdoches, TX. PRIZM is a registered trademark of Nielsen Claritas.PRIZM segment names (Blue Blood Estates, Big Sky Families, Country Squires, etc.) are trademarks of Nielsen Claritas.Business Data Source: Nielsen Claritas, infousa, Inc., Copyright 2009.Shopping Center Data:Copyright 2009 Nielsen Claritas and its Licensors.All Rights Reserved.Consumer Buying Power : Nielsen Claritas, Global Insight, Copyright 2009.Retail Market Power :Nielsen Claritas, Global Insight, Copyright 2009.MRI Profiles: Nielsen Claritas, Mediamark Research, Inc., Copyright 2009.TANA: Nielsen Claritas., Tele Atlas North America, Inc. (TANA), Copyright 2009.Traffic Data: Nielsen Claritas., MPSI Systems, Inc./DataMetrix, Copyright 2009.

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9 Retail Leakage and Surplus Analysis The Retail Leakage and Surplus Analysis examines the quantitative aspect of the community's retail opportunities. It is a guide to understanding retail opportunities but it is not an analysis that indicates unconditional opportunities. The analysis is sometimes called "a gap analysis" or "a supply and demand analysis" and can aid in the following: Indicating how well the retail needs of local residents are being met Uncovering unmet demand and possible opportunities Understanding the strengths and weaknesses of the local retail sector Measuring the difference between actual and potential retail sales Understanding Retail Leakage Retail leakage means that residents are spending more for products than local businesses capture. Retail sales leakage suggests that there is unmet demand in the trade area and that the community can support additional store space for that type of business. However, retail leakage does not necessarily translate into opportunity. For example, there could be a strong competitor in a neighboring community that dominates the market for that type of product or store. Understanding Retail Surplus A retail surplus means that the community's trade area is capturing the local market plus attracting non-local shoppers. A retail surplus does not necessarily mean that the community cannot support additional business. Many communities have developed strong clusters of stores that have broad geographic appeal. Examples of these types of retailers include: sporting goods stores, home furnishing stores, restaurants, and other specialty operations that become destination retailers and draw customers from outside the trade area. Examining the quantitative aspects (Leakage/Surplus) is only part of the evaluation of community's retail opportunities. Before any conclusions can be drawn about potential business expansion or recruitment opportunities, qualitative considerations such as trade area psychographics and buying habits must be analyzed in context of other market factors.

10 Site Address Analysis Geography dt NE Stallings Dr Nacogdoches, TX Minute Drive Time Leakage/Surplus Index by Product The Leakage/Surplus Index provides a relative comparison of the supply and demand across retail product categories. It is calculated by dividing actual sales by potential sales. An index greater than 1.0 means that the community is attracting retail sales (surplus) from outside the trade area. If the index is less than 1.0 it means that out-shopping is taking place and the community is not successfully drawing its own residents. Leakage/Surplus Index (Figure 1) shows the strengths and weaknesses of a community's retail market by product. Figure 1. Leakage/Surplus Index by Product

11 Site Address Analysis Geography dt NE Stallings Dr Nacogdoches, TX Minute Drive Time The sales potential and the actual sales potential by product category and the resulting index are shown in Figure 2. Figure 2. Sales Potential and Actual Sales by Product Product Type Potential Actual Sales Leakage/Surplus Index Groceries and Other Foods 75,050,121 91,609, Meals and Snacks 54,552,418 56,776, Alcoholic Drinks 5,900,118 4,625, Packaged Liquor/Wine/Beer 10,311,862 11,841, Cigars, Cigarettes, and Tobacco & Smokers Accessories 10,231,587 11,845, Drugs, Health Aids, and Beauty Aids 39,765,758 41,448, Soaps, Detergents, and Household Cleaners 3,271,918 4,089, Paper and Related Products 3,391,220 4,199, Mens Wear 10,920,402 15,025, Womens, Juniors, and Misses Wear 21,067,703 23,290, Childrens Wear 5,278,741 5,780, Footwear 8,416,747 9,068, Sewing, Knitting, and Needlework Goods 742,068 1,460, Curtains, Draperies, Blinds, Slipcovers etc. 3,163,848 3,276, Major Household Appliances 3,575,158 3,749, Small Electric Appliances 1,309,623 1,290, Televisions, Video Recorders, Video Cameras 3,753,535 2,962, Audio Equipment, Musical Instruments, and Supplies 5,949,862 3,244, Furniture and Sleep Equipment 7,973,760 5,571, Flooring & Floor Coverings 3,218,780 3,730, Computer Hardware, Software and Supplies 12,438,621 3,553, Kitchenware and Home furnishings 5,065,704 5,669, Jewelry 4,819,980 4,471, Books 7,301,041 1,771, Photographic Equipment & Supplies 1,118, , Toys, Hobby Goods, and Games 3,550,732 4,181, Optical Goods 838, , Sporting Goods 5,745,815 16,280, Hardware Tools, and Plumbing and Electrical Supplies 27,092,732 28,487, Lumber and Building Materials 20,664,317 18,048, Paint and Sundries 3,252,449 3,406, Cars, Trucks, and Other Powered Transportation 81,678, ,693, Automotive Fuels 47,134,827 64,438, Automotive Lubricants 17,810,992 22,315, Pets, Pet Foods, and Pet Supplies 2,230,967 3,004, All Other Merchandise 15,132,990 15,086,

12 Site Address Analysis Geography dt NE Stallings Dr Nacogdoches, TX Minute Drive Time Leakage/Surplus Index by Major Store Type The quantitative comparison of retail leakage and surplus in the twelve major store types shown in the chart and table below provides an initial measure of market opportunities. Combining this analysis with the knowledge of the local retail situation will take the process of identifying retail possibilities one step further. Figure 3 provides the leakage/surplus indices and following is the sales potential and actual sales for major store types. Figure 3. Leakage/Surplus Index and Actual and Potential Sales by Major Store Types Store Type Potential Actual Sales Leakage/Surplus Index Motor Vehicle & Parts Dealers 102,437, ,168, Furniture & Home Furnishings Stores 11,412,951 10,132, Electronics & Appliances Stores 12,081,620 10,938, Building Material & Garden Equipment & Supply Dealers 47,779,353 44,596, Food & Beverage Stores 66,330,105 82,608, Health & Personal Care Stores 28,522,804 35,426, Clothing & Clothing Accessories Stores 25,460,502 45,267, Sporting Goods, Hobby, Book, & Music Stores 10,883,211 7,677, General Merchandise Stores 64,222,225 61,775, Miscellaneous Store Retailers 12,667,867 12,545, Foodservice & Drinking Places 55,905,496 57,017, GAFO 128,930, ,125, Total Retail Sales (Including Food Service & Drinking Places) 566,634, ,279, * GAFO refers to discount retailers that typically include the following departments: general merchandise; clothing and clothing accessories; furniture and home furnishings; electronics and appliances; sporting goods, hobby, books and music; and office supplies.

13 Site Address Analysis Geography dt NE Stallings Dr Nacogdoches, TX Minute Drive Time Leakage/Surplus Analysis by Sub-Categories of Major Retail Types Additional leakage/surplus details are provided on subcategories of stores in each of the twelve major store types. These details can help further identity possible business expansion opportunities. Motor Vehicle and Parts Dealers Potential Actual Sales Leakage/Surplus Index Automotive Dealers 88,388, ,823, Other Motor Vehicle Dealers 5,847,138 31,678, Automotive Parts, Accessories, & Tire Stores 8,201,823 12,665, Motor Vehicle & Parts Dealers 102,437, ,168,

14 Site Address Analysis Geography dt NE Stallings Dr Nacogdoches, TX Minute Drive Time Electronics and Appliance Stores Potential Actual Sales Leakage/Surplus Index Household Appliances Stores 1,854,996 2,654, Radio Television and Other Electronics Stores 7,235,907 7,538, Appliance, Television, and Other Electronics Stores 9,090,904 10,192, Computer and Software Stores 2,559, , Camera & Photographic Equipment Stores 431, Electronics & Appliances Stores 12,081,620 10,938,

15 Site Address Analysis Geography dt NE Stallings Dr Nacogdoches, TX Minute Drive Time Furniture and Home Furnishings Stores Potential Actual Sales Leakage/Surplus Index Furniture Stores 6,390,808 4,038, Home Furnishing Stores 5,022,142 6,093, Furniture & Home Furnishings Stores 11,412,951 10,132,

16 Site Address Analysis Geography dt NE Stallings Dr Nacogdoches, TX Minute Drive Time Building Material, Garden Equipment and Supply Dealers Potential Actual Sales Leakage/Surplus Index Home Centers 17,317,712 18,728, Paint and Wallpaper Stores 1,005, , Hardware Stores 3,600,787 2,385, Building Materials, Lumberyards 7,298,362 5,047, Other Building Materials Dealers 21,938,918 14,800, Building Material & Supply Dealers 43,863,010 36,872, Outdoor Power Equipment Stores 595,053 3,841, Nursery and Garden Centers 3,321,289 3,882, Lawn and Garden Equipment and Supplies Stores 3,916,342 7,724, Building Material & Garden Equipment & Supply Dealers 47,779,353 44,596,

17 Site Address Analysis Geography dt NE Stallings Dr Nacogdoches, TX Minute Drive Time Food and Beverage Stores Potential Actual Sales Leakage/Surplus Index Supermarkets and Other Grocery (except Convenience) Stores 56,882,039 75,146, Convenience Stores 3,031,777 1,122, Grocery Stores 59,913,816 76,269, Specialty Food Stores 1,899, , Beer, Wine, & Liquor Stores 4,517,143 5,751, Food & Beverage Stores 66,330,105 82,608,

18 Site Address Analysis Geography dt NE Stallings Dr Nacogdoches, TX Minute Drive Time Health and Personal Care Stores Potential Actual Sales Leakage/Surplus Index Pharmacies and Drug Stores 25,025,750 27,466, Cosmetics, Beauty Supplies and Perfume Stores 994,357 1,897, Optical Goods Stores 713, , Other Health and Personal Care Stores 1,788,738 5,508, Health & Personal Care Stores 28,522,804 35,426,

19 Site Address Analysis Geography dt NE Stallings Dr Nacogdoches, TX Minute Drive Time Clothing and Clothing Accessories Stores Potential Actual Sales Leakage/Surplus Index Mens Clothing Stores 1,224, , Womens Clothing Stores 4,952,261 4,297, Childrens and Infants Clothing Stores 1,027, , Family Clothing Stores 10,127,265 33,750, Clothing Accessories Stores 389, Other Clothing Stores 1,238, , Clothing Stores 18,958,638 39,168, Shoe Stores 3,596,652 3,569, Jewelry Stores 2,666,551 2,530, Luggage, & Leather Goods Stores 238, Jewelry, Luggage, & Leather Goods Stores 2,905,211 2,530, Clothing & Clothing Accessories Stores 25,460,502 45,267,

20 Site Address Analysis Geography dt NE Stallings Dr Nacogdoches, TX Minute Drive Time Sporting Goods, Hobby, Book and Music Stores Potential Actual Sales Leakage/Surplus Index Sporting Goods Stores 3,014,718 2,395, Hobby, Toys and Games Stores 1,780,161 2,687, Sew/Needlework/Piece Goods Stores 456,564 1,367, Musical Instrument and Supplies Stores 661, Sporting Goods, Hobby, & Musical Instrument Stores 5,912,777 6,449, Book Stores 3,847, , News Dealers and Newsstands 103, Book Stores and News Dealers 3,950, , Prerecorded Tape, Compact Disc, and Record Stores 1,019, , Book, Periodical, & Music Stores 4,970,433 1,228, Sporting Goods, Hobby, Book, & Music Stores 10,883,211 7,677,

21 Site Address Analysis Geography dt NE Stallings Dr Nacogdoches, TX Minute Drive Time General Merchandise Stores Potential Actual Sales Leakage/Surplus Index Department Stores excluding leased depts. 30,302,015 19,539, Warehouse Clubs and Super Stores 29,470,738 40,821, All Other General Merchandise Stores 4,449,471 1,414, Other General Merchandise Stores 33,920,210 42,236, General Merchandise Stores 64,222,225 61,775,

22 Site Address Analysis Geography dt NE Stallings Dr Nacogdoches, TX Minute Drive Time Miscellaneous Store Retailers Potential Actual Sales Leakage/Surplus Index Florists 853, Office Supplies and Stationery Stores 2,780,169 5,334, Gift, Novelty, and Souvenir Stores 2,089, Office Supplies, Stationery, & Gift Stores 4,869,994 5,334, Used Merchandise Stores 1,156, Other Miscellaneous Store Retailers 5,787,729 7,211, Miscellaneous Store Retailers 12,667,867 12,545,

23 Site Address Analysis Geography dt NE Stallings Dr Nacogdoches, TX Minute Drive Time Foodservice and Drinking Places Potential Actual Sales Leakage/Surplus Index Full-service Restaurants 25,671,699 19,616, Limited-service Eating Places 23,014,458 26,672, Special Foodservices 4,692,297 9,215, Drinking Places -Alcoholic Beverages 2,527,042 1,513, Foodservice & Drinking Places 55,905,496 57,017,

24 Site Address Analysis Geography dt NE Stallings Dr Nacogdoches, TX Minute Drive Time Sources and Methodology Household demand estimates are derived by combining data from the Consumer Expenditures Survey by the Bureau of Labor Statistics with current household demographic estimates from Claritas. The demand estimates only account for household expenditures. Demand is defined as the estimated dollar amount spent by a household that resides in the area of analysis for a specified retail store type or merchandise line item. Supply estimates are generated from the Census of Retail Trade, a component of the Economic Census. County-level sales tax data is allocated to low levels of geography using business sales estimates, business locations, and employee counts provided by Claritas' Business Facts database. Supply includes all products sold at retail outlets in a specified area for a one-year period. Supply is defined as the estimated total retail sales for a retail store type or merchandise line item. Source: Retail Market Power (Claritas).

25 Demographics Analysis Geography: 4002 NE Stallings Dr Nacogdoches, TX Date: 5/7/2009 Population Profile 2012 Projection 2007 Estimate 2000 Census 1990 Census Population Change 15 Min Drive Time 47,231 45,489 43,526 41,500 5% 0% Growth % Growth % Growth 5 Year Proj % Work Place Population 15 Min Drive Time Total 28,118 Household Profile 2012 Projection 2007 Estimate 2000 Census 1990 Census 17,688 16,959 16,069 15,168 Household Change 5% 0% Growth % Growth % Growth 5 Year Proj % PRIZM is a registered trademark of Nielsen Claritas.PRIZM segment names (Blue Blood Estates, Big Sky Families, Country Squires, etc.) are trademarks of Nielsen Claritas.Business Data Source: Nielsen Claritas, infousa, Inc., Copyright 2009.Shopping Center Data:Copyright 2009 Nielsen Claritas and its Licensors.All Rights Reserved.Consumer Buying Power : Nielsen Claritas, Global Insight, Copyright 2009.Retail Market Power :Nielsen Claritas, Global Insight, Copyright 2009.MRI Profiles: Nielsen Claritas, Mediamark Research, Inc., Copyright 2009.TANA: Nielsen Claritas., Tele Atlas North America, Inc. (TANA), Copyright 2009.Traffic Data: Nielsen Claritas., MPSI Systems, Inc./DataMetrix, Copyright Page: 1

26 Analysis Geography: 4002 NE Stallings Dr Nacogdoches, TX Date: 5/7/2009 Demographics Population By Race (Current) White Black American Indian Asian Pacific Islander Other Two Or More Total Population By Race 15 Min Drive Time 30,286 9, , ,489 70% 65% 60% 55% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Population By Race (Current) White Black American Indian Asian Pacific Islander Other Two Or More Population By Hispanic Origin (Current) 15 Min Drive Time Hispanic Origin 7,952 Non Hispanic Origin 37,537 PRIZM is a registered trademark of Nielsen Claritas.PRIZM segment names (Blue Blood Estates, Big Sky Families, Country Squires, etc.) are trademarks of Nielsen Claritas.Business Data Source: Nielsen Claritas, infousa, Inc., Copyright 2009.Shopping Center Data:Copyright 2009 Nielsen Claritas and its Licensors.All Rights Reserved.Consumer Buying Power : Nielsen Claritas, Global Insight, Copyright 2009.Retail Market Power :Nielsen Claritas, Global Insight, Copyright 2009.MRI Profiles: Nielsen Claritas, Mediamark Research, Inc., Copyright 2009.TANA: Nielsen Claritas., Tele Atlas North America, Inc. (TANA), Copyright 2009.Traffic Data: Nielsen Claritas., MPSI Systems, Inc./DataMetrix, Copyright Page: 2

27 Analysis Geography: 4002 NE Stallings Dr Nacogdoches, TX Date: 5/7/2009 Demographics Population By Age (Current) 0 to 4 years 5 to 9 years 10 to 14 years 15 to 17 years 18 to 20 years 21 to 24 years 25 to 34 years 35 to 44 years 45 to 49 years 50 to 54 years 55 to 59 years 60 to 64 years 65 to 74 years 75 to 84 years 85+ Years 15 Min Drive Time 3,444 2,990 2,766 1,554 4,878 5,003 6,013 4,978 2,451 2,377 2,236 1,743 2,399 1, Total Population By Age Average Age 34.0 Median Age 30.9 Population By Age (Current) 45,489 10% 5% 0% 0-4 Years 5-9 Years Years Years Years Years Years Years Years Years Years Years Years Years 85+ Years PRIZM is a registered trademark of Nielsen Claritas.PRIZM segment names (Blue Blood Estates, Big Sky Families, Country Squires, etc.) are trademarks of Nielsen Claritas.Business Data Source: Nielsen Claritas, infousa, Inc., Copyright 2009.Shopping Center Data:Copyright 2009 Nielsen Claritas and its Licensors.All Rights Reserved.Consumer Buying Power : Nielsen Claritas, Global Insight, Copyright 2009.Retail Market Power :Nielsen Claritas, Global Insight, Copyright 2009.MRI Profiles: Nielsen Claritas, Mediamark Research, Inc., Copyright 2009.TANA: Nielsen Claritas., Tele Atlas North America, Inc. (TANA), Copyright 2009.Traffic Data: Nielsen Claritas., MPSI Systems, Inc./DataMetrix, Copyright Page: 3

28 Analysis Geography: 4002 NE Stallings Dr Nacogdoches, TX Date: 5/7/2009 Demographics Households By Income (Current) 15 Min Drive Time Under $15,000 $15,000 to $24,999 $25,000 to $34,999 $35,000 to $49,999 $50,000 to $74,999 $75,000 to $99,999 $100,000 to $149,999 $150,000 to $249,999 $250,000 to $499,999 $500,000 + Total Households By Income 16,959 Average Household Income $47,363 Per Capita Income $23,033 Median Household Income $35,251 4,866 2,391 2,038 2,314 2,321 1,244 1, % 28.95% 26.73% 24.5% 22.27% 20.04% 17.82% 15.59% 13.36% 11.14% 8.91% 6.68% 4.45% 2.23% 0% Under $15K 15K - 25K 25K - 35K Households By Income (Current) 35K - 50K 50K - 75K 75K - 100K 100K - 150K 150K - 250K 250K - 500K 500K + PRIZM is a registered trademark of Nielsen Claritas.PRIZM segment names (Blue Blood Estates, Big Sky Families, Country Squires, etc.) are trademarks of Nielsen Claritas.Business Data Source: Nielsen Claritas, infousa, Inc., Copyright 2009.Shopping Center Data:Copyright 2009 Nielsen Claritas and its Licensors.All Rights Reserved.Consumer Buying Power : Nielsen Claritas, Global Insight, Copyright 2009.Retail Market Power :Nielsen Claritas, Global Insight, Copyright 2009.MRI Profiles: Nielsen Claritas, Mediamark Research, Inc., Copyright 2009.TANA: Nielsen Claritas., Tele Atlas North America, Inc. (TANA), Copyright 2009.Traffic Data: Nielsen Claritas., MPSI Systems, Inc./DataMetrix, Copyright Page: 4

29 Analysis Geography: 4002 NE Stallings Dr Nacogdoches, TX Date: 5/7/2009 Demographics Housing Units By Occupancy (Current) Owner - Occupied Renter - Occupied Vacant Owner - Occupied Property Values (Current) 15 Min Drive Time 48.0% 41.6% 10.3% Under $20,000 $20,000 to $39,999 $40,000 to $59,999 $60,000 to $79,999 $80,000 to $99,999 $100,000 to $149,999 $150,000 to $199,999 $200,000 to $299,999 $300,000 to $399,999 $400,000 to $499,999 $500,000 to $749,999 $750,000 to $999,999 $1,000,000 + Total Owner - Occupied Property Values 9,085 Median Property Value 98, % 21.55% 18.85% 16.16% 13.47% 10.77% 8.08% 5.39% 2.69% 0% Under 20K 20K - 40K 40K - 60K Owner - Occupied Property Values (Current) 60K - 80K 80K - 100K 100K - 150K 150K - 200K 200K - 300K 300K - 400K 400K - 500K 500K - 750K 750K K 1000K , ,308 1,920 1, PRIZM is a registered trademark of Nielsen Claritas.PRIZM segment names (Blue Blood Estates, Big Sky Families, Country Squires, etc.) are trademarks of Nielsen Claritas.Business Data Source: Nielsen Claritas, infousa, Inc., Copyright 2009.Shopping Center Data:Copyright 2009 Nielsen Claritas and its Licensors.All Rights Reserved.Consumer Buying Power : Nielsen Claritas, Global Insight, Copyright 2009.Retail Market Power :Nielsen Claritas, Global Insight, Copyright 2009.MRI Profiles: Nielsen Claritas, Mediamark Research, Inc., Copyright 2009.TANA: Nielsen Claritas., Tele Atlas North America, Inc. (TANA), Copyright 2009.Traffic Data: Nielsen Claritas., MPSI Systems, Inc./DataMetrix, Copyright Page: 5

30 2651 S. Polaris Dr. Fort Worth, Texas tel: fax: N Garrison &% , Appleby $# 21 l Nacogdoches 7 "! A L Mangham Jr. Regional,+ 59 $# 21 NACOGDOCHES, TX: Population Map Shopping Centers GLA in thousands to 1000 Proposed l Retail Location Trade Area 2008 Population By Block Group 5,000 and Above 3,000 to 5,000 1,500 to 3,000 1,000 to 1,500 1,000 and Below Miles PRIZM is a registered trademark of Nielsen Claritas.PRIZM segment names (Blue Blood Estates, Big Sky Families, Country Squires, etc.) are trademarks of Nielsen Claritas.Business Data Source: Nielsen Claritas, infousa, Inc., Copyright 2009Shopping Center Data:Copyright 2009 Nielsen Claritas and its Licensors.All Rights Reserved.Consumer Buying Power : Nielsen Claritas, Global Insight, Copyright 2009.Retail Market Power :Nielsen Claritas, Global Insight, Copyright 2009MRI Profiles: Nielsen Claritas, Mediamark Research, Inc., Copyright 2009.TANA: Nielsen Claritas., Tele Atlas North America, Inc. (TANA), Copyright 2009.Traffic Data: Nielsen Claritas., MPSI Systems, Inc./DataMetrix, Copyright 2009.

31 2651 S. Polaris Dr. Fort Worth, Texas tel: fax: N Garrison &% , Appleby $# 21 l Nacogdoches 7 "! A L Mangham Jr. Regional,+ 59 $# 21 NACOGDOCHES, TX: Population Growth Shopping Centers GLA in thousands to 1000 Proposed l Retail Location Trade Area Projected Change % Change By Block Group 15% and Above 10% to 15% 5% to 10% 0% to 5% Population Loss Miles PRIZM is a registered trademark of Nielsen Claritas.PRIZM segment names (Blue Blood Estates, Big Sky Families, Country Squires, etc.) are trademarks of Nielsen Claritas.Business Data Source: Nielsen Claritas, infousa, Inc., Copyright 2009Shopping Center Data:Copyright 2009 Nielsen Claritas and its Licensors.All Rights Reserved.Consumer Buying Power : Nielsen Claritas, Global Insight, Copyright 2009.Retail Market Power :Nielsen Claritas, Global Insight, Copyright 2009MRI Profiles: Nielsen Claritas, Mediamark Research, Inc., Copyright 2009.TANA: Nielsen Claritas., Tele Atlas North America, Inc. (TANA), Copyright 2009.Traffic Data: Nielsen Claritas., MPSI Systems, Inc./DataMetrix, Copyright 2009.

32 2651 S. Polaris Dr. Fort Worth, Texas tel: fax: N Garrison &% , Appleby $# 21 l Nacogdoches 7 "! A L Mangham Jr. Regional,+ 59 $# 21 NACOGDOCHES, TX: Median Income Shopping Centers GLA in thousands to 1000 Proposed l Retail Location Trade Area Median Household Income By Block Group $200,000 and Above $100,000 to $200,000 $50,000 to $100,000 $25,000 to $50,000 $25,000 and Below Miles PRIZM is a registered trademark of Nielsen Claritas.PRIZM segment names (Blue Blood Estates, Big Sky Families, Country Squires, etc.) are trademarks of Nielsen Claritas.Business Data Source: Nielsen Claritas, infousa, Inc., Copyright 2009Shopping Center Data:Copyright 2009 Nielsen Claritas and its Licensors.All Rights Reserved.Consumer Buying Power : Nielsen Claritas, Global Insight, Copyright 2009.Retail Market Power :Nielsen Claritas, Global Insight, Copyright 2009MRI Profiles: Nielsen Claritas, Mediamark Research, Inc., Copyright 2009.TANA: Nielsen Claritas., Tele Atlas North America, Inc. (TANA), Copyright 2009.Traffic Data: Nielsen Claritas., MPSI Systems, Inc./DataMetrix, Copyright 2009.

33 2651 S. Polaris Dr. Fort Worth, Texas tel: fax: N Garrison &% , Appleby $# 21 l Nacogdoches 7 "! A L Mangham Jr. Regional,+ 59 $# 21 NACOGDOCHES, TX: Property Value Shopping Centers GLA in thousands to 1000 Proposed l Retail Location Trade Area Property Value By Block Group $75,000 and Above Miles $50,000 to $75,000 $25,000 to $50,000 $25,000 and Below PRIZM is a registered trademark of Nielsen Claritas.PRIZM segment names (Blue Blood Estates, Big Sky Families, Country Squires, etc.) are trademarks of Nielsen Claritas.Business Data Source: Nielsen Claritas, infousa, Inc., Copyright 2009Shopping Center Data:Copyright 2009 Nielsen Claritas and its Licensors.All Rights Reserved.Consumer Buying Power : Nielsen Claritas, Global Insight, Copyright 2009.Retail Market Power :Nielsen Claritas, Global Insight, Copyright 2009MRI Profiles: Nielsen Claritas, Mediamark Research, Inc., Copyright 2009.TANA: Nielsen Claritas., Tele Atlas North America, Inc. (TANA), Copyright 2009.Traffic Data: Nielsen Claritas., MPSI Systems, Inc./DataMetrix, Copyright 2009.

34 Œ Œ Œ Œ Œ Œ Œ Œ Œ Œ Œ Œ Œ ŒŒ Œ Œ Œ Œ Œ Œ Œ l Nacogdoches Nacogdoches Nacogdoches Nacogdoches Nacogdoches Nacogdoches Nacogdoches Nacogdoches Nacogdoches Nacogdoches Nacogdoches Nacogdoches Nacogdoches Nacogdoches Nacogdoches Nacogdoches Nacogdoches Nacogdoches S. Polaris Dr. Fort Worth, Texas tel: fax: buxton@buxtonco.com PRIZM is a registered trademark of Nielsen Claritas.PRIZM segment names (Blue Blood Estates, Big Sky Families, Country Squires, etc.) are trademarks of Nielsen Claritas.Business Data Source: Nielsen Claritas, infousa, Inc., Copyright 2009 and its Licensors.All Rights Reserved.Consumer Buying Power : Nielsen Claritas, Global Insight, Copyright 2009.Retail Market Power :Nielsen Claritas, Global Insight, Copyright 2009 Shopping Center Data:Copyright 2009 Nielsen Claritas MRI Profiles: Nielsen Claritas, Mediamark Research, Inc., Copyright 2009.TANA: Nielsen Claritas., Tele Atlas North America, Inc. (TANA), Copyright 2009.Traffic Data: Nielsen Claritas., MPSI Systems, Inc./DataMetrix, Copyright NACOGDOCHES, TX: Traffic Proposed l Retail Location N Miles Œ Traffic Count

35 Household Segmentation Introduction CommunityID uses the latest technologies including extensive databases and geographic information systems to analyze a community s retail potential. This section describes the research methodologies. Profiling and Segmentation Profiling and segmenting household data creates the picture of customers on a psychographic basis, giving us the ability to distinguish amongst demographically similar households anywhere in the United States. Technically, segmentation is a standardized method of classifying, sorting, and grouping people. Segmentation classifies households into distinct socioeconomic groups and measures households according to lifestyles and behavior patterns. Millions of customer transactions are analyzed and grouped on an annual basis to determine similar purchasing habits, which are used to develop psychographics. Compared to traditional broad-based demographics, the psychographic approach is more focused and produces results that are more accurate. Households by Segment (example)

36 Household Segmentation The advantage of this system is the ability to integrate behavioral, demographic, and, most importantly, consumer spending habits into models that describe any household in the United States. These models not only describe age, income, and education, but also the investments and purchases a household is likely to make. The customer segmentation system has been thoroughly tested and is well recognized by retailers, services and restaurants. CommunityID identifies 66 customer segments nationally, ranging from Upper Crust TM at the highest level of the socioeconomic continuum to Low-Rise Living TM at the lowest level. The importance of customer segmentation to this study is that once the dominant segments of the area are known, this profile will be recognizable to any retailer in the country. For example, if it is discovered that segment one, Upper Crust TM appears with more frequency in the study site trade area than the national average, retailers who market to that segment may find the area attractive as a new location The figure below shows the household segmentation profile for the United States. U.S. Segmentation Profile Source: Claritas, Inc, PRIZM NE, 2008

37 Household Segmentation Brief Descriptions 1 UPPER CRUST TM The nation s most exclusive address, Upper Crust TM is the wealthiest lifestyle in America a haven for empty-nesting couples over 55 years old. No segment has a higher concentration of residents earning over $200,000 a year or possessing a postgraduate degree, and none has a more opulent standard of living. 2 BLUE BLOOD ESTATES TM Blue Blood Estates TM is a family portrait of suburban wealth, a place of million-dollar homes and manicured lawns, high-end cars and exclusive private clubs. The nation s second-wealthiest lifestyle, it is characterized by married couples with children, college degrees, a significant percentage of Asian Americans and six-figure incomes earned by business executives, managers and professionals. 3 MOVERS & SHAKERS TM Movers & Shakers TM is home to America s up-andcoming business class: a wealthy suburban world of dual-income couples who are highly educated, typically between the ages of 35 and 54, often with children. Given its high percentage of executives and white-collar professionals, there is a decided business bent to this segment: Movers & Shakers TM rank number one for owning a small business and having a home office. 4 YOUNG DIGERATI TM Young Digerati TM are the nation s tech-savvy singles and couples living in fashionable neighborhoods on the urban fringe. Affluent, highly educated and ethnically mixed, Young Digerati TM communities are typically filled with trendy apartments and condos, fitness clubs and clothing boutiques, casual restaurants and all types of bars from juice to coffee to microbrew. 5 COUNTRY SQUIRES TM The wealthiest residents in exurban America live in Country Squires TM, an oasis for affluent Baby Boomers who have fled the city for the charms of small-town living. In their bucolic communities noted for their recently built homes on sprawling properties, the families of executives live in sixfigure comfort. Country Squires TM enjoy country club sports like golf, tennis and swimming as well as skiing, boating and biking. 6 WINNER S CIRCLE TM Among the wealthy suburban lifestyles, Winner s Circle TM is the youngest, a collection of mostly 25- to 34-year-old couples with large families in new-money subdivisions. Surrounding their homes are the signs of upscale living: recreational parks, golf courses and upscale malls. With a median income of nearly $90,000, Winner s Circle TM residents are big spenders who like to travel, ski, go out to eat, shop at clothing boutiques and take in a show.

38 Household Segmentation Brief Descriptions 7 MONEY & BRAINS TM The residents of Money & Brains TM seem to have it all: high incomes, advanced degrees and sophisticated tastes to match their credentials. Many of these city dwellers predominantly white with a high concentration of Asian Americans are married couples with few children who live in fashionable homes on small, manicured lots. 8 EXECUTIVE SUITES TM Executive Suites TM consists of upper-middle-class singles and couples typically living just beyond the nation s beltways. Filled with significant numbers of Asian Americans and college graduates both groups are represented at more than twice the national average this segment is a haven for white-collar professionals drawn to comfortable homes and apartments within a manageable commute to downtown jobs, restaurants and entertainment. 9 BIG FISH, SMALL POND TM Older, upper-class, college-educated professionals, the members of Big Fish, Small Pond TM are often among the leading citizens of their small-town communities. These upscale, empty-nesting couples enjoy the trappings of success, belonging to country clubs, maintaining large investment portfolios and spending freely on computer technology. 10 SECOND CITY ELITE TM There s money to be found in the nation s smaller cities, and you re most likely to find it in Second City Elite TM. The residents of these satellite cities tend to be prosperous executives who decorate their $200,000 homes with multiple computers, large-screen TV sets and an impressive collection of wines. With more than half holding college degrees, Second City Elite TM residents enjoy cultural activities from reading books to attending theater and dance productions. 11 GOD S COUNTRY TM When city dwellers and suburbanites began moving to the country in the 1970 s, God s Country TM emerged as the most affluent of the nation s exurban lifestyles. Today, wealthier communities exist in the hinterlands, but God s Country TM remains a haven for upper-income couples in spacious homes. Typically college-educated Baby Boomers, these Americans try to maintain a balanced lifestyle between high-power jobs and laid-back leisure. 12 BRITE LITES, LI L CITY TM Not all of the America s chic sophisticates live in major metros. Brite Lights, Li l City TM is a group of well-off, middle-aged couples settled in the nation s satellite cities. Residents of these typical double income, no kids households have college educations, well-paying business and professional careers and swank homes filled with the latest technology.

39 Household Segmentation Brief Descriptions 13 UPWARD BOUND TM More than any other segment, Upward Bound TM appears to be the home of those legendary Soccer Moms and Dads. In these small satellite cities, upper-class families boast dual incomes, college degrees and new split-levels and colonials. Residents of Upward Bound TM tend to be kid-obsessed, with heavy purchases of computers, action figures, dolls, board games, bicycles and camping equipment. 14 NEW EMPTY NESTS TM With their grown-up children recently out of the house, New Empty Nests TM is composed of upscale older Americans who pursue active and activist lifestyles. Nearly three-quarters of residents are over 65 years old, but they show no interest in a rest-home retirement. This is the top-ranked segment for all-inclusive travel packages; the favorite destination is Italy. 15 POOLS & PATIOS TM Formed during the postwar Baby Boom, Pools & Patios TM has evolved from a segment of young suburban families to one for mature, emptynesting couples. In these stable neighborhoods graced with backyard pools and patios the highest proportion of homes were built in the 1960 s residents work as white-collar managers and professionals, and are now at the top of their careers. 16 BOHEMIAN MIX TM A collection of young, mobile urbanites, Bohemian Mix TM represents the nation s most liberal lifestyles. Its residents are a progressive mix of young singles and couples, students and professionals, Hispanics, Asians, African- Americans and whites. In their funky row houses and apartments, Bohemian Mixers TM are the early adopters who are quick to check out the latest movie, nightclub, laptop and microbrew. 17 BELTWAY BOOMERS TM The members of the postwar Baby Boom are all grown up. Today, these Americans are in their forties and fifties, and one segment of this huge cohort college-educated, upper-middle-class and home-owning is found in Beltway Boomers TM. Like many of their peers who married late, these Boomers are still raising children in comfortable suburban subdivisions, and they re pursuing kid-centered lifestyles. 18 KIDS & CUL-DE-SACS TM Upscale, suburban, married couples with children is the description of Kids & Cul-de-Sacs TM, an enviable lifestyle of large families in recently built subdivisions. With a high rate of Hispanic and Asian Americans, this segment is a refuge for college-educated, white-collar professionals with administrative jobs and upper-middle-class incomes. Their nexus of education, affluence and children translates into large outlays for child-centered products and services.

40 Household Segmentation Brief Descriptions 19 HOME SWEET HOME TM Widely scattered across the nation s suburbs, the residents of Home Sweet Home TM tend to be upper-middle-class married couples living in mid-sized homes with few children. The adults in the segment, mostly between the ages of 25 and 54, have gone to college and hold professional and white-collar jobs. With their upscale incomes and small families, these folks have fashioned comfortable lifestyles, filling their homes with toys, TV sets and pets. 20 FAST-TRACK FAMILIES TM With their upper-middle-class incomes, numerous children and spacious homes, Fast-Track Families TM are in their prime acquisition years. These middle-aged parents have the disposable income and educated sensibility to want the best for their children. They buy the latest technology with impunity: new computers, DVD players, home theater systems and video games. They take advantage of their rustic locales by camping, boating and fishing. 21 GRAY POWER TM The steady rise of older, healthier Americans over the past decade has produced one important by-product: middle-class, home-owning suburbanites who are aging in place rather than moving to retirement communities. A segment of older, mid-scale singles and couples who live in quiet comfort, Gray Power TM reflects this trend. 22 YOUNG INFLUENTIALS TM Once known as the home of the nation s yuppies, Young Influentials TM reflects the fading glow of acquisitive yuppiedom. Today, the segment is a common address for young, middle-class singles and couples who are more preoccupied with balancing work and leisure pursuits. Having recently left college dorms, they now live in apartment complexes surrounded by ball fields, health clubs and casual-dining restaurants. 23 GREENBELT SPORTS TM A segment of middle-class exurban couples, Greenbelt Sports TM is known for its active lifestyle. Most of these middle-aged residents are married, college-educated and own new homes; about a third have children. And few segments have higher rates for pursuing outdoor activities such as skiing, canoeing, backpacking, boating and mountain biking. 24 UP-AND-COMERS TM Up-and-Comers TM is a stopover for young, mid-scale singles before they marry, have families and establish more deskbound lifestyles. Found in second-tier cities, these mobile twenty-somethings include a disproportionate number of recent college graduates who are into athletic activities, the latest technology and nightlife entertainment.

41 Household Segmentation Brief Descriptions 25 COUNTRY CASUALS TM There s a laid-back atmosphere in Country Casuals TM, a collection of middle-aged, upper-middle-class households that have started to empty-nest. Workers here and most households boast two earners have wellpaying blue- or white-collar jobs, or own small businesses. Today these Baby- Boom couples have the disposable income to enjoy traveling, owning timeshares and going out to eat. 26 THE COSMOPOLITANS TM Educated, mid-scale and multi-ethnic, The Cosmopolitans TM are urbane couples in America s fast-growing cities. Concentrated in a handful of metros such as Las Vegas, Miami and Albuquerque these households feature older home-owners, empty-nesters and college graduates. A vibrant social scene surrounds their older homes and apartments, and residents love the nightlife and enjoy leisure-intensive lifestyles. 27 MIDDLEBURG MANAGERS TM Middleburg Managers TM arose when emptynesters settled in satellite communities which offered a lower cost of living and more relaxed pace. Today segment residents tend to be middle-class and over 55 years old with solid managerial jobs and comfortable retirements. In their older homes, they enjoy reading, playing musical instruments, indoor gardening and refinishing furniture. 28 TRADITIONAL TIMES TM Traditional Times TM is the kind of lifestyle where smalltown couples nearing retirement are beginning to enjoy their first empty-nest years. Typically in their fifties and sixties, these middle-class Americans pursue a kind of granola-and-grits lifestyle. On their coffee tables are magazines with titles ranging from Country Living and Country Home to Gourmet and Forbes. But they re big travelers, especially in recreational vehicles and campers. 29 AMERICAN DREAMS TM American Dreams TM is a living example of how ethnically diverse the nation has become: more than half the residents are Hispanic, Asian or African-American. In these multilingual neighborhoods one in ten residents speaks a language other than English middle-aged immigrants and their children live in middle-class comfort. 30 SUBURBAN SPRAWL TM Suburban Sprawl TM is an unusual American lifestyle: a collection of mid-scale, middle-aged singles and couples living in the heart of suburbia. Typically members of the Baby Boom generation, they hold decent jobs, own older homes and condos, and pursue conservative versions of the American Dream. Among their favorite activities are jogging on treadmills, playing trivia games and renting videos.

42 Household Segmentation Brief Descriptions 31 URBAN ACHIEVERS TM Concentrated in the nation s port cities, Urban Achievers TM is often the first stop for up-and-coming immigrants from Asia, South America and Europe. These young singles and couples are typically collegeeducated and ethnically diverse: about a third are foreign-born, and even more speak a language other than English. 32 NEW HOMESTEADERS TM Young, middle-class families seeking to escape suburban sprawl find refuge in New Homesteaders TM, a collection of small rustic townships filled with new ranches and Cape Cods. With decent-paying jobs in white-collar and service industries, these dual-income couples have fashioned comfortable, child-centered lifestyles, their driveways filled with campers and powerboats, their family rooms with PlayStations and Game Boys. 33 BIG SKY FAMILIES TM Scattered in placid towns across the American heartland, Big Sky Families TM is a segment of young rural families who have turned high school educations and blue-collar jobs into busy, middle-class lifestyles. Residents like to play baseball, basketball and volleyball in addition to going fishing, hunting and horseback riding. To entertain their sprawling families, they buy virtually every piece of sporting equipment on the market. 34 WHITE PICKET FENCES TM Midpoint on the socioeconomic ladder, residents in White Picket Fences TM look a lot like the stereotypical American household of a generation ago: young, middle-class, married with children. But the current version is characterized by modest homes and ethnic diversity including a disproportionate number of Hispanics and African-Americans. 35 BOOMTOWN SINGLES TM Affordable housing, abundant entry-level jobs and a thriving singles scene all have given rise to the Boomtown Singles TM segment in fast-growing satellite cities. Young, single and working-class, these residents pursue active lifestyles amid sprawling apartment complexes, bars, convenience stores and laundromats. 36 BLUE-CHIP BLUES TM Blue-Chip Blues TM is known as a comfortable lifestyle for young, sprawling families with well-paying blue-collar jobs. Ethnically diverse with a significant presence of Hispanics and African-Americans the segment s aging neighborhoods feature compact, modestly priced homes surrounded by commercial centers that cater to child-filled households.