Thank you for selecting Dakota Worldwide for this market study. Please call if you have any questions.

Transcription

1 August 27, 2014 Ms. Ragen Cote Downtown Partners 418 Pierce Street Sioux City, IA Dear Ragen: Enclosed please find one hard copy and a CD of the Sioux City, Iowa market analysis study. Three sites were tested and each was tested with and without adjacency to a farmer s market and local food specialty shops. Start-up co-ops typically have very small sales areas. Most are less than 4,000 square feet for their first five years of operation. The larger sizes tested may be premature. If it is possible to downsize some of these locations, I will happily run new scenarios for you. Thank you for selecting Dakota Worldwide for this market study. Please call if you have any questions. Sincerely, Marcia Pfeifer Enclosures

2 Sioux City, Iowa Prepared for: Downtown Partners Sioux City By: Dakota Worldwide Corporation August 2014 DTP001

3 Sioux City Market Study DTP001 ~ August 2014) Page i Table of Contents Page Executive Summary...1 Three-Year Growth Pattern...2 Natural Foods Propensity...4 Trade Area Delineation...5 Population Trade Area Potential...5 Facility Profile...6 Market Shares by Chain...7 Site Evaluation/Analysis...9 Analysis...15 Assumptions...15 Methodology...16 Competitor Information & Evaluation...17 Trade Area Data by Sector...19 Appendix...25 Current Market Reports...25 Market Change Reports...26 Scenario/Projections...26 Definitions...39 Qualifier...40 Source Data...41

4 Sioux City Market Study DTP001 ~ August 2014) Page 1 Executive Summary The purpose of this study is to determine the feasibility of opening a cooperative grocery store in downtown Sioux City, Iowa. Three sites were tested. Each site was tested standing alone. A second scenario for each site combines the co-op with an adjacent food pavilion featuring local food processors such as Jolly Time Popcorn, Palmer Candy and Sioux Bee Honey. A third scenario features adjacent retail help in the form of a food pavilion and a farmer s market. The trade area is the greater Sioux City Metropolitan Statistical area as well the town of LeMar s and covers over 800 square miles. If the Trader Sioux Co-op is freestanding, 95% of its business will come from within this defined trade area. Should it be adjacent to the proposed food pavilion, the Co-op sites will attract customers from a greater distance and only 90% of its sales will come from within the marketplace. Should both the food pavilion and farmer s market be adjacent, 85% of the co-op s sales will come from within. Fifteen stores were identified as competitors in this marketplace. Walmart with four facilities is the market share leader with 35.18% market share. Second is Hy-Vee with six facilities and a 34.07% market share. Third is Fareway with five facilities with a 14.89% market share. The primary natural foods competitors are the Hy-Vee stores. Three of them have designated natural foods departments and all carry some organic produce. Fareway carries very little natural food and offers no organic produce as does Walmart. Some smaller stores such as Save A Lot and Lawrence s Market were not identified as competitors because of the specialty nature of these stores. Sam s Club was also omitted as it is a members only facility. Sales for these stores are included in the 15% float, or uncaptured supermarket expenditures. All three sites are located in downtown Sioux City. Four different sizes were tested, two at the Water Street site and one each at the Pierce and Virginia sites. Sizes tested range from 3,600 sales area square feet to 14,600 sales area square feet. In almost all cases, natural foods co-ops start with very small storefronts such as the 3,600 sales area square foot sites. It is recommended that smaller sizes be tested at the other two sites as well. If the same size was tested at all three locations, it can be determined which site has the greatest opportunity to capture sales from the competition. The Water Street and Pierce Street sites are about equal but if all were 3,600 sales area square feet, the Virginia Street site would have sales of $12,000 per week less than the other two sites.

5 Sioux City Market Study DTP001 ~ August 2014) Page 2 Table 1 Three-Year Growth Pattern Weekly Sales Scenario 1A - Site Weekly Sales $/SSF Scenario 1B - Site Weekly Sales $/SSF Scenario 1C - Site Weekly Sales $/SSF Scenario 2A - Site Weekly Sales $/SSF Scenario 2B - Site Weekly Sales $/SSF Scenario 2C - Site Weekly Sales $/SSF Scenario 3A - Site Weekly Sales $/SSF Scenario 3B - Site Weekly Sales $/SSF Scenario 3C - Site Weekly Sales $/SSF Scenario 3A - Site Weekly Sales $/SSF Scenario 3B - Site Weekly Sales $/SSF Scenario 3C - Site Weekly Sales $/SSF 1 st Year May 2017 $47,220 $13.12 $49,843 $13.85 $52,775 $14.66 $114,200 $12.83 $120,545 $13.54 $127,636 $14.34 $138,222 $12.57 $145,901 $13.26 $154,483 $14.04 $135,334 $9.27 $142,852 $9.78 $151,255 $ nd Year May 2018 $51,468 $14.30 $54,328 $15.09 $57,524 $15.98 $124,180 $13.95 $131,079 $14.73 $138,789 $15.59 $150,158 $13.65 $158,500 $14.41 $167,824 $15.26 $146,994 $10.07 $155,160 $10.63 $164,287 $ rd Year May 2019 $55,248 $15.35 $ 58,317 $16.20 $61,747 $17.15 $133,021 $14.95 $140,411 $15.78 $148,556 $16.70 $160,707 $14.61 $169,635 $15.42 $179,614 $16.33 $157,287 $10.77 $166,025 $11.37 $175,791 $12.04

6 Sioux City Market Study DTP001 ~ August 2014) Page 3 Scenarios Scenario 1A: A new 3,600 sales area square foot Trader Sioux Co-op opens at Site near the intersection of 6 th Street and Water Street. Scenario 1B: A new 3,600 sales area square foot Trader Sioux Co-op opens at Site near the intersection of 6 th Street and Water Street and specialty shops featuring Sioux City and Iowa foods opens adjacent to the co-op. Scenario 1C: A new 3,600 sales area square foot Trader Sioux Co-op opens Site near the intersection of 6 th Street and Water Street, specialty shops featuring Sioux City and Iowa foods opens adjacent to the co-op and a farmer s market. Scenario 2A: A new 8,900 sales area square foot Trader Sioux Co-op opens at Site near the intersection of 6 th Street and Water Street. Scenario 2B: A new 8,900,sales area square foot Trader Sioux Co-op opens at Site near the intersection of 6 th Street and Water Street and specialty shops featuring Sioux City and Iowa foods opens adjacent to the co-op. Scenario 2C: A new 8,900 sales area square foot Trader Sioux Co-op opens at Site near the intersection of 6 th Street and Water Street, specialty shops featuring Sioux City and Iowa foods opens adjacent to the co-op and a farmer s market. Scenario 3A: A new 11,000 sales area square foot Trader Sioux Co-op opens at Site near the intersection of Pierce Street and 6 th Street. Scenario 3B: A new 11,000 sales area square foot Trader Sioux Co-op opens at Site near the intersection of Pierce Street and 6 th Street and specialty shops featuring Sioux City and Iowa foods opens adjacent to the co-op. Scenario 3C: A new 11,000 sales area square foot Trader Sioux Co-op opens at Site near the intersection of Pierce Street and 6 th Street, specialty shops featuring Sioux City and Iowa foods opens adjacent to the co-op and a farmer s market. Scenario 4A: A new 14,600 sales area square foot Trader Sioux Co-op opens at Site near the intersection of Virginia Street and 1 st Street. Scenario 4B: A new 14,600 sales area square foot Trader Sioux Co-op opens at Site near the intersection of Virginia Street and 1 st Street and specialty shops featuring Sioux City and Iowa foods opens adjacent to the co-op. Scenario 4C: A new 14,600 sales area square foot Trader Sioux Co-op opens at Site near the intersection of Virginia Street and 1 st Street, specialty shops featuring Sioux City and Iowa foods opens adjacent to the co-op and a farmer s market.

7 Sioux City Market Study DTP001 ~ August 2014) Page 4 Natural Foods Propensity Exclusive to forecasting natural food supermarket sales, heavy consideration is placed on area demographics. Natural food supermarkets attract customers with high education and income levels. This is consistent with documented demographic characteristics and traits shared by other health and natural foods shoppers. Natural foods patrons have high household incomes, low family sizes, are typically college educated, below 50 years of age and have a professional, managerial, technical, or service occupation. In recent years, the typical age range of patrons has significantly widened to include the more senior. These attributes are extremely important considerations in the site selection process. The Store and Sector Map is color-coded to reflect natural food shopping in the identified trade area. Coded by a population sector s Natural Foods Propensity Buying Index, the map shows where people with important natural foods traits live. The maps highlight the best areas, which are those areas with strong income and education levels. The Sioux City trade area breaks out as follows. Table 3 Trade Area Population by Natural Foods Propensity Best 108 and Above Above Average Average Below Average Poor 62 and Below 20, % 32, % 38, % 21, % 22, %

8 Sioux City Market Study DTP001 ~ August 2014) Page 5 Trade Area Delineation The trade area was determined by natural boundaries, the existing road network, and the sites relation to its competition. The Sioux City trade area is approximately 37 miles north to south and 22 miles east to west. It includes the cities of Sioux City, North Sioux City, South Sioux City, Sergeant Bluff, Dakota City, Bronson, Lawson, Homer, Salix, Stone, Hornick, Hinton and LeMars. An estimated 85% to 95% of the proposed co-op s sales will come from inside this defined trade area. Primary Trade Area Potential Table 4 Population & Potential Summary August 2014 Potential $6,340,902 P.C.E Census Population 2014 Estimated Population 2019 Estimated Population $ , , ,148 The current population in the trade area is 135,787 people and the average weekly P.C.E. is $46.70, ranging from a high of $55.99 in Sector 52 to a low of $31.48 in Sector 38. The total potential is $6,340,902 and the 15 facilities identified are receiving $5,335,150 or a 84.14% market share. Total float, which consists of minor facilities and leakage, is $1,005,752 or 15.86%. The 2014 estimated median income for the trade area is $51,723 with an average household size of 2.59 people. The demographic makeup is 76.1% white, 2.2% Black, 15.7% Hispanic and 2.3% Asian. Additionally 25.7% of the residents are under the age of 18, 13.7% are over the age of 65 and 1.1% are college students living in college housing.

9 Sioux City Market Study DTP001 ~ August 2014) Page 6 Competition Table 5 Facility Profile August 2014 Number of Facilities - Total 15 Total Trade Area Potential Facility Sales Within Trade Area Percent of Sales from Trade Area Float Percent Float Highest Volume Facility Walmart (Map Key 5) Largest Facility Hy-Vee (Map Key 7) Sales Per Square Foot - Average High (Walmart - Map Key 9) Low( Fareway - Map Key 1) $6,340,902 $5,335, % $1,005, % $900,000 42,500 SSF $18.39 $24.31 $9.62 Combined, the 15 facilities contain a total of 393,300 sales area square feet with total sales of $7,232,000. The facilities average 26,220 sales area square feet and $482,133 in sales. The average sales per sales area square foot are $ There are 2.9 sales area square feet per capita, 0.35 persons per sales area square foot and 9,052 persons per facility.

10 Sioux City Market Study DTP001 ~ August 2014) Page 7 Market Share by Chain Float 15.86% Walmart (4) 35.18% Fareway (5) 14.89% Hy-Vee (6) 34.07%

11 Sioux City Market Study DTP001 ~ August 2014) Page 8 Chains Walmart 4 Facilities 149,600 square feet 35.18% Market Share The average weekly sales for this chain are $802,500 per store or $21.46 per square foot. These Supercenters are prototypical for the chain. They carry very little natural or organic foods and no organic produce. Hy-Vee 6 Facilities 171,700 square feet 34.07% Market Share The average weekly sales for this chain are $472,833 per store or $16.52 per square foot. Three of the Hy-Vee stores have designated natural foods departments and one has a designated natural foods aisle. In the other two stores, natural foods are merchandised alongside the conventional products. All have at least a small assortment of organic produce. Fareway 5 Facilities 72,000 square feet 14.89% Market Share The average weekly sales for this chain are $237,000 per store or $16.46 per square foot. The Fareway stores are small conventional stores that feature a large variety of service meat. Fareway carries very little natural foods and no organic produce.

12 Sioux City Market Study DTP001 ~ August 2014) Page 9 Site th Street & Water Street

13 Sioux City Market Study DTP001 ~ August 2014) Page 10 Table 6 Site th Street & Water Street Total Area Sales Area Proposed Parking Co-Tenants Grade of Lot Current Land Use Adjacent Land Use Street Conditions Traffic Controls Traffic Flow Visibility Accessibility Ingress/Egress Transient Exposure 5,550 or 13,700 square feet Approximately 3,600 or 8,900 square feet Adequate Possible food pavilion and farmer s market Level Downtown building Central Business District Water Street: 4 lanes without turn lanes (30 MPH) 6 th Street: 4 lanes without turn lanes (30 MPH) one way east of Water Street None All directions Very Good Very Good Assumed Excellent Good Analysis This site is on the western edge of downtown. It is easily accessible from all directions as the bridge to South Sioux City is nearby along with Interstate 29. It is assumed that there will be an ingress and egress on both roadways.

14 Sioux City Market Study DTP001 ~ August 2014) Page 11 Site 2000 Pierce Street & 6 th Street

15 Sioux City Market Study DTP001 ~ August 2014) Page 12 Table 7 Site 2000 Pierce Street & 6 th Street Total Area Sales Area Proposed Parking Co-Tenants Grade of Lot Current Land Use Adjacent Land Use Street Conditions Traffic Controls Traffic Flow Visibility Accessibility Ingress/Egress Transient Exposure 17,000 square feet 11,000 square feet Adequate Possibly a food pavilion and a farmer s market level downtown building Central Business District Pierce: 4 lanes without turn lanes (30 MPH) one way southbound Nebraska: 4 lanes without turn lanes (30 MPH) one way southbound 6 th Street: 4 lanes without turn lanes (30 MPH) one way Signal light at the intersection of 6 th & Pierce All directions Very Good Very Good Assumed Excellent Good Analysis This site is more centrally located to downtown. Its proximity to Mercy Medical Center is advantageous for a natural foods store. Overall, this site is the most attractive of the three.

16 Sioux City Market Study DTP001 ~ August 2014) Page 13 Site 3000 Virginia Street & 1 st Street

17 Sioux City Market Study DTP001 ~ August 2014) Page 14 Table 8 Site 3000 Virginia Street & 1 st Street Total Area Sales Area Proposed Parking Co-Tenants Grade of Lot Current Land Use Adjacent Land Use Street Conditions Traffic Controls Traffic Flow Visibility Accessibility Ingress/Egress Transient Exposure 22,500 square feet 14,600 square feet Adequate Possibly a food pavilion and farmer s market level Downtown building Secondary Business District Virginia: 2 lanes without turn lanes (30 MPH) 1 st Street: 2 lanes without turn lanes (30 MPH) Stop sign for Virginia and 1 st Street North/South Fair Fair Assumed Excellent Poor Analysis This site is just east of the main part of downtown. It is surrounded by secondary businesses. There is a railroad track nearby and access to the site is often blocked by trains. The buildings and businesses nearby are very unattractive may cause potential shoppers to avoid this area.

18 Sioux City Market Study DTP001 ~ August 2014) Page 15 Analysis Assumptions The sales projections presented in this study are based on the following key assumptions: Sales projections are relative to a May 2016 grand opening. The new Cooperative will have a décor, product mix, and be merchandises similarly to some of the newer Coops in the Midwest such as the Mississippi Market on West 7 th Street in St. Paul, Minnesota. The co-op will have a small deli with foods to go and also carry fresh meat. Population in the trade area will be at or near levels predicted by local governments and Synergos Technologies. The sales projections are expressed in constant 2014 dollars, with no adjustment made for inflation. There are no competitive market changes beyond with is presented in this study.

19 Sioux City Market Study DTP001 ~ August 2014) Page 16 Methodology The sales forecasts generated in this report are based on the use of a gravity model (LOCUS ). This is done via a market simulation of a site s primary trade area using important demand and supply information. Once a simulation is created, changes to equilibrium can be introduced for redistributing sales, forming the basis of a sales forecast. Demand information includes determining retail potential by defining where consumers live and what they spend for food-at-home purchases. Population sectors (combinations of census block groups) form the basic grouping of population. Sectors normally range in size between 1,500 and 3,500 people. Sector boundaries fall within the boundaries of census tracts and usually follow geographic features such as major roads, rivers, city limits, and the like. Each population sector is assigned a retail food expenditure level. Major determinants include family sizes and household incomes. Income is assumed to have a positive relationship with retail food spending, and family size is assumed to have an inverse relationship with spending. Student expenditure levels are adjusted downward to account for participation in on-campus meal plans. Combining a sector s population with its expenditure level yields food potential, typically formulated on a per week basis. The supply components of the gravity model are store sales and an estimate of how much business a particular store generates from inside the trade area. Based on a store s location, relative to an identified trade area and store size or format, the unit will receive a certain percentage of its business from this defined area. In the case of the Bluff Country Cooperative, the projected sites are estimated to receive 85% of its business from the identified trade area. The gravity model distributes store sales throughout the trade area based on certain parameters assigned to the store. These include store size, volume, draw (business inside the trade area), pulling power, and image. Specialty stores such as Rochester Foods have lower market shares near the store than do conventional supermarkets but specialty stores capture market share from a further distance. Store image is based on customer acceptance of a unit as exhibited by store performance. This value is fairly subjective and relates heavily to the strength of other competitors in the area, their distances to one another, and their distances to the various population sectors. An image of 100 represents an average image. Stores with above average images are attracting more business than average, and those with below average images exhibit a weakness in consumer acceptance. The sales forecasts are reported in first-year end weekly sales. They take into account new population growth from the opening of the store and the maturing of store image. Accompanying growth reports also show second and third-year sales.

20 Sioux City Market Study DTP001 ~ August 2014) Page 17 Competitor Information & Evaluation Map Name Total Sales Weekly Check Prim Ext Int Pro- Bak- Natrl Nat Fd Key Address Area Area Volume Outs Park Ops Cond Cond Meat duce Deli ery Food Assortment Store Hours 1 Fareway 23,600 13,000 $125, Some Integ Nat Fd 8-9 Mon-Sat First/Plymouth, Le Mars Little Org Prod 2 Walmart 50,000 34,600 $650, Integ Nat Fd 24 Hours Daily Holton/12th, Le Mars No Org Prod 3 Hy-Vee 25,000 18,000 $300, Integ Nat Fd 24 Hours Daily Hawkey/12th, Le Mars Some Integ Org Prod 4 Fareway 24,700 14,000 $260, Some Integ Nat Fd 8-9 Mon-Sat Indian Hills/Outer Drive, Sioux City Little Org Prod 5 Walmart 54,000 38,000 $900, Integ Nat Fd 24 Hours Daily Floyd Blvd/Outer Drive, Sioux City No Org Prod 6 Hy-Vee 12,600 8,800 $87, Integ Nat Fd 7-9 Daily Pierce/27th, Sioux City Little Org Prod 7 Hy-Vee 65,000 42,500 $650, ,200 sf Nat Fd Dept 24 Hours Daily Hamilton/S Plaza, Sioux City 12' Org Prod 8 Fareway 22,500 14,000 $325, Some Integ Nat Fd 8-9 Mon-Sat War Eagle/Riverside, Sioux City Little Org Prod 9 Walmart 52,000 36,000 $875, Integ Nat Fd 24 Hours Daily Cornhusker/College, South Sioux City No Org Prod Evaluation Ratings: 0-N/A; 1-Poor; 5-Average; 10-Excellent

21 Sioux City Market Study DTP001 ~ August 2014) Page 18 Map Name Total Sales Weekly Check Prim Ext Int Pro- Bak- Natrl Nat Fd Key Address Area Area Volume Outs Park Ops Cond Cond Meat duce Deli ery Food Assortment Store Hours 10 Hy-Vee 68,000 38,400 $600, ' Nat Fds Aisle 24 Hours Daily Cornhusker/25th, South Sioux City 116' Org Prod 11 Hy-Vee 45,000 30,000 $500, ,200 sf Nat Fd Dept 24 Hours Daily Gordon Dr/Martha, Sioux City Some Integ Org Prod 12 Fareway 23,500 15,000 $300, Some Integ Nat Fd 8-9 Mon-Sat Sergeant/Lancelot, Sioux City Little Org Prod 13 Hy-Vee 58,000 34,000 $700, ,400 sf Nat Fd Dept 24 Hours Daily Sergeant/Lakeport, Sioux City 16' Org Prod 14 Walmart 59,000 41,000 $785, Integ Nat Fd 24 Hours Daily Singing Hills/St. Lewis, Sioux City No Org Prod 15 Fareway 22,700 16,000 $175, Some Integ Nat Fd 8-9 Mon-Sat St. Lewis/1st Street, Sergeant Bluff Little Org Prod Totals: 605, ,300 $7,232,000 Averages: 40,373 26,220 $/SF: Total Stores = 15 Evaluation Ratings: 0-N/A; 1-Poor; 5-Average; 10-Excellent

22 Sioux City Market Study DTP001 ~ August 2014) Page 19 Trade Area Data by Sector Est. Est Census % Growth 2019 % Growth % % % % % % % % % Avg. Hhld Median Sector Tract Pop. Pop Pop College Military White Black Asian Other Hisp. < 18 > 65 Size Income ,464 1, , $88, ,585 1, , $88, ,996 2, , $65, ,259 1, , $42, ,453 1, , $32, ,283 1, , $66, ,187 1, , $37, $38, $50, ,092 1, , $52, ,352 1, , $94, $91, $57, $61, $46, $51, $61, $50, ,060 1, , $36, ,276 1, , $45, ,154 1, , $37, ,138 1, , $45, $33, ,259 1, , $29, , , $23, ,175 1, , $23,137

23 Sioux City Market Study DTP001 ~ August 2014) Page 20 Est. Est Census % Growth 2019 % Growth % % % % % % % % % Avg. Hhld Median Sector Tract Pop. Pop Pop College Military White Black Asian Other Hisp. < 18 > 65 Size Income $36, $58, $37, ,064 1, , $29, , $28, $20, $11, $30, $28, $36, $37, ,068 1, , $13, ,511 1, , $38, $41, $18, $21, $44, , $48, ,563 1, , $49, ,287 1, , $62, $81, ,491 1, , $52, ,578 1, , $44, ,183 1, , $49, $50, $100, ,460 1, , $48, $37, ,200 1, , $45,529

24 Sioux City Market Study DTP001 ~ August 2014) Page 21 Est. Est Census % Growth 2019 % Growth % % % % % % % % % Avg. Hhld Median Sector Tract Pop. Pop Pop College Military White Black Asian Other Hisp. < 18 > 65 Size Income ,148 1, , $41, ,691 1, , $36, $23, $24, , , $27, $25, $33, $60, , , $42, $42, $58, $27, ,432 1, , $27, $41, $52, $45, $53, ,031 1, , $46, $53, $46, $39, $32, $51, $55, $26, ,096 1, , $44, ,573 1, , $60, $61, $53,530

25 Sioux City Market Study DTP001 ~ August 2014) Page 22 Est. Est Census % Growth 2019 % Growth % % % % % % % % % Avg. Hhld Median Sector Tract Pop. Pop Pop College Military White Black Asian Other Hisp. < 18 > 65 Size Income $57, ,097 1, , $65, $69, $24, , $115, ,187 1, , $66, ,073 1, , $34, ,070 2, , $109, $43, ,120 1, , $65, ,092 1, , $55, $51, $50, ,008 1, $44, , , $90, $90, ,042 1, , $69, ,166 1, , $70, $62, ,435 1, , $66, ,075 1, , $78, $78, ,170 1, , $62, $62, ,362 1, , $48, $31, $48, ,130 1, , $71, , , $80,491

26 Sioux City Market Study DTP001 ~ August 2014) Page 23 Est. Est Census % Growth 2019 % Growth % % % % % % % % % Avg. Hhld Median Sector Tract Pop. Pop Pop College Military White Black Asian Other Hisp. < 18 > 65 Size Income $80, $44, $54, $44, $51, $80, $45, $87, $87, $63, , , $72, $65, $69, $51, $34, , $31, $31, ,809 1, , $37, , $19, ,179 1, , $61, $19, ,483 1, , $51, ,144 1, , $50, $52, ,034 1, , $50, $52, ,444 1, , $49, ,021 1, , $46, ,059 1, , $52,999

27 Sioux City Market Study DTP001 ~ August 2014) Page 24 Est. Est Census % Growth 2019 % Growth % % % % % % % % % Avg. Hhld Median Sector Tract Pop. Pop Pop College Military White Black Asian Other Hisp. < 18 > 65 Size Income $69, $57,528 Totals: 134, , ,148 Averages: $51,723

28 Sioux City Market Study DTP001 ~ August 2014) Page 25 CURRENT MARKET SIMULATION TRADE AREA TOTALS Trade Area Aug 2014 Population 135,787 Potential 6,340,902 Facility Volume 5,335,150 Float Amount 1,005,752 Float Percent 15.86% P.C.E STORES IN OPERATION Facility ---Aug Sales Map Key Name Volume /SqFt Area Draw Image 1 Fareway 125, , Walmart 650, , Hy-Vee 300, , Fareway 260, , Walmart 900, , HY-Vee Mainstreet 87, , Hy-Vee 650, , Fareway 325, , Walmart 875, , Hy-Vee 600, , Hy-Vee 500, , Fareway 300, , Hy-Vee 700, , Walmart 785, , Fareway 175, , Total 7,232, ,300 Average 482, , CHAIN SUMMARY Chain # of Chain Total Vol/ Avg Market Name Facs Volume Average Size Average SqFt Image Share Walmart 4 3,210, , ,600 37, Hy-Vee 6 2,837, , ,700 28, Fareway 5 1,185, ,000 72,000 14, Totals 15 7,232, , Averages 482,133 26,

29 Sioux City Market Study DTP001 ~ August 2014) Page 26 PROJECTED MARKETPLACE TRADE AREA TOTALS Trade Area Aug 2014 May 2017 % Change Population 135, , Potential 6,340,902 6,405, Facility Volume 5,335,150 5,389, Float Amount 1,005,752 1,016, Float Percent P.C.E SCENARIO 1A A NEW 3,600 SALES AREA SQUARE FOOT TRADER SIOUX CO-OP OPENS AT SITE NEAR THE INTERSECTION OF 6TH AND WATER Forecast Current Fcst Facility ---May Aug T.A. % Sales Map Key Name Volume /SqFt Volume /SqFt Diff. Chg Area Draw Image 1 Fareway 126, , , Walmart SC 655, , , , Hy-Vee 302, , , , Fareway 259, , , Walmart SC 895, , , , Hy-Vee Mainstreet 85, , , , Hy-Vee 641, , , , Fareway 331, , , , Walmart SC 876, , , Hy-Vee 603, , , , Hy-Vee 496, , , , Fareway 301, , , , Hy-Vee 704, , , , Walmart SC 793, , , , Fareway 178, , , , Trader Sioux 47, , , Totals 7,299,121 7,232,000 53,980 Averages 456, , ,806 98

30 Sioux City Market Study DTP001 ~ August 2014) Page 27 THREE-YEAR GROWTH PATTERN - SITE Forecast Forecast Forecast Facility ---May May May Map Keys Name Volume /SqFt Volume /SqFt Volume /SqFt Draw Image Trader Sioux 47, , , Inflation is 0% CHAIN SUMMARY Chain # of Chain Total Vol/ Avg Market Name Facs Volume Average Size Average SqFt Image Share Walmart 4 3,220, , ,600 37, Hy-Vee 6 2,834, , ,700 28, Fareway 5 1,196, ,343 72,000 14, Trader Sioux 1 47,220 47,220 3,600 3, Totals 16 7,299, , Averages 456,195 24,

31 Sioux City Market Study DTP001 ~ August 2014) Page 28 SCENARIO 1B A NEW 3,600 SALES AREA SQUARE FOOT TRADER SIOUX CO-OP OPENS AT SITE NEAR THE INTERSECTION OF 6TH AND WATER SEVERAL SIOUX CITY SPECIALTY FOODS BOUTIQUES OPENS ADJACENT TO THE CO-OP Forecast Current Fcst Facility ---May Aug T.A. % Sales Map Key Name Volume /SqFt Volume /SqFt Diff. Chg Area Draw Image 1 Fareway 126, , , Walmart SC 655, , , , Hy-Vee 302, , , , Fareway 259, , , Walmart SC 895, , , , Hy-Vee Mainstreet 85, , , , Hy-Vee 641, , , , Fareway 331, , , , Walmart SC 876, , , Hy-Vee 603, , , , Hy-Vee 496, , , , Fareway 301, , , , Hy-Vee 704, , , , Walmart SC 793, , , , Fareway 178, , , , Trader Sioux 49, , , Totals 7,301,744 7,232,000 53,980 Averages 456, , , THREE-YEAR GROWTH PATTERN - SITE Forecast Forecast Forecast Facility ---May May May Map Keys Name Volume /SqFt Volume /SqFt Volume /SqFt Draw Image Trader Sioux 49, , , Inflation is 0% CHAIN SUMMARY Chain # of Chain Total Vol/ Avg Market Name Facs Volume Average Size Average SqFt Image Share Walmart 4 3,220, , ,600 37, Hy-Vee 6 2,834, , ,700 28, Fareway 5 1,196, ,343 72,000 14, Trader Sioux 1 49,843 49,843 3,600 3, Totals 16 7,301, , Averages 456,359 24,

32 Sioux City Market Study DTP001 ~ August 2014) Page 29 SCENARIO 1C A NEW 3,600 SALES AREA SQUARE FOOT TRADER SIOUX CO-OP OPENS AT SITE NEAR THE INTERSECTION OF 6TH AND WATER SEVERAL SIOUX CITY SPECIALTY FOODS BOUTIQUES OPENS ADJACENT TO THE CO-OP A FARMER'S MARKET OPENS NEXT TO THE CO-OP AS WELL Forecast Current Fcst Facility ---May Aug T.A. % Sales Map Key Name Volume /SqFt Volume /SqFt Diff. Chg Area Draw Image 1 Fareway 126, , , Walmart SC 655, , , , Hy-Vee 302, , , , Fareway 259, , , Walmart SC 895, , , , Hy-Vee Mainstreet 85, , , , Hy-Vee 641, , , , Fareway 331, , , , Walmart SC 876, , , Hy-Vee 603, , , , Hy-Vee 496, , , , Fareway 301, , , , Hy-Vee 704, , , , Walmart SC 793, , , , Fareway 178, , , , Trader Sioux 52, , , Totals 7,304,676 7,232,000 53,980 Averages 456, , , THREE-YEAR GROWTH PATTERN - SITE Forecast Forecast Forecast Facility ---May May May Map Keys Name Volume /SqFt Volume /SqFt Volume /SqFt Draw Image Trader Sioux 52, , , Inflation is 0% CHAIN SUMMARY Chain # of Chain Total Vol/ Avg Market Name Facs Volume Average Size Average SqFt Image Share Walmart 4 3,220, , ,600 37, Hy-Vee 6 2,834, , ,700 28, Fareway 5 1,196, ,343 72,000 14, Trader Sioux 1 52,775 52,775 3,600 3, Totals 16 7,304, , Averages 456,542 24,

33 Sioux City Market Study DTP001 ~ August 2014) Page 30 SCENARIO 2A A NEW 8,900 SALES AREA SQUARE FOOT TRADER SIOUX CO-OP OPENS AT SITE NEAR THE INTERSECTION OF 6TH AND WATER Forecast Current Fcst Facility ---May Aug T.A. % Sales Map Key Name Volume /SqFt Volume /SqFt Diff. Chg Area Draw Image 1 Fareway 126, , , Walmart SC 655, , , , Hy-Vee 302, , , , Fareway 256, , , , Walmart SC 883, , , , Hy-Vee Mainstreet 83, , , , Hy-Vee 626, , , , Fareway 324, , , Walmart SC 860, , , , Hy-Vee 594, , , , Hy-Vee 490, , , , Fareway 300, , , Hy-vee 701, , , , Walmart SC 790, , , , Fareway 178, , , , Trader Sioux 114, , , Totals 7,288,921 7,232,000 53,980 Averages 455, , , THREE-YEAR GROWTH PATTERN - SITE Forecast Forecast Forecast Facility ---May May May Map Keys Name Volume /SqFt Volume /SqFt Volume /SqFt Draw Image Trader Sioux 114, , , Inflation is 0% CHAIN SUMMARY Chain # of Chain Total Vol/ Avg Market Name Facs Volume Average Size Average SqFt Image Share Walmart 4 3,189, , ,600 37, Hy-Vee 6 2,799, , ,700 28, Fareway 5 1,185, ,170 72,000 14, Trader Sioux 1 114, ,200 8,900 8, Totals 16 7,288, , Averages 455,558 25,

34 Sioux City Market Study DTP001 ~ August 2014) Page 31 SCENARIO 2B A NEW 8,900 SALES AREA SQUARE FOOT TRADER SIOUX CO-OP OPENS AT SITE NEAR THE INTERSECTION OF 6TH AND WATER SEVERAL SIOUX CITY SPECIALTY FOODS BOUTIQUES OPENS ADJACENT TO THE CO-OP Forecast Current Fcst Facility ---May Aug T.A. % Sales Map Key Name Volume /SqFt Volume /SqFt Diff. Chg Area Draw Image 1 Fareway 126, , , Walmart SC 655, , , , Hy-Vee 302, , , , Fareway 256, , , , Walmart SC 883, , , , Hy-Vee Mainstreet 83, , , , Hy-Vee 626, , , , Fareway 324, , , Walmart SC 860, , , , Hy-Vee 594, , , , Hy-Vee 490, , , , Fareway 300, , , Hy-Vee 701, , , , Walmart SC 790, , , , Fareway 178, , , , Trader Sioux 120, , , Totals 7,295,265 7,232,000 53,980 Averages 455, , , THREE-YEAR GROWTH PATTERN - SITE Forecast Forecast Forecast Facility ---May May May Map Keys Name Volume /SqFt Volume /SqFt Volume /SqFt Draw Image Trader Sioux 120, , , Inflation is 0% CHAIN SUMMARY Chain # of Chain Total Vol/ Avg Market Name Facs Volume Average Size Average SqFt Image Share Walmart 4 3,189, , ,600 37, Hy-Vee 6 2,799, , ,700 28, Fareway 5 1,185, ,170 72,000 14, Trader Sioux 1 120, ,545 8,900 8, Totals 16 7,295, , Averages 455,954 25,

35 Sioux City Market Study DTP001 ~ August 2014) Page 32 SCENARIO 2C A NEW 8,900 SALES AREA SQUARE FOOT TRADER SIOUX CO-OP OPENS AT MAP KEY NEAR THE INTERSECTION OF 6TH AND WATER SEVERAL SIOUX CITY SPECIALTY FOODS BOUTIQUES OPENS ADJACENT TO THE CO-OP A FARMER'S MARKET OPENS NEXT TO THE CO-OP AS WELL Forecast Current Fcst Facility ---May Aug T.A. % Sales Map Key Name Volume /SqFt Volume /SqFt Diff. Chg Area Draw Image 1 Fareway 126, , , Walmart SC 655, , , , Hy-Vee 302, , , , Fareway 256, , , , Walmart SC 883, , , , Hy-Vee Mainstreet 83, , , , Hy-Vee 626, , , , Fareway 324, , , Walmart SC 860, , , , Hy-Vee 594, , , , Hy-Vee 490, , , , Fareway 300, , , Hy-Vee 701, , , , Walmart SC 790, , , , Fareway 178, , , , Trader Sioux 127, , , Totals 7,302,356 7,232,000 53,980 Averages 456, , , THREE-YEAR GROWTH PATTERN - SITE Forecast Forecast Forecast Facility ---May May May Map Keys Name Volume /SqFt Volume /SqFt Volume /SqFt Draw Image Trader Sioux 127, , , Inflation is 0% CHAIN SUMMARY Chain # of Chain Total Vol/ Avg Market Name Facs Volume Average Size Average SqFt Image Share Walmart 4 3,189, , ,600 37, Hy-Vee 6 2,799, , ,700 28, Fareway 5 1,185, ,170 72,000 14, Trader Sioux 1 127, ,636 8,900 8, Totals 16 7,302, , Averages 456,397 25,