urbanMetrics inc.
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urbanMetrics inc.
urbanMetrics inc. market, economic and strategic advisors Market Demand and Impact Analysis, Modeland Road/Michigan Avenue, City of Sarnia, Ontario ` Prepared for: Sifton Properties Limited Date: August 20, 2008 urbanMetrics inc. 144 Front Street West, Suite 460 Toronto, Ontario M5J 2L7 P: 416-351-8585 / 1-800-505-8755 F: 416-345-8586 www.urbanmetrics.ca urbanMetrics inc. market, economic and strategic advisors 144 Front Street West, Suite 460 Toronto, ON, M5J 2L7 P: 416-351-8585 / 1-800-505-8755 F: 416- 345-8586 www.urbanmetrics.ca August 20, 2008 Mr. Phillip R. Masschelein Vice-President, Land Sifton Properties Limited P.O. Box 5099 London, Ontario N6A 4M8 Dear Mr. Masschelein: Re: Market Demand and Impact Analysis, Modeland Road/Michigan Avenue, City of Sarnia urbanMetrics inc. is pleased to submit our report which examines the market opportunity for a 150,000-170,000 square foot retail development in the City of Sarnia anchored by a 60,000 square foot supermarket, located in the north-west quadrant of Modeland Road and Michigan Avenue. We have also evaluated the potential impact that the proposed commercial development could have on existing retail areas in the City of Sarnia. Our analysis has included an in-home telephone consumer survey of Trade Area residents. Based on our market review and impact analysis, we conclude that from a market perspective, the proposal is feasible and desirable on the basis of its location, size and function. In addition this project will have limited if any impact on the existing commercial structure of Sarnia, and will provide an improved level of commercial service to residents living in the northern portion of Sarnia, who currently have limited local retail and service opportunities in close proximity to their homes. The analyses and appendices in the attached report provide our detailed study findings and conclusions. urbanMetrics inc. market, economic and strategic advisors It has been a pleasure conducting this study on behalf of Sifton Properties Limited and we look forward to discussing our results. Yours truly, urbanMetrics inc. Douglas R. Annand, CMC Partner Sarnia Market Demand and Impact Analysis Table of Contents 1. INTRODUCTION .............................................................................................................................1-1 1.1 1.2 1.3 2. SITE AND ACCESS .........................................................................................................................2-1 2.1 2.2 2.3 2.4 3. SITE CHARACTERISTICS .................................................................................................................... 2-1 SITE DEVELOPMENT CONCEPT ......................................................................................................... 2-2 ACCESS CHARACTERISTICS.............................................................................................................. 2-4 SUMMARY ...................................................................................................................................... 2-5 TRADE AREA ..................................................................................................................................3-1 3.1 3.2 4. BACKGROUND ............................................................................................................................... 1-1 APPROACH ................................................................................................................................... 1-2 ASSUMPTIONS ................................................................................................................................ 1-5 TRADE AREA DEFINITION ................................................................................................................. 3-1 TRADE AREA EXTENT ....................................................................................................................... 3-2 RETAIL COMPETITION....................................................................................................................4-1 4.1 CITY OF SARNIA COMMERCIAL STRUCTURE ....................................................................................... 4-1 4.2 SARNIA – RETAIL SPACE .................................................................................................................. 4-3 4.2.1 Downtown (Node 1).......................................................................................................4-6 4.2.2 Lambton Mall/Area (Nodes 3 and 4) ...........................................................................4-7 4.3 SUPERMARKET/GROCERY STORES IN SARNIA ..................................................................................... 4-7 4.4 PROPOSED COMPETITION ............................................................................................................... 4-9 4.5 FUTURE COMMERCIAL GROWTH OPTIONS ...................................................................................... 4-10 5. POPULATION AND INCOME .........................................................................................................5-1 5.1 5.2 6. POPULATION .................................................................................................................................. 5-1 PER CAPITA INCOME ...................................................................................................................... 5-3 FOOD STORE ANALYSIS ................................................................................................................6-1 6.1 FSR EXPENDITURE POTENTIAL ........................................................................................................... 6-1 6.1.1 Per Capita FSR Expenditures..........................................................................................6-1 6.1.2 Expenditure Potential from Trade Area Residents ......................................................6-1 6.1.3 Distribution of Expenditures............................................................................................6-2 6.2 SUPERMARKET/MAJOR FOOD STORE ANALYSIS ................................................................................. 6-3 6.2.1 Primary Zone Share .........................................................................................................6-4 6.2.2 Primary Zone Residual Expenditure Potential from Trade Area Residents ...............6-4 urbanMetrics inc. market, economic and strategic advisors Sarnia Market Demand and Impact Analysis 6.2.3 Market Opportunity ........................................................................................................6-6 6.3 IMPACT ANALYSIS ........................................................................................................................... 6-7 7. NON-FOOD STORE RETAIL (NFSR) ANALYSIS...............................................................................7-1 7.1 NFSR EXPENDITURE POTENTIAL ........................................................................................................ 7-1 7.1.1 Per Capita NFSR Expenditures.......................................................................................7-1 7.1.2 Expenditure Potential from Trade Area Residents ......................................................7-1 7.1.3 Distribution of Expenditures............................................................................................7-2 7.2 OTHER NFSR SPACE ANALYSIS ........................................................................................................ 7-3 7.2.1 Primary Zone Share .........................................................................................................7-4 7.2.2 Residual Expenditure Potential......................................................................................7-4 7.2.3 Market Opportunity for Other NFSR Space .................................................................7-4 7.3 IMPACT ANALYSIS ........................................................................................................................... 7-5 8. CONCLUSIONS .............................................................................................................................8-1 Appendix A: Inventory Appendix B: Telephone Consumer Survey Appendix C: Background Data and Definition of Terms urbanMetrics inc. market, economic and strategic advisors Sarnia Market Demand and Impact Analysis 1. Introduction urbanMetrics inc. has been retained by Sifton Properties Limited (“Sifton”) to undertake a market demand and impact analysis for a proposed retail centre in Sarnia. The 26.5-acre site is located in the north-west quadrant of Modeland Road and Michigan Avenue, in north-east Sarnia. 1.1 Background The subject site is located within a growing residential area in the City of Sarnia. Based on the size of the site, the proposed development could accommodate approximately 260,000 to 270,000 square feet of retail and service commercial space. However, based on recent growth trends and the availability of existing designated commercial sites elsewhere in Sarnia, our preliminary study conducted in November 2007 recommended the development of a supermarket anchored neighbourhood centre in the 150,000 to 170,000 square foot range. This is the size of centre now being tested in this detailed impact analysis. Figure 1-1: Site Location The site is currently designated “Residential” in the Sarnia Official Plan, Secondary Plan Development Area 1. The zoning of the site is IU1 (Interim Use 1 Zone). Therefore, if Sifton intends to develop the site for retail commercial uses, an Official Plan Amendment and rezoning would be required by the City, accompanied by a number of supporting studies, including an economic impact study. As indicated in Section 2.4.2.4 of the Sarnia Official Plan, this economic impact study would require information regarding the market feasibility of the proposed commercial development and whether it will affect the viability of any existing commercial areas in Sarnia. The Sarnia Official Plan defines an “Economic Impact Study (Market Study)” as a “study designed to analyze the market support for major new retail commercial floor-space (i.e. a new shopping centre or a shopping centre expansion) and its potential impact on the viability of existing retail commercial floorspace.” The Lambton County Official Plan also requires that for proposals for development of new or peripheral shopping areas, a study is required to demonstrate that the viability of existing main streets and commercial areas will not be threatened. As indicated in the urbanMetrics inc. market, economic and strategic advisors 1-1 Sarnia Market Demand and Impact Analysis Lambton County Official Plan (in effect since January 3, 1998), existing main streets and commercial areas should be given first priority for development or redevelopment for commercial purposes. The main purpose of this study is to evaluate the potential impact that the proposed retail development could have on the existing retail facilities in the City of Sarnia. 1.2 Approach Our retail market demand and impact analysis includes the following: 1. Site and Access Evaluation An evaluation of the suitability of the site for the proposed retail commercial uses has been undertaken based on a general review of the subject site in terms of its size, location, surrounding land uses, planning context and accessibility characteristics. 2. Trade Area Delineation The delineation of a Trade Area from which the subject site could expect to obtain the majority of its sales support has been undertaken, based on our review of a number of factors, including: • Recognition of the size of the development and potential anchor tenants; • Our assessment of the competitive environment; • Our review of the site’s characteristics, including access and visibility; and • Recognition of traffic patterns and physical barriers. The Trade Area has been divided into a Primary Zone and a Secondary Zone to reflect distinguishable shopper traits and competitive factors. The Trade Area defined forms the basis for the detailed demographic, competition and expenditure analysis. 3. Competition Analysis An assessment of the existing competition in Sarnia has been undertaken, which has included an inventory of food stores (FSR), home improvement, and other non-food store retail (NFSR) facilities, including vacant space. urbanMetrics inc. market, economic and strategic advisors 1-2 Sarnia Market Demand and Impact Analysis Any existing designated sites or major proposals for new competitive developments have also been identified based on discussions with Sarnia planning staff and considered in our analysis. We have updated our inventory from the preliminary analysis conducted in November 2007 and reconfirmed the status of any proposed and designated commercial developments in the City of Sarnia. We have also reviewed the City’s Commercial Land Needs & Policy Review, conducted in March 2008, which provides an overview of the commercial land use system and policy framework established by Sarnia’s Official Plan, and guides the long-term growth and development of the City. In this study a number of sites have been considered for future retail commercial development and we have provided our professional opinion as to the suitability of these areas for this type of development. 4. Undertake a Telephone Consumer Survey of Trade Area Consumers A total of some 600 telephone surveys have been conducted in the Primary and Secondary Zones. Information obtained relates to expenditures in food stores (FSR) and non-food retail stores (NFSR). Age and household size were also included in the survey to identify consumer characteristics (see Appendix B for details). The in-home telephone survey results provide a detailed understanding of residents’ expenditure habits, and other information that assists us in our assessment of the current sales performance levels of existing stores in the Trade Area and their ability to withstand any transfer of sales created by the proposed retail/service uses. 5. Determine Market Dimensions of the Trade Area To determine the future market growth available to support new retail facilities in Sarnia, the population, per capita income and expenditure data for selected store types (i.e. food store retail (“FSR”) and other non-food store retail (“NFSR”) stores) within the defined Trade Area has been calculated for specific years to 2021. The year 2007 has been utilized as the base year in the analysis, with 2010 assumed as the first full year of operation for the development on the subject site. Trade Area residents’ current and future expenditures for FSR and NFSR stores have been calculated based on published Statistics Canada Retail Trade data; per capita income data for the Trade Area (2005 data); real growth assumptions; and an expenditure regression formula developed by urbanMetrics from Statistics Canada Household Expenditure Survey data. urbanMetrics inc. market, economic and strategic advisors 1-3 Sarnia Market Demand and Impact Analysis 6. Re-Calculate Future Market Opportunity To determine the market support for the proposed supermarket and other NFSR stores, and to provide an overall quantitative estimate of the potential sales impacts on existing commercial areas in Sarnia, a residual market analysis has been undertaken. A residual analysis is a conservative approach to planning for additional space requirements, as it recognizes existing stores in Sarnia at existing sales volumes. This methodology involves the following steps: • The existing Primary Zone share of Trade Area residents’ supermarket and other NFSR store type expenditures has been estimated based on the results of the telephone consumer survey. • Future Primary Zone shares have been forecast over the study period, based on an estimate of the opportunity for any recapture of expenditures currently spent elsewhere. • The residual potential available or the net additional expenditure growth in the future has been calculated. • The warranted additional supermarket and other NFSR space in Sarnia has then been calculated based on the expected sales performance levels applied to the total sales volume available, including inflow. • For proposed space, estimates of sales performance and inflow have been determined. • Based on the expected sales performance of the proposed space, sales transfers from existing stores in Sarnia have been estimated for the specific retail categories analyzed to evaluate the ability of the market to absorb new space. 7. Evaluating Sales Impact of the Subject Proposal Based on our analysis, the potential sales impacts on existing major retail nodes in the Primary Zone have been evaluated by major store type, in the form of a detailed directional impact analysis. The issue of market impact has been addressed in terms of the effect of the proposed development on the planned function of the existing and designated retail structure in the City of Sarnia. In the impact analysis we have assumed that the centre will be 160,000 square feet in size anchored by a 60,000 square foot supermarket, plus 70,000 square feet of non food store retail (NFSR) facilities and 30,000 square feet of services. urbanMetrics inc. market, economic and strategic advisors 1-4 Sarnia Market Demand and Impact Analysis 1.3 Assumptions There is a number of underlying and basic assumptions upon which the validity of the findings presented in this report depend. Based on our considerable and long term experience in the retail planning process, we recognize and appreciate the problems associated with making broad and generalized assumptions about future conditions. Undoubtedly, deviations from historic and current trends will take place in the future. However, basic assumptions are required regarding the possible extent of such deviations. These basic assumptions are: • During the forecast period discussed in this report, a reasonable degree of economic stability will prevail in the Province of Ontario, and specifically in Sarnia and Lambton County. • Estimates of future population change in the Trade Area have been based on historic trends and available municipal forecasts, which are assumed reliable for the purpose of this study. • The first full year of operation for the first phase of the retail facilities proposed on the subject site would be 2010. However, we recognize that additional space may be added on a phased basis in future years as the market particularly in north Sarnia continues to grow. If for any reason, major changes occur which would influence the basic assumptions stated above, the recommendations contained in this report should be reviewed in light of these changes and revised, if necessary. urbanMetrics inc. market, economic and strategic advisors 1-5 Sarnia Market Demand and Impact Analysis 2. Site and Access The following section summarizes the site and access characteristics of the subject property, which is located in the north-west quadrant of Michigan Avenue and Modeland Road. Our review includes an examination of surrounding land uses, and the local/regional transportation network. 2.1 Site Characteristics The 26.5 acre site is located on the west side of Modeland Road, north of Michigan Avenue, on the north-east edge of Sarnia’s urban area in Secondary Plan Development Area 1, as defined in the Official Plan (Figures 2-1 and 2-2). Figure 2-1: Subject Site Location, Secondary Plan Development Area 1 urbanMetrics inc. market, economic and strategic advisors 2-1 Sarnia Market Demand and Impact Analysis As indicated in Figure 2-1, the subject site is designated for residential uses. Therefore, an Official Plan Amendment and re-zoning would be required to permit a retail development as proposed. It should be noted that the existing designated commercial sites within Secondary Plan Development Area 1 as indicated on Figure 2-1 are generally small in size and, would most likely accommodate a gas station and other small local uses. None of these sites are large enough to develop as a supermarket anchored shopping centre, and the uses likely to locate on these sites would be very different from those in the subject proposal. Therefore, the proposed centre will have no impact on the viability of these smaller designated sites. Figure 2-2: Site Location USA Downtown Commercial Centre Google Maps 2.2 Site Development Concept Although the site could actually accommodate 260,000 to 270,000 square feet of retail/service space, in our earlier preliminary study we recommended a commercial development with a total size of 150,000 to 170,000 square feet, anchored by a 60,000 square foot supermarket. This is the scale of development that has been tested in the detailed impact analysis that follows. Sifton’s current plans for the site include a retirement home, multi-family residential units, a park, and the retail commercial uses. The commercial component on the site would likely be comprised of approximately 160,000 square feet, anchored by a 60,000 square foot supermarket, 70,000 square feet of non-department non-food store retail (NFSR) space, and 30,000 of service commercial space. urbanMetrics inc. market, economic and strategic advisors 2-2 Sarnia Market Demand and Impact Analysis 2.3 Surrounding Land Uses There are a variety of land uses surrounding the subject site. • To the west – The area west of the subject site is predominantly residential. Immediately west of the site new single-detached homes are currently being developed. • To the north – North of the subject site land uses include undeveloped lands and scattered low density residential homes. • To the east – Directly east of the subject site is the Foundation of Faith Fellowship Church and a number of single-family detached dwellings. Further to the east land uses include predominantly rural/agricultural lands. • To the south – Directly south of the subject site along Michigan Avenue are vacant lands currently designated for residential use. Further south is Highway 402 and the regional retail node or designated “Commercial Centre”, concentrated around Lambton Mall. A new Wal-Mart SuperCentre has recently opened in the south-west quadrant of Modeland Road (Highway 40), and Highway 402, though additional space approved as part of that development has not as yet been built. Located at the intersection of two major County roads in the vicinity of a growing community, the uses proposed on the subject site are considered complementary to the surrounding land uses and will serve the local shopping needs of residents who are and will be living in the area in future years. Figure 2-5: Surrounding Land Uses Site – Surrounding Existing Land Uses Site urbanMetrics inc. market, economic and strategic advisors 2-3 Sarnia Market Demand and Impact Analysis 2.3 Access Characteristics Access is an integral part of the evaluation of the market demand that can be served at a specific location. The subject site enjoys good visibility and accessibility from the surrounding road network. Regionally, the subject site benefits from its location in the City of Sarnia, a border community that also serves an extensive market area, including a number of urban settlement areas in Lambton County (e.g. Petrolia, Forest, Corunna), and a seasonal resident population along the waterfront. As the major commercial centre serving Lambton County, the site is strategically positioned to serve a large regional area with its location on Modeland Road in close proximity to the Modeland/Highway 402 interchange. Its position as a border city also makes Sarnia an attractive shopping destination for American’s living in the Port Huron area, however, with the Canadian dollar now at par with the American dollar, this influx of shoppers from the US is not likely as significant as in previous years, with Canadians now more likely to cross the border for shopping in the United States. Highway 402 connects to both Interstates 69 and 94 in Michigan by way of the Blue Water Bridge. The Blue Water Bridge is a twin-span bridge that spans the St. Clair River between Port Huron, Michigan and Point Edward, Ontario. It is the fourth busiest Ontario border crossing and the second busiest commercial traffic border crossing in Ontario. In 2005, 3.7 million cars and 1.8 million trucks crossed the bridge. Highway 402 carries between 15,000 and 25,000 vehicles per day. The rebuilding of Highway 402 from Lambton Road 26 to Highway 21 is also currently underway. Modeland Road (Highway 40/County Road 27) is a major four-lane north-south thoroughfare in the City of Sarnia. It connects with Highway 402, less than two kilometres to the south of the site, as well as Highway 7 further north, which links Sarnia to other Lake Huron communities. Bordering the site to the south, Michigan Avenue is a major east-west County road, which connects the developing new residential community in north-east Sarnia to the established neighbourhoods in the western part of the City. Michigan Avenue, a four-lane road, provides local east-west access for local residents and connects to other major north-south routes. urbanMetrics inc. market, economic and strategic advisors 2-4 Sarnia Market Demand and Impact Analysis Figure 2-6: Regional Context S AR N IA- R E G IO N AL C O N TE X T SITE Sou rc e : Sa rnia La m bto n Ec o no m ic Pa rtn ership 2.4 Summary From a market location perspective, the subject property is considered suitable for both local serving convenience and some higher-order retail uses for the following reasons: • Good visibility and Accessibility – The site has good visibility and direct accessibility from both Modeland Road and Michigan Avenue. • Strategic Regional Location – The site has a good location within its regional context. The site is strategically located in close proximity to Highway 402, a major transportation corridor carrying over 15,000 vehicles per day, and connecting to one of Ontario’s busiest border crossings. • Compatible with and Complementary to Surrounding Land Uses – The site is located in a growing residential area in Sarnia and is considered compatible with the proposed and existing land uses in the area. urbanMetrics inc. market, economic and strategic advisors 2-5 Sarnia Market Demand and Impact Analysis • This site is also well located to service the local shopping needs of existing and future residents living in the northern portion of Sarnia, who are currently underserved with convenient retail and service facilities that will meet their day to day needs. urbanMetrics inc. market, economic and strategic advisors 2-6 Sarnia Market Demand and Impact Analysis 3. Trade Area The total market influence attributed to a retail commercial development typically extends over a wide area beyond any precise boundary that can be drawn. In many cases, the existing chain representation in a market, the shopping environment, and the range of goods and services offered will affect the extent of this market influence. For the purposes of making reliable estimates of available market support for the proposed development, a specific Trade Area has been defined. 3.1 Trade Area Definition The Trade Area, as delineated for the subject site, represents the geographic area from which a supermarket and other ancillary retail and service uses on the site would normally expect to derive the majority of their sales volume. In this study, the delineation of the Trade Area recognizes a number of factors, including: • our assessment of the competitive environment; • the potential size of the development and anchor tenants; • distance and travel times; • commuting patterns; • the accessibility and visibility of the site provided by the local and regional road network; and • natural or man made barriers, which may inhibit or restrict the ease of movement of customers, such as major highways, railway lines, lakes and rivers. The remaining market support (“inflow” potential) for the subject site would normally reflect occasional customer expenditures of tourists, non-resident Trade Area employees, visitors, seasonal residents, and the travelling public, including those originating from the USA. urbanMetrics inc. market, economic and strategic advisors 3-1 Sarnia Market Demand and Impact Analysis 3.2 Trade Area Extent As indicated in Figure 3-1, the Trade Area has been delineated to include Lambton County. This area has been defined as the geographic area from which the subject site could obtain approximately 85% to 90% of annual retail sales or trade. The largest component of sales support would be from the Sarnia community itself, with the greatest portion derived from existing and future residents living in the surrounding Secondary Plan Development Area 1, and those living in the northern portion of the City given these residents’ close proximity and the large, more concentrated population base. Figure 3-1: Trade Area Trade Area Primary Zone Secondary Zone LAMBTON COUNTY The majority of the work force in Sarnia also originates from the defined Trade Area. As indicated in Figure 3-2, about 75% of employees working in Sarnia reside in Sarnia. urbanMetrics inc. market, economic and strategic advisors 3-2 Sarnia Market Demand and Impact Analysis For the purposes of our analysis, the Trade Figure 3-2: Place of Residence of Sarnia Employees Area has been further divided into a Primary Place of Residence of Sarnia Employees Zone and Secondary Zone: Primary Zone (Sarnia/Point Edward) – This area has been defined to include the City of Sarnia and the Village of Point Edward. It represents the portion of the Trade Area located in closest proximity to the subject site and is the area in which the site would likely derive the greatest proportion of its sales. It is also the area in which the impact of the subject proposal will be assessed. 2% 5% 75% 9% 2% 2% SOURCE: Based on Statistics Canada, Table: 97F0015XCB2001003 Employed Labour Force 15 Years and Over Having a Usual Place of Work – Commuter, Flows Greater Than or Equal to 20, 2001 Census - 20% Sample Data urbanMetrics inc. It is also important to note that the proposed centre will obtain a significant component of its sales new residents who will live in Secondary Plan Development Area 1, as well as other areas in north Sarnia that are currently underserved with local serving retail/service facilities. Secondary Zone – This zone surrounds the Primary Zone. For the purposes of this study, the Secondary Zone has been defined as the remainder of Lambton County (excluding Sarnia and Point Edward). This area is predominantly rural in nature and includes a number of urban settlement areas (e.g. Petrolia, Corunna, Wyoming, Forest) which have only limited higher order retail facilities. Retail space in these communities is primarily local serving and/or tourist based. Tourism is an important industry in parts of the Secondary Zone, and especially along the Lake Huron shoreline and the St. Clair River. The community of Grand Bend, and Pinery Provincial Park are popular tourist destinations, attracting thousands of people each week throughout the summer to their beaches. In the Secondary Zone, there is likely a seasonal resident population of close to 7,000 persons, with most located along the Lake Huron shoreline. There are a number of supermarkets in the Secondary Zone, including a Foodland and No Frills in Corunna, an Independent Grocer in Petrolia, a Sobeys and No Frills in Grand Bend, and an IGA in Forest. urbanMetrics inc. market, economic and strategic advisors 3-3 Sarnia Market Demand and Impact Analysis 4. Retail Competition An analysis of competitive retail facilities is essential to understanding the roles and functions that existing Sarnia stores currently fulfill for residents and visitors, as well as the potential competitive influences which could affect the market potential available to retail/service facilities on the subject site. The supply-side of our market analysis has been derived by undertaking an inventory of retail space in the City of Sarnia, including food store retail (FSR), which includes supermarkets, grocery stores, and convenience and specialty food stores, plus non-food store retail (NFSR) type facilities, as well as vacant space. NFSR stores include: • Pharmacies and Personal Care Stores, including drug stores, optical stores, nutrition and cosmetic stores; • Clothing and Accessories Stores, including jewellery and luggage/leather goods stores; • Furniture, Home Furnishings and Electronics Stores, including computer, camera and photographic supply stores; • Building and Outdoor Home Supplies Stores, including home improvement centres, hardware stores, paint and wallpaper stores, nursery/garden centres, and a wide range of building material stores; • General Merchandise Stores, including department stores, warehouse membership clubs, Canadian Tire stores, variety stores, and dollar stores; and • Miscellaneous Retailers, including sporting goods, toy, hobby, book, florist, office supply, fabric/wool, gift stores, pet/pet supply, tobacco. Proposals for major new retail developments in Sarnia have also been described based on discussions with the City of Sarnia. In addition a number of potential commercial areas, considered in the City’s Commercial Land Needs and Policy Review have been evaluated. 4.1 City of Sarnia Commercial Structure The Sarnia Official Plan provides for six major commercial designations, the locations of which have been indicated in Figure 4-1: Downtown, Commercial Centre, General Commercial, urbanMetrics inc. market, economic and strategic advisors 4-1 Sarnia Market Demand and Impact Analysis Highway Commercial, Community Commercial and Office Commercial. Those designations which include a large portion of the retail space in Sarnia (i.e. FSR and NFSR) include: • The Downtown designation includes the area bordered by Front Street North, Vidal Street North, Wellington Street and Charlotte Stash. The Downtown is intended to “contain major concentrations of commerce, finance, tourist, entertainment, recreation, residential and business activities, and provide a dynamic commercial core not only for the City, but also for Lambton County and the surrounding areas.” The Downtown includes the Bayside Centre, anchored by Liquidation World and government offices. • The Commercial Centre includes lands located in the regional retail node in east Sarnia, generally south of Highway 402 and west of Highway 40, along Exmouth Street and London Road. This area is intended as the retail commercial regional centre serving the City of Sarnia and the County of Lambton. It includes: Lambton Mall, anchored by Sears and Canadian Tire; Zellers; Home Depot; and the new SmartCentres Wal-Mart development. • The General Commercial designation encompasses a variety of retail formats intended to serve the day-to-day needs of local residents in the City and includes such uses as service shops, automobile service stations, automobile sales, repair garages, parking lots, general offices, restaurants, clubs or halls, places of amusement or recreation, churches or day nurseries. The General Commercial designation includes lands located in south-west Sarnia, primarily along Exmouth Street, Christina Street, Ontario Street and Indian Road. • The Highway Commercial designation includes businesses “intended to serve the highway-oriented needs of the travelling public by providing access to food, fuel and accommodation.” Uses permitted in this designation include: nursery or garden centres, industrial and agricultural equipment sales and service, farmer's markets, flea markets, retail warehouses, retail uses, and contractor supply stores. This designation applies to lands generally located between Highway 40 (Modeland) and Airport Road, south of Highway 402. urbanMetrics inc. market, economic and strategic advisors 4-2 Sarnia Market Demand and Impact Analysis • The Community Commercial designation permits the establishment of “commercial uses which primarily cater to the needs of the surrounding areas.” The Official Plan permits food stores, convenience commercial uses, gas bars, car washes, animal hospitals, specialty retail uses, and personal service shops within this designation. Community Commercial sites are scattered throughout the City, and this in our opinion is the most appropriate designation for the subject development. Figure 4-1: City of Sarnia Official Plan – Proposed Land Use OFFICIAL PLAN – Site CITY OF SARNIA Highway Commercial Downtown Commercial Centre Source: City of Sarnia Official Plan, Excerpt – Schedule A Figure 4-2 summarizes the retail/service space inventoried in the City of Sarnia by major node and store type category. The accompanying map, Figure 4-3, illustrates the location of the various nodes identified. Appendix A provides a detailed listing of the inventory by commercial node and store type. 4.2 Sarnia – Retail Space As detailed in Figure 4-2, in total, close to 2 million square feet of non-food store retail (NFSR) space has been inventoried in Sarnia. This space is geographically dispersed, with the majority of NFSR space located south of Highway 402 in Lambton Mall and surrounding area, as well as in the Downtown. Including the Bayside Centre, the Downtown Area (Node 1) has some 271,100 square feet of NFSR space. This can be compared to Lambton Mall/Area (Nodes 3 and 4), which includes close to 1.2 million square feet of NFSR space. Food store retail (FSR) space in the entire community comprises just under 500,000 square feet. urbanMetrics inc. market, economic and strategic advisors 4-3 Sarnia Market Demand and Impact Analysis Figure 4-2: City Of Sarnia- Summary of Retail Competition Sum of Size # Node 1 Category2 FSR FSR Sum NFSR Downtown Category FSR: Convenience and Specialty FSR: Supermarket/Grocery NFSR: Apparel/Accessories NFSR: Building and Outdoor Home Supply NFSR: Department Stores NFSR: General Merchandise NFSR: Home Furnishings NFSR: Other/Miscellaneous NFSR: Pharmacies & Personal Care Stores NFSR Sum Other Retail: LBW Other Retail: LBW Other Retail: LBW Sum VACANT VACANT VACANT Sum Grand Total 2 3 Confederation Lambton Mall/Area 12,900 4,000 16,900 39,200 15,400 49,300 52,400 104,500 10,300 271,100 2,000 2,000 109,700 109,700 399,700 7,000 8,300 15,300 2,900 58,300 1,700 24,600 7,200 1,000 95,700 800 800 26,300 26,300 138,100 16,000 271,800 287,800 57,200 111,800 254,800 10,000 139,900 146,200 7,100 727,000 10,000 10,000 83,900 83,900 1,108,700 4 5 Lambton Mall Exmouth Street 2,100 2,100 105,600 135,000 106,300 46,600 46,600 4,700 444,800 2,900 2,900 149,200 149,200 599,000 6 9,500 45,000 54,500 7,100 5,500 London Line 2,700 2,700 54,800 14,600 5,300 18,900 22,200 73,600 146,700 8,300 8,300 136,400 4,500 4,500 153,900 74,100 17,800 Sum of Size Category2 FSR FSR Sum NFSR Category FSR: Convenience and Specialty FSR: Supermarket/Grocery 7 8 9 Mitton Village/Area Other (South of 402) Lakeshore Road 17,100 17,100 NFSR: Apparel/Accessories NFSR: Building and Outdoor Home Supply NFSR: Department Stores NFSR: General Merchandise NFSR: Home Furnishings NFSR: Other/Miscellaneous NFSR: Pharmacies & Personal Care Stores NFSR Sum Other Retail: LBW Other Retail: LBW Other Retail: LBW Sum VACANT VACANT VACANT Sum Grand Total 9,300 11,200 40,500 51,700 4,500 9,600 8,200 17,000 17,500 11,000 63,000 14,000 15,100 54,300 54,400 54,400 134,500 65,900 65,900 171,900 9,500 10,300 19,800 500 8,600 10 11 Point Edward Other (North of 402) 2,000 2,000 2,000 3,000 8,100 15,000 23,100 11,100 1,400 1,500 3,500 15,500 3,400 3,400 4,600 4,600 43,300 15,300 2,500 22,800 8,000 8,000 11,000 11,000 43,800 1,800 1,200 8,400 11,400 3,000 3,000 11,000 11,000 48,500 Grand Total 98,100 394,900 493,000 219,000 276,300 389,800 201,200 378,400 377,900 83,300 1,925,900 30,100 30,100 528,800 528,800 2,977,800 Source: urbanMetrics inc., May 2008 urbanMetrics inc. market, economic and strategic advisors 4-4 Sarnia Market Demand and Impact Analysis Retail/Vacant Space in Sarnia, May 2008 VACANT FSR: Conv enience and FSR: Specialty Supermarket/Grocery 98,100 394,900 3% 13% 528,800 18% Other Retail: LBW 30,100 NFSR: 1% Apparel/Accessories 219,000 7% NFSR: Pharmacies & Personal Care Stores 83,300 NFSR: Building and 3% Outdoor Home Supply 276,300 9% NFSR: Other/Miscellaneous 377,900 13% NFSR: Department Stores NFSR: Home Furnishings 378,400 NFSR: General 389,800 Merchandise 13% 201,200 13% 7% Figure 4-3: Retail Nodes Retail Nodes in Sarnia 9 11 10 3 5 6 4 1 7 8 2 urbanMetrics inc. market, economic and strategic advisors 4-5 Sarnia Market Demand and Impact Analysis The City of Sarnia includes a variety of regional and local serving retail facilities. The majority of this space is located in the “Downtown” (Node 1) and “Commercial Centre” (Nodes 3 and 4). 4.2.1 Downtown (Node 1) Christina Street North is the major commercial strip in the Downtown node. Located on Christina is Bayside Centre, anchored by a Liquidation World. In total, the Downtown has some 399,700 square feet of retail space, of which an estimated 109,700 square feet is vacant. The Downtown exhibits some signs of blight, and particularly along Christina Street, which has been plagued with long term vacancy issues and building deterioration, although vacancy levels are on the decline in the Downtown, with the redevelopment of the Bayside Centre. Contributing factors to vacancy in the Downtown include the closure of Eaton’s and A&P in the Bayside Centre (former Eaton’s Centre) in 1997, the shift of the retail focus to the London Road “Commercial Centre” node, which started in the 1970’s with the opening of Lambton Mall, and the economic problems in the petrochemical industry. In recent years, Bayside Mall has repositioned itself as a mixed-use centre, with the addition of a call centre. The economy of the area, which historically was focused on the petrochemical and refinery sector, has also become more diversified with investments in the call centre industry, automotive, engineering, fabrication and power generation sectors. Sarnia’s Downtown has a mix of uses and a certain degree of economic and social vitality. Considering that the Downtown includes a greater amount of service space than retail space,1 the retail vacancy level in the Downtown is estimated at about 10%, which is considered typical of most Downtown areas in larger urban centres. In total, NFSR space in the Downtown has been estimated at some 271,100 square feet, with Liquidation World (45,000 square foot) the largest NFSR retailer anchoring Bayside Centre. Food store space in the Downtown is limited with some 16,900 square feet, including the 4,000 square foot Downtown Grocery on Victoria Street. 1 Based on a Malone Given Parsons inventory conducted in the Downtown in 2001, almost 75% of the total commercial space in the Downtown was comprised of service commercial space, including entertainment, restaurant and office space. urbanMetrics inc. market, economic and strategic advisors 4-6 Sarnia Market Demand and Impact Analysis 4.2.2 Lambton Mall/Area (Nodes 3 and 4) This node is the major retail node in the City. It includes Lambton Mall, the only regional shopping centre in the City, which opened in 1978. This centre is an enclosed mall currently anchored by Sears, Canadian Tire and Tepperman’s Furniture. A new Wal-Mart Super Centre, with a large food component, has relocated across the street from Lambton Mall to the north, and will anchor a new format retail centre that has received approvals for an additional 170,000 square feet. The former Wal-Mart space in Lambton Mall, which is leased by Wal-Mart for another 14 years, remains vacant. Other “Commercial Centre” Area centres in this node include the London Road Plaza, anchored by Zellers, and the Zehrs Food Plus Centre, which has recently been redeveloped and includes a Winners SmartCentres Sarnia (376,000 sq.ft. sq.ft. – 165,000 to be developed apparel store. Other supermarkets in the node include an A&P and Price Chopper. Lambton Home improvement stores include Home Mall Depot and Home Hardware. In total, these two nodes include some 1.7 million square feet of retail space, with some 233,100 square feet of vacant space. 4.3 Supermarket/Grocery Stores in Sarnia As summarized in Figure 4-4, a total of 394,900 square feet of supermarket/grocery store space has been inventoried in Sarnia, which includes 11 nodes. The majority of this space is located south of Highway 402. The largest store is the Zehrs located in the Zehrs Food Plus Centre at the corner of Murphy Road and London Road in the “Commercial Centre”. urbanMetrics inc. market, economic and strategic advisors 4-7 Sarnia Market Demand and Impact Analysis Figure 4-3: City of Sarnia – Location of Supermarkets/Grocery Stores Supermarkets/Grocery Stores Figure 4-4: City Of Sarnia-Supermarket/Major Food Store Space SUPERMARKETS/GROCERY STORES, SARNIA Location 101 Victoria Street 1444 Quinn Drive 600 Murphy Road 1375 London Road 2600 Lakeshore Road 700 Kemsley Drive 191 Indian Road South 1330 Exmouth Street 560 Exmouth Street 889 Exmouth Street 1030 Confederation Street TOTAL SUPERMARKET/GROCERY Map Sarnia Sarnia Sarnia Sarnia Sarnia Sarnia Sarnia Sarnia Sarnia Sarnia Sarnia 1 3 3 3 9 11 2 3 5 5 2 Node Downtown Lambton Mall/Area Lambton Mall/Area Lambton Mall/Area Lakeshore Rd Other (North of 402) Confederation Lambton Mall/Area Exmouth Street Exmouth Street Confederation urbanMetrics inc. market, economic and strategic advisors Name Downtown Grocery Wal-Mart (Groceries) Zehrs A&P Foodland Valu Mart Food Basics Price Chopper A&P No Frills Davy Jones Everfresh Sq.Ft. 4,000 64,200 113,600 44,000 10,300 15,000 40,500 50,000 25,000 20,000 8,300 394,900 4-8 Sarnia Market Demand and Impact Analysis 4.4 Proposed Competition Based on information from the City, there is one major application for retail development in Sarnia: • SmartCentres – In addition to the Wal-Mart Super Centre (214,000 Sq ft), the developer has obtained approval for 170,000 square feet of additional retail/service space. Although none of this additional space has been built the tenants are expected to include a number of large format retail uses: La Senza, Michaels, Bonnie Togs and The Dollar Store. For the purpose of our analysis, we have assumed that the SmartCentres Phase 2 development would include about 140,000 square feet of NFSR space, with the remainder devoted to service space. In addition to these proposals, it is our understanding that there are vacant designated commercial sites at various locations in Sarnia that could accommodate additional retail facilities, including several sites in the “Commercial Centre”, and potential re-development sites located in the Downtown and the Mitton Village areas. In the Commercial Centre, the City has indicated that excluding the SmartCentres site, there are about 11 acres of other vacant land on various sites that could accommodate additional retail/service development. In Secondary Plan – Development Area 1, there are a number of small vacant designated commercial sites comprising a total of about 5.8 acres, but as noted previously these sites are not large enough to accommodate a supermarket anchored centre and these smaller sites can still develop with different types of tenants than those proposed on the subject site In Secondary Plan Development Area 2 (area between Modeland Road and Blackwell Sideroad, north of Confederation Line, and south of London Line), some 22.35 acres have been designated, excluding existing commercial sites. Assuming coverage of 25%, all of these designated sites could accommodate an additional 426,300 square feet of retail/service space. In Secondary Plan Development Area 2, the largest designated site is about 16 acres, located on Confederation Line, which could accommodate about 175,000 square feet of retail/service space. In our opinion the subject site is better located compared to this site as it is located in a currently developing residential community and in an area of north Sarnia that is currently underserved with retail and service facilities. For the purpose of our analysis, we have assumed that the vacant designated sites would accommodate about 150,000 square feet of NFSR space, developed over the study period analyzed in our report. urbanMetrics inc. market, economic and strategic advisors 4-9 Sarnia Market Demand and Impact Analysis 4.5 Future Commercial Growth Options The City’s Commercial Land Needs & Policy Review, conducted in March 2008, discusses future commercial land supply in Sarnia. According to this document, developers have indicated that a readily available supply of vacant, designated, zoned, serviced and visible commercial sites is lacking in Sarnia. The Commercial Land Needs & Policy Review envisions future growth in the Downtown, General Commercial and Office Commercial Areas that will occur primarily as infill or redevelopment. For land uses in the Highway Commercial Area along London Line, it is anticipated that this area will function as an extension of the Commercial Centre Area. The Community Commercial vacant land supply of 12.2 ha, which includes a neighbourhood/local commercial land supply in Secondary Plan Development Areas 1 & 2, is considered adequate for the needs of a 20- year planning horizon, though in our opinion some of these sites may not be large enough or in the right location to develop as proposed. In fact, we doubt the Secondary Plan Development Area 2 will develop within the time frame examined in this report, and Secondary Plan Development Area 1, where the subject site is located, is the preferred location for retail development as it is located central to a developing community in north Sarnia that is currently underserved with local serving retail/service facilities. Future regional scale commercial growth in Sarnia will be directed to the Commercial Centre Area. Following the policy direction established by the Provincial Policy Statement, a portion of the 20-year land need is first met by the existing vacant land supply. In order to satisfy the remaining land need, three Site Areas (‘A’, ‘B’, and ‘C’) were identified in the study as growth options. However, in our view the subject site which is already located within the urban boundary is a preferred option of meeting the 20 year commercial land need. In addition, in terms of the three sites identified in the Commercial Policy Review, Site Area A (5.85 ha) is located south of London Line and east of Highway 40 (Modeland Road) and is primarily vacant. The majority of its area is designated “Light Industrial” in the Official Plan. This growth option examines the possibility of amending the current designation to an appropriate commercial or mixed industrial/commercial land use to allow for potential future commercial development. However, this area is somewhat isolated from surrounding residential uses due to lack of access at London Line. The site would require an upgrade of the road system in order for it to be developed for commercial or industrial use. This would not be the case for the subject site. Site Areas B and C are the two other growth options considered. Unlike Site Area A, these two options which are currently farmland and no where near residential areas of the City, would require expanding the City’s urban area boundary to accommodate the long-term growth. In urbanMetrics inc. market, economic and strategic advisors 4-10 Sarnia Market Demand and Impact Analysis our view, the subject site which is located within the current urban boundary in a developing residential area is a much better option, that fulfils a current and future need in north Sarnia. Generally located north of Highway 402 and east of Highway 40 (Modeland Road), Site Area B (51.43 ha) is mainly vacant and a portion of the site is part of a municipal stormwater management facility. There are several designations currently on the site, including “Rural”, “Flood Plain Area”, and “Primary Natural Heritage Corridor”. Although Site Area B is contiguous with the present urban boundary, highly visible, and accessible from two highways, which are all attributes of a suitable commercial site, development constraints such as road access and poor soil conditions limit Site Area B as a good commercial site. Site Area C (143.42 ha) is generally located south of London Line, and west of Telfer Road. Existing land uses on the site include cultivated farm lands, a recreational vehicle/trailer sales establishment, and a gas station. The site is designated “Rural” in the Official Plan. This site is accessible from London Line and from Highway 402, and is considerably larger than the land area identified as needed to accommodate commercial growth for the next 20 years. It is also recommended in the Commercial Land Needs & Policy Review that designation of a portion of this site for commercial development is best considered through the Secondary Planning process. Such a process would not be required on the subject site. Therefore, we would conclude that the subject site is a much better location to meet the future commercial needs of Sarnia, and in particularly the residents living in this portion of the City who are currently underserved with retail/service facilities. urbanMetrics inc. market, economic and strategic advisors 4-11 Sarnia Market Demand and Impact Analysis 5. Population and Income To determine the potential demand and market opportunity for additional retail uses in Sarnia, it is necessary to estimate the future permanent resident population living within the Trade Area. Population change, in addition to income, represents major factors that can significantly influence the level of future retail sales in an area, and the retail space warranted in a market. 5.1 Population Figure 5-1 summarizes the historic population levels in the Trade Area, based on Statistics Canada, Census of Canada data. Forecast population levels for each Trade Area zone are based on population projections provided in City of Sarnia’s Commercial Land Needs & Policy Review, part of the Official Plan Review conducted in March, 2008. It should be noted that all data accounts for net undercoverage2 in the Census. The total Trade Area population, which Figure 5-1 includes Lambton County, has increased from TRADE AREA - POPULATION - Historic CENSUS 131,835 persons in 2001, to 132,340 in 2006; a 2001 modest growth of 540 persons or about 101 PRIMARY ZONE 70,876 Sarnia CY persons per year. About 90% of this growth has 2,101 Point Edward VL 72,977 Sub-TOTAL been in the Secondary Zone, with the % of Total Trade Area 57.48% Municipality of Lambton Shores experiencing SECONDARY ZONE IRI 695 Sarnia 45 758 Oil Springs VL the greatest increase, followed by the Town of IRI 822 Kettle Point 44 1,843 Walpole Island 46 IRI Petrolia. In the Primary Zone, Sarnia’s TP 2,369 Dawn-Euphemia 2,785 Brooke-Alvinston MU 3,259 population increased by about 132 persons, Enniskillen TP TP 4,025 Warwick 4,849 Petrolia T with the Village of Point Edward declining by 7,359 Plympton-Wyoming T 10,571 Lambton Shores MU some 97 persons, resulting in a marginal 14,659 St. Clair TP 53,994 TOTAL increase in the Primary Zone population of Sub% of Total Trade Area 42.52% TOTAL LAMBTON some 35 persons. 126,971 COUNTY/TRADE AREA 131,835 Undercoverage CENSUS 2006 71,419 CENSUS - Adjusted for Undercoverage 2001 2006 Average Annual Growth 73,591 2,181 75,773 57.48% 73,723 2,084 75,807 57.28% 26 -19 7 7% 54,766 42.72% 722 787 853 1,914 2,460 2,892 3,384 4,179 5,035 7,641 10,976 15,221 56,062 42.52% 729 740 1,053 1,939 2,261 2,747 3,223 4,072 5,390 7,748 11,510 15,122 56,533 42.72% 1 -9 40 5 -40 -29 -32 -21 71 21 107 -20 94 128,204 131,835 132,340 101 2,019 73,438 57.28% 706 717 1,020 1,878 2,190 2,661 3,122 3,945 5,222 7,506 11,150 14,649 132,340 1.038308 1.032261 Although some 1,108 building permits were SOURCE: urbanMetrics inc. issued for new residential units in Sarnia over the 2001 to 2006 period, with some 190 in 2006, any population growth realized by new residential developments has been offset to a large degree by the aging of the population and the declining household size of the existing population base. 1) Undercoverage factors based on Statistics Canada, Annual Demographic Estimates for Lambton County. 2 Net undercoverage: Difference between undercoverage and overcoverage. Overcoverage: Number of persons who should not have been counted in the census or who were counted more than once. Undercoverage: Number of persons not enumerated in a census (who were intended to have been enumerated). urbanMetrics inc. market, economic and strategic advisors 5-1 Sarnia Market Demand and Impact Analysis As noted previously, the City of Sarnia conducted a Commercial Land Needs and Policy Review in March, 2008 as part of its Official Plan Review. This document includes population projections for the City of Sarnia and Lambton County to the year 2028 and is the most recent population forecast available from the City. Based on historical growth trends, population projections have been calculated using the straight-line projection method, with three different growth scenarios (low, medium, and high). We have used the population forecasts under the medium growth scenario in our analysis, which represents an annual growth rate of 0.47% for Sarnia, and 0.53% for Lambton County. Accounting for Census undercoverage, the forecasts indicate that Sarnia’s population will grow from 73,723 persons in 2006 to 79,095 persons by 2021, an increase of 5,372 persons in this 15 year period. Population in Lambton County (including Sarnia) is expected to reach 146,260 persons by 2021, a growth of 13,920 from 132,340 persons in 2006. Based on Lambton County’s annual growth rate of 0.53%, we have calculated the population forecast for Point Edward, which is part of our Primary Zone. In 2006, there were some 2,084 persons in Point Edward, and this population is expected to reach 2,256, a moderate growth of 172 persons. In the Secondary Zone, and based on discussions with County staff, recent historic growth trends are expected to continue and could potentially be higher, although servicing capacity could temper this growth over the long term. In the southern portion of the County, the most important growth area includes St Clair Township. This municipality is adjacent to Sarnia and benefits from the development associated with the petrochemical industry. In the north of the County, most of the growth is anticipated in the municipality of Lambton Shores. Figure 5-2 summarizes our estimates of Trade Area population based on the medium growth scenario. As indicated, the Trade Area population is forecast to increase over the forecast period from 132,340 persons in 2006 to 143,260 persons by 2021; a growth of 10,920 persons. Overall, the Primary Zone is projected to grow from 75,807 persons in 2006 to 81,351 persons by 2021; a growth of 5,544 persons. The Secondary Zone is forecast to grow from 56,533 persons in 2006 to 61,909 persons by 2026; a growth of 5,376 persons. Based on discussions with Sarnia planning staff, the number of residential units planned for the Secondary Plan Area is 1,400 with a target population of approximately 4,060 persons. This population will provide significant market support for the proposed retail development and growth of this magnitude would support new retail/service space in excess of 180,000 square feet (at a standard ratio of 45 square feet per capita), though a portion of this demand would be served by other retail areas throughout Sarnia. However, existing residential areas in north Sarnia, which are currently underserved, will provide further support for the retail and service facilities proposed. urbanMetrics inc. market, economic and strategic advisors 5-2 Sarnia Market Demand and Impact Analysis Figure 5-2: Trade Area Population TRADE AREA POPULATION (1 Base Year 2007 2009 2012 2015 75,807 76,165 358 0.5% 76,885 360 0.5% 77,978 364 0.5% 79,086 369 0.5% 81,351 378 0.5% 8,135 -10.0% 56,533 56,876 343 0.6% 57,570 347 0.6% 58,626 352 0.6% 59,702 359 0.6% 61,909 368 0.6% 6,191 -10.0% 132,340 133,041 701 0.5% 134,455 707 0.5% 136,604 716 0.5% 138,788 728 0.5% 143,260 745 0.5% 14,326 -10.0% 2006 Primary Zone Population Average Annual Increase Average Annual Growth Secondary Zone Population Average Annual Increase Average Annual Growth TOTAL TRADE AREA Average Annual Increase Average Annual Growth 2021 2031 SOURCE: urbanMetrics inc. 1) Undercoverage factor of 1.032 for Lambton County and assumed for Trade Area in 2006 and forecast years. Population Figures for 2006 are based on Statistics Canada, Census of Canada. Figures for Primary and Secondary Zones for the forecast period are based on population projections provided in Commercial Land Needs & Policy Review, March 2008 by City of Sarnia for years until 2028. 5.2 Per Capita Income Per capita income levels provide a reasonable basis for determining the retail expenditure levels of the Trade Area population. Based on Statistics Canada, 2006 Census data, we have calculated the per capita income index for each of the two zones, as detailed in the following figure. The Primary Zone has income levels slightly above the average Provincial level (1.5%), while the Secondary Zone has income levels just below the average Provincial level (-7.6%). Figure 5-3: Trade Area Per Capita Income Location Primary Zone Secondary Zone Province Per Capita Income Index to Province $29,714 101.5 $27,025 92.4 $29,263 100.0 Source: urbanMetrics inc. based on Statistics Canada, 2006 Census urbanMetrics inc. market, economic and strategic advisors 5-3 Sarnia Market Demand and Impact Analysis 6. Food Store Analysis In this section of the report we have evaluated the market opportunity for additional supermarket space in the City of Sarnia, recognizing that the anchor for the subject site would likely be a supermarket. 6.1 FSR Expenditure Potential The following is an overview of per capita food store retail (FSR) expenditures, the distribution of expenditures, and the expenditure potential available from Trade Area residents. 6.1.1 Per Capita FSR Expenditures Based on Statistics Canada Retail Trade data, the 2007 average per capita food store expenditure in Ontario is estimated at $1,990 (See Appendix C). Food store expenditures include those made in supermarkets, grocery, convenience, and specialty food stores. For the purposes of our analysis, we have also included expenditures made in the new Wal-Mart SuperCentre in Sarnia, which includes a major food component. As indicated in Figure 6-1, for Trade Area residents the 2007 average per capita food store expenditure has been estimated based on the income relationship between the Province and the Trade Area, and an expenditure based regression equation, which calculates an expenditure index based on income level. Based on Trade Area residents’ income levels, the 2007 per capita FSR expenditures have been estimated at $1,994 for the Primary Zone (Sarnia and Point Edward), and $1,972 for the Secondary Zone (remainder of Lambton County). For Trade Area residents, the 2007 average per capita FSR expenditure is expected to increase at a rate of 0.5% per year on an un-inflated basis between 2007 and 2015. As discussed in the underlying assumptions, future changes in expenditure patterns solely due to inflation have not been recognized. Therefore, future expenditure levels reflect the 2007 value of the Canadian dollar. 6.1.2 Expenditure Potential from Trade Area Residents By multiplying the average per capita food store expenditure by the current and projected population residing in the Trade Area, the total food store potential from Trade Area residents has been calculated over the study period. In total, the food store potential available from Trade Area residents has been estimated at $264.1 million in 2007. By 2015, this potential is expected to reach $286.4 million; a growth of $22.3 million over the eight year period (expressed in 2007 dollars). urbanMetrics inc. market, economic and strategic advisors 6-1 Sarnia Market Demand and Impact Analysis Figure 6.1 PER CAPITA FOOD STORE RETAIL (FSR) EXPENDITURE POTENTIAL 2007 2007 Dollars Province of Ontario Per Capita FSR Expenditure $ 1,990 (1 2007 2010 2012 2015 101.50 100.20 $ 1,994 76,165 $ 151.9 87.0% 13.0% 100.0% $ 132.2 $ 19.7 $ 151.9 $ 2,024 77,247 $ 156.3 90.0% 10.0% 100.0% $ 140.7 $ 15.6 $ 156.3 $ 2,044 77,978 $ 159.4 90.0% 10.0% 100.0% $ 143.5 $ 15.9 $ 159.4 $ 2,074 79,086 $ 164.0 90.0% 10.0% 100.0% $ 147.6 $ 16.4 $ 164.0 92.40 99.10 $ 1,972 56,876 $ 112.2 90.0% 10.0% 100.0% $ 101.0 $ 11.2 $ 112.2 $ 2,002 57,921 $ 116.0 92.5% 7.5% 100% $ 107.3 $ 8.7 $ 116.0 $ 2,021 58,626 $ 118.5 92.5% 7.5% 100% $ 109.6 $ 8.9 $ 118.5 $ 2,051 59,702 $ 122.4 92.5% 7.5% 100% $ 113.2 $ 9.2 $ 122.4 $ 272.3 $ 248.0 $ 14.8 $ 24.3 -$6.6 $ 277.9 $ 253.1 $ 19.9 $ 24.8 -$6.1 $ 286.4 $ 260.8 $ 27.6 $ 25.6 -$5.3 2007 Dollars Primary Zone Income Index to Province FSR Expenditure Index to Province Per Capita FSR Expenditure Population TOTAL FSR POTENTIAL ($Millions) FSR - Supermarket Share (2 FSR - Grocery/Other Food Store Share (2 Total FSR - Supermarkets (2 FSR - Grocery/Other Food Store Share (2 Total Secondary Zone Income Index to Province FSR Expenditure Index to Province Per Capita FSR Expenditure Population TOTAL FSR POTENTIAL ($Millions) FSR - Supermarket Share (2 FSR - Grocery/Other Food Store Share (2 Total FSR - Supermarkets (2 FSR - Grocery/Other Food Store Share (2 Total TOTAL TRADE AREA TOTAL FSR POTENTIAL ($Millions) TOTAL FSR - Supermarkets ($Millions) Cumulative Growth TOTAL FSR - Grocery/Other Food ($Millions) Cumulative Growth $ 264.1 $ 233.2 $ 30.9 SOURCE: urbanMetrics inc. 1) Based on Statistics Canada, Retail Trade. 2) urbanMetrics estimate based on in-home telephone survey results and our inventory of food stores in the Trade Area 6.1.3 Distribution of Expenditures The total food store expenditure potential has been divided into two categories: supermarket/grocery and convenience/specialty food stores. These current shares are estimated based on our review of Statistics Canada data, the results of our in-home telephone consumer survey, and the inventory of food store space. Ontario: Food Store Expenditure Distribution (based on Statistics Canada Retail Trade data) 100% 80% 60% 88.9% 89.0% 88.3% 87.1% Supermarket and Grocery Conv enience & Specialty Food 40% 20% 0% 11.1% 11.0% 11.7% 12.9% 2004 2005 2006 2007 According to Statistics Canada Retail Trade urbanMetrics inc. market, economic and strategic advisors 6-2 Sarnia Market Demand and Impact Analysis data, supermarkets/grocery stores comprise about 87.1% of all FSR expenditures in Ontario, while convenience/specialty food stores account for the remaining 12.9%. For the Primary Zone, we have utilized the Provincial supermarket/grocery share of 87% for the 2007 base year. In future years, a slight increase in the supermarket/grocery share to 90% has been assumed for Primary Zone residents to recognize potential sales transfers from convenience/specialty food stores created by potential new supermarket space added in Sarnia. Our review of the inhome telephone survey indicates the following supermarket shares of total food store expenditures: • Primary Zone - 92.6% • Secondary Zone - 95.4% In our experience, however, consumer survey results typically understate specialty food store expenditures, and therefore, we have adjusted the current supermarket shares downward to reflect this fact, but do recognize a somewhat higher supermarket share in the Secondary Zone as revealed by the consumer survey. As indicated in Figure 6-1, the supermarket/grocery potential available from Trade Area residents has been calculated at $233.2 million in 2007, increasing to $260.8 million by 2015; a growth of $27.6 million during this eight year period (expressed in 2007 dollars). It should be noted that the expenditures calculated represent only the total food store expenditure potential of Trade Area residents. In addition, expenditures of persons who reside outside the Trade Area (i.e. inflow) have also been included in the analysis. These persons could be visitors, tourists, seasonal residents, the travelling public, and individuals whose workplace is within the Trade Area but whom reside elsewhere. This inflow of retail sales is considered in the following section of the analysis. 6.2 Supermarket/Major Food Store Analysis This section examines the market opportunity for additional supermarket space in the City of Sarnia, and the potential overall sales impacts on existing stores that could be created with the addition of new supermarket space in the community and in particular from the supermarket proposed on the subject site. Our assessment of the market opportunity for additional supermarket space in Sarnia is derived based on the following assumptions: urbanMetrics inc. market, economic and strategic advisors 6-3 Sarnia Market Demand and Impact Analysis 1. Space Assumptions: The year 2010 is considered as the first full year of operation for a 60,000 square foot supermarket on the subject site. We have also tested the addition of another potential supermarket in southeast Sarnia in Development Area 2 (although no application has been submitted) of some 40,000 square feet, with a first full year of operation in 2015. 2. Recapture: According to our telephone in-home consumer survey, Primary Zone residents currently spend almost all their food store dollars in Sarnia, and therefore there is little opportunity for recapture opportunities. Although Sarnia is likely a popular food shopping choice for Secondary Zone residents, supermarkets located elsewhere in the Trade Area (i.e. Corunna Foodland and Independent in Petrolia) and beyond, influence their expenditure patterns. With additional supermarket space added in Sarnia, we have assumed that some recapture of Trade Area residents’ expenditures would occur. 3. Inflow: Inflow sales would amount to approximately 10% for the subject site, and for any other new supermarket in Sarnia. 4. Sales Levels: The average sales performance for new supermarket space in the City of Sarnia has been tested at sales levels between $450 and $500 per square foot over the study period (expressed in 2007 dollars). These can be compared to typical industry averages in Canada of about $535 per square foot (based on Statistics Canada data, 2005). 6.2.1 Primary Zone Share The Primary Zone Share refers to the expenditures of Trade Area residents made in Sarnia supermarkets. Based on our in-home telephone consumer survey, approximately 99.7% of Primary Zone residents’ supermarket/grocery store expenditures are currently made in Sarnia. In the Secondary Zone, the Sarnia share has been calculated at 46.2%. With the addition of new supermarket space of 60,000 square feet in Sarnia, the Sarnia shares are expected to increase for Secondary Zone residents, as detailed in Figure 6-2. 6.2.2 Primary Zone Residual Expenditure Potential from Trade Area Residents As indicated in Figure 6-2, based on Primary Zone shares applied to the total supermarket/grocery expenditures, the current Primary Zone share of Trade Area residents’ supermarket expenditures is estimated at $178.5 million in 2007. With the addition of new supermarket space in the City and future market growth, this share is forecast to increase to $203.8 million by 2015; a growth of $25.3 million. This increase is referred to as the residual potential, which represents the additional market potential available from Trade Area residents to both existing and new supermarkets in Sarnia derived from population increases, real growth, and recapture opportunities. urbanMetrics inc. market, economic and strategic advisors 6-4 Sarnia Market Demand and Impact Analysis Figure 6.1 SUPERMARKET ANALYSIS 2007 2010 2012 2015 Primary Zone Supermarket Expenditures ($Millions) Estimated Primary Zone Share %(1 Estimated Primary Zone Share ($ Millions) Residual Potential 2007 Dollars $ 132.2 99.7% $ 131.8 $ 140.7 99.7% $ 140.3 $ 8.5 $ 143.5 99.7% $ 143.1 $ 11.3 $ 147.6 99.7% $ 147.2 $ 15.4 Secondary Zone Supermarket Expenditures ($Millions) Estimated Primary Zone Share %(1 Estimated Primary Zone Share ($ Millions) Residual $ 101.0 46.2% $ 46.7 $ 107.3 50.0% $ 53.7 $ 7.0 $ 109.6 50.0% $ 54.8 $ 8.1 $ 113.2 50.0% $ 56.6 $ 9.9 $ 233.2 $ 178.5 76.5% $ 248.0 $ 194.0 78.2% $ 253.1 $ 197.9 78.2% $ 260.8 $ 203.8 78.1% $ 178.5 $ 178.5 $ 15.5 $ 178.5 $ 19.4 $ 178.5 $ 25.3 $ 15.5 $ 1.7 $ 17.2 $ 19.4 $ 2.2 $ 21.6 $ 25.3 $ 2.8 $ 28.1 38,300 36,300 34,400 47,900 45,400 43,100 62,500 59,200 56,200 …/cont'd TOTAL TRADE AREA Total Supermarket Expenditures ($Millions) Total Estimated Primary ZoneShare ($Millions) Estimated Primary ZoneShare % Existing Sales from Trade Area Residents ($Millions) Residual Potential ($Millions) Existing Supermarkets (394,900 sq.ft.) Sales/Sq.Ft. Levels (Including average Inflow of 10%): $ 502 WARRANTED ADDITIONAL SPACE - Primary Zone(including inflow, excluding sales transfers) Additional Residual Potential Available 10.0% (2 Plus Inflow Sales @ TOTAL ADDITIONAL SALES POTENTIAL AVAILABLE WARRANTED ADDITIONAL SQUARE FEET (3 @ $450 per sq. ft. @ $475 per sq. ft. @ $500 per sq. ft. urbanMetrics inc. market, economic and strategic advisors 6-5 Sarnia Market Demand and Impact Analysis Figure 6.1 SUPERMARKET ANALYSIS (Continued) 2007 Dollars PROPOSED SUPERMARKET SPACE - Primary Zone Location A: Subject Site Proposed Supermarket Space (square feet GLA) Estimated Sales per Square Foot Total Estimated Sales ($Millions) Less Inflow (%) (1 Less Inflow ($Millions) Total Sales Volume From Trade Area Residents ($Millions) Development Area 2 Proposed Supermarket Space (square feet GLA) Estimated Sales per Square Foot Total Estimated Sales ($Millions) Less Inflow (%) (2 Less Inflow ($Millions) Total Sales Volume From Trade Area Residents ($Millions) PROPOSED NEW SPACE SALES TRANSFER OR RESIDUAL DEMAND Total Proposed Space (sq. ft.) Total Sales Volume ($ Millions) Total Sales Volume Required from Trade Area Residents (excludes inflow) Total Sales Volume Available from Trade Area Residents (excludes inflow) Sales Transfer Required From Existing Stores (-)/Residual Market Demand (+) 2007 2010 2012 2015 60,000 $ 475 $ 28.5 10% $ 2.9 $ 25.7 60,000 $ 480 $ 28.8 10% $ 2.9 $ 25.9 60,000 $ 500 $ 30.0 10% $ 3.0 $ 27.0 $ 450 $0% $$- $ 480 $0% $$- 40,000 $ 500 $ 20.0 10% $ 2.0 $ 18.0 60,000 $ 28.5 $ 25.7 $ 15.5 -$10.2 60,000 $ 28.8 $ 25.9 $ 19.4 -$6.5 100,000 $ 50.0 $ 45.0 $ 25.3 -$19.7 SOURCE: urbanMetrics inc. 1) urbanMetrics estimate based on telephone survey results. 2) urbanMetrics estimate. 3) Rounded to the nearest 100 square feet. 6.2.3 Market Opportunity Based on the residual potential available in Sarnia and assuming average inflow sales levels of 10%, without any sales transfers from existing supermarkets in Sarnia, some 38,300 square feet (at $450/sq. ft.) of new supermarket space could be supported by 2010, increasing to some 56,200 square feet by 2015 (at $500/sq.ft.) Reflecting the anticipated sales performance levels for new supermarket space in Sarnia, and given the available residual potential noted above, the sales transfers required from existing supermarkets in Sarnia would amount to some $10.2 million in 2010, with some reduction in transfer to $6.5 million by 2012. By 2015, with an additional supermarket added, sales transfers would increase to $19.7 million. urbanMetrics inc. market, economic and strategic advisors 6-6 Sarnia Market Demand and Impact Analysis 6.3 Impact Analysis Figure 6-3 provides a directional impact analysis, detailing the expected sales impacts on existing supermarkets in the Primary Zone, with the introduction of two new supermarkets in the local market: one on the subject site, and potentially another in Development Area 2, which may or may not develop within the time period being analyzed in this report. This analysis has been based on the results of our in-home telephone consumer survey, which has been calibrated based on our experience on the expected sales performance of Sarnia supermarkets. The opening of any new retail facility or expansion to an existing store will typically cause some sales transfer from existing stores. When sales transfers cause existing stores to experience a net decline in sales below existing or base year levels, sales impact has occurred. Sales impact can be, but is not always, critical. Critical sales impact occurs when the sales of an existing store declines to a level that could threaten a store’s economic well-being and place it at risk of closure. As a result, the closing of a store could affect the planned function of a retail area of which it forms a part and this is potentially true if the store is an anchor for the centre. Although it is not the intent of the municipality to regulate competition, it is important that it retains healthy communities and traditional downtowns, and protects public investment in the community. Therefore, the potential impact on existing retail nodes in the community is an important consideration that must be tested in this study. Based on the results of our analysis, existing Study Area supermarkets are currently achieving average sales per square foot levels of $502. This average is considered at or above typical industry norms. With the addition of the new supermarket on the subject site, sales levels for the existing supermarkets in the Primary Zone are expected to decline by some 5.7% on average by 2010, a decline which is considered insignificant. By 2021, with the addition of a potential new supermarket in Development Area 2, sales levels for the existing supermarkets in the Primary Zone are expected to decline by some 11.0%. It is likely that the greatest impacts created by the subject supermarket in 2010 would be on the Foodland on Lakeshore Road, and Price Chopper and Wal-Mart in the Lambton Mall Area, especially given their proximity to the subject site. However, the expected declines in the existing stores sales are not expected to result in any store closures, with continued recovery to above existing sales levels. urbanMetrics inc. market, economic and strategic advisors 6-7 Sarnia Market Demand and Impact Analysis Figure 6.2 SUPERMARKET IMPACT ANALYSIS Sales From Percent Trade Area Market Share Residents in Primary Plus Inflow ($Millions) (1 Zone(1 Estimate (2 TOTAL SALES 2007 TOTAL PRIMARY ZONE Node 1: Downtown Grocery Node 2: Food Basics Node 2: Davy Jones Everfresh Node 3: Wal-Mart Groceries Node 3: Loblaw Superstore Node 3: A & P Node 3: Price Chopper Node 5: A & P Node 5: No Frills Node 9: Foodland Node 11: Valu-Mart Square Footage Sales Per Square Foot Levels $ 178.5 $ 1.2 $ 17.1 $ 2.3 $ 23.9 $ 57.1 $ 16.6 $ 17.1 $ 16.1 $ 13.4 $ 4.6 $ 8.9 100.0% 0.7% 9.6% 1.3% 13.4% 32.0% 9.3% 9.6% 9.0% 7.5% 2.6% 5.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% $ 198.3 $ 1.4 $ 19.0 $ 2.6 $ 26.6 $ 63.5 $ 18.4 $ 19.0 $ 17.9 $ 14.9 $ 5.2 $ 9.9 394,900 4,000 40,500 8,300 64,200 113,600 44,000 50,000 25,000 20,000 10,300 15,000 $ 502 $ 347 $ 470 $ 311 $ 414 $ 559 $ 419 $ 381 $ 714 $ 744 $ 501 $ 661 Node 11: Valu-Mart Total Existing $ 194.0 $ 1.4 $ 17.5 $ 2.3 $ 23.5 $ 51.8 $ 16.5 $ 16.9 $ 14.6 $ 11.8 $ 4.3 $ 8.0 $ 168.4 100.0% 0.7% 9.0% 1.2% 12.1% 26.7% 8.5% 8.7% 7.5% 6.1% 2.2% 4.1% 86.8% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% $ 215.6 $ 1.5 $ 19.4 $ 2.6 $ 26.1 $ 57.6 $ 18.3 $ 18.8 $ 16.2 $ 13.1 $ 4.7 $ 8.8 $ 187.1 454,900 4,000 40,500 8,300 64,200 113,600 44,000 50,000 25,000 20,000 10,300 15,000 394,900 $ 474 $ 377 $ 479 $ 312 $ 406 $ 507 $ 416 $ 375 $ 647 $ 657 $ 460 $ 589 $ 474 Proposed: Location A: Subject Site Development Area 2 Total Proposed $ 25.7 $$ 25.7 13.2% 0.0% 13.2% 10.0% 0.0% 10.0% $ 28.5 $$ 28.5 60,000 60,000 $ 475 $$ 475 Change from Base Year 2010 TOTAL PRIMARY ZONE Node 1: Downtown Grocery Node 2: Food Basics Node 2: Davy Jones Everfresh Node 3: Wal-Mart Groceries Node 3: Loblaw Superstore Node 3: A & P Node 3: Price Chopper Node 5: A & P Node 5: No Frills Node 9: Foodland 8.7% 1.9% 0.3% -1.9% -9.3% -0.7% -1.5% -9.4% -11.6% -8.0% -10.9% -5.7% …/Cont'd urbanMetrics inc. market, economic and strategic advisors 6-8 Sarnia Market Demand and Impact Analysis Figure 6.2 SUPERMARKET IMPACT ANALYSIS (Continued) 2012 TOTAL PRIMARY ZONE Node 1: Downtown Grocery Node 2: Food Basics Node 2: Davy Jones Everfresh Node 3: Wal-Mart Groceries Node 3: Loblaw Superstore Node 3: A & P Node 3: Price Chopper Node 5: A & P Node 5: No Frills Node 9: Foodland Node 11: Valu-Mart Total Existing $ 197.9 $ 1.4 $ 17.8 $ 2.4 $ 24.0 $ 52.9 $ 16.8 $ 17.2 $ 14.9 $ 12.1 $ 4.4 $ 8.1 $ 172.0 100.0% 0.7% 9.0% 1.2% 12.1% 26.7% 8.5% 8.7% 7.5% 6.1% 2.2% 4.1% 86.9% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% $ 219.9 $ 1.5 $ 19.8 $ 2.6 $ 26.6 $ 58.8 $ 18.7 $ 19.2 $ 16.5 $ 13.4 $ 4.8 $ 9.0 $ 191.1 454,900 4,000 40,500 8,300 64,200 113,600 44,000 50,000 25,000 20,000 10,300 15,000 394,900 $ 483 $ 385 $ 489 $ 318 $ 415 $ 517 $ 425 $ 383 $ 660 $ 671 $ 470 $ 602 $ 484 Proposed: Location A: Subject Site Development Area 2 Total Proposed $ 25.9 $$ 25.9 13.1% 0.0% 13.1% 10.0% 10.0% 10.0% $ 28.8 $$ 28.8 60,000 $ 480 $$ 480 Sales From Percent Trade Area Market Share Residents in Primary Plus Inflow ($Millions) (1 Zone(1 Estimate (2 TOTAL SALES 2015 60,000 Square Footage Sales Per Square Foot Levels TOTAL PRIMARY ZONE Node 1: Downtown Grocery Node 2: Food Basics Node 2: Davy Jones Everfresh Node 3: Wal-Mart Groceries Node 3: Loblaw Superstore Node 3: A & P Node 3: Price Chopper Node 5: A & P Node 5: No Frills Node 9: Foodland Node 11: Valu-Mart Total Existing $ 203.8 $ 1.3 $ 16.5 $ 2.2 $ 22.1 $ 48.8 $ 15.6 $ 15.9 $ 13.7 $ 11.2 $ 4.0 $ 7.5 $ 158.8 100.0% 0.6% 8.1% 1.1% 10.9% 24.0% 7.6% 7.8% 6.7% 5.5% 2.0% 3.7% 77.9% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% $ 226.4 $ 1.4 $ 18.3 $ 2.4 $ 24.6 $ 54.3 $ 17.3 $ 17.7 $ 15.2 $ 12.4 $ 4.5 $ 8.3 $ 176.4 494,900 4,000 40,500 8,300 64,200 113,600 44,000 50,000 25,000 20,000 10,300 15,000 394,900 $ 458 $ 356 $ 452 $ 294 $ 383 $ 478 $ 393 $ 354 $ 610 $ 620 $ 434 $ 556 $ 447 Proposed: Location A: Subject Site Development Area 2 Total Proposed $ 27.0 $ 18.0 $ 45.0 13.2% 8.8% 22.1% 10.0% 10.0% 10.0% $ 30.0 $ 20.0 $ 50.0 60,000 40,000 100,000 $ 500 $ 500 $ 500 11.0% 4.1% 2.5% 0.2% -7.4% 1.5% 0.6% -7.5% -9.7% -6.1% -9.0% -3.7% Change from Base Year 2.5% -3.9% -5.4% -7.5% -14.5% -6.3% -7.1% -14.6% -16.6% -13.3% -16.0% -11.0% SOURCE: urbanMetrics inc. 1) Current sales estimates are based on the results of the in-home telephone consumer survey, and our assessment of each shares likely performance. urbanMetrics inc. market, economic and strategic advisors 6-9 Sarnia Market Demand and Impact Analysis 7. Non-Food Store Retail (NFSR) Analysis In this section of the study, we have evaluated the future market potential available for nonfood store retail (NFSR) facilities in the City of Sarnia and specifically the market opportunity for NFSR space on the subject site. NFSR space represents the other major component of retail space that will be located on the subject site in addition to FSR space. 7.1 NFSR Expenditure Potential The following section examines per capita expenditures and the NFSR expenditure potential available from Trade Area residents. 7.1.1 Per Capita NFSR Expenditures Based on Statistics Canada Retail Trade data, the 2007 average per capita non-food store retail expenditure in Ontario is estimated at $5,169 (See Appendix C for details). As indicated in Figure 7-1, for Trade Area residents, the 2007 average per capita non-food store retail expenditure has been estimated based on the income relationship between the Province and the Trade Area, and an expenditure related regression equation, which calculates an expenditure index based on income level. The 2007 per capita NFSR expenditures have been estimated at $5,210, for the Primary Zone (Sarnia and Point Edward), and $4,947 for the Secondary Zone (remainder of Lambton County). For Trade Area residents, the 2007 average per capita NFSR expenditure is expected to increase at a rate of 1.5% per year on an uninflated basis during the study period. Again, future changes in expenditure patterns solely due to inflation have not been recognized in this analysis (see Appendix C for historic real growth). 7.1.2 Expenditure Potential from Trade Area Residents The total NFSR potential of Trade Area residents over the study period has been calculated by multiplying the average per capita NFSR expenditure by the current and projected population residing in the Trade Area. In total, the non-food store retail potential available from Trade Area residents is estimated at $678.2 million in 2007, increasing to $792.3 million by 2015; a growth of $114.1 million (expressed in 2007 dollars). urbanMetrics inc. market, economic and strategic advisors 7-1 Sarnia Market Demand and Impact Analysis It should be recognized that the expenditure potential indicated in Figure 7-1 is that which is available from Trade Area residents only, and represents the expenditure potential available to stores located both in the Trade Area and outside the Trade Area. Figure 7.1 PER CAPITA NFSR EXPENDITURE POTENTIAL 2007 2007 Dollars Province of Ontario Per Capita NFSR Expenditure $ 5,169 (1 2007 Dollars Primary Zone Income Index to Province NFSR Expenditure Index to Province Per Capita NFSR Expenditure Population TOTAL NFSR POTENTIAL ($Millions) Home Improvement & Department Stores (2 Other NFSR Stores (2 Home Improvement & Department Stores Other NFSR Stores Total Secondary Zone Income Index to Province NFSR Expenditure Index to Province Per Capita NFSR Expenditure Population TOTAL NFSR POTENTIAL ($Millions) Home Improvement & Department Stores (2 Other NFSR Stores (2 Home Improvement & Department Stores Other NFSR Stores Total TOTAL TRADE AREA TOTAL NFSR POTENTIAL ($Millions) Cumulative Growth 2007 2010 2012 2015 101.50 100.80 $ 5,210 76,165 $ 396.8 27.0% 73.0% 100.0% $ 5,444 77,247 $ 420.5 25.0% 75.0% 100.0% $ 5,601 77,978 $ 436.8 25.0% 75.0% 100.0% $ 5,835 79,086 $ 461.5 25.0% 75.0% 100.0% $ 107.2 $ 289.6 $ 396.8 $ 105.1 $ 315.4 $ 420.5 $ 109.2 $ 327.6 $ 436.8 $ 115.4 $ 346.1 $ 461.5 92.40 99.10 $ 4,947 56,876 $ 281.4 27.0% 73.0% 100.0% $ 76.0 $ 205.4 $ 281.4 $ 5,170 57,921 $ 299.5 25.0% 75.0% 100.0% $ 74.9 $ 224.6 $ 299.5 $ 5,318 58,626 $ 311.8 25.0% 75.0% 100.0% $ 78.0 $ 233.9 $ 311.9 $ 5,541 59,702 $ 330.8 25.0% 75.0% 100.0% $ 82.7 $ 248.1 $ 330.8 $ 720.0 $ 41.8 $ 748.6 $ 70.4 $ 792.3 $ 114.1 $ 678.2 SOURCE: urbanMetrics inc. 1) Based on Statistics Canada, Retail Trade. 2) Based on the results of the in-home telephone consumer survey. 7.1.3 Distribution of Expenditures For the purposes of our analysis, we have divided the total NFSR expenditure potential into two major store types: Home Improvement Store and Department Store; and Other NFSR stores as urbanMetrics inc. market, economic and strategic advisors 7-2 Sarnia Market Demand and Impact Analysis indicated in Figure 7-1. These NFSR distributions for each Trade Area zone are urbanMetrics’ estimates based on our review of average Provincial shares (see Appendix C), our survey results, and our inventory of retail space. For the forecast period, these shares have been held constant. Since no home improvement centre or department store are proposed on the site or elsewhere, our analysis is focused on the other NFSR portion of this retail category. 7.2 Other NFSR Space Analysis In Sarnia, there is an estimated 1,289,900 square feet of “Other NFSR” space (excluding home improvement space, department stores and automotive tires/ batteries/ accessory stores), with the majority of this space located in Lambton Mall/Area (i.e. “Commercial Centre”) and in the Downtown. This analysis examines the market opportunity for additional “other NFSR” space in Sarnia, as well as the potential overall sales impacts of the new NFSR space on the existing retail facilities in the City. Our assessment of the market opportunity for additional “other NFSR” space is provided using the following assumptions: • Space Assumptions: A total of 70,000 square feet of “other NFSR” space is assumed for the subject site. In addition, other potential space of some 140,000 square feet has been assumed on the SmartCentres site. Both these sites are assumed to have a first full year of operation in 2010, which is a conservative assumption as it is likely that a large portion of this space would be phased in over a number of years. We have also assumed a vacancy uptake of some 50,000 square feet, recognizing the significant amount of vacant space in Sarnia, including the vacant Wal-Mart in Lambton Mall. In addition, a space allocation of up to 100,000 square feet for other designated sites has also been included, with this space naturally phased in over the study period. • Recapture: We have assumed that the majority of Trade Area residents’ “other NFSR” expenditures are currently being made in Sarnia as derived from the consumer survey. However, it is expected that new facilities in Sarnia will result in some recapture of expenditures that currently flow outside of Lambton County to locations such as the USA and London (about a one hour drive). The extent of this recapture will largely be influenced by the specific stores developed in the centre, and whether they are unique to the local market. urbanMetrics inc. market, economic and strategic advisors 7-3 Sarnia Market Demand and Impact Analysis • Inflow: Inflow sales would amount to approximately 15% of the total “other NFSR” volume derived at the subject site, and for the vacancy uptake/other designated space, with a 20% inflow assumed for the SmartCentres site, due to its regional influence. • Sales Levels: The average sales performance for the new “other NFSR” retail facilities on the subject site has been tested at between $250 and $350 per square foot over the study period (expressed in 2007 dollars). It should be recognized, however, that sales performance levels can vary significantly by store type (see Appendix C for Canadian averages). The figures utilized in our analysis for the subject site are intended as averages for the type of stores expected to locate in the project, and in other areas of Sarnia. 7.2.1 Primary Zone Share Based on our telephone consumer survey results, the Primary Zone Share of total “other NFSR” expenditures in 2007 has been estimated at an average of 90.9% for Primary Zone residents and 46.2% for Secondary Zone residents. The introduction of new retail facilities on the subject site and elsewhere in the community is expected to increase these shares in future years. In total, Trade Area residents’ existing Sarnia share of total “other NFSR” has been estimated at $358.1 million in 2007. With recapture, market growth and real growth, this share could increase to $447.7 million by 2015; a growth of $89.6 million. 7.2.2 Residual Expenditure Potential As indicated in Figure 7-2, the residual expenditure potential available from Trade Area residents available to existing and new “other NFSR” space in Sarnia is estimated at $49.1 million in 2010, increasing to $89.6 million by 2015 (expressed in 2007 dollars). 7.2.3 Market Opportunity for Other NFSR Space Utilizing the same methodology used in our supermarket analysis, with increased recapture opportunities and assuming no sales transfers from existing retailers in Sarnia, the City could support some 231,100 square feet of additional “other NFSR” space by 2010 (at $250/sq ft), increasing to 301,200 square feet by 2015 (at $350/sq ft). The proposed/potential retail facilities evaluated would likely generate an estimated combined sales volume of $53.5 million in 2010, increasing to $84.2 million in 2015. Recognizing inflow, the sales volume required from Trade Area residents would amount to $64.6 million in 2010, increasing to $101.5 million in 2015. When available residual expenditure potential in Sarnia is recognized, sales transfers required from existing Sarnia “other NFSR” facilities would amount to about $4.4 million in 2010, and about $0.9 million by 2012. urbanMetrics inc. market, economic and strategic advisors 7-4 Sarnia Market Demand and Impact Analysis 7.3 Impact Analysis With the phased addition of some 220,000 to 310,000 square feet of “Other NFSR” space in Sarnia, existing retailers in Sarnia would experience no decline in sales levels in 2010. By 2012, existing retailers in the Primary Zone would experience a 1% growth in sales levels and the growth would continue to increase in future years. The existing average sales performance level for “Other NFSR” stores in Sarnia has been estimated at $327 per square feet, assuming a 15% inflow, which is considered a reasonable average sales performance level. With the potential space additions in 2010, these sales levels would remain unchanged, and then would increase to $329 per square foot by 2012, and to $340 per square foot by 2015. Figure 7.2 NON-FOOD STORE RETAIL (NFSR) ANALYSIS (Excluding Home Improvement & Department Store) 2007 Dollars 2007 2010 2012 2015 Primary Zone Non-Food Store Retail (NFSR) ($Millions) Estimated Primary Zone Share %(1 Estimated Primary Zone Share ($ Millions) Residual Potential $ 289.6 90.9% $ 263.2 $ 315.4 93.5% $ 294.9 $ 31.7 $ 327.6 93.5% $ 306.3 $ 43.1 $ 346.1 93.5% $ 323.6 $ 60.4 Secondary Zone Non-Food Store Retail (NFSR) ($Millions) Estimated Primary Zone Share %(1 Estimated Primary Zone Share ($ Millions) Residual $ 205.4 46.2% $ 94.9 $ 224.6 50.0% $ 112.3 $ 17.4 $ 233.9 50.0% $ 117.0 $ 22.1 $ 248.1 50.0% $ 124.1 $ 29.2 $ 495.0 $ 358.1 72.3% $ 540.0 $ 407.2 75.4% $ 561.5 $ 423.3 75.4% $ 594.2 $ 447.7 75.3% $ 358.1 $ 358.1 $ 49.1 $ 358.1 $ 65.2 $ 358.1 $ 89.6 TOTAL TRADE AREA Total Non-Food Store Retail (NFSR) Expenditures ($Millions) Total Estimated Primary Zone Share ($Millions) Estimated Primary Zone Share % Existing Sales from Trade Area Residents ($Millions) Residual Potential ($Millions) Existing Non-Food Store Retail (NFSR) Stores(1,289,900 sq.ft.) Sales/Sq.Ft. Levels (Including average Inflow of 15%): $ 327 WARRANTED ADDITIONAL Non-Food Store Retail (NFSR) SPACE - Primary Zone(including inflow, excluding sales transfers) $ 49.1 $ 65.2 $ 89.6 Additional Residual Potential Available $ 8.7 $ 11.5 $ 15.8 Plus Inflow Sales @ (2 15.0% TOTAL ADDITIONAL SALES POTENTIAL AVAILABLE $ 57.8 $ 76.7 $ 105.4 WARRANTED ADDITIONAL SQUARE FEET (3 @ $250 per sq. ft. @ $275 per sq. ft. @ $300 per sq. ft. @ $325 per sq. ft. @ $350 per sq. ft. 231,100 210,100 192,500 177,700 165,000 306,800 278,900 255,700 236,000 219,200 421,600 383,300 351,400 324,300 301,200 …/cont'd urbanMetrics inc. market, economic and strategic advisors 7-5 Sarnia Market Demand and Impact Analysis Figure 7.2 NON-FOOD STORE RETAIL (NFSR) ANALYSIS (Excluding Home Improvement & Department Store) (Continued) 2007 2007 Dollars PROPOSED Non-Food Store Retail (NFSR) SPACE - Primary Zone Location A: Subject Site Proposed Space (square feet GLA) Estimated Sales per Square Foot Total Estimated Sales ($Millions) Less Inflow (%) (2 Less Inflow ($Millions) Total Sales Volume From Trade Area Residents ($Millions) Location B: SmartCentres Site Proposed Space (square feet GLA) Estimated Sales per Square Foot Total Estimated Sales ($Millions) Less Inflow (%) (2 Less Inflow ($Millions) Total Sales Volume From Trade Area Residents ($Millions) 2010 2012 2015 70,000 $ 275 $ 19.3 15% $ 2.9 $ 16.4 70,000 $ 285 $ 20.0 15% $ 3.0 $ 17.0 70,000 $ 290 $ 20.3 15% $ 3.0 $ 17.3 100,000 $ 275 $ 27.5 20% $ 5.5 $ 22.0 120,000 $ 285 $ 34.2 20% $ 6.8 $ 27.4 140,000 $ 290 $ 40.6 20% $ 8.1 $ 32.5 Location C: Vacant Space Take-Up (Portion, including vacant Wal-Mart) and Undeveloped Designation Sites Proposed Space (square feet GLA) 50,000 75,000 Estimated Sales per Square Foot $ 275 $ 285 Total Estimated Sales ($Millions) $ 13.8 $ 21.4 Less Inflow (%) (2 15% 15% Less Inflow ($Millions) $ 2.1 $ 3.2 Total Sales Volume From Trade Area Residents ($Millions) $ 11.7 $ 18.2 100,000 $ 290 $ 29.0 15% $ 4.4 $ 24.7 PROPOSED NEW SPACE SALES TRANSFER OR RESIDUAL DEMAND Total Proposed Space (sq. ft.) Total Sales Volume ($ Millions) Total Sales Volume Required from Trade Area Residents (excludes inflow) Total Sales Volume Available from Trade Area Residents (excludes inflow) Sales Transfer Required From Existing Stores (-)/Residual Market Demand (+) IMPACT ON EXISTING OTHER NFSR STORES Existing Primary Stores Sales from Trade Area Residents Plus Inflow 15.0% TOTAL SALES Square Footage Sales Per Square Foot Levels Change from Existing Levels $ 358.1 $ 63.2 $ 421.3 1,289,900 $327 220,000 $ 60.6 $ 50.1 $ 49.1 -$1.0 265,000 $ 75.6 $ 62.6 $ 65.2 $ 2.6 310,000 $ 89.9 $ 74.4 $ 89.6 $ 15.2 $ 357.1 $ 63.0 $ 420.1 1,289,900 $326 0% $ 360.7 $ 63.7 $ 424.4 1,289,900 $329 1% $ 373.3 $ 65.9 $ 439.2 1,289,900 $340 4% SOURCE: urbanMetrics inc. NOTE: 1) urbanmetrics inc., based on telephone survey results, future years based on urbanMetrics estimates. 2) urbanMetrics estimate. 3) Rounded to the nearest 100 square feet. urbanMetrics inc. market, economic and strategic advisors 7-6 Sarnia Market Demand and Impact Analysis 8. Conclusions Based on our market demand and impact analysis, we conclude that from a market perspective, there is opportunity for a supermarket anchored retail development on the subject site and this development is feasible and desirable on the basis of its location, size and function. The following summarizes the results of our analysis: • The subject site has good potential for retail/service uses based on its locational attributes, including its proximity to Highway 402 and location at the intersection of Modeland Road and Michigan Street, both of which are major routes. • Additional population growth is expected to continue in Sarnia and elsewhere in Lambton County in future years. Based on current building activity, northeast Sarnia in close proximity to the subject site is expected to capture a significant portion of this future growth and this future population would warrant additional commercial retail facilities in the area. The proposed retail facilities on the subject site would serve this population residing in the local area in the future and the existing underserved population living in north Sarnia. • A locally serving retail commercial development on the subject site will not create negative impacts on existing commercial facilities to the extent that it threatens the existing commercial life of other centres in Sarnia. • There are limited retail facilities north of Highway 402, and a neighbourhood centre would provide a greater range of shopping opportunities for residents in north-east Sarnia. • The City’s Commercial Land Needs & Policy Review indicates that there is a lack of supply of vacant, designated, zoned, serviced and visible commercial sites in Sarnia. A retail commercial development on the subject site would add to the City’s existing inventory, and make up part of this shortfall through development of lands that are better located within the urban boundary. • The City’s Commercial Land Needs & Policy Review recommends three potential sites to accommodate future growth needs, suggesting that there is a need for additional commercial facilities. Our review of these sites suggests to us that the subject site is a much better alternative to these sites. urbanMetrics inc. market, economic and strategic advisors 8-1 Sarnia Market Demand and Impact Analysis • Any impact created by the proposed development is considered minor in scale and over the longer term there will still be opportunity for development of additional retail areas of the City. urbanMetrics inc. market, economic and strategic advisors 8-2 Sarnia Market Demand and Impact Analysis Appendix A: Inventory urbanMetrics inc. market, economic and strategic advisors Sarnia Market Demand and Impact Analysis Node No. 1 Node Name of Shopping Centre Address Code Downtown Bayside Centre 150 Christina Street North 40 Description Home Furnishings Stores Store Name Total Crafts 1,400 Liquidation World Furniture 3,200 Mandarin Arts 1,900 Rugs by Winton 3,500 60 Home Electronics and Appliance Stores Marsh TV 2,000 100 Convenience and Specialty Food Stores Sampler 1,200 120 Pharmacies and Personal Care Stores Betty's Boutique 2,000 Hogan Pharmacy 2,000 Sarnia Vision Centre 3,000 140 Clothing Stores Pantorama 4,000 T's and Sweats 2,400 150 Shoe, Clothing Accessories and Jewellery Stores Mini Accessories 180 Other General Merchandise Stores 190 Miscellaneous Store Retailers 300 Vacant Tender Tootsies 2,600 Dollar World Plus 3,300 Liquidation World 45,000 Art Bees Gallery 1,500 Bear Creek Studio 3,600 Gallery Lambton 6,800 Vacant ex Lindor 1,300 Vacant ex Rivernet 1,300 Vacant ex TN Nails 600 Vacant ex Bentleys 800 Vacant ex Bluewater Bulk Vacant ex fast food Vacant ex Golden Cup market, economic and strategic advisors 1,700 500 500 Vacant ex Hamby's 1,400 Vacant ex Legends 1,400 Vacant ex MPP office 1,700 Vacant ex Perfect Seam 600 Vacant ex Perfet Seam 600 Vacant ex Regis Hair Styling urbanMetrics inc. 800 1,000 Sarnia Market Demand and Impact Analysis Node No. Node Name of Shopping Centre Address Code Description Store Name 700 Vacant ex Smoke Room 800 Vacant ex SR. VIP 900 Vacant ex Telus SE of Christina Street North/Lochiel St SW of Christina Street North/Lochiel St (blank) 100 Christina Street North 1,000 190 Miscellaneous Store Retailers Energy Exchange Art Design Studio 300 Vacant Vacant 5,700 100 Convenience and Specialty Food Stores Milk Marc 2,100 190 Miscellaneous Store Retailers Longtree Studio Sarnia Market 101 Victoria Street Total Vacant ex Rogers AT&T 90 Supermarkets 800 3,000 11,300 Downtown Grocery 4,000 3,900 104 Christina Street North 190 Miscellaneous Store Retailers Ye Old Pawn Shoppe 112 Christina Street North 300 Vacant Vacant 900 120 Christina Street North 190 Miscellaneous Store Retailers Sarnia's Flea Market 121 Christina Street South 300 Vacant Vacant 122 Christina Street North 190 Miscellaneous Store Retailers Salvation Army Thrift Store 2,900 123 Christina Street North 300 Vacant Vacant 3,000 123 Christina Street South 300 125 Christina Street North 150 Vacant Shoe, Clothing Accessories and Jewellery Stores Betty Dee Vacant 5,700 700 800 1,000 127 Christina Street South 190 Miscellaneous Store Retailers Lawrence House Centre For The Arts 4,900 129 Christina Street South 300 Vacant 1,000 130 Christina Street North 160 Vacant Sporting Goods, Hobby, Music and Book Stores Cheeky Monkey 5,000 Furniture Stores Urban Escape 2,100 132 Front Street North 30 140 Clothing Stores Harbour Bay Clothing 1,700 136 Christina Street North 300 Vacant Vacant 8,300 136 Front Street North 140 Clothing Stores La Cache 1,500 Home Furnishings Stores Zony's Custom Framing Vacant Vacant Home Furnishings Stores Feather Your Nest 1,500 8,700 137 Christina Street North 138 Cromwell Street 40 300 138 Front Street North 40 140 Christina Street North 30 500 500 Furniture Stores Taylor's Furniture 140 Cromwell Street 300 Vacant Vacant 700 140 Front Street North 300 Vacant Vacant 1,500 urbanMetrics inc. market, economic and strategic advisors Sarnia Market Demand and Impact Analysis Node No. Node Name of Shopping Centre Address Code Description Store Name Total 141 Christina Street North 300 Vacant Vacant 1,700 142 Lochiel Street 190 Miscellaneous Store Retailers 4,100 4,200 143 Christina Street South 190 Miscellaneous Store Retailers Manley's Basics Office Supplies Alcove Gift Shop And Custom Framing 144 Davis Street 300 Vacant Vacant 1,400 144 Front Street North 140 Clothing Stores Colin's Formal Wear 1,500 145 Christina Street North 190 Miscellaneous Store Retailers Sunday Flea Market 3,300 145 Wellington Street 120 Pharmacies and Personal Care Stores Wellington Pharmacy 146 Davis Street 300 Vacant Vacant 1,900 148 Front Street North 700 100 Convenience and Specialty Food Stores Adam's Apple Food 4,000 190 Miscellaneous Store Retailers Art Studio 2,100 149 Christina Street North 300 1,400 150 Vacant Shoe, Clothing Accessories and Jewellery Stores Vacant 149 Davis Street Vail Jewelers 1,200 150 Front Street North 300 Vacant Vacant 1,600 156 Front Street North 190 Miscellaneous Store Retailers Grace Brothers Antiques 8,200 159 Lochiel Street 100 Junior Baker 1,100 161 Lochiel Street 150 Vacant 1,100 Future Pastimes 1,800 Vacant 1,300 163 Lochiel Street 160 Convenience and Specialty Food Stores Shoe, Clothing Accessories and Jewellery Stores Sporting Goods, Hobby, Music and Book Stores 165 Lochiel Street 300 Vacant 171 Christina Street North 300 Vacant Vacant 2,100 172 Christina Street North 120 Pharmacies and Personal Care Stores Vacant 2,600 Home Furnishings Stores Hutchinson's Decor And Gifts 2,600 Vacant Vacant 1,700 172 Front Street North 40 173 Christina Street North 174 Christina Street North 300 Home Furnishings Stores Rugs 2,000 174 Front Street North 300 40 Vacant Vacant 2,000 175 Christina Street North 300 Vacant Vacant 2,300 177 Christina Street North 300 Vacant 1,900 Home Furnishings Stores Vacant Drapery & Upholstery Clearance Centre 2,000 Vacant Vacant 3,000 2,200 178 Christina Street North 40 179 Christina Street North 300 180 Christina Street North 140 Clothing Stores Themptations 180 Davis Street 300 Vacant Vacant 700 180 Front Street North 300 Vacant Vacant 2,900 urbanMetrics inc. market, economic and strategic advisors Sarnia Market Demand and Impact Analysis Node No. Node Name of Shopping Centre Address Code Description Store Name Total 181 Christina Street North 300 Vacant Vacant 182 Davis Street 190 Miscellaneous Store Retailers Call It What You Like 182 Front Street North 140 Clothing Stores Half Pint 2,900 183 Front Street North 300 Vacant Vacant 2,000 184 Christina Street North 140 Clothing Stores Aliya Fashions Limited 1,900 186 Christina Street North 140 Clothing Stores Maran Fashions 2,200 186 Front Street North 40 187 Christina Street North 300 190 Christina Street North 190 191 George Street 40 1,900 700 Home Furnishings Stores Presents 2,100 Vacant Vacant 2,300 Miscellaneous Store Retailers Barclay's Antiques And Barbershop 2,200 Home Furnishings Stores Carpet Liquidators 9,100 300 Vacant Vacant 5,600 192 Davis Street 300 Vacant Vacant 1,100 194 Davis Street 300 Vacant Vacant 1,100 195 Christina Street North 300 Vacant Vacant 3,300 197 Christina Street North 300 Vacant Vacant 1,700 198 Davis Street 300 Vacant Vacant 1,100 199 Christina Street North 300 Vacant Vacant 1,300 20 Davis Street 190 Miscellaneous Store Retailers Trading Post 2,300 201 Christina Street North 300 Vacant Vacant 1,200 203 Christina Street North 300 Vacant Vacant 1,200 204 Front Street North 300 Vacant Vacant 6,300 205 Christina Street North 300 Vacant 1,200 208 Front Street North 160 Vacant Sporting Goods, Hobby, Music and Book Stores Stardust Book Lounge 2,200 209 Christina Street North 190 Miscellaneous Store Retailers Mackellar's Flowers 1,900 214 Front Street North 140 2,900 150 Clothing Stores Shoe, Clothing Accessories and Jewellery Stores Harbour Bay Clothes And Gifts 218 Christina Street North Ballett's The Wedding Specialist 2,300 220 Christina Street North 190 Miscellaneous Store Retailers Parkside U Brew 2,000 234 Front Street North 140 Clothing Stores Silhouettes 2,600 100 Convenience and Specialty Food Stores Sweet Tooth 1,000 110 Beer, Wine and Liquor Stores Sporting Goods, Hobby, Music and Book Stores LCBO 2,000 250 Christina Street North 160 urbanMetrics inc. market, economic and strategic advisors Jack Kennedy Music Centre 11,800 Sarnia Market Demand and Impact Analysis Node No. Node Name of Shopping Centre Address Code Description Store Name 277 Vidal Street South 180 Other General Merchandise Stores Vidal Variety 1,000 286 Christina Street North 190 Miscellaneous Store Retailers Outside In 1,500 290 Christina Street North 190 Miscellaneous Store Retailers Forever Classic 1,500 301 Christina Street North 40 Home Furnishings Stores Brush Strokes Interior 2,400 310 Christina Street North 190 Bill Bush Flower 1,500 318 Christina Street North 160 320 Christina Street North 80 321 Queen Street 80 Miscellaneous Store Retailers Sporting Goods, Hobby, Music and Book Stores Specialized Building Materials and Garden Stores Specialized Building Materials and Garden Stores Lord's Sewing Palazzi 3,300 2,700 World Source Filtration 5,500 2,700 300 Vacant Vacant 337 Queen Street 140 1,200 80 Clothing Stores Specialized Building Materials and Garden Stores Artwear Plus Embroidery 340 Queen Street Clysdale Heating And Plumbing 1,200 Vacant Vacant Computer and Software Stores Digital Friends 1,400 1,200 371 Vidal Street South 300 373 Vidal Street South 50 140 Clothing Stores Body Moves Sports Apparel 375 Vidal Street South 300 Vacant 406 Front Street North 160 443 Christina Street North 150 Vacant Sporting Goods, Hobby, Music and Book Stores Shoe, Clothing Accessories and Jewellery Stores 464 Christina Street North 100 532 Christina Street North 40 100 10,800 900 900 Bicycle Shop 3,000 Henne's Jewellery 2,000 Convenience and Specialty Food Stores Bread Store (the) 1,000 Home Furnishings Stores Carpet One 6,000 Convenience and Specialty Food Stores Mac's Downtown Total Confederation 800 Integrity Industrial Absorbent Products Zanki Mechanical 2 Total 2,500 399,700 Confederation Square 1030 Confederation Street 30 Furniture Stores Gigi Home And Hearth 4,900 60 Home Electronics and Appliance Stores Celerity Communications 2,100 Total Electric Supply Ltd. 4,900 80 Specialized Building Materials and Garden Stores Centennial Home Windows 2,000 90 Supermarkets Davy Jones Food Market 8,300 120 Pharmacies and Personal Care Stores Central Beauty Supply 1,000 140 Clothing Stores Sporting Goods, Hobby, Music and Book Stores Silk Screen 1,700 Toy Corner 2,200 160 urbanMetrics inc. market, economic and strategic advisors Sarnia Market Demand and Impact Analysis Node No. Node Name of Shopping Centre Sherwood Plaza (blank) Address Code 1189 Confederation Street 1107 Confederation Street Store Name Total 190 Miscellaneous Store Retailers Vinter's Classic 1,500 300 Vacant Vacant 4,700 Home Furnishings Stores Flooring Max 4,200 100 40 Convenience and Specialty Food Stores Mac's 3,100 190 Miscellaneous Store Retailers Mega Brewing Co 2,600 110 Beer, Wine and Liquor Stores Beer Store 1115 Confederation Street 70 1137 Confederation Street 300 1139 Confederation Street Description 60 80 800 Home Centres and Hardware Stores Rona Vacant Vacant 18,800 Home Electronics and Appliance Stores Specialized Building Materials and Garden Stores Pure Power 2,400 Reliant Home Comfort 1,000 1,400 300 Vacant Vacant 1,000 1141 Confederation Street 300 Vacant Vacant 1,000 1143 Confederation Street 300 2,000 80 Vacant Specialized Building Materials and Garden Stores Vacant 1355 Confederation Street EMCO Industrial Pipe 2,100 Interar Technologies 2,100 300 1361 Confederation Street 60 1373 Confederation Street 80 Invensys 2,100 Mellon Electrical Solutions 2,100 Sarnia Welding And Co 2,100 Summit Controls 2,100 Winkle 2,100 Vacant Vacant 4,200 Home Electronics and Appliance Stores Specialized Building Materials and Garden Stores TELUS And Spectrum Communications 6,100 Culligan 6,500 Matheson Valves 4,900 Specialized Building Materials and Garden Stores Specialized Building Materials and Garden Stores Great Lakes Industrial Controls 2,000 Mentec Sarnia 2,000 300 Vacant Vacant 9,200 100 Convenience and Specialty Food Stores Mac's 2,100 140 Clothing Stores Specialized Building Materials and Garden Stores Body Moves Sports Apparel 1,200 Built Right Doors 500 Other General Merchandise Stores Confederation Variety 300 1385 Confederation Street 80 1387 Confederation Street 80 221 Confederation Street 299 Confederation Street 373 Vidal Street South 412 Confederation Street 80 541 Confederation Street 180 urbanMetrics inc. market, economic and strategic advisors Sarnia Market Demand and Impact Analysis Node No. 3 Node Confederation Total Lambton Mall/Area Name of Shopping Centre Address Code Description Store Name Total 700 Ontario Street 180 Other General Merchandise Stores Park Variety 1,400 750 Ontario Street 300 Vacant Specialized Building Materials and Garden Stores Specialized Building Materials and Garden Stores Vacant 2,300 834 Upper Canada Drive 80 838 Upper Canada Drive 80 840 Upper Canada Drive 190 846 Upper Canada Drive 80 854 Upper Canada Drive 80 858 Upper Canada Drive 80 862 Upper Canada Drive 80 866 Upper Canada Drive 300 870 Upper Canada Drive 80 880 Upper Canada Drive 80 980 Confederation Street 100 Miscellaneous Store Retailers Specialized Building Materials and Garden Stores Specialized Building Materials and Garden Stores Specialized Building Materials and Garden Stores Specialized Building Materials and Garden Stores Tower Scan 500 Rotor Valve Control Specialist 900 Baysar Office Equipment 900 Pro Insul Limited 900 Therman Heating Specialist 900 Glentel - Digital Mobile Systems - 900 Online Sealing Services 900 Vacant Specialized Building Materials and Garden Stores Specialized Building Materials and Garden Stores Vacant 500 Canadian Bearings Ltd 500 Triple S Tubing Steel Hydraulic Tubing 400 Convenience and Specialty Food Stores Star Mini Mart 1,800 138,100 Lambton Mall Road Centre 1202 - 1362 Lambton Mall 1202 - 1362 Lambton Mall Road 300 Vacant Vacant ex Mark's Work Wearhouse 3,300 40 Home Furnishings Stores Casey's Creative Kitchens 2,500 60 Home Electronics and Appliance Stores Rogers 2,000 TELUS 80 100 London Road Shopping Centre 1249 London Road 900 Xcelco Internet 1,300 Specialized Building Materials and Garden Stores ICI Paints 4,100 Convenience and Specialty Food Stores Bulk Barn 5,100 M&M Meat Shops 1,900 Urban Loaf 3,000 120 Pharmacies and Personal Care Stores Popeyes Supplement 2,000 140 Clothing Stores Jacqueline's Fashion 2,200 Pennington's 5,800 150 Shoe, Clothing Accessories and Jewellery Stores Young And Co Jewels 2,500 190 Miscellaneous Store Retailers Ups 1,000 30 Furniture Stores Easy Home 3,300 40 Home Furnishings Stores Main Frame 1,200 Pharmacies and Personal Care Stores Blue Water Nutrition And Health 1,700 120 urbanMetrics inc. market, economic and strategic advisors Sarnia Market Demand and Impact Analysis Node No. Node Name of Shopping Centre Sarnia Centre Address Code Description Store Name Total 170 Department Stores Zellers 105,000 190 Miscellaneous Store Retailers Forever Memories 1,200 Good Will 6,500 Good Will Donation Centre 2,400 Vacant 7,700 300 Vacant 1349 London Road 300 Vacant Vacant (Ex The Game Station) 1375 London Road 90 Supermarkets A&P 44,000 28,100 1379 London Road Furniture Stores Brick (The) 120 30 Pharmacies and Personal Care Stores Borics Hair care 190 Miscellaneous Store Retailers My Secret Garden Petsmart SmartCentres 1444 Quinn Drive The Sarnia Price Chopper Centre 1330 Exmouth Street Zehrs Food Plus Centre (blank) 170 600 Murphy Road 1,200 1,200 1,600 16,000 Staples Business Depot 24,200 Value Village 21,000 Department Stores Wal-Mart (Non-Food Part) 149,800 30 Furniture Stores Sleep Country 18,000 90 Supermarkets Price Chopper 50,000 10,000 110 Beer, Wine and Liquor Stores LCBO 140 Clothing Stores Moore's 6,000 Mores The Suit People 6,500 160 Sporting Goods, Hobby, Music and Book Stores Fantastic Sam's 3,000 180 Other General Merchandise Stores XS Cargo 10,000 190 Miscellaneous Store Retailers Pet Valu 10,000 60 Home Electronics and Appliance Stores Source By Circuit City 90 Supermarkets Loblaw Superstore 2,300 113,600 140 Clothing Stores Winners 24,100 300 Vacant Vacant (Ex Bulk Barn) 21,000 Furniture Stores Sporting Goods, Hobby, Music and Book Stores Leon's 12,700 1000 Barclay Drive 30 1095 London Road 160 Crafters Paradise 2,000 5,300 1152 London Road 40 Home Furnishings Stores Living Lighting 1200 Lambton Mall Road 50 Computer and Software Stores PC Shop Computers Vacant Vacant 300 urbanMetrics inc. market, economic and strategic advisors 900 3,300 Sarnia Market Demand and Impact Analysis Node No. Node Name of Shopping Centre Address 1200 London Road Code Description Store Name Total 50 Computer and Software Stores Computer Sales And Service 5,900 60 Home Electronics and Appliance Stores Carman's Foto Source 2,200 120 Pharmacies and Personal Care Stores Hakim Optical 2,200 140 Clothing Stores Adult Connections 2,200 Lux Boutique 1,600 1272 London Road 70 Home Centres and Hardware Stores Home Hardware 6,800 1308 London Road 30 Furniture Stores Specialized Building Materials and Garden Stores Liquidators 1,700 Tj Liquidator-Trailer Sales 7,600 190 Miscellaneous Store Retailers Fins Feathers And Furs 2,000 300 Vacant Sporting Goods, Hobby, Music and Book Stores Fabricland 11,500 80 1337 London Road 160 Vacant 8,000 1350 Quinn Drive 70 Home Centres and Hardware Stores Home Depot 90,000 1370 Quinn Drive 190 Miscellaneous Store Retailers Princess Auto 16,000 1372 Exmouth Street 300 Vacant Vacant 15,000 1380 Exmouth Street 60 Future Shop 19,000 Sarnia Heating 1,700 160 Home Electronics and Appliance Stores Specialized Building Materials and Garden Stores Sporting Goods, Hobby, Music and Book Stores Sarnia Christian Books 3,600 190 Miscellaneous Store Retailers Party Palace 3,100 Pet Food Warehouse 1,900 1407 London Road 80 Vine Well 1,900 1410 London Road 30 Furniture Stores Bryenton's Furniture 14,300 1437 London Road 60 Home Electronics and Appliance Stores St Clair Audio Video 4,300 1439 London Road 30 Furniture Stores Baileys Street Furniture 3,900 1441 London Road 300 Vacant Vacant Supermarkets Wal-Mart (Groceries) 64,200 Vacant Vacant 20,000 Home Electronics and Appliance Stores Bell World 1444 Quinn Drive 90 1500 London Road 300 531 Murphy Road 60 2,800 1,400 537 Murphy Road 40 Home Furnishings Stores Sac Well Flooring Centres 8,700 541 Murphy Road 300 Vacant Vacant 1,600 555 Murphy Road 140 Clothing Stores Kokomo Sun Tanning And Swimwear 2,600 565 Murphy Road 140 Clothing Stores Fashion Expressions 2,200 urbanMetrics inc. market, economic and strategic advisors Sarnia Market Demand and Impact Analysis Node No. Node Name of Shopping Centre Address Code 190 580 Murphy Road 80 100 Description Store Name Miscellaneous Store Retailers Specialized Building Materials and Garden Stores St Clair Window And Door Convenience and Specialty Food Stores Mac's 1,900 Rangoon International Food 1,100 Shoe Box 1,500 Wine Kitz 595 Murphy Road 160 701 London Road 100 Convenience and Specialty Food Stores Express Mart 1,800 792 London Road 100 Convenience and Specialty Food Stores Big A Convenience 1,200 Lambton Mall 1380 London Road 110 Beer, Wine and Liquor Stores Beer Store Lambton Mall 1380 London Road 160 Pro Max Sports Sport Chek Lambton Mall/Area Total Lambton Mall 800 1,600 Shoe, Clothing Accessories and Jewellery Stores Sporting Goods, Hobby, Music and Book Stores Sporting Goods, Hobby, Music and Book Stores 150 4 Total 1,500 15,000 1,108,700 2,900 30 Furniture Stores Tepperman's 40 Home Furnishings Stores Covers 5,500 English Butler 1,800 60 Home Electronics and Appliance Stores Bell World 1,600 100 Convenience and Specialty Food Stores Electronic Boutique 1,300 TELUS 1,600 The Source 2,000 Wireless Wave 1,000 Kernel's Laura Secord The Sampler 120 140 Pharmacies and Personal Care Stores Clothing Stores urbanMetrics inc. market, economic and strategic advisors 31,800 200 600 1,300 Body Shop 900 GNC 800 Pearle Vision 3,000 Alia/Tan Jay 1,800 American Eagle 4,600 Blue Notes 3,400 Boat House 3,400 Bootlegger 4,200 Campus Crew 2,000 Sarnia Market Demand and Impact Analysis Node No. Node Name of Shopping Centre Address Code Description Store Name Cotton Ginny 1,300 Dynamite 1,800 Garage 4,400 3,200 La Vie En Rose 2,100 Le Château 3,300 Lindor 1,500 Northern Reflections 3,000 2,000 Reitman's 3,200 Ricki's 3,600 Roots 2,200 Smart Set 2,600 Stefi Lara 1,500 Stitches 2,700 Suzy Shier 3,000 The Running Room 2,200 West 49 2,500 Zack's 1,700 Aldo Shoes 1,900 Ardene 1,300 Ben Moss 1,000 Bentley Leather 1,300 Charm Diamond Centre 1,600 900 Cleo 2,900 Foot Locker 3,800 Naturalizer Payless Shoes market, economic and strategic advisors 14,000 Please Mum Claire's urbanMetrics inc. 900 La Senza Marks Works Warehouse Shoe, Clothing Accessories and Jewellery Stores 2,700 Danier Kazwear Swimwear 150 Total 900 2,600 Sarnia Market Demand and Impact Analysis Node No. Node Name of Shopping Centre Address Code Description Store Name Peoples 160 Sporting Goods, Hobby, Music and Book Stores 200 UNIC 200 Coles 3,200 Play It Again Sports 4,200 Sport Mart 6,400 Toys R Us 3,200 22,000 170 Department Stores Sears 135,000 180 Other General Merchandise Stores Canadian Tire 106,300 190 Miscellaneous Store Retailers Envirotrends 1,300 Govinda Galleries 2,000 Green Earth 1,700 Hallmark 2,200 Personally Yours 300 Vacant Vacant Vacant Ex Wal-Mart Lambton Mall Total Exmouth Street 2,200 Sunglass Hut Sunrise Records 5 Total 400 20,100 129,100 599,000 City Centre Mall 415 Exmouth Street 100 Convenience and Specialty Food Stores Millenium Plaza 746 Exmouth Street 140 Clothing Stores Northgate Plaza 500 Exmouth Street 190 Miscellaneous Store Retailers 100 Convenience and Specialty Food Stores 140 150 160 Clothing Stores Shoe, Clothing Accessories and Jewellery Stores Sporting Goods, Hobby, Music and Book Stores Video 99 Bud Gowan Formal Wear 1,500 Lutonia Belle Bridal Boutique 1,000 Lapier's Flowers & Gifts 1,000 County Butcher 800 Ticket & Moore Convenience 400 Oxford Street 1,500 Reno 1,500 Diamond & Design 700 Rivers Shoes 900 Children's Garden 1,400 Sam the Recordman 2,000 The Bookeepers urbanMetrics inc. market, economic and strategic advisors 1,500 800 Sarnia Market Demand and Impact Analysis Node No. Node Name of Shopping Centre (blank) Address Code Description Store Name Total 180 Other General Merchandise Stores Dollarama 3,400 190 Miscellaneous Store Retailers Shuylers 1,000 1045 Colborne Road 100 Convenience and Specialty Food Stores Colborne Mini Mart 2,500 400 Exmouth Street 100 Convenience and Specialty Food Stores Mac's 1,500 424 Exmouth Street 190 2,000 160 Miscellaneous Store Retailers Sporting Goods, Hobby, Music and Book Stores Petfood Warehouse 426 Exmouth Street Bluewater Sportstich 3,000 429 Exmouth Street 120 430 Exmouth Street 160 Pharmacies and Personal Care Stores Sporting Goods, Hobby, Music and Book Stores 452 Exmouth Street 300 478 Exmouth Street 120 Medecine Shoppe Pharmacy 2,500 Vacant Vacant 1,000 Pharmacies and Personal Care Stores N Shape Nutrition 510 Exmouth Street 120 Pharmacies and Personal Care Stores Shoppers Drugmart 551 Exmouth Street 190 Miscellaneous Store Retailers Flowers Plus 560 Exmouth Street 749 Exmouth Street 775 Exmouth Street 90 Supermarkets A&P 120 Pharmacies and Personal Care Stores Northgate Pharmacy 180 Other General Merchandise Stores Specialized Building Materials and Garden Stores General Paint 80 800 Pickers Alley Giant Tiger 400 20,000 500 25,000 1,000 10,400 3,500 190 Miscellaneous Store Retailers Just Baskits 1,800 300 Vacant Vacant 2,300 785 Exmouth Street 40 Home Furnishings Stores Carpet SuperStore 2,700 795 Exmouth Street 60 Home Electronics and Appliance Stores Harry's Vacuums 1,000 190 Miscellaneous Store Retailers Healthy Paws 100 Convenience and Specialty Food Stores Murphy Convenience 1,000 2,000 798 Murphy Road 400 810 Colborne Road 70 Home Centres and Hardware Stores Home Hardware 850 Colborne Road 60 Home Electronics and Appliance Stores Everything Wholesale 800 TELUS 800 867 Exmouth Street 889 Exmouth Street 100 Convenience and Specialty Food Stores Waterbug (the) 800 180 Other General Merchandise Stores Duch Shoppe (the) 800 190 Miscellaneous Store Retailers Lasting Impressions 100 Convenience and Specialty Food Stores Seo Mini-Mart 90 190 Supermarkets No Frills Miscellaneous Store Retailers Pet Zone urbanMetrics inc. market, economic and strategic advisors 800 1,000 20,000 1,700 Sarnia Market Demand and Impact Analysis Node No. Node Name of Shopping Centre Address Code at Colborne Exmouth Street 300 Description Store Name Vacant Vacant Exmouth Street Total 6 London Line 7 5,000 136,400 (blank) 1644 London Line 160 1660 London Line 40 1679 London Line 100 1699 London Line 70 1787 London Line 30 1840 London Line 80 1845 London Line 30 1900 London Line 160 Sporting Goods, Hobby, Music and Book Stores Brian's Footwear Wearhouse 7,300 Home Furnishings Stores Sarnia Furniture & Sleep Centre 8,200 Convenience and Specialty Food Stores Home Centres and Hardware Stores Canada Springs Tsc The Incredible Country Hardware Store Furniture Stores Specialized Building Materials and Garden Stores United Furniture Warehouse 16,100 Degroot's Garden Centre 36,500 Furniture Stores Sporting Goods, Hobby, Music and Book Stores Forever Furniture Galleries 31,500 All Season Trophies 6,400 4,100 2097 London Line 100 Convenience and Specialty Food Stores 2574 London Line 190 Miscellaneous Store Retailers Milk Marc Variety Koundtree And Peddler Crafts And Gifts London Line London Line Total Mitton Village/Area Total 30 1,400 18,300 1,300 Furniture Stores Vov Furniture 300 Vacant Vacant 18,300 300 Vacant 1,600 4,500 153,900 Milton Village 104 Milton Street South 105 Milton Street South 160 Vacant Sporting Goods, Hobby, Music and Book Stores Ewe Are Special Wool Shop 1,300 106 Milton Street South 120 Pharmacies and Personal Care Stores Medical Motion 1,500 109 Milton Street South 190 Miscellaneous Store Retailers Party Of 5 2nd Hand Kids Clothes 1,200 110 Milton Street South 60 Home Electronics and Appliance Stores Vacuum And Sewing Machines 2,300 111 Milton Street South 190 115 Milton Street South 160 Miscellaneous Store Retailers Sporting Goods, Hobby, Music and Book Stores Van Goozen Music 118 Milton Street South 300 Vacant Vacant 900 120 Milton Street South 300 Vacant Vacant 900 123 Milton Street South 120 129 Bright Street Wine Factory 700 2,300 Pharmacies and Personal Care Stores Shoppers Drug Mart 3,600 50 Computer and Software Stores Computer Complete 1,000 129 Milton Street South 40 Home Furnishings Stores Kitchen Widgets And More 1,900 130 Milton Street North 180 Other General Merchandise Stores Bargain Shop 6,100 132 Milton Street North 300 Vacant Vacant 900 134 Milton Street South 300 Vacant Vacant 3,300 136 Milton Street South 300 Vacant Vacant 2,300 urbanMetrics inc. market, economic and strategic advisors Sarnia Market Demand and Impact Analysis Node No. Node Name of Shopping Centre (blank) Address Code Description Store Name Total 140 Milton Street North 60 Home Electronics and Appliance Stores Empire Wireless 1,900 140 Milton Street South 300 Vacant Vacant 9,300 144 Milton Street North 300 Vacant Vacant 147 Milton Street North 120 Pharmacies and Personal Care Stores Eye Guy 148 Cameron Street 300 Vacant Vacant Home Electronics and Appliance Stores Oval Electronics 153 Milton Street North 60 154 Milton Street North 190 163 Milton Street North 60 900 1,200 600 1,000 Miscellaneous Store Retailers Green Store 2,100 Home Electronics and Appliance Stores System Direct Electronics 1,000 164 Ontario Street 190 Miscellaneous Store Retailers K9 Images Pet Grooming 165 Milton Street North 300 Vacant Vacant 1,100 800 167 Milton Street North 190 Miscellaneous Store Retailers Jack's Reconditioned Appliances 1,100 169 Milton Street North 300 Vacant Vacant 1,100 172 Milton Street North 300 1,200 160 Vacant Sporting Goods, Hobby, Music and Book Stores Vacant 174 Milton Street North Outdoor's Man 1,000 300 Vacant Vacant 2,300 176 Milton Street North 300 Vacant Vacant 800 182 Milton Street North 190 Miscellaneous Store Retailers Affordable Pet Grooming 1,100 193 Milton Street North 300 Vacant Vacant 1,100 195 Milton Street North 300 Vacant Vacant 1,100 197 Milton Street North 120 Orthopaedic Supply Co 1,500 98 Milton Street South 80 Pharmacies and Personal Care Stores Specialized Building Materials and Garden Stores Budget Paint 1,100 101 Ontario Street 60 Home Electronics and Appliance Stores Carman's Foto Source 2,600 103 Amiton Drive 300 1,300 160 Vacant Sporting Goods, Hobby, Music and Book Stores Vacant 105 Milton Street North Team Outfitters 1,300 Computer and Software Stores Sarnia Computer Centre 5,300 Vacant Vacant 1,800 105 Ontario Street 50 109 Ontario Street 300 110 Proctor Street 100 120 Russell Street North 70 Convenience and Specialty Food Stores Farmers Market 11,500 Home Centres and Hardware Stores Home Hardware 8,200 121 Russell Street North 300 Vacant Vacant 1,700 126 Ontario Street 300 Vacant Vacant 900 128 Ontario Street 300 Vacant Vacant 700 urbanMetrics inc. market, economic and strategic advisors Sarnia Market Demand and Impact Analysis Node No. Node Name of Shopping Centre Address 8 Vacant Sporting Goods, Hobby, Music and Book Stores Vacant 2,000 2,000 1,800 300 160 168 Russell Street North 180 Other General Merchandise Stores B&B's Model Shop Russell's Conner Gifts Cards And Variety 175 Ontario Street 100 Convenience and Specialty Food Stores Lotto Centre Convenience Total 2,100 120 Pharmacies and Personal Care Stores Envisions Beauty 1,000 300 Vacant Vacant 1,000 196 Davis Street 300 Vacant Vacant 1,100 236 Cromwell Street 300 Vacant 1,000 Anne's Book Place Heaven And Home Gift Store 250 Russell Street South 160 Vacant Sporting Goods, Hobby, Music and Book Stores 262 Russell Street South 190 Miscellaneous Store Retailers 600 2,000 296 Milton Street South 300 Vacant Vacant 3,500 297 Wellington Street 120 Pharmacies and Personal Care Stores Robin's Boutique And Body Art 2,200 302 Davis Street 300 Vacant Vacant 1,800 350 Wellington Street 100 Convenience and Specialty Food Stores 7-Eleven 2,000 351 Milton Street South 300 Vacant Vacant 8,000 700 Wellington Street 100 Convenience and Specialty Food Stores Wellington Convenience 1,800 Milton Street South 300 Vacant Vacant 200 134,500 1000 Finch Drive 100 Convenience and Specialty Food Stores Mac's 1,000 140 Clothing Stores Sporting Goods, Hobby, Music and Book Stores Kid's Korner 1,300 110 East Street North Sarnia Craft Supply 1,300 Home Centres and Hardware Stores Specialized Building Materials and Garden Stores Sporting Goods, Hobby, Music and Book Stores Patene Building Supply 3,900 70 80 160 Eastland Centre Store Name 134 Ontario Street 160 East Street Plaza Description 132 Ontario Street 189 Wellington Street Mitton Village/Area Total Other (South of College Park Plaza 402) Code 242 Indian Road South 248 Indian Road South Custom Plumbing 2,400 Christian Supply Centre 1,300 190 Miscellaneous Store Retailers Thrift Store 2,900 300 Vacant Vacant 4,500 120 Pharmacies and Personal Care Stores Shoppers Drug Mart 180 Other General Merchandise Stores Buck Or Two 7,500 Greer's Variety 2,000 11,000 300 Vacant Vacant 2,300 100 Convenience and Specialty Food Stores Bun Master Bakery 3,600 urbanMetrics inc. market, economic and strategic advisors Sarnia Market Demand and Impact Analysis Node No. Node Name of Shopping Centre Address Finch Plaza 49 Finch Drive (blank) Code 100 East Street North Description Store Name 100 Convenience and Specialty Food Stores Mac's 2,000 140 Clothing Stores Jas Uniforms 1,600 Toni's Cute Kids 1,600 160 Sporting Goods, Hobby, Music and Book Stores Micro Source For Sports 1,600 300 Vacant Vacant 4,700 106 East Street North 190 Miscellaneous Store Retailers St Vincent Du Paul 1100 Wellington Street 300 Vacant Vacant (ex Community Living) 300 Vacant Sarnia Appliance 3,100 124 East Street North 300 Vacant Vacant 1,800 142 East Street North 180 Other General Merchandise Stores Peter's Variety 1,600 144 East Street North 300 Vacant Vacant 2,400 191 Indian Road South 90 Supermarkets Food Basics 203 Indian Road South 100 Convenience and Specialty Food Stores Milk Marc Variety 274 London Road 100 Convenience and Specialty Food Stores London Food Mart 1,000 276 Wellington Street 190 Miscellaneous Store Retailers Artopia Gallery & Framing 2,100 287 Indian Road South 300 Vacant Vacant 1,300 288 Ontario Street 100 Convenience and Specialty Food Stores Sam's Mini Mart 1,000 299 Wellington Street (blank) 40,500 190 Miscellaneous Store Retailers Specialized Building Materials and Garden Stores Twice Told Tall Tales 1,700 Homeland Windows 3,300 2,600 442 Christina Street North 80 444 Christina Street North 300 Vacant Vacant 2,000 AftonDrive 300 Vacant Vacant 6,700 120 Pharmacies and Personal Care Stores Pharmacy 4,100 300 Vacant Vacant 3,900 Home Furnishings Stores Ducana Windows Other (South of 402) Total Lakeshore Road 3,100 33,200 112 East Street North London Road 9 Total 171,900 1117 Lakeshore Road 40 1,400 1130 Lakeshore Road 100 Convenience and Specialty Food Stores Sunripe 2,500 110 Beer, Wine and Liquor Stores LCBO 3,400 1135 Lakeshore Road 140 Clothing Stores Garbo's Fashion 1206 Lakeshore Road 100 Convenience and Specialty Food Stores Lakeshore Convenience 1302 Lakeshore Road 100 Convenience and Specialty Food Stores Daisy Mart 1,700 M&M Meat Shops 1,000 urbanMetrics inc. market, economic and strategic advisors 500 1,000 Sarnia Market Demand and Impact Analysis Node No. Node Name of Shopping Centre Address 2600 Lakeshore Road Code Description Store Name Supermarkets Foodland Convenience and Specialty Food Stores Fresh Pick Produce 120 Pharmacies and Personal Care Stores Shoppers Drugmart 3,500 300 Vacant Vacant 1,400 Home Centres and Hardware Stores Home Hardware 3,600 Convenience and Specialty Food Stores DeSena's Variety 2,200 90 100 2684 Lakeshore Road 70 100 (blank) 300 Vacant Vacant 1,700 Vacant Vacant 1,500 639 Lakeshore Road 190 Miscellaneous Store Retailers Specialized Building Materials and Garden Stores Wine Kitz 1,500 Huronview Nurseries Garden Centre 5,000 Convenience and Specialty Food Stores Wicks Variety 80 43,300 102 St Clair Street 112 Michigan Avenue 100 40 140 116 Michigan Avenue 40 128 Michigan Avenue 300 Home Furnishings Stores Ah Some Arts 1,500 Clothing Stores Sharkskin 2,000 Home Furnishings Stores Townbridge Lightning 2,500 Vacant Vacant 1,000 70 Home Centres and Hardware Stores Rona Hardware 1,500 131 Michigan Avenue 70 Home Centres and Hardware Stores Kitchen & Bath Studio 1,500 510 Michigan Avenue 100 Convenience and Specialty Food Stores Point Variety 1,000 Home Furnishings Stores Huron & Doors 1,300 520 Helena Street 11 1,000 129 Michigan Avenue 519 Helena Street Point Edward Total Other (North of 402) 1,100 300 Lakeshore Road Total Point Edward 10,300 637 Lakeshore Road 6429 Brigden Road 10 Total 40 Home Furnishings Stores Fabbri Tile & Carpet 692 Lite Street 110 40 Beer, Wine and Liquor Stores LCBO 712 Lite Street 300 807 Michigan Avenue 160 Vacant Sporting Goods, Hobby, Music and Book Stores Midtown Music 1226 Murphy Road 100 Convenience and Specialty Food Stores Milk Marc 1801 Blackwell Road 300 Vacant Vacant 1,000 200 Maxwell Street 120 Pharmacies and Personal Care Stores Sarnia Pharmacy 2,000 Vacant 10,000 8,000 10,000 2,500 43,800 (blank) 1,300 210 Maxwell Street 110 Beer, Wine and Liquor Stores Beer Store 3,000 256 Maxwell Street 100 Convenience and Specialty Food Stores Buck's Mini Mart 1,500 60 Home Electronics and Appliance Stores Northend Appliance 1,800 635 Cathcart Boulevard urbanMetrics inc. market, economic and strategic advisors Sarnia Market Demand and Impact Analysis Node No. Node Name of Shopping Centre Address 680 Cathcart Boulevard 697 Cathcart Boulevard 700 Kemsley Drive Code Description Store Name Total 100 Convenience and Specialty Food Stores Mac's 1,400 190 Miscellaneous Store Retailers Jenny's Floral Studio 1,200 Pharmacies and Personal Care Stores Rexall Drugstore Supermarkets Valu Mart 120 90 6,400 15,000 784 Rosedale Avenue 100 Convenience and Specialty Food Stores My Rosedale Mini Mart 1,900 940 Murphy Road 100 Convenience and Specialty Food Stores Jade Mini Mart 2,000 Murphy Road 300 Vacant Vacant Other (North of 402) Total 10,000 48,500 Grand Total 2,977,800 urbanMetrics inc. market, economic and strategic advisors Sarnia Market Demand and Impact Analysis Appendix B: Telephone Consumer Survey urbanMetrics inc. market, economic and strategic advisors Sarnia Market Demand and Impact Analysis Appendix B: Telephone Consumer Survey A telephone survey of Trade Area residents was carried out by Network Research under the direction of urbanMetrics inc. The survey was undertaken during the period May to June, 2008. A total of 610 surveys were completed with 357 residents in the Primary Zone and 253 residents in the Secondary Zone. The survey sample was drawn from 10 sampling areas, as shown on the following map. The surveys were completed by Network Research, which features a CATI or computer assisted telephone interviewing system. The CATI system allows survey data to be entered electronically as the surveys are carried out. The survey questionnaire was designed by urbanMetrics to include questions relating to FSR and NFSR expenditures of Trade Area residents. The survey data was provided electronically to urbanMetrics by Network Research for coding and tabulating utilized our SPSS software. The survey results and a copy of the survey questionnaire have been included as follows. urbanMetrics inc. market, economic and strategic advisors Sarnia Market Demand and Impact Analysis Qu. 1c - Supermarket Purchases (past month) Primary Zone Qu. 1 Expenditure Column Sum Sum % Total Qu. 1 Expenditure Column Sum Sum % $780 0.8% $55 0.1% $835 0.5% $6,173 6.4% $300 0.4% $6,473 3.8% $585 0.6% $190 0.3% $775 0.5% Food Basics - Indian Rd & Confederation St $8,176 8.5% $3,995 5.3% $12,171 7.1% Wal-Mart - Highway 402 & Modeland Rd $5,380 5.6% $3,775 5.0% $9,155 5.3% $31,740 33.1% $9,990 13.2% $41,730 24.3% A & P - London Rd & Modeland Rd $9,100 9.5% $2,560 3.4% $11,660 6.8% Price Chopper - Exmouth St & Lambton Mall Rd $6,855 7.2% $2,330 3.1% $9,185 5.4% $17,405 18.2% $7,090 9.3% $24,495 14.3% $8,405 8.8% $3,901 5.1% $12,306 7.2% $915 $95,514 1.0% 99.7% $845 $35,031 1.1% 46.2% $1,760 $130,545 1.0% 76.0% $3,230 4.3% $3,230 1.9% $8,195 4.8% $60 0.0% Downtown Grocery - Downtown Valu-Mart - Cathcart Blvd & Colborne Rd Davy Jones Everfresh - Indian Rd & Confederation St Zehrs - London Rd & Murphy Rd No Frills - Indian Rd & Exmouth St A & P - Capel St & Exmouth St Qu. 1 Location ZONE Secondary Zone Qu. 1 Expenditure Column Sum Sum % Foodland - Lakeshore Rd Primary Zone Subtotal Forest . 0.0% Oil Springs . 0.0% . Petrolia . 0.0% Watford . 0.0% . Alviston . 0.0% Wyoming . 0.0% $2,720 3.6% $2,720 1.6% Corunna . 0.0% $10,410 13.7% $10,410 6.1% Grand Bend . 0.0% $9,275 12.2% $9,275 5.4% Other Secondary Zone Secondary Zone Subtotal . 0.0% 0.0% $150 $34,040 0.2% 44.9% $150 $34,040 0.1% 19.8% Other Ontario . 0.0% $6,796 9.0% $6,796 4.0% 0.0% $300 0.2% 100.0% $171,681 100.0% USA Total $0 $300 $95,814 0.0% . $8,195 10.8% $60 0.1% 0.0% . 0.3% . 100.0% urbanMetrics inc. market, economic and strategic advisors 0.0% $75,867 0.0% Sarnia Market Demand and Impact Analysis Qu. 2c - Specialty Food Store Expenditures (Past Month) Primary Zone Qu. 2 Expenditure Column Sum Sum % Total Qu. 2 Expenditure Column Sum Sum % Downtown $82 1.1% . 0.0% $82 Confederation $45 0.6% . 0.0% $45 0.4% 30.0% $2,690 23.8% 0.0% $40 0.4% 2.8% $1,046 9.2% $783 6.9% $1,605 Lambton Mall Area $40 Lambton Mall $946 Exmouth Street London Line . Other Sarnia South of 402 Lakeshore Road & Brights Grove Point Edward 20.8% $1,085 0.5% . 12.3% $100 0.0% . $623 Mitton Village 8.1% 0.0% . $160 4.4% 0.7% 0.0% $235 3.1% $30 0.8% $265 2.3% $4,085 53.0% $475 13.1% $4,560 40.3% $40 $7,701 1,850 $150 0.0% 51.1% 4.1% $40 $9,551 $150 0.4% 84.4% 1.3% $656 18.1% $656 5.8% 0.4% . 0.0% . 0.0% . 0.0% Forest . 0.5% . 100.0% 0.0% Oil Springs . 0.0% . Petrolia . 0.0% Watford . 0.0% $50 1.4% $50 Alviston . 0.0% $346 9.6% $346 3.1% Wyoming . 0.0% $50 1.4% $50 0.4% Corunna . 0.0% $80 2.2% $80 0.7% Grand Bend . 0.0% $50 1.4% $50 0.4% Other Secondary Zone Secondary Zone Subtotal . $1,382 0.0% 12.2% London . 0.0% . Wallaceburg . Chatham-Kent Strathoy Other Sarnia North of 402 Primary Zone Subtotal Qu. 2 Location ZONE Secondary Zone Qu. 2 Expenditure Column Sum Sum % 0.0% 1,382 0.0% . 38.2% 0.0% $190 5.2% $190 1.7% . 0.0% $200 5.5% $200 1.8% . 0.0% . 0.0% . 0.0% Other Ontario . 0.0% . 0.0% . 0.0% USA . 0.0% . 0.0% . Total $0 $7,701 0.0% . 0.0% 0.0% . 100.0% urbanMetrics inc. market, economic and strategic advisors 0.0% . $3,622 100.0% 0.0% 0.0% $11,323 100.0% Sarnia Market Demand and Impact Analysis Qu. 3c - Drug Store Purchases (Past Month) Primary Zone Qu. 3 Expenditure Column Sum Sum % $950 Downtown Confederation . $1,045 Lambton Mall $20,418 Exmouth Street London Line . $870 Mitton Village Other Sarnia South of 402 Lakeshore Road & Brights Grove Point Edward Qu. 3 Location 0.1% $1,110 2.1% 0.6% $185 0.3% 0.0% $1,045 2.0% 15.1% $24,203 45.2% 1.6% 0.0% . $150 3.7% . 71.7% 0.6% Total Qu. 3 Expenditure Column Sum Sum % $3,785 0.0% 0.0% . 0.0% . 3.1% . 0.0% $870 0.0% $2,948 10.3% $770 3.1% $3,718 6.9% $180 0.6% $281 1.1% $461 0.9% $1,940 $28,386 6.8% 99.6% 0.0% $130 $5,276 $495 0.5% 21.1% 2.0% $2,070 $33,662 $495 3.9% 62.9% 0.9% $3,133 12.5% $3,133 5.9% . Other Sarnia North of 402 Primary Zone Subtotal $160 0.0% . $35 Lambton Mall Area 3.3% ZONE Secondary Zone Qu. 3 Expenditure Column Sum Sum % 0.0% . 0.0% . 0.0% Forest . Oil Springs . 0.0% . Petrolia . 0.0% Watford . 0.0% . 0.0% . Alviston . 0.0% . 0.0% . Wyoming . 0.0% $565 2.3% $565 1.1% 0.1% $11,985 47.9% $12,015 22.5% 0.0% $2,384 9.5% $2,384 4.5% $18,562 0.0% . 74.2% $18,592 0.0% 34.7% $30 Corunna 0.0% . 0.0% 0.0% 0.0% Grand Bend . Other Secondary Zone Secondary Zone Subtotal . London . 0.0% $25 0.1% $25 0.0% Wallaceburg . 0.0% $940 3.8% $940 1.8% Chatham-Kent . 0.0% . Strathoy . 0.0% $120 0.5% $120 0.2% Other Ontario . 0.0% $100 USA Total $30 $70 $28,486 0.0% . 0.1% 0.0% . 0.2% . 100.0% urbanMetrics inc. market, economic and strategic advisors $25,023 0.0% 0.4% $100 0.2% 0.0% $70 0.1% 100.0% $53,509 100.0% Sarnia Market Demand and Impact Analysis Qu. 4c - General Merchandise Store Purchases (Past Three Months) Primary Zone Qu. 4 Expenditure Column Sum Sum % Downtown . Lambton Mall Area . Canadian Tire - Lambton Mall Exmouth Street $90 0.0% . 0.0% . Total Qu. 4 Expenditure Column Sum Sum % 0.2% $90 0.1% 0.0% $20 0.0% 0.0% . 0.0% $26,469 66.2% $19,805 53.6% $46,274 60.1% $3,640 9.1% $1,833 5.0% $5,473 7.1% London Line . 0.0% . 0.0% . 0.0% Mitton Village . 0.0% . 0.0% . 0.0% Other Sarnia South of 402 . 0.0% . 0.0% . 0.0% Lakeshore Road & Brights Grove . 0.0% . 0.0% . 0.0% Point Edward . 0.0% . 0.0% . $20 $30,149 21,728 $1,190 0.0% 58.8% 3.2% $575 1.6% $120 0.3% 0.0% Forest . 0.0% . 75.4% 0.0% Oil Springs . 0.0% . Petrolia . 0.0% Watford . 0.0% . Alviston . 0.0% Wyoming . 0.0% $60 0.2% $60 0.1% Corunna . 0.0% $150 0.4% $150 0.2% Grand Bend . 0.0% $210 0.6% $210 0.3% Other Secondary Zone Secondary Zone Subtotal . $0 0.0% 0.0% $20 2,325 0.1% 6.3% $20 $2,325 0.0% 3.0% $5,830 Other Sarnia North of 402 Primary Zone Subtotal Qu. 4 Location 0.0% $20 Confederation ZONE Secondary Zone Qu. 4 Expenditure Column Sum Sum % $20 $51,877 $1,190 0.0% 67.4% 1.5% $575 0.7% $120 0.2% 0.0% . 0.0% 0.0% . 0.0% 14.6% $8,930 24.2% $14,760 19.2% Wallaceburg . 0.0% $1,660 4.5% $1,660 2.2% Chatham-Kent . 0.0% $10 0.0% $10 0.0% Strathoy . 0.0% $1,970 5.3% $1,970 2.6% London $400 1.0% $130 0.4% $530 0.7% USA $3,626 9.1% $200 0.5% $3,826 5.0% Total $40,005 100.0% $36,953 100.0% $76,958 100.0% Other Ontario urbanMetrics inc. market, economic and strategic advisors Sarnia Market Demand and Impact Analysis Qu. 5c - Department Store Purchases (Past Three Months) Primary Zone Qu. 5 Expenditure Column Sum Sum % Total Qu. 5 Expenditure Column Sum Sum % Downtown . 0.0% . 0.0% . 0.0% Confederation . 0.0% . 0.0% . 0.0% Lambton Mall Area . 0.0% . 0.0% . 0.0% Exmouth Street . 0.0% . 0.0% . 0.0% London Line . 0.0% . 0.0% . 0.0% Mitton Village . 0.0% . 0.0% . 0.0% Other Sarnia South of 402 . 0.0% . 0.0% . 0.0% Lakeshore Road & Brights Grove . 0.0% . 0.0% . 0.0% Point Edward . 0.0% . 0.0% . 0.0% Other Sarnia North of 402 . 0.0% . 0.0% . $29,687 Sears - Lambton Mall Qu. 5 Location ZONE Secondary Zone Qu. 5 Expenditure Column Sum Sum % 40.0% $9,599 20.1% 0.0% $39,286 32.2% Zellers - London Road Shopping Centre $9,300 12.5% $4,258 8.9% $13,558 11.1% Wal-Mart - Highway 402 & Modeland Rd Primary Zone Subtotal $33,506 $72,493 45.2% 97.8% $24,355 $38,212 51.0% 80.0% $57,861 $110,705 47.5% 90.8% Forest . 0.0% . 0.0% . 0.0% Oil Springs . 0.0% . 0.0% . 0.0% Petrolia . 0.0% . 0.0% . 0.0% Watford . 0.0% . 0.0% . 0.0% Alviston . 0.0% . 0.0% . 0.0% Wyoming . 0.0% . 0.0% . 0.0% Corunna . 0.0% . 0.0% . 0.0% Grand Bend . 0.0% . 0.0% . 0.0% Other Secondary Zone Secondary Zone Subtotal . 0.0% . 0.0% 0.0% . 0.0% $0 $175 $0 $0 0.0% 0.0% 0.2% $1,049 2.2% $1,224 1.0% Wallaceburg . 0.0% $4,750 9.9% $4,750 3.9% Chatham-Kent . 0.0% . Strathoy . 0.0% $2,625 5.5% $2,625 2.2% 1.0% London 0.0% . 0.0% $360 0.5% $885 1.9% $1,245 USA $1,100 1.5% $250 0.5% $1,350 1.1% Total $74,128 100.0% $47,771 100.0% $121,899 100.0% Other Ontario urbanMetrics inc. market, economic and strategic advisors Sarnia Market Demand and Impact Analysis Qu. 6c - Fashion Store Purchases (Past Three Months) Primary Zone Qu. 6 Expenditure Column Sum Sum % $280 Downtown Confederation . Lambton Mall Area Lambton Mall Exmouth Street 1.1% . 0.0% 0.0% . 0.0% . 0.7% 0.0% $1,065 7.7% $2,190 5.6% $18,337 71.6% $7,355 53.5% $25,692 65.3% $985 3.8% $100 0.7% $1,085 2.8% 0.0% . 0.0% . Mitton Village . 0.0% . 0.0% . Other Sarnia South of 402 . 0.0% Lakeshore Road & Brights Grove . $50 0.4% 0.0% . 0.0% . $110 0.4% . 0.0% $20,837 $200 0.0% . 81.4% 0.8% . . Forest $280 4.4% . Other Sarnia North of 402 Primary Zone Subtotal Total Qu. 6 Expenditure Column Sum Sum % $1,125 London Line Point Edward Qu. 6 Location ZONE Secondary Zone Qu. 6 Expenditure Column Sum Sum % $8,570 0.0% . 62.3% 0.0% 0.0% 0.0% $50 0.1% $110 0.3% $29,407 $200 0.0% 74.7% 0.5% $200 0.5% 0.0% Oil Springs . 0.0% . Petrolia . 0.0% Watford . 0.0% . 0.0% . 0.0% Alviston . 0.0% . 0.0% . 0.0% Wyoming . 0.0% . 0.0% . 0.0% Corunna . 0.0% . 0.0% . Grand Bend . 0.0% $200 1.5% $200 0.5% Other Secondary Zone Secondary Zone Subtotal . 0.0% . 0.8% $400 0.0% . 2.9% $600 0.0% 1.5% $200 $650 London $10 Wallaceburg 2.5% 0.0% . $200 $2,700 1.5% 19.6% $3,350 8.5% 0.0% $10 0.0% . 0.0% . 0.0% . Strathoy . 0.0% . 0.0% . $735 0.0% 0.0% . Chatham-Kent Other Ontario 0.0% 2.9% $380 2.8% 0.0% 0.0% $1,115 2.8% USA $3,180 12.4% $1,710 12.4% $4,890 12.4% Total $25,612 100.0% $13,760 100.0% $39,372 100.0% urbanMetrics inc. market, economic and strategic advisors Sarnia Market Demand and Impact Analysis Qu. 7c - Specialty Store Purchases (Past Three Months) Primary Zone Qu. 7 Expenditure Column Sum Sum % $260 Downtown Confederation . Lambton Mall Area Lambton Mall Exmouth Street London Line 1.1% Total Qu. 7 Expenditure Column Sum Sum % $410 1.0% 0.0% . 0.0% $15,578 56.2% $8,158 61.2% $23,736 57.8% $5,462 19.7% $3,809 28.6% $9,271 22.6% $2,615 9.4% $150 1.1% $2,765 6.7% 0.0% . 0.0% . $300 1.1% . 0.0% $300 0.7% $250 $250 0.6% 0.9% . 0.0% Lakeshore Road & Brights Grove . 0.0% . 0.0% . Point Edward . 0.0% . 0.0% . Other Sarnia South of 402 $743 $25,208 0.0% . Oil Springs . 0.0% . Petrolia . 0.0% Watford . 0.0% . 0.0% . 0.0% Alviston . 0.0% . 0.0% . 0.0% Wyoming . 0.0% . 0.0% . 0.0% Corunna . 0.0% . 0.0% . Grand Bend . 0.0% Other Secondary Zone Secondary Zone Subtotal . $1,910 2.8% 94.8% 0.0% . 0.0% Forest $0 $375 $12,642 0.0% 2.7% 91.0% 0.0% . Other Sarnia North of 402 Primary Zone Subtotal Qu. 7 Location $150 0.0% . . Mitton Village 0.9% ZONE Secondary Zone Qu. 7 Expenditure Column Sum Sum % $1,118 $37,850 2.7% 92.2% 0.0% $40 0.1% 0.0% . $40 $75 0.3% 0.6% 0.0% . 0.0% $115 0.0% . 0.9% 0.0% 0.0% $75 0.2% $115 0.0% 0.3% 6.9% $200 1.5% $2,110 5.1% Wallaceburg . 0.0% $40 0.3% $40 0.1% Chatham-Kent . 0.0% . Strathoy . 0.0% $100 0.7% $100 0.2% 1.2% London 0.0% . 0.0% Other Ontario $300 1.1% $190 1.4% $490 USA $280 1.0% $50 0.4% $330 0.8% $27,698 100.0% $13,337 100.0% $41,035 100.0% Total urbanMetrics inc. market, economic and strategic advisors Sarnia Market Demand and Impact Analysis Qu. 8c - Outdoor Home Supplies Store Purchases (Past Three Months) Primary Zone Qu. 8 Expenditure Column Sum Sum % . Downtown 0.0% . Total Qu. 8 Expenditure Column Sum Sum % 0.0% . 0.0% $7,045 9.8% $4,590 7.7% $11,635 8.8% Home Depot & Home Hardware Lambton Mall Area $49,660 68.9% $37,438 62.9% $87,098 66.2% Home Hardware - Exmouth Street $1,506 2.1% . 0.0% $1,506 1.1% London Line $4,123 5.7% $1,785 3.0% $5,908 4.5% 1.1% . 0.0% $780 0.6% 0.0% . 0.0% . $353 0.3% Rona - Indian Rd & Confederation St $780 Home Hardware - Mitton Village Other Sarnia South of 402 . Home Hardware - Brights Grove Point Edward $225 0.3% $1,352 $64,691 . Other Sarnia North of 402 Primary Zone Subtotal Qu. 8 Location ZONE Secondary Zone Qu. 8 Expenditure Column Sum Sum % 0.0% $128 0.2% 1.9% 89.8% $100 $44,041 0.2% 74.0% $1,452 $108,732 1.1% 82.7% $1,200 2.0% $1,200 0.9% 1.3% $780 0.6% 0.0% . 0.0% . 0.0% Forest . 0.0% Oil Springs . 0.0% . Petrolia . 0.0% $780 Watford . 0.0% $250 0.4% $250 0.2% Alviston . 0.0% $50 0.1% $50 0.0% Wyoming . 0.0% $930 1.6% $930 0.7% Corunna . 0.0% $770 1.3% $770 0.6% Grand Bend . 0.0% $2,390 4.0% $2,390 1.8% 8.1% 8.1% $675 $7,045 1.1% 11.8% $6,480 $12,850 4.9% 9.8% $5,805 $5,805 Other Secondary Zone Secondary Zone Subtotal 0.0% . 0.0% London . 0.0% $100 0.2% $100 0.1% Wallaceburg . 0.0% $5,635 9.5% $5,635 4.3% Chatham-Kent . 0.0% . 0.0% . Strathoy . 0.0% . 0.0% . Other Ontario . 0.0% USA Total $1,558 $72,054 urbanMetrics inc. market, economic and strategic advisors 0.0% $2,660 4.5% 0.0% $1,558 1.2% $59,481 100.0% $131,535 100.0% 2.2% . 100.0% 0.0% $2,660 2.0% Sarnia Market Demand and Impact Analysis Qu. 9c - Home Furnishing Store Purchases (Past Six Months) Primary Zone Qu. 9 Expenditure Column Sum Sum % $4,050 Downtown Confederation . 4.6% . 0.0% 0.0% . 0.0% . Total Qu. 9 Expenditure Column Sum Sum % $4,050 3.1% 0.0% Lambton Mall Area $52,580 59.9% $25,470 60.7% $78,050 60.2% Lambton Mall $22,910 26.1% $5,043 12.0% $27,953 21.6% Exmouth Street London Line $420 0.5% . 0.0% $420 0.3% $2,100 2.4% . 0.0% $2,100 1.6% Mitton Village . 0.0% . 0.0% . 0.0% Other Sarnia South of 402 . 0.0% . 0.0% . 0.0% Lakeshore Road & Brights Grove . 0.0% . 0.0% . $200 0.2% . 0.0% $82,260 Point Edward Qu. 9 Location ZONE Secondary Zone Qu. 9 Expenditure Column Sum Sum % 0.0% $200 0.2% 0.0% . 72.7% $112,773 0.0% . 0.0% 87.0% 0.0% Other Sarnia North of 402 Primary Zone Subtotal . Forest . 0.0% . 93.8% 0.0% . Oil Springs . 0.0% . Petrolia . 0.0% $1,000 2.4% $1,000 0.8% Watford . 0.0% $300 0.7% $300 0.2% Alviston . 0.0% . 0.0% . 0.0% Wyoming . 0.0% . 0.0% . 0.0% Corunna . 0.0% . 0.0% . 0.0% Grand Bend . 0.0% . 0.0% . 0.0% Other Secondary Zone Secondary Zone Subtotal London $30,513 0.0% . 0.0% $3,000 $3,000 3.4% 3.4% $4,850 $6,150 11.6% 14.7% $7,850 $9,150 6.1% 7.1% $850 1.0% $1,600 3.8% $2,450 1.9% $800 0.6% Wallaceburg . 0.0% . Chatham-Kent . 0.0% $800 Strathoy . 0.0% $2,300 5.5% $2,300 1.8% 1.1% $600 1.4% $1,600 1.2% 0.0% $610 0.5% $41,963 100.0% $129,683 100.0% Other Ontario USA Total $1,000 $610 $87,720 0.0% . 0.7% . 100.0% urbanMetrics inc. market, economic and strategic advisors 1.9% 0.0% Sarnia Market Demand and Impact Analysis Non-Food Store Retail Expenditure Summary Categories Location Primary Zone Residents Expenditure % Secondary Zone Residents Expenditure % 3c Pharmacy & Drug Store* PZ Stores SZ Stores Other Area TOTAL $85,158.00 $90.00 $210.00 $85,458.00 99.6% 0.1% 0.2% 100.0% $15,828.00 $55,686.00 $3,555.00 $75,069.00 21.1% 74.2% 4.7% 100.0% 4c General Merchandise PZ Stores SZ Stores Other Area TOTAL $30,149.00 $0.00 $9,856.00 $40,005.00 75.4% 0.0% 24.6% 100.0% $21,728.00 $2,325.00 $12,900.00 $36,953.00 58.8% 6.3% 34.9% 100.0% 5c Department Store PZ Stores SZ Stores Other Area TOTAL $72,493.00 $0.00 $1,635.00 $74,128.00 97.8% 0.0% 2.2% 100.0% $38,212.00 $0.00 $9,559.00 $47,771.00 80.0% 0.0% 20.0% 100.0% 6c Fashion PZ Stores SZ Stores Other Area TOTAL $20,837.00 $200.00 $4,575.00 $25,612.00 81.4% 0.8% 17.9% 100.0% $8,570.00 $400.00 $4,790.00 $13,760.00 62.3% 2.9% 34.8% 100.0% 7c Miscellaneous PZ Stores SZ Stores Other Area TOTAL $25,208.00 $0.00 $2,490.00 $27,698.00 91.0% 0.0% 9.0% 100.0% $12,642.00 $115.00 $580.00 $13,337.00 94.8% 0.9% 4.3% 100.0% 8c Building and Outdoor Home PZ Stores SZ Stores Other Area TOTAL $64,691.00 $5,805.00 $1,558.00 $72,054.00 89.8% 8.1% 2.2% 100.0% $44,041.00 $7,045.00 $8,395.00 $59,481.00 74.0% 11.8% 14.1% 100.0% 9c Home Furnishings* PZ Stores SZ Stores Other Area TOTAL $41,130.00 $1,500.00 $1,230.00 $43,860.00 93.8% 3.4% 2.8% 100.0% $15,256.50 $3,075.00 $2,650.00 $20,981.50 72.7% 14.7% 12.6% 100.0% PZ Stores SZ Stores Other Area TOTAL $339,666.00 $7,595.00 $21,554.00 $368,815.00 92.1% 2.1% 5.8% 100.0% $156,277.50 $68,646.00 $42,429.00 $267,352.50 58.5% 25.7% 15.9% 100.0% Total NFSR *Adjusted to 3 months urbanMetrics inc. market, economic and strategic advisors Sarnia Market Demand and Impact Analysis Distribution of Survey Respondents NFSR Expenditures Based on Survey Pharmacy & Drug Store General Merchandise Department Store Clothing & Accessories Miscellaneous Building and Outdoor Home Supplies Home Furnishings TOTAL NFSR Primary Zone Residents 23.2% 10.8% 20.1% 6.9% 7.5% 19.5% 11.9% 100.0% Secondary Zone Residents 28.1% 13.8% 17.9% 5.1% 5.0% 22.2% 7.8% 100.0% Ontario Average 2007 17.0% 79.9% 82.1% 85.3% Total Non-Department Store NFSR 28.0% 14.4% 11.2% 13.0% 16.3% 100.0% *As of 2004, department store sales are supressed in Ontario. In 2004, the department store share of total general merchandise in Ontario was 52.5%. Therefore, in 2007, the department store share of TOTAL NFSR in the Province has been estimated by urbanMetrics at 14.7% (52.5% of 27.5%) Qu. 10 - Number of People in Household Sum Primary Zone Row Sum % 846 Q10 ZONE Secondary Zone Row Sum Sum % Mean Mean 56.4% 2 654 43.6% Total Row Sum % Sum 3 1,500 100.0% Qu. 11 - Age Group Primary Zone Count Col % Secondary Zone Count Col % Count Total Col % Under 25 22 6.2% 6 2.4% 28 4.6% 25 – 34 28 7.8% 16 6.3% 44 7.2% 35 – 44 62 17.4% 34 13.4% 96 15.7% 45 – 54 64 17.9% 57 22.5% 121 19.8% 55 – 64 74 20.7% 56 22.1% 130 21.3% 65 and over 98 27.5% 76 30.0% 174 28.5% Refused Total 9 2.5% 8 3.2% 17 2.8% 357 100.0% 253 100.0% 610 100.0% Qu. 12 - Gender of Primary Shopper Primary Zone Count Col % Female Primary Shopper Male Primary Shopper Total Secondary Zone Count Col % Count Total Col % 268 75.1% 189 74.7% 457 74.9% 89 24.9% 64 25.3% 153 25.1% 357 100.0% 253 100.0% 610 100.0% urbanMetrics inc. market, economic and strategic advisors Mean 2 Sarnia Market Demand and Impact Analysis SURVEY ID SARNIA TELEPHONE CONSUMER SURVEY For Office Use Interviewer: _______________________ Verified by: ________________ Date of Interview: ___________________ Good ________________. My name is ____________________ of Network Research Inc., a market research company. We are conducting a survey of people's shopping habits and I would like to ask you a few questions. I assure you we are not selling anything. A. B. Interviewer, Please watch Quota - 75% female / 25% male Are you over the age of 19 and the primary shopper in your home? YES: GO TO QUESTION B. NO: TASK FOR SOMEONE WHO IS AND RE-INTRODUCE. In the last THREE MONTHS, have you done any shopping whatsoever? YES: GO TO QUESTION C. NO: C. TERMINATE INTERVIEW. THIS IS NOT A COMPLETED SURVEY. INTERVIEWER: Record the appropriate SAMPLING AREA. Interviewer, Please watch Quota SAMPLING AREA Circle Area 1 N7V Point Edwards Only 2 N7S City of Sarnia Only 3 N7T City of Sarnia Only 4 N7X City of Sarnia Only 5 N7W 6 2-1 see map - outside of SARNIA and Point Edwards 7 2-2 see map - outside of SARNIA and Point Edwards 8 2-3 see map - outside of SARNIA and Point Edwards 9 2-4 see map - outside of SARNIA and Point Edwards 10 2-5 see map - outside of SARNIA and Point Edwards City of Sarnia Only 600 Surveys in Total INTERVIEWER: Please record data below and continue with survey Phone Number: Time Started: Postal Code [6 digits] am / pm Time Finished: INTERVIEWER: Please ensure that information is complete, then proceed to Question 1a. INTERVIEWER: THE FOLLOWING QUESTION IS FOR SHOPPING HABITS OVER THE PAST MONTH urbanMetrics inc. market, economic and strategic advisors am / pm Sarnia Market Demand and Impact Analysis 1 a) In the past MONTH, have you shopped at a SUPERMARKET? Yes ........ 1 [GO TO QUESTION 1 b)] No [SKIP TO QUESTION 2 a)] ........ 2 1 b) What is the name of the store and where is it located? 1 c) About how much did you spend during the past MONTH at this store? ASK THESE QUESTIONS TOGETHER 1 b) Name of Store 1 b) Location Shopping Centre/Street Location/Community Downtown Grocery Downtown 15 $ .00 Davy Jones Everfresh Indian Rd & Confederation St 21 $ .00 Food Basics Indian Rd & Confederation St 22 $ .00 Wal-Mart Highway 402 & Modeland Rd (Lambton Mall and Area) 31 $ .00 Zehrs London Rd & Murphy Rd (Lambton Mall and Area) 32 $ .00 A&P London Rd & Modeland Rd (Lambton Mall and Area) 33 $ .00 Price Chopper Exmouth St & Lambton Mall Rd (Lambton Mall and Area) 34 $ .00 No Frills Indian Rd & Exmouth St 51 $ .00 A&P Capel St & Exmouth St 52 $ .00 Foodland Lakeshore Road (Brights Grove) 91 $ .00 Cathcart Blvd & Colborne Rd 16 $ .00 $ .00 Valu-Mart OTHER: SPECIFY 1 d) 1 c) Amount Spent Code Have you shopped at any other SUPERMARKETS IN THE PAST MONTH? IF YES, REPEAT QUESTION 1b)/1c) as OFTEN AS NECESSARY. 2 a) In just the past MONTH, have you shopped at any other grocery stores or other specialty food stores, such as bakeries, delis, meat shops, convenience food stores, candy shops or fruit markets? Circle Yes …. 1 [GO TO QUESTION 2 b)] No….. 2 [SKIP TO QUESTION 3 a)] 2 b) What is the name of the store and where is it located? 2 c) About how much did you spend during the PAST MONTH at this store in TOTAL? 2 b) Name of Store 2 b) Location Shopping Centre/Street Location/Community SPECIFY 2 e) ASK THESE QUESTIONS TOGETHER 2 c) Amount Spent in Total Code See List Have you shopped at any other grocery stores or specialty food stores in the past MONTH? IF YES, REPEAT QUESTIONS 2b) to 2d) AS OFTEN AS NECESSARY. IF NO, GO TO 3 a) urbanMetrics inc. market, economic and strategic advisors 2 d) Amount Spent on Food Items $ .00 $ .00 $ .00 $ .00 $ .00 $ .00 $ .00 $ .00 $ .00 $ .00 $ .00 $ .00 $ .00 $ .00 $ .00 $ .00 Sarnia Market Demand and Impact Analysis 3 a) In just the past MONTH, have you shopped at a pharmacy, drug store, cosmetic, optical goods, health supplement store? Circle Yes …. 1 [GO TO QUESTION 3 b)] No….. 2 [SKIP TO QUESTION 4 a)] 3 b) What is the name of the store and where is it located? 3 c) About how much did you spend during the PAST MONTH at this store in TOTAL? 3 a) Name of Store 3 b) Location Shopping Centre/Street Location/Community SPECIFY 3 d) ASK THESE QUESTIONS TOGETHER 3 c) Amount Spent in Total Code See List $ .00 $ .00 $ .00 $ .00 $ .00 $ .00 $ .00 $ .00 $ .00 Have you shopped at any other pharmacy, drug store, cosmetic, optical goods, health supplement store in the past MONTH? IF YES, REPEAT QUESTIONS 3b) to 3c) AS OFTEN AS NECESSARY. IF NO, GO TO 4 a) INTERVIEWER: THE FOLLOWING QUESTION IS FOR SHOPPING HABITS IN THE PAST THREE MONTHS 4 a) In just the past THREE MONTHS, have you shopped at any of the following general merchandise stores? (i) A warehouse membership club; such as Costco or Sam's Club? Yes 1 [GO TO 4 b} No 2 (ii) A Canadian Tire? Yes 1 [GO TO 4 b} No 2 [SKIP TO (ii)] [SKIP TO (iii)] (iii) A general store, variety or dollar store? Yes 1 [GO TO 4 b} No 2 GO TO 5 a) FOR EACH "YES" RESPONSE, ASK THE FOLLOWING QUESTIONS TOGETHER 4 b) What is the name of the store and where is it located? 4 c) About how much did you spend during the PAST THREE MONTHS at this store in TOTAL? ASK THESE QUESTIONS TOGETHER 4 b) Name of Store Canadian Tire 4 b) Location Shopping Centre/Street Location/Community Lambton Mall 4 SPECIFY 4 d) Have you shopped at any other general merchandise store in the past THREE MONTHS? IF YES, REPEAT QUESTIONS 4b) to 4c) AS OFTEN AS NECESSARY. IF NO, GO TO 5 a) urbanMetrics inc. market, economic and strategic advisors 4 c) Amount Spent in Total Code $ .00 $ .00 $ .00 $ .00 $ .00 $ .00 Sarnia Market Demand and Impact Analysis 5 a) In just the past THREE MONTHS, have you shopped at any of the following DEPARTMENT stores? (i) Sears? Yes 1 [GO TO 5 b} No 2 [SKIP TO (ii)] (ii) Zellers? Yes 1 [GO TO 5 b} No 2 [SKIP TO (ii)] (iii) Wal-mart? Yes 1 [GO TO 5 b} No 2 [SKIP TO (iii)] (iv) The Bay? Yes 1 [GO TO 5 b} No 2 GO TO [EXCLUDING SEARS WHOLE HOME AND FURNITURE STORES] 6 a) FOR EACH "YES" RESPONSE, ASK THE FOLLOWING QUESTIONS TOGETHER 5 b) What is the name of the store and where is it located? 5 c) About how much did you spend during the PAST THREE MONTHS at this store in TOTAL? ASK THESE QUESTIONS TOGETHER CHAIN - 1 for Sears, 2 for Zellers, 3 for Wal-Mart, 4 for Bay 5 b) Name of Store 5 d) 5 b) Location (Chain/Location) Code Shopping Centre/Street Location/Community 5 c) Amount Spent in Total Sears Lambton Mall 14 $ .00 Zellers London Road Shopping Centre 23 $ .00 Wal-mart Highway 402 & Modeland Rd (Lambton Mall and Area) 33 $ .00 $ .00 $ .00 $ .00 $ .00 Have you shopped at any other department store in the past THREE MONTHS? IF YES, REPEAT QUESTIONS 4b) to 4c) AS OFTEN AS NECESSARY. IF NO, GO TO 5 a) 6 a) In just the past THREE MONTHS, have you shopped at any of the following FASHION or ACCESSORY stores? Circle (i) Circle A Clothing store? Yes 1 [GO TO 6 b} No 2 [SKIP TO (ii)] (ii) A shoe store? Yes 1 [GO TO 6 b} No 2 [SKIP TO (iii)] (iii) A lugguge, leather goods, clothing accessory or jewellery store? Yes 1 [GO TO 6 b} No 2 GO TO 7 a) FOR EACH "YES" RESPONSE, ASK THE FOLLOWING QUESTIONS TOGETHER 6 b) What is the name of the store and where is it located? 6 c) About how much did you spend during the past THREE MONTHS at this store? 6 b) Name of Store 6 b) Location Shopping Centre/Street Location/Community SPECIFY 6 d) 6 c) Amount Spent Code See List $ .00 $ .00 $ .00 $ .00 $ .00 $ .00 $ .00 $ .00 $ .00 $ .00 $ .00 Have you shopped at any other FASHION OR ACCESSORY STORE in the past THREE MONTHS? IF YES, REPEAT QUESTION 6 b) to 6 c) above as often as necessary. Repeat this sequence for all urbanMetrics inc. market, economic and strategic advisors 6 a) questions, (i) to (iii). Sarnia Market Demand and Impact Analysis 7 a) In just the past THREE MONTHS, have you shopped at any of the following SPECIALTY STORES? Circle Circle (i) An office supply, stationery, book or card shop? Yes 1 GO TO 7 b) No (ii) A sporting goods, hobby, toy, game, art or artist supply store? Yes 1 GO TO 7 b) No 2 [SKIP TO (ii)] 2 [SKIP TO (iii)] (iii) A sewing, needlework or fabric store? Yes 1 GO TO 7 b) No 2 [SKIP TO (iv)] (iv) A musical instrument, music, CD or tape store? Yes 1 GO TO 7 b) No 2 [SKIP TO (v)] (v) A florist, pet, pet supply or swimming pool accessory store? Yes 1 GO TO 7 b) No 2 [SKIP TO (vi)] (vi) A gift, novelty, souvenir or collectors item store? Yes 1 GO TO 7 b) No 2 Go to 8 a) FOR EACH "YES" RESPONSE, ASK THE FOLLOWING QUESTIONS TOGETHER 7 b) What is the name of the store and where is it located? 7 c) About how much did you spend during the past THREE MONTHS at this store? 7 b) Name of Store 7 b) Location SEE CODE LIST Shopping Centre/Street Location/Community SPECIFY 7 d) See List $ .00 $ .00 $ .00 $ .00 $ .00 $ .00 $ .00 $ .00 $ .00 $ .00 $ .00 Have you shopped at any other of these SPECIALTY stores in the past THREE MONTHS? IF YES, REPEAT QUESTION 8 a) 7 c) Amount Spent Code 7 b) to 7 c) above as often as necessary. Repeat this sequence for all 7 a) questions, (i) to (vii). In just the past THREE MONTHS Have you shopped at any of the following BUILDING and OUTDOOR HOME SUPPLIES stores ? Yes ........ 1 [GO TO QUESTION 8 b)] No [SKIP TO QUESTION 9 a)] ........ 2 (i) A home improvement centre or hardware store? Yes 1 GO TO 8 b) No (ii) A paint and wallpaper store? Yes 1 GO TO 8 b) No 2 [SKIP TO (iii)] (iii) Other building material and home supply stores, including plumbing and electrical supply stores? Yes 1 GO TO 8 b) No 2 [SKIP TO (iv)] (iv) A nursery or garden centre? Yes 1 GO TO 8 b) No 2 GO TO 8 b) What is the name of the store and where is it located? 8 c) About how much did you spend during the past THREE MONTHS at this store? 2 [SKIP TO (ii)] 9 a) ASK THESE QUESTIONS TOGETHER 8 b) Name of Store 8 b) Location Shopping Centre/Street Location/Community Home Depot Lambton Mall and Area 3 $ .00 Rona Indian Rd & Conferderation St 2 $ .00 Home Hardware Lambton Mall and Area 3 $ .00 Home Hardware Exmouth Street 5 $ .00 Home Hardware Mitton Village and Area 7 $ .00 Home Hardware Lakeshore Road (Brights Grove) $ .00 9 9 OTHER: SPECIFY 8 d) 8 c) Amount Spent Code Have you shopped at any other building and outdoor home supply store in the PAST THREE MONTHS? IF YES, REPEAT QUESTION 8 b) to 8 c) above as often as necessary. Repeat this sequence for all urbanMetrics inc. market, economic and strategic advisors 8 a) questions, (i) to (iv). Sarnia Market Demand and Impact Analysis 9 a) In just the past SIX MONTHS, have you shopped at any of the following HOME FURNISHINGS stores? Circle Circle (i) A furniture store, applicance store, TV or electronics store? Yes 1 GO TO 9 b) No (ii) A camera, photographic supply, or computer and software store? Yes 1 GO TO 9 b) No 2 [SKIP TO (ii)] 2 [SKIP TO (iii)] (iii) A lighting, floor covering, or window covering store? Yes 1 GO TO 9 b) No 2 [SKIP TO (iv)] (iv) A kitchen, tableware, bedding, linen or picture frame and print store? Yes 1 GO TO 9 b) No 2 GO TO # a) FOR EACH "YES" RESPONSE, ASK THE FOLLOWING QUESTIONS TOGETHER 9 b) What is the name of the store and where is it located? 9 c) About how much did you spend during the past THREE MONTHS at this store? 9 b) Name of Store 9 b) Location Shopping Centre/Street Location/Community SPECIFY 9 d) See List 9 b) to 9 c) above as often as necessary. Repeat this sequence for all How many persons live in your household? ENTER NO. 11 ) $ .00 $ .00 $ .00 $ .00 $ .00 $ .00 $ .00 $ .00 $ .00 $ .00 Have you shopped at any other HOME FURNISHING STORE in the PAST THREE MONTHS? IF YES, REPEAT QUESTION 10 ) 9 c) Amount Spent Code In which of the following age groups are you? [READ LIST] CIRCLE Under 25 1 25-34 2 35-44 3 45-54 4 55-64 5 65 and over 6 REFUSED [DO NOT READ] 7 INTERVIEW COMPLETED WITH: PLEASE RECORD Male primary shopper 1 Female primary shopper 2 THANK YOU VERY MUCH FOR YOUR TIME AND CO-OPERATION urbanMetrics inc. market, economic and strategic advisors 9 a) questions, (i) to (iv). Sarnia Market Demand and Impact Analysis Appendix C: Background Data and Definition of Terms urbanMetrics inc. market, economic and strategic advisors Sarnia Market Demand and Impact Analysis Appendix C: Definition of Terms and Background Data Gross Leasable Area (GLA) Gross leasable area (GLA) is the total retail floor area designed for tenant occupancy and exclusive use, including basements, upper floors and mezzanines. It is expressed in square feet, and measured from the centre line of joint partitions and from outside wall faces. GLA is the area on which tenants pay rent, and which produces income for a tenant. Since it lends itself readily to measurement and comparison, GLA has been adopted by the shopping centre industry as its standard for statistical comparison. Per Capita Income Per capita income represents average total personal income before tax, as defined by Statistics Canada. The Trade Area income indices to the Province are based on the results of the 2001 Census of Canada, the most recent Census information available. Per Capita NFSR Expenditures and Distribution of Expenditures Figure C-1 details our calculations for 2006 per capita NFSR expenditures for the Province of Ontario based on Statistics Canada, Retail Trade data. Figure C-2 summarizes the distribution of NFSR expenditures by major store type for the Province. Trade Area Per Capita Expenditures Per Capita expenditures in this report for Trade Area residents have been calculated based on a regression equations utilizing Statistics Canada, Household Expenditure data (see Figure C-3). Expenditure Potential Expenditure potential is the total annual expenditures made by Trade Area residents. This includes purchases made both inside and outside of the Trade Area. It is calculated by multiplying the average per capita expenditure in each store category by the total population of a defined area. urbanMetrics inc. market, economic and strategic advisors Sarnia Market Demand and Impact Analysis Real Growth Real growth refers to the amount that sales volumes or expenditures would increase in future years with inflation eliminated. Therefore, references to the Canadian dollar, dealing with both the present and future period, reflect its 2006 value in this report. For the purposes of our study, a real growth of 1.5% per year has been utilized for NFSR and 0.5% for FSR (see Figures C-4 and C-5 for historic). Retail/Service Space Classification A detailed listing of our retail space classification according to the NAICS has been included in Figure C-6. Benchmarks In our report, typical industry benchmarks refers to average sales per square foot levels based on our market knowledge and published data from Statistics Canada. Figure C-7 summarizes average sales per square foot levels by NAICS category for chain stores in Canada (fiscal year 2005). urbanMetrics inc. market, economic and strategic advisors Sarnia Market Demand and Impact Analysis Figure C-1 ONTARIO - RETAIL TRADE (PUBLICATION 63-005) - FSR (FOOD STORE) AND NFSR (NON-FOOD STORE RETAIL) PER CAPITA ($Thousands) QUARTER YEAR FOOD - Supermarkets and Grocery [090] FOOD - Convenience and specialty food stores [100] NFSR - Furniture stores [030] NFSR - Home furnishings stores [040] NFSR - Computer and software stores [050] NFSR - Home electronics and appliance stores [060] NFSR - Home centres and hardware stores [070] NFSR - Specialized building materials and garden stores [080] NFSR - Pharmacies and personal care stores [120] NFSR - Clothing stores [140] NFSR - Shoe, clothing accessories and jewellery stores [150] NFSR - Department stores [170] * suppressed as of 4th quarter 2005 NFSR NFSR NFSR - Other general merchandise stores [180] Sporting goods, hobby, music and book stores [160] Miscellaneous store retailers [190] 1 2007 2 2007 3 2007 4 2007 5,129,800 5,712,000 5,616,500 5,729,000 694,800 854,700 878,700 858,000 771,400 853,000 959,800 945,200 512,200 569,500 594,700 717,500 121,600 96,500 97,000 128,700 912,300 938,700 1,091,700 1,494,400 1,254,900 2,055,900 1,911,700 1,668,300 305,300 506,300 505,100 395,500 2,681,900 2,770,900 2,768,300 3,059,100 1,375,900 1,780,700 1,713,000 2,346,200 424,800 563,100 575,300 739,000 1,826,900 2,340,550 2,243,950 2,864,650 1,826,900 2,340,550 2,243,950 2,864,650 800,400 828,600 911,400 1,196,200 845,000 1,016,600 1,044,200 1,192,200 63-005-January 2008 TOTAL ESTIMATED FSR SALES, ONTARIO POPULATION (July 1st Estimate) PER CAPITA FSR SALES 63-005-January 2008 63-005-January 2008 ANNUALIZED TOTAL** $22,187,300 $3,286,200 $3,529,400 $2,393,900 $443,800 $4,437,100 $6,890,800 $1,712,200 $11,280,200 $7,215,800 $2,302,200 $9,276,050 $9,276,050 $3,736,600 $4,098,000 63-005-January 2008 Catalogue no. 91-002, Oct-Dec 2007, Preliminary TOTAL NFSR STORE SALES, ONTARIO Less Miscellaneous Store Retailers - Non- NFSR Portion @ *** ADJUSTED TOTAL NFSR SALES, ONTARIO POPULATION (July 1st Estimate) PER CAPITA NFSR STORE SALES 10% Catalogue no. 91-002, Oct-Dec 2007, Preliminary $25,473,500 12,803,861 $1,990 $66,592,100 $409,800 $66,182,300 12,803,861 $5,169 $120 PER CAPITA AUTOMOTIVE - TBA SOURCE: urbanMetrics inc. * Not adjusted for estimated Non-NFSR portion. ** For part year data, annualized totals calculated by applying average indices of quarters for the past three years as a % of total, to current year partial sales. *** urbanMetrics estimate. Excluded stores include: Mobile Home Dealers and Tomb Stone Dealers. urbanMetrics inc. market, economic and strategic advisors Per Capita $1,733 $257 $276 $187 $35 $347 $538 $134 $881 $564 $180 $724 $724 $292 $320 * Sarnia Market Demand and Impact Analysis Figure C-2 Ontario, NFSR Expenditure Distribution (based on Statistics Canada Retail Trade data) 100% 90% 11.4% 11.3% 11.1% 11.2% 29.2% 29.1% 28.8% 28.0% 14.6% 14.3% 14.5% 14.4% 15.8% 16.3% 16.6% 17.0% 12.8% 13.1% 13.1% 13.0% 16.1% 15.9% 15.8% 16.3% 2004 2005 2006 2007 80% 70% 60% 50% 40% 30% 20% 10% 0% Other NFSR General Merchandise Clothing and Accessories Stores Pharmacies and Personal Care Stores Building and Outdoor Home Supplies Stores Furniture, Home Furnishings and Electronics Stores urbanMetrics inc. market, economic and strategic advisors Sarnia Market Demand and Impact Analysis Figure C-3 PROVINCE OF ONTARIO INCOME/EXPENDITURE REGRESSION EQUATIONS, 2006 (n) Average Per Capita Income of Income Quintile 1 2 3 4 5 All classes $10,068 $16,554 $22,196 $27,492 $48,575 $28,290 (x) (y1) (y2) Income FSR NFSR 35.6 58.5 78.5 97.2 171.7 100.0 91.4 98.3 96.0 97.4 109.6 100.0 65.0 71.0 89.2 98.3 138.3 100.0 REGRESSION EQUATIONS: where x=income index (independent variable) and y = dependent variable (expenditure index for urbanMetrics inc. NFSR Food y = 44 + 0.56 (x), where x is the income index y = 88 + 0.12 (x), where x is the income index SOURCE: urbanMetrics inc. 1) Based on Statistics Canada, Detailed Average Household Expenditure by Household Income Quintile, Ontario, 2005. Statistics Canada, Survey of Household Spending in 2006 urbanMetrics inc. market, economic and strategic advisors Sarnia Market Demand and Impact Analysis Figure C-4 PROVINCE OF ONTARIO HISTORIC REAL GROWTH IN FOOD STORE EXPENDITURES Year 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Per Capita Food Consumer Price Store Expenditures Index (1991 Base (1 Year) (2 $1,422 $1,412 $1,439 $1,471 $1,481 $1,419 $1,484 $1,538 $1,531 $1,577 $1,579 $1,652 $1,744 $1,873 $1,917 $1,928 $1,990 Per Capita Expenditures (Constant $) Annual Real Growth $1,422 $1,455 $1,429 $1,474 $1,434 $1,367 $1,430 $1,464 $1,433 $1,457 $1,390 $1,410 $1,469 $1,552 $1,541 $1,518 $1,539 2.3% -1.8% 3.2% -2.7% -4.7% 4.6% 2.4% -2.1% 1.7% -4.6% 1.5% 4.2% 5.7% -0.7% -1.5% 1.4% 100.0 97.0 100.7 99.7 103.3 103.8 103.8 105.1 106.8 108.2 113.6 117.2 118.7 120.7 124.4 127.0 129.3 Average Annual Real Growth 1991 to 2007 Average Annual - 2000 to 2007 0.5% 0.8% SOURCE: urbanMetrics inc. 1) Based on Statistics Canada, Retail Trade , Publication 63-005 (NAICS). 2) Statistics Canada, The Consumer Price Index (CPI) for Food Purchased in Stores (Cansim Matrix P106002) . urbanMetrics inc. market, economic and strategic advisors Sarnia Market Demand and Impact Analysis Figure C-5 PROVINCE OF ONTARIO HISTORIC REAL GROWTH IN NFSR STORE EXPENDITURES Year 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Per Capita NFSR Expenditures (1 Consumer Price Index (1991 Base Year) (2 Per Capita Expenditures (Constant $) Annual Real Growth $2,855 $2,908 $2,964 $3,129 $3,161 $3,158 $3,457 $3,749 $3,986 $4,087 $4,159 $4,357 $4,508 $4,667 $4,772 $4,992 $5,169 100.0 101.5 103.0 103.2 105.6 107.3 109.7 111.2 113.0 115.0 117.6 120.5 123.7 125.4 126.9 128.5 130.8 $2,855 $2,866 $2,877 $3,032 $2,992 $2,943 $3,150 $3,371 $3,528 $3,553 $3,537 $3,616 $3,646 $3,721 $3,759 $3,886 $3,950 0.4% 0.4% 5.4% -1.3% -1.6% 7.1% 7.0% 4.7% 0.7% -0.5% 2.2% 0.8% 2.1% 1.0% 3.4% 1.7% Average Annual Real Growth 1991 to 2007 Average Annual, 2000 to 2007 2.1% 1.5% SOURCE: urbanMetrics inc. 1) Based on Statistics Canada, Retail Trade , Publication 63-005 (NAICS). Excludes Automotive - TBA. 2) Statistics Canada, The Consumer Price Index (CPI) for All Items Excluding Food & Energy (Cansim Matrix P106127). urbanMetrics inc. market, economic and strategic advisors Sarnia Market Demand and Impact Analysis Figure C-6 urbanMetrics inc. RETAIL/SERVICE STORE CLASSIFICATION (BASED ON NORTH AMERICAN INDUSTRY CLASSIFICATION (NAICS) Trade Group NAICS Description FOOD 90 Supermarkets 44511 100 Supermarkets and Other Grocery (except Convenience) Stores Convenience and Specialty Food Stores 44512 44521 44522 44523 44529 Convenience Stores Meat Markets Fish and Seafood Markets Fruit and Vegetable Markets Other Specialty Food Stores, including Baked Goods Stores, & Confectionary & Nut BEVERAGE STORES 110 Beer, Wine and Liquor Stores 44531 Beer, Wine and Liquor Stores NON-FOOD STORE RETAIL (NFSR) Automotive 20 Used and Recreational Motor Vehicle and Parks Dealers (Tires, Batteries, Automotive Accessories component) 44131 Automotive Parts and Accessories Stores 44132 Tire Dealers Furniture, Home Furnishings and Electronics Stores 30 Furniture Stores 44211 40 Home Furnishings Stores 44221 Floor Covering Stores 44229 Other Home Furnishings Stores (e.g. window treatments, kitchen and tableware, bedding and linens, brooms and brushes, lamps and shades, and prints and picture frames). 50 Computer and Software Stores 44312 Computer and Software Stores 60 Home Electronics and Appliance Stores 44311 Appliance, Television and other Electronics Stores 44313 Camera and Photographic Supplies Stores Furniture Stores Building and Outdoor Home Supplies Stores 70 Home Centres and Hardware Stores 44411 Home Centres 44413 Hardware Stores 80 Specialized Building Materials and Garden Stores 44412 Paint and Wallpaper Stores 44419 Other Building Material Dealers Aluminum doors and screens, retail Brick and tile dealers, retail Cabinets, kitchen (to be installed), retail Concrete and cinder block dealers, retail Electrical supplies stores selling primarily to other business but also selling to household consumers Electrical supplies, retail Fencing dealers, retail Garage doors, retail (wood) Glass stores, retail Lumber and planing mill product dealers, retail Plumbing supplies stores selling primarily to other businesses but also selling to household consumers Plumbing supplies, retail Prefabricated house and building dealers, retail Retailers of ceramic floor and wall tiles Roofing material dealers, retail Sales of aluminum doors and installation Tile and brick dealers, retail 44421 Outdoor Power Equipment Stores 44422 Nursery Stores and Garden Centres Pharmacies and Personal Care Stores 120 Pharmacies and Personal Care Stores 44611 Pharmacies and Drug Stores 44612 Cosmetics, Beauty Supplies and Perfume Stores 44613 Optical Goods Stores 44619 Other Health and Personal Care Stores (includes stores retailing health and personal care items, such as vitamin supplements, hearing aids, and medical equipment and supplies) urbanMetrics inc. market, economic and strategic advisors Sarnia Market Demand and Impact Analysis urbanMetrics inc. RETAIL/SERVICE STORE CLASSIFICATION (BASED ON NORTH AMERICAN INDUSTRY CLASSIFICATION (NAICS) NON-FOOD STORE RETAIL (NFSR) Clothing and Accessories Stores 140 150 Clothing Stores 44811 44812 44813 44814 44819 (Continued) Men's Clothing Stores Women's Clothing Stores Children's and Infant's Clothing Stores Family Clothing Stores Other Clothing Stores Shoe, Clothing Accessories and Jewellery Stores 44815 Clothing Accessories Stores 44821 Shoe Stores 44831 Jewellery Stores 44832 Luggage and Leather Goods Stores General Merchandise Stores 170 Department Stores 45211 180 Other General Merchandise Stores 45291 Warehouse Clubs and Superstores 45299 All Other General Merchandise Stores: 452991 Home & Auto (i.e. Canadian Tire) 452999 Other General Merchandise Stores (e.g. general stores, variety stores, "dollar" stores) Department Stores Miscellaneous Retailers 160 Sporting Goods, Hobby, Music and Book Stores 45111 Sporting Goods Stores 45112 Hobby, Toy and Game Stores 45113 Sewing, Needlework and Piece Goods Stores 45114 Musical Instrument and Supplies Stores 45121 Book Stores and News Dealers 45122 Pre-Recorded Tape, Compact Disc and Record Stores 190 Miscellaneous Store 45311 45321 45322 45331 45391 45392 45399 453991 453992 453993 453994 453995 453996 Florists Office Supplies and Stationery Stores Gift, Novelty and Souvenir Stores Used Merchandise Stores Pet and Pet Supplies Stores Art Dealers All Other Miscellaneous Store Retailers: Tobacco & Tobacco supplies Artist Supplies Collectors items (cards, stamps etc.) Beer & Wine Making Swimming Pool Accessories Religious Goods and Accessories urbanMetrics inc. market, economic and strategic advisors Sarnia Market Demand and Impact Analysis urbanMetrics inc. RETAIL/SERVICE STORE CLASSIFICATION (BASED ON NORTH AMERICAN INDUSTRY CLASSIFICATION (NAICS) SERVICES 200 Consumer Services Rental 5322 5323 210 Finance and Insurance 52211 52213 220 Banks Credit Unions Insurance and Real Estate 52421 53121 230 Consumer Goods Rental (including formal wear, costume, video, tape & disc rental) General Rental Centres (including tools, party rental) Insurance Agencies and Brokerages Offices of Real Estate Agents and Brokers Professional, Scientific & Technical Services 5411 5412 5413 5414 5415 5416 5417 5418 54191 54192 54194 54199 Legal Services Accounting, Tax Preparation, Bookkeeping and Payroll Services Architectural, Engineering and Related Services Specialized Design Services Computer Systems Design and Related Services Management, Scientific and Technical Consulting Services Scientific Research and Development Services Advertising and Related Services Marketing Research and Public Opinion Polling Photographic Services Veterinary Services All Other Professional, Scientific and Technical Services 240 Selected Office Administrative Services 241 5613 56143 56144 56145 56151 250 Employment Services Business Service Centres (eg. printing, copying, mail centres) Collection Agencies Credit Bureaus Travel Agencies Health Care Services 6211 6212 6213 6214 6215 Offices of Physicians Offices of Dentists Offices of Other Health Practitioners Out-Patient Care Centres (e.g. Family Planning, Community Health) Medical and Diagnostic Laboratories Entertainment 260 261 71312 262 71394 Amusement Arcades Fitness & Recreational Sports Centres 263 71399 All other Amusement and Recreation Industries (includes billards parlours) 264 51213 Motion Picture and Video Exhibition (includes cinemas) 270 271 272 273 Food Services and Drinking Places 280 281 7221 7222 7224 Personal and Household Goods Repair and Maintenance 8111 Automotive Repair & Maintenance (includes lubrication, diagnostic centre, tire repair, undercoating, car washes etc.) 8114 Personal and Household Goods Repair and Maintenance (including appliance repair, reupholstery & furniture repair, shoe repair, key duplication etc.) 282 290 Personal Care Services 8121 8123 8129 300 Full-Service Restaurants Limited-Service Eating Places Drinking Places (Alcoholic Beverages) Personal Care Services (including hair, beauty, tanning salon, weight reduction centres, electrolysis, estheticians etc.) Dry Cleaning and Laundry Services Other Personal Services (e.g. pet care (except Veterinary), Photo Finishing) VACANT 9999 VACANT RETAIL/SERVICE SPACE urbanMetrics inc. market, economic and strategic advisors Sarnia Market Demand and Impact Analysis Figure C-7 Canada, 2005 Sales/Sq.Ft., NFSR Chain Retailers (Source: Statistics Canada) Miscellaneous Store Retailers Department Stores & Other General Merchandise Stores Sporting Goods, Hobby, Book and Music Stores Shoe, Jewellery and Luggage Stores Clothing Stores Pharmacies and Personal Care Stores Specialized Building Materials and Garden Stores Home Centres and Hardware Stores Home Electronics and Appliance Stores Computer and Software Stores Home Furnishings Stores Furniture stores $- $ 100 $ 200 $ 300 urbanMetrics inc. market, economic and strategic advisors $ 400 $ 500 $ 600 $ 700 $ 800 $ 900 $ 1,000