Bartlett Site: Ekurhuleni January 2007 Feasibility Study: Demographics Retail Potential Note: This...
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Transcript of Bartlett Site: Ekurhuleni January 2007 Feasibility Study: Demographics Retail Potential Note: This...
Bartlett Site: Ekurhuleni
January 2007
Feasibility Study:Demographics & Retail Potential
Note: This project should be regarded as confidential as it contains Data, Information and Intellectual Property of Fernridge Consulting and Retail Network services - Copyright (Limited Distribution)Copyright 2007: Fernridge Consulting.
This report aims at assessing the feasibility of a proposed site for a new Convenience centre located within the Bartlett, Ekurhuleni area. The proposed site is situated on the corner of Ridge & Elizabeth Roads.
A demarcated catchment area was digitized in order to extract the 2007 Fernridge Household counts and existing retailers. The site was assessed by physical inspection as well as aerial photography. By using the Census 2001 data we were able to initiate a demographic comparison between the proposed catchment area and the surrounding precinct. Future developments were also taken into consideration for future growth figures. The final points of the report focus on our retail potential model which has been followed by an executive summary.
Copyright 2006: Fernridge Consulting.
Introduction
Copyright 2007: Fernridge Consulting
Copyright 2006: Fernridge Consulting.
Overview/ Landuse
Copyright 2007: Fernridge Consulting
OR Tambo International Airport
East Rand Mall
DENEL Aviation
Benoni Lake Golf Club
The Site
To Kempton Park
To Benoni
To Johannesburg
Copyright 2006: Fernridge Consulting.
Catchment Area
Copyright 2007: Fernridge Consulting
OR Tambo International Airport
East Rand Mall
DENEL Aviation
Benoni Lake Golf Club
To Kempton Park
The Site
To Benoni
A primary catchment area was delineated in order to assess the demographic profile and potential in the immediate vicinity of the site.
To Johannesburg
Copyright 2006: Fernridge Consulting.
Current Retail Potential Estimate (RPE)
Copyright 2007: Fernridge Consulting
I ncome Breakdown
A++ 4 A ++ Inc R 8,500 4 R 34,000
A+ 240 A+ Inc R 7,000 240 R 1,680,000
A 777 A Inc R 6,500 777 R 5,050,500
B 1518 B Inc R 4,000 1,518 R 6,072,000
C 1211 C Inc R 2,400 1,211 R 2,906,400 95
D 654 D Inc R 800 654 R 523,200 incl 5% inflowDL - D L Inc R 500 - R 0
100% Potential
Total 4,404 Hse Households 4,404 R 16,266,100 R 17,122,211
PnP WWMarket Share Turnover R 30,000 R 60,000
15% R 2,568,332 1027 51420% R 3,424,442 1370 68525% R 4,280,553 1712 85630% R 5,136,663 2055 1027 m²
95%
2007 Household Count
Woolworths Food Potential:- @ benchmark R60,000/m² trading density- @ benchmark 15% market share- Monthly turnover of ± R2.6m- Warranted floor space of 514m² selling.
Pick ‘n Pay Potential:- @ benchmark R30,000/m² trading density- @ low benchmark 25% market share- Monthly turnover of ± R4.3m- Warranted floor space of 1712m² selling.
Anticipated trading density
(Rand / m² / Year)
Anticipated market share scenario’s
Monthly Expenditure No of Households
Expenditure Model
Copyright 2006: Fernridge Consulting.
Executive Summary
Copyright 2007: Fernridge Consulting
• The proposed site is very well situated in a somewhat confined area. Barriers like the Airport to the west and the N12 highway to the south are enhancing the catchment to a captured market.• C/o Elizabeth Rd and Ridge Rd is very well located in the catchment. This is a relatively busy crossing. The quantity of the traffic will be moderate but it is expected that the quality of passing traffic will be high. Due to the neighborhood character of the proposed centre the latter might only be achieved if the convenience offer of the centre is emphasized strongly.• The proposed site will be a stand alone centre, thus synergy is limited, but on the other hand, direct competition is also minimized.• The value density modeling is an indication that the area is on par with the rest of the catchment in terms of the monthly food expenditure.• The catchment is characterized by a strong A – C income bracket. Rapid growth of residential units have occurred in the area, and is a positive for the proposed shopping centre development.• We believe that a Woolworths Food and a Pick ‘n Pay will complement each other in the centre. Taking in consideration that each one of these store’s benchmark trading densities (Woolworths: R60,000/m² and Pick ‘n Pay: R30,000/m²) with a expected 15% and 25% market share respectively, will warrant a 514m² store (selling) for Woolworths and a 1712m² store (selling) for Pick ‘n Pay. The expected monthly turnover of The Woolworths will be ± R2,6m and for Pick ‘n Pay a ± R4,2m monthly turnover.• A Convenience Centre of 10,000m² GLA can be justified in the next ± 2 years given the high growth in the area.
Recommended tenant mix according to the following guidelines (for the 10,000m² GLA Convenience centre):
• Food• National supermarket – main anchor Pick ‘n Pay (± 2,200m² GLA) and Woolworths
Food (± 700m² GLA).
• Specialty Stores • Secondary anchor – Clicks.• Line shops such as salon, DVD, music, pharmacy etc.
• Service component including Bank / ATMs and Post Office.
• Restaurants & Take Aways (Wine & Dine)• One or two well known Fast Foods like Wimpy, KFC and a Coffee Shop
Suggested Tenant Mix:
In our opinion the centre should be created into a prominent and convenient node that will attract people from the surrounding neighborhoods. The tenant mix should be sufficient to attract the middle-to-upper income bracket.
Executive Summary
Copyright 2006: Fernridge Consulting
Sybrand Strauss (Director)Fernridge Consulting PTY LTDSouth Africa
Tel: 011 712 1720Fax: 011 339 1833Cell: 082 330 5168e-mail: [email protected]
Marinus van der Merwe (Business Analyst)Fernridge Consulting PTY LTDSouth Africa
Tel: 011 712 1370Fax: 011 339 1833Cell: 084 240 1151e-mail: [email protected]
Contact Details
Copyright 2007: Fernridge Consulting