db's market overview - retail merchandising
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Denver, CO
Market Overview Natalie Bryniczka, Sarah Hamilton, Lexi Bailey, Evan Jex,
Evolution of denver, co
Denver, CO was founded in 1858 as a gold mining town. Once all of the gold dried up it became a mining town and a railway
was built through it, making it easily accessible for potential settlers.
Denver started as a small urban area, with bordering
rural farms and has transformed into a thriving
downtown area surrounded by suburbs.
Denver was named the capital of Colorado since 1881 and still remains today. The first permanent structure in
Denver was a saloon. Denver brews more beer than any other city in the nation, with over 200
different beers brewed daily.
There were originally three separate towns, with three separate names, where Denver now stands.
In 1859, the other names were dropped in return for a barrel of
whiskey to be shared by all.
The History of Denver
Exactly 1 mile over ‘sea level’: gives themselves the
nickname “The Mile High City”
THE EVOLUTION OF DENVER’S POPULATION...19
80
:49
2,6
94 KEY
TOTAL POPULATION IN THOUSANDS OF PEOPLE
PROJECTED POPULATION IN THOUSANDS OF PEOPLE
PERCENT INCREASE IN POPULATION
PERCENT DECREASE IN POPULATION19
90
:46
7,6
10
20
00
:5
54,
636
20
10:
60
0,1
58
20
20
:73
4,0
79
20
14:
66
3,8
62
20
50
:1
MIL
LIO
N
+15.69 +8.0-5.4 +5.0
CONSUMER PROFILE
Population Age DistributionPopulation 2000 Denver 2000 US 2010 Denver 2010 US
Under 5 6.8% 6.8% 7.3% 6.5%
5-19 17.6% 21.8% 16.7% 20.4%
20-34 28.7% 20.9% 28.4% 20.3%
35-54 28.4% 29.4% 27.1% 27.9%
55-64 7.2% 8.6% 10.3% 11.8%
65-84 9.7% 10.9% 8.7% 11.3%
85-over 1.5% 1.5% 1.6% 1.8%
Median Age 33 35 34 37
Household Income 2010: Denver 2010: U.S. 2000: Denver 2000: U.S.
$10,000-$24,999 18.3% 21% 19.5% 19%
$25,000- $49,999 25.6% 24% 21.5% 22%
$50,000- $99,999 27.1% 32% 27.4% 20%
$100,000-$149,999 10.3% 14% 7% 24%
$150,000-$199,999 4.1% 5% 2.1% 13%
$200,000 & over 4.7% 4% 2.5% 2%
Ethnicities of DenverEthnic Groups 2000 Denver 2000 US 2010 Denver 2010 US
White 65.3% 75.1% 68.9% 72.4%
African American
11.1% 12.3% 10.2% 13.6%
American Indian
1.3% .9% 1.4% 1.7%
Asian 2.8% 3.6% 3.4% 5.6%
Hispanic 31.7% 12.5% 31.8% 16.3%
A DIVERSE COMMUNITY
African American
10.2%
Hispanic
31.8%
White/Caucasian Asian
3.4%68.9%
Education: Population 25 and Over 2010:
Denver2010: U.S. 2000:
Denver2000: U.S.
High School Graduate
46.4% 29.7% 20% 28.6%
Some College
35.4% 16.7% 5.4% 14%
Bachelor Degree
38.2% 20% 22% 15.5%
Graduate Degree
21.6% 1.9% 7.9% 5.9%
Household Statistics: 2000 vs. 2010 2000:
US2010:
US2000:
Denver2010:
Denver
Average Household
Size
2.59 2.63 2.27 2.53
Household Ownership
66.2% 64.9% 52.48% 51.4%
Renter 33.8% 35.1% 47.52% 48.6%
Cost of living is low8.8% Unemployment
Degree-driven communityAverage age of residents: 34
Looking for Employment in denver?
Unemployment Age & Race Age Denver 2010 US 2010
16-19 26.6% 23.9%
20-24 11.3% 13.2%
25-44 6.2% 7.1%
45-54 8.2% 5.9%
55-64 6.3% 5.5%
Race Denver 2010 US 2010
White 6.3% 6.8%
African American
14.5% 14%
American Indian
14% 13.9%
Asian 5.2% 6.4%
Hispanic 11.1% 9.6%
Notable Trends:
-Unemployment spiked from 2001-2003,and again from 2008-2010.
-Although unemployment was high during 2009 and 2010, it was still lower than the US average unemployment rate
Denver profile
Business & Industry: 2000 & 2010
Largest employers
4,230
35,000
5,000
Denver
Inter
natio
nal A
irport
Denver is home of several Forbes 500 companies and was ranked #1 among
Forbes’ “2015 Best Place for Business & Careers”
Denver is also a fast growing area for companies to place their
international headquarters
Denver
unive
rsity
*Data is shown in thousands of people, and was collected from MetroDenver.Org (U.S. Census Bureau) Ga
tes Co
rporat
ion
Rocky Mountains National Park
4 major sports teams
Craft Beer Capital of the Midwest
Largest Beer Festival on the Planet
Mount Evans Scenic Byway
Want to visit Denver?
Recreation in “The Mile High” City
● Climate-Mountainous area, mild winters
● Golf year-round
● 5 well known ski resorts in the area of Denver
● Great nightlife, top restaurants, dance clubs
and comedy clubs
JUST FOR FUNOver 200 different beers brewed daily
Coors Field experiences more home runs than the average ballpark
Home of the veryfirst Chipotle Mexican Grill in 1993
Market profile
Total Supermarkets Operated
Market Share Leaders
OUR COMPETITION
Top food retailers in the Denver marketplace
2004-2015
1. King Soopers 2. Albertsons-Safeway3. Whole Foods 4. Natural Grocers by VC
“offer customers friendly service, value, cleanliness and quality”
Parent store: KrogerTier 2: Mainstream
Founder: Lloyd J. KingHeadquarters: Denver, Colorado
Opened doors in 1947 in Arvada, ColoradoStore Size: 123,000 sq. feet
2015 reported: $1.9 Billion annual sales 15,000 employees at 143 locations
Target Market: Value ShoppersSharing Tradition: Growth & Stability
Services: Pharmacy, Finance & Pet Insurance
“..the feel of a family-driven
atmosphere with the corporate
support of a large, powerhouse
grocery company”
King Soopers Marketplace
King Soopers Marketplace
Dillon Companies acquired King Soopers & 6 years later
became Kroger.
1947:In 1947, Lloyd J. King opened the first King Soopers store in
Arvada, Colorado.
2004:Plans for first full-service
supermarket begin in Denver, Colorado.
2015:King Soopers annual revenue
reaches $1.9 billion.
1957:
Albertsons-Safeway Tier 2: MainstreamAverage store size 46,000 sq. feet
Developed “Lifestyle Store Format” warm ambiance, subdued lighting for a better shopping experience
Value Equation-Quality products-Well developed facilities
Stores really focus on promoting store brands, developing customer loyalty and creating an enjoyable shopping experience.
2014 Albertsons and Safeway merged 2,400 stores with over 250,000 employees
Albertsons, Safeway, Vons, Jewel-Osco, Shaw’s, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market and Carrs.
1989 Albertsons becomes 6th largest food-drug retailer in the U.S. operating 497 stores
1939Joe Albertson opens his first 10,000 sq. foot grocery store in Boise, Idaho
2005 Safeway begins
implementing “Lifestyle Format” in stores to differentiate from competition
2014 Albertsons and Safeway announce merger agreement. Over 2,400 stores.
Albertsons-Safeway
Whole Foods Tier 1 Store: UpscaleAverage Store Size: 39,000 Sq ftSupermarket ChainRoughly 20,500 SKUs
Value equation: Quality & Service
Co-CEOs: John Mackey & Walter RobbFounders: John Mackey, Rene Lawson Hardy, Craig Weller & Mark Skiles
Target Market: Health conscious, environmentally conscious, middle-class consumers, by using a modern, supermarket format
Mission: To promote the vitality and well-being of all individuals by supplying the highest quality, most wholesome foods available
The first location was in Austin, TX
1992Whole Foods Market goes public on Jan. 23, at split-adjusted IPO price of $2.125 per share. Whole Foods Market acquires Bread and Circus. Much of the company’s early growth comes through mergers and acquisitions.
2002The company introduces enhanced meat standards and requires annual species-specific affidavits for all meat producers. Whole Foods Market launches its 365 Organic Everyday Value brand, the first national commodity-priced, all-organic product line in the United States.
2015Whole Foods has grown to 436 stores and 91,000 team members.
1980 Safer Way Natural Foods and Clarksville Natural Grocery join to open Whole Foods Market on Sept. 20, with a staff of only 19.
Whole Foods
Natural Grocers by VC 5 Founding Principles 1. Nutrition Education 2. Highest Quality Products3. Affordable Pricing4. Committed to employees
Target market: Health conscious consumer looking
for reasonably priced food
Dedicated to Affordably Priced Merchandise EDAP- long term discounts
Health Hotline- volume deals In store specials- Month long deals
Produce Deals- offer deals in peak seasonManager Specials- Each store offers different specials
based on surplus or vendor specials
committed to consumer health(only sell organic)
MISC . FACTS-Mostly free-standing locations-Actively engage with consumers via social media -About 20,000-25,000 SKUs
SUSTAINABILITYFrom the start of the
Supply chain to the end -BPA free cash register tape-Non-Toxic cleaning products-Recycle all pallets and cardboard -Bag your own checkout -Sustainable, non-toxic construction materials-LED lighting where feasible
1989 First large-chain grocer to sell ONLY organic produce
1955Margaret & Philip Isely had a vision to make healthy living affordable for EVERYONE
1995 Establishes Sustainable
Competitive Advantage by offering a free Nutritional Health Coach
2015Now operating over 90 stores in 13 different states
Natural Grocers by VC
Retail mix
80204
Location Location Location
-Directly across from Pepsi Center-Located next to Hotel -Located amidst 3 college campuses -Between multiple demographics
Location Location Location
4 bus stops create easy accessibility for college
students and those in
neighboringcommunities
Proximity to multiple main roads, as well as ample parking
The DEN
Upper Level Sports Bar
Lower Level Grocery
A modern-masculine twist on a locally sourced, health
conscious grocery store
Simple & accessible layout
Merchandise assortment/ pricing
1. Limited number of grocery SKU’s (only top selling items)
2. Deep assortment of alcoholic beverage SKU’s
3. Wide range of pricing accommodating college students while also featuring some more expensive items tailored towards the
Cherry Creek residents
Customer Service Levels
1. Well-trained staff educated on alcohol pairings, sommelier, and craft beers
2. Food pairings would be based upon what is currently “in season”
3. Staff is friendly and helps make the shopping “experience”
Concept store
The DEN
First Level Store Overview
Grocery Layout
Alcohol Selection Layout
Second Level Layout
Mile High Sports Bar
Ariel View
All Together
Detailed Features (1st Level)
Detailed Features (1st Level)
Detailed Features (2nd Level)
Detailed Features
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Tying It All Up
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Tying It All Up
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Tying It All Up ••
Questions?Thank you!
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