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

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+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 ••

Questions?Thank you!