Evaluation Measurement tools

Gross Adequacy: Hamilton

The total sales for a product line or type of store in a market area with no consideration for competition.
Percentage of income method
Total dollars spent annually in grocery stores: $ 25428300000 x 2.3% (0.023) = $ 584850900
Percentage of retail sales dollar method
Total dollars spent annually in grocery stores: $ 8085836000 x 5.0% (0.050) = $ 404291800
Per capita expenditure method
Total dollars spent annually in grocery stores: Hamilton population 753490 x $301 = $226800490
Gross Adequacy is the average of the three methods:
$ 584850900 + $ 404291800 + $ 226800490 (divided by 3) = $ 405314396.7
Therefore gross adequacy is $ 405314396.7
Net Adequacy: Hamilton
Total sales method
Gross Adequacy (divided by) # of retailers selling the product line = estimated sales per retailer
$ 405314396.7 (divided by) 1693 = $ 239406.0229
IRS (Index of retail saturation, calculate potential sales)
The potential sales per square foot for a product line in a market area.
IRS= C x RE (divided by) RF
C = Population (753490)
RE = Retail Expenditures ($ 301)
RF = Retail Facilities (3945844 square feet)
IRS = 753490 x $ 301 (divided by) 3945844 = $ 57.47832/ per square foot
The IRS is 57.47832 dollars per square foot.

Trade Area
The trade area is the geographic area from which a store attracts its business (customers).
Our comparison city is Kitchener. The distance from Hamilton to Kitchener is 64.9 kilometers.
Hamiltons population is 753490, Kitcheners population is 508973.
The breakeven point is 29.27749 kilometers.
BP= distance (divided by) population #1 (divided by) population #2 (square rooted, plus one)
BP= 64.9/1+ 753490/508973 (square rooted).

Retail Operation Analysis
Government and legal requirements:
Zoning and Bylaws:
The location for our store is 915 Barton Street East. This location is in zone H (956). Zone H is considered
commercial and community shopping by the city of Hamilton, which is one of the reasons we felt it
would be a suitable location for our grocery store. Before submitting an application for our store site,
we had to have a formal consultation with the planning division of the city of Hamilton. We outlined out
business plan and the traffic study data that we gathered. Since the zone our site is in is already deemed
commercial/ community shopping, no bylaw amendment was necessary. After our formal consultation
meeting, we officially submitted our proposal along with the application fee ($150). We then posted a
public sign notifying citizens of our application of a business grant at our site location, and then a public
meeting was held 20 days later (minimum amount of time needed). After no issues were raised at the
public meeting, next was the city council meeting, where the economic development and planning
committees recommendation was submitted to council. After no refusals and appeals, we were
allowed to open our business. We registered our business as a partnership, there are two of us that
claim ownership, both sharing an equal share in the company.
Business Registration/ Licenses:
It cost us $60 to register and $8 per Name Search. There is no change of use permit according to the
city of Hamilton, so we only needed a Building Permit, to legally change our site into a grocery store. We
simply applied to city hall (in person), then were granted a Building Permit. We paid a land registry fee
to the minister of finance $(360). We also applied for and received a Business license from the city of
Hamilton, classified as a Business and Establishment license, at the licensing office (77 James Street
North, Suite #250).
Store Hours:
There is no limit on the amount of hours a store can be open in Hamilton. The hours our grocery store
will be open are from 7am-10pm.
Sales Tax Collection:
WE have a HST (Harmonized Sales Tax) on all goods and products sold in our grocery store that are not
considered to be either basic groceries, or prescription drugs. Basic groceries are most food and
beverage products fit for human consumption, including sweetening agents and ingredients that may be
used as seasoning (such as herbs and spices). We remit our HST to the federal government of through
the Canada Revenue Agency, under the filing HST return. On our HST returns, we will declare the HST
we collected from customers, and then subtract the ITC (Input Tax Credits) that we are credited with to
determine out GST net tax. We will file our remits through the mail.
Employment Guidelines:
Our grocery store will follow all employment guidelines, set by the federal government and the province
of Ontario. We pay minimum wage and time and a half on holidays. The maximum hours one employee
can work during one shift is eight hours, with a half hour for lunch break. Our business will follow all
laws set by the Employment Standards Act (ESA). We do not discriminate in any way, shape or form and
we consider ourselves to be an equal opportunity employer.