The Founder 1966

1966 Gordy Schafer Opens the First Gordy’s Market on the South Side of Chippewa Falls (approximately 2,000 sq. ft.) Gordy’s Market At A Glance

Gordy’s Team Jeff Schafer, President Dave Schafer, CFO Jenna Schafer, VP of IT, HR & Marketing Rick Schafer, VP of Facilities Judd Knott, Development Director

Gordy’s Market Today 2015 Gordy’s Market Operates 25 Stores, Soon to be 26 Throughout West Central Wisconsin. 15 of those stores are in cities with populations between 1,350 and 3,600

Gordy’s Market Expanding Footprint

Decision Process The decision process that determines whether or not we go into an existing location include: - The cost of the existing location – building and equipment - The amount of reinvestment needed to bring the operation up to standard - External and internal market analysis of the location and sales potential - Community incentives - Development of a proforma based on our operations to see if the project works financially

Lessons learned Augusta, WI The only store in a city of 1,550 had been closed 6 months. - The purchase price was reasonable. - The downtown location featured plenty of parking - We replaced all of the refrigeration equipment, lights, décor and loading dock - The market analysis sales forecast was positive - The proforma was outstanding The Result One of our highest sales per square foot stores

Lessons learned Shell Lake, WI The owner of the only store in a city of 1,350 wanted to retire - The purchase price was reasonable. - The downtown location had limited parking - The facility consists of 3 separate store fronts totaling 10,000 sqft that had been built in 1910, Tin ceilings, wooden floor, and a full basement - We replaced most of the refrigeration equipment, lights, and décor - There is no loading dock - The market analysis sales forecast actually understated our actual results - The proforma was outstanding The Result A store that does 140% of its previous sales, that is inefficient to operate and difficult to shop

Decision Process The decision on whether or not to go into a new grounds up location includes all of the points we’ve already covered. Project costs for land and site work have to be considered. Building and equipment costs run $160/ft. Community support to make the project feasible becomes critical

Communit y Support Marathon City Center Project Andy Kurtz the Marathon City Administrator approached us about our interest in locating a 22,000 sqft store in the city. They were planning a significant redevelopment of their downtown and wanted to include a grocery store in the plan. We had several meetings with Andy. Although the market analysis looked good the project wouldn’t work financially without support from the city.

Communit y Support Marathon City Support - Development of a TID - City to acquire the parcels necessary for the project - City to relocate public utilities as necessary - A Direct Business Assistance Grant given to the developer for site improvements and for the purchase of refrigeration and HVAC equipment -Several local employers are also donating material for the project