Catalog Desk Impact and Opportunity Analysis Mark Kalmbacher

Study Overview Identify Sample Relationships Build/Evaluate Trade Areas Zip Score Methodology

Identify Sample Relationships

Identify Sample Relationships Sample Set: 12 store relationships. Large, Medium, Small markets geographically distributed across the US. Determine physical attributes for benchmark set Distance parameters Trade area extent Utilize entire universe of catalog desks as benchmarks for comparison of new locations. Share of potential comparison Impact on nearby department stores

Sample Set US Markets Store Locations Sample Set

Build/Evaluate Trade Area Data

Store Desk Trade Area

Catalog Desk Trade Area

Trade Area Comparisons

Evaluate Trade Area Extents 1997 1998 1999

Trade Area Evaluation Home Zip Code Analysis

Trade Area Evaluation Home Zip Code Analysis

Significant Factors on Zip Sales

The average distance to nearest store is 43 miles.

Geo Home Zip Sales Less than 30 Miles More than 30 Miles

Sample Store Trade Area Comparisons Home Zip Code Characteristics Geo Desks 30 miles 12,000 Population $1 million Potential 30% Corporate Share 70% of Total desk sales Metro Desks 15 miles 30,000 Population $3 million Potential 16% Corporate Share 60% of Total desk sales

Calculation of Market Potential and Share

North American Industry Classification System (NAICS)

Calculation of Market Potential and Share Census of Retail Trade at zip level Customer segmentation modeling Proxy for Population and Income

Zip Score Methodology

Zip Score Methodology Potential Current Sales Share of Market Geography (Metro/Geo) Cannibalization - distance factor

Potential New Desks

Potential New Desks