1. FILLING IN THE GAPS TO RETAIL SITE SELECTION WITHIN MARKETS LOCATED ALONG THE U.S. MEXICO BORDER HIDDEN CONSUMERS

2. TRUE MARKET UNDERSTANDING How to Re-define and Re-Evaluate the Various Measures & Tools Used for Assessing Expansion within these Markets. Understanding the Impact of the Cash Based Economy, the Hispanic Market & Mexican National Consumer, and the Untapped Opportunities that Deliver Confidence, Continued Success and Expansion Border Crossers are commuters, tourists, and consumers…..

3. Effectively quantifying the economic impact that these consumers have on these regional economies can be a challenge. U.S. – Mexico Border is the most frequently crossed international boundary in the world 45 U.S. – Mexico Border Crossings with 330 Ports of Entry = 350 million northbound crossings annually – Estimated 665,000 people crossing daily (Customs & Border Protection 2016)

4. LIVE, PLAY, WORK, SHOP, VISIT IMPACT OF CROSS BORDER SHOPPERS ALONG THE BORDER

5. EXAMPLES UTILIZED TO ASSES THESE CROSS-BORDER MARKETS License plate studies Consumer Analytic Tools Special zip codes @ point-of-sale for non- U.S. Residents Surveys @ various points: Radio & TV media consumption, Retailers, Consumers, Point of Sale, Bridge Crossings, Visitor Centers (Nielsen, Universities, Financial Lenders, Marketing & Advertising firms) “Manifiestos” -- TX Sales Tax Refunds

6. CHARACTERISTICS OF CROSS-BORDER SHOPPERS Very high level of brand loyalty Very price, service, and quality conscious Very favorable views of U.S. products – range of merchandise, atmosphere Multi – Generational Shopper & Shops as a Group/Family Young Demographic – Median Age 31 years old – Tech Savvy

7. SNAPSHOT OF CHARACTERISTICS OF CROSS-BORDER ECONOMIES Dual – Households (Mexico & U.S.) & Higher Disposable Incomes due to + Working Adults Young Demographics & Growing Families Peso Exchange Rate Fluctuation Industry Linkages on both sides (Distribution, Logistics) Unbanked/Underbanked Consumers Shopping & Dining Out – Busy 24-7 Mexican National & American Customer Habits Bilingual Workforce & International Base

8. CROSS-BORDER RETAIL SPENDING IN THE U.S. Euromonitor 2012 – Mexican Nationals using VISA cards represents 29% of their total spending in the U.S. 49% of their spending was conducted in cash 31% using credit cards 16% using debit cards 3% using travelers checks Euromonitor & Saber Research Institute 2012-2013

9. SIGNIFICANT ECONOMIC IMPACTS Source: www.crossborderbusiness.com

10. Cross the border for a variety of reasons: Visiting Family & Friends Shopping – Estimated $140 to $170 daily per trip Work – Example -- Manufacturing Industry Getting medical attention Attending U.S. schools Average Bridge Wait Times– 45 Minutes EZ Pass, SENTRI (Secure Electronic Network for Travelers Rapid Inspection) – Frequent pre- approved border crossing traveler SIGNIFICANT ECONOMIC IMPACTS Source: Crossborder Business.com

11. Cross Border Business Associates: Estimates 18-20 million Mexicans cross the border into the U.S. every month Representing $25-30 million in daily retail sales along the border region during normal times of the year This equates to about $10 billion dollars annually, but does not include capital expenditures SIGNIFICANT ECONOMIC IMPACTS Source: Crossborder Business.com

12. CROSS- BORDER TRAVEL MADE EASY Gateway between San Diego & Tijuana International Airport 390-foot enclosed Pedestrian Skybridge Estimated 2 million+ U.S. Passengers fly out of Tijuana annually Tijuana serves 34 cities in Mexico plus Shanghai and Tokyo.

13. EL PASO – JUAREZ ECONOMY 2.5 Million People + within a 50-Mile Radius 20 Million+ Northbound Border Crossings Estimated Impact in El Paso on Retail Sales & Traffic Contribute Approx. $2 Billion+ in Retail Sales/Year (Cross-Border Shopper) Estimated 30%+ of Retailers state their traffic is from Cross-Border Shoppers

14. DELIVERING CONFIDENCE & CONTINUED EXPANSION “It’s such an incredible opportunity for Whole Foods because everything going on in El Paso right now from a growth perspective is exhilarating,” Heather Larrabee, Whole Foods Marketing Coordinator 2 nd Sprouts Farmers Market Opened in El Paso Feb. 2016 – Ted Frumkin, Sprouts chief development officer, said the “ West El Paso store is one of the top- performing stores in the rapidly growing, 222- store chain. El Paso could be a three-to four-store market.”

15. Mesa & Pitt Opening Fall 2016: Ground: 45,000 SF Balcony: 2,000 SF Mezzanine: 3,000 SF 28,700 SF Retail 4,500 SF Restaurant 12,000 SF Office

16. Understanding the Untapped Opportunities that Deliver Confidence, Continued Success and Expansion Along the U.S. –Mexico Cross-Border Markets  Filling in the gaps to your site selection process….  Taking into account the neighbors next door….  Critical indicators like educational attainment and income are important – but these may not always fit within markets such as these… Once you pull the trigger to expand… Delivering, maintaining and continuously improving your store’s SERVICE, QUALITY, & EXPERIENCE

17. THANK YOU & MUCHAS GRACIAS