HomeMy WebLinkAbout2017 Sales Tax Digest Fourth Quarter
CITY OF PALO ALTO OFFICE OF THE CITY AUDITOR
August 27, 2018
The Honorable City Council
Palo Alto, California
City of Palo Alto Sales Tax Digest Summary Fourth Quarter Sales
(October - December 2017)
The following files are attached for this informational report for which no action is required.
ATTACHMENTS:
Attachment A: Sales Tax Highlights (PDF)
Attachment B: MuniServices Sales Tax Digest Summary (PDF)
Attachment C: Economic Categories and Segments (PDF)
Attachment D: MuniServices Economic News and Trends (PDF)
Department Head: Harriet Richardson, City Auditor
Page 2
Informational Report to the City Council
BACKGROUND
Sales and use tax represents $31.5 million, or 15 percent, of projected General Fund revenue in the
City’s adopted operating budget for fiscal year 2018. This revenue includes sales and use tax for the City
of Palo Alto and pool allocations from the state and Santa Clara County.1
We contract with MuniServices LLC (MuniServices) for sales and use tax recovery services and
informational reports. We use the recovery services and informational reports to help identify
misallocation of tax revenue owed to the City, and to follow up with the California Department of Tax
and Fee Administration (formerly the State Board of Equalization) to ensure that the City receives
identified revenues. We include sales and use tax recovery information in our quarterly reports to the
Policy and Services Committee.
The California Revenue and Taxation Code, Section 7056, requires that sales and use tax data remain
confidential. Therefore, the City may not disclose amounts of tax paid, fluctuations in tax amounts, or
any other information that would disclose the operations of a business. This report, including the
attached Sales Tax Digest Summary, includes certain modifications and omissions to maintain the
required confidentiality of taxpayer information.
MuniServices prepares the Sales Tax Digest Summary and Economic & News Trends report (Attachments
B and D), which we share with the Administrative Services Department (ASD) for use in revenue
forecasting and budgeting. The Economic Categories and Segments are shown in Attachment C. Sales tax
information is reported on a calendar‐year basis.
DISCUSSION
The Sales Tax Digest Summary covers fourth quarter sales for calendar year 2017, which are reported as
part of the City’s fiscal year 2018 revenue. In May 2018, ASD should receive information from the state
on aggregate sales and use tax receipts for the first quarter of 2018. Following are some highlights of the
sales and use tax information:
Palo Alto’s overall sales and use tax revenue (cash receipts) for the fourth quarter of 2017
increased by $430,000, or 5.4 percent, including pool allocations, compared to the fourth
quarter of 2016. For all Santa Clara County jurisdictions, sales and use tax revenue for the fourth
quarter of 2017 increased by $7.0 million, or 6.2 percent, compared to the fourth quarter of
2016.
Statewide, most regions in California experienced an increase in sales and use tax revenue for
the year ending in December 2017, with a one‐year statewide increase of 3.6 percent.
Palo Alto’s sales and use tax revenue totaled $30.0 million for the year ending in December
2017, an increase of 5.4 percent from $28.4 million during the prior one‐year period.
1 See definitions of state and county pools on page 3.
Office of the City Auditor
Sales Tax Highlights – Fourth Quarter Sales (October – December 2017)
Attachment A
Office of the City Auditor | Sales Tax Highlights 2
Excluding pool allocations and adjusting for prior‐period and late payments, Palo Alto’s sales and
use tax revenue for the fourth quarter of 2017 increased by 4.1 percent compared to the fourth
quarter of 2016. The annual increase was 1.3 percent compared to the prior year.
Economic Influences on Sales and Use Tax
The Economic News & Trends report discusses economic influences, including national and state
economic trends, auto, retail, e‐commerce, restaurant and grocery trends, that may affect the City’s
sales and use tax revenue.
Preliminary estimates from the California Employment Development Department show that the
March 2018 unemployment rate, which is not seasonally adjusted, was 2.6 percent in Santa Clara
County and 2.2 percent in Palo Alto.
Economic Category Analysis
MuniServices’ analysis of economic categories for the year ending December 2017 shows:
Economic category
Percent of Palo Alto’s sales
and use tax revenue
Percent Increase (Decrease)
compared to prior year
General retail 32.8% (6.6%)
Food products 19.1% 1.0%
Business‐to‐business 22.5% 18.4%
Construction 2.2% (33.5%)
Miscellaneous 23.4% 4.5%
The following chart shows sales and use tax revenue by geographic area:
Palo Alto’s Sales and Use Tax Revenue by Geographic Area
For the Year Ending December 2017
(Amounts include tax estimates and exclude county pool allocations)
Stanford
Shopping Center
$5.6 million, 23%
Stanford Research Park
$3.9 million, 16%
Downtown/University Avenue
$3.6 million, 15%
California Ave/Park Blvd/Lambert Ave
$1.4 million, 6%
Town & Country
$0.6 million, 3%
All Other Areas
$9.5 million,
38%
Attachment A
Office of the City Auditor | Sales Tax Highlights 3
DEFINITIONS
In California, either sales tax or use tax may apply to a transaction, but not both. The sales and use tax
rate in Palo Alto was 9.0 percent during the fourth quarter of 2017.
Sales tax – imposed on all California retailers; applies to all retail sales of merchandise (tangible personal
property) in the state.
Use tax – generally imposed on consumers of merchandise (tangible personal property) that is used,
consumed, or stored in this state; purchases from out‐of‐state retailers when the retailer is not
registered to collect California tax or does not collect California tax for some other reason; and leases of
merchandise (tangible personal property).
Countywide/statewide pools – mechanisms used to allocate local tax that cannot be identified with a
specific place of sale or use in California. Local tax reported to the pool is distributed to the local
jurisdiction each calendar quarter using a formula that relates to the direct allocation of local tax to each
jurisdiction for a given period.
Examples of taxpayers who report use tax allocated through the countywide pool include:
Construction contractors who consume materials used when improving real property and whose
job site is regarded as the place of business
California or out‐of‐state sellers who ship goods directly to consumers in the county from
inventory located outside the state
Auctioneers, catering trucks, itinerant vendors, and vending machine operators and other
permit holders who operate in more than one local jurisdiction but are unable to readily identify
the particular jurisdiction where the taxable transaction takes place
Respectfully submitted,
Harriet Richardson
City Auditor
Sources: MuniServices
California Department of Tax and Fee Administration
California Employment Development Department
City of Palo Alto Fiscal Year 2018 Adopted Operating Budget
Audit staff: Lisa Wehara
Attachment A
City of Palo Alto
Sales Tax Digest Summary
Collections through March 2018
Sales through December 2017 (2017Q4)
www.MuniServices.com (800)800-8181 Page 1
California Overview
The percent change in cash receipts from the prior year was 3.6% statewide, 3.9% in Northern California
and 3.5% in Southern California. The period’s cash receipts include tax from business activity during the
period, payments for prior periods and other cash adjustments. When we adjust for non-period related
payments, we determine the overall business activity increased for the year ended 4th Quarter 2017 by
3.1% statewide, 3.0% in Southern California and 2.9% in Northern California.
City of Palo Alto
For the year ended 4th Quarter 2017, sales tax cash receipts for the City increased by 5.4% from the
prior year. On a quarterly basis, sales tax revenues increased by 5.4% from 4th Quarter 2016 to 4th
Quarter 2017. The period’s cash receipts include tax from business activity during the period, payments
for prior periods and other cash adjustments.
Excluding state and county pools and adjusting for anomalies (payments for prior periods) and late
payments, local sales tax increased by 1.3% for the year ended 4th Quarter 2017 from the prior year. On
a quarterly basis, sales tax activity increased by 4.1% in 4th Quarter 2017 compared to 4th Quarter
2016.
Regional Overview
This seven-region comparison includes estimated payments and excludes net pools and adjustments.
% of Total / % Change
City of Palo
Alto
California
Statewide
S.F. Bay
Area
Sacramento
Valley
Central
Valley South Coast Inland
Empire North Coast Central
Coast
General Retail 32.8 / -6.6 27.7 / 1.1 25.7 / -0.9 26.8 / 1.4 30.8 / 4.8 28.4 / 0.5 26.8 / 3.5 27.5 / -1.3 29.8 / -7.4
Food Products 19.1 / 1.0 21.1 / 3.6 22.4 / 2.7 17.5 / 5.2 16.5 / 4.1 22.6 / 3.7 17.6 / 4.3 18.4 / 1.4 30.9 / -5.7
Construction 2.2 / -33.5 9.7 / 4.8 9.9 / 5.0 12.5 / 8.0 12.0 / 5.8 8.5 / 5.6 10.6 / 0.2 14.3 / 8.3 8.6 / -12.9
Business to Business 22.5 / 18.4 16.5 / 3.4 19.5 / 0.8 13.7 / 7.0 13.3 / 14.6 16.2 / 2.5 16.3 / 5.0 8.1 / 2.1 6.0 / -6.3
Miscellaneous/Other 23.4 / 4.5 25.1 / 5.3 22.6 / 6.4 29.5 / 8.9 27.3 / 6.9 24.3 / 3.3 28.6 / 5.1 31.7 / 6.5 24.7 / 8.4
Total 100.0 / 1.3 100.0 / 3.1 100.0 / 2.2 100.0 / 4.8 100.0 / 6.3 100.0 / 2.5 100.0 / 4.0 100.0 / 3.1 100.0 / -3.7
City of Palo
Alto State Wide S.F. Bay
Area
Sacramento
Valley
Central
Valley South Coast Inland
Empire North Coast Central
Coast
Largest Segment Restaurants Restaurants Restaurants Restaurants Department
Stores
Department
Stores Restaurants Auto Sales -
New Restaurants
% of Total / % Change 16.8 / 0.6 15.1 / 4.0 16.0 / 2.6 16.7 / 4.4 13.0 / 3.1 16.4 / 55.9 11.6 / 4.4 12.2 / 5.3 21.9 / -6.7
2nd Largest Segment Auto Sales -
New
Auto Sales -
New
Auto Sales -
New
Auto Sales -
New
Auto Sales -
New
Service
Stations
Auto Sales -
New
Service
Stations
Auto Sales -
New
% of Total / % Change 15.9 / 3.2 11.2 / 2.7 11.2 / 5.6 11.1 / 0.6 10.8 / 5.9 11.8 / 28.5 10.9 / 2.1 11.1 / 13.6 11.7 / 20.9
3rd Largest Segment Leasing Department
Stores
Department
Stores
Department
Stores Restaurants Restaurants Department
Stores Restaurants Misc. Retail
% of Total / % Change 9.7 / 53.3 9.2 / 2.3 7.5 / 1.6 8.9 / 1.6 10.8 / 4.2 9.8 / 47.4 10.1 / 3.0 10.8 / 2.1 10.1 / -6.2
*** Not specified to maintain confidentiality of tax information
CITY OF PALO ALTO
ECONOMIC CATEGORY ANALYSIS FOR YEAR ENDED 4th QUARTER 2017
ECONOMIC SEGMENT ANALYSIS FOR YEAR ENDED 4th QUARTER 2017
BENCHMARK YEAR 2017Q4 COMPARED TO BENCHMARK YEAR 2016Q4
Attachment B
City of Palo Alto
www.MuniServices.com (800)800-8181 Page 2
Gross Historical Sales Tax Performance by Benchmark Year and Quarter (Before Adjustments)
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
BENCHMARK YEAR QUARTERLY
Net Cash Receipts for Benchmark Year 4th Quarter 2017: $29,978,035
*Benchmark year (BMY) is the sum of the current and 3 previous quarters (2017Q4 BMY is sum of 2017 Q4, Q3, Q2, Q1)
Restaurants
14%
Leasing
8%
Department Stores
7%
Miscellaneous Retail
6%
Electronic Equipment
5%
Food Markets
1%
Recreation Products
1%
All Other
40%
Net Pools &
Adjustments
18%
Attachment B
City of Palo Alto
www.MuniServices.com (800)800-8181 Page 3
TOP 25 SALES/USE TAX CONTRIBUTORS
The following list identifies Palo Alto’s Top 25 Sales/Use Tax contributors. The list is in alphabetical order
and represents the year ended 4th Quarter 2017. The Top 25 Sales/Use Tax contributors generate 52.6%
of Palo Alto’s total sales and use tax revenue.
Anderson Honda Lucile S.Packard Chldrn Hospit Tesla Lease Trust
Apple Stores Macy's Department Store Tesla Motors
Audi Palo Alto Magnussen's Toyota Tiffany & Company
Bloomingdale's Neiman Marcus Department Store Urban Outfitters
Bon Appetit Management Co.Nordstrom Department Store Usb Leasing
Fry's Electronics Shell Service Stations Varian Medical Systems
Hewlett-Packard Space Systems Loral Volvo Cars Palo Alto
Houzz Shop Stanford University Hospital Wilkes Bashford
Integrated Archive Systems
Sales Tax from Largest Non-Confidential Economic Segments
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
Restaurants Leasing Department
Stores
Miscellaneous
Retail
Electronic
Equipment
Food Markets Recreation
Products
Benchmark Year 2017Q4 Benchmark Year 2016Q4
Attachment B
City of Palo Alto
www.MuniServices.com (800)800-8181 Page 4
Historical Analysis by Calendar Quarter
Economic Category % 2017Q4 2017Q3 2017Q2 2017Q1 2016Q4 2016Q3 2016Q2 2016Q1 2015Q4 2015Q3 2015Q2
General Retail 31.3% 2,635,136 1,860,347 1,952,490 1,684,023 2,784,731 1,983,231 2,141,794 1,673,846 2,526,551 1,935,178 2,009,743
Miscellaneous/Other 22.3% 1,881,732 1,602,213 1,301,138 1,392,756 1,621,044 1,727,134 1,617,307 1,413,133 1,491,158 1,609,541 1,564,157
Food Products 14.3% 1,206,578 1,184,645 1,189,257 1,192,662 1,235,801 1,213,382 1,194,369 1,126,103 1,166,195 1,146,174 1,167,014
Business To Business 18.6% 1,569,619 1,448,336 1,284,056 1,240,962 1,004,883 1,027,730 1,140,526 974,162 1,428,210 888,609 833,370
Net Pools & Adjustments 13.5% 1,136,075 1,374,372 1,210,511 1,631,125 1,351,709 831,377 1,313,745 1,072,794 1,226,261 1,060,979 1,039,250
Total 100.0% 8,429,140 7,469,913 6,937,452 7,141,528 7,998,168 6,782,854 7,407,741 6,260,038 7,838,375 6,640,481 6,613,534
Economic Segments % 2017Q4 2017Q3 2017Q2 2017Q1 2016Q4 2016Q3 2016Q2 2016Q1 2015Q4 2015Q3 2015Q2
Miscellaneous/Other 45.0% 3,791,527 3,233,434 2,986,873 2,910,133 2,939,228 3,027,081 2,973,047 2,607,097 3,237,983 2,720,241 2,549,852
Restaurants 12.5% 1,054,073 1,049,565 1,058,606 1,043,747 1,071,053 1,068,101 1,068,502 1,005,688 1,029,733 1,019,505 1,045,011
Miscellaneous Retail 8.3% 701,369 419,279 452,135 435,757 1,002,389 581,831 681,345 469,360 714,151 478,994 479,298
Department Stores 7.6% 642,666 458,066 510,561 392,565 641,541 491,433 546,629 435,470 714,831 553,325 595,374
Apparel Stores 7.0% 585,892 440,005 449,402 372,033 553,250 398,170 444,383 337,880 519,318 397,534 428,100
Service Stations 1.8% 148,906 147,499 159,371 119,552 130,396 138,155 144,735 123,004 140,758 173,082 181,582
Food Markets 1.5% 128,671 117,256 112,566 131,676 145,179 126,755 109,108 104,676 116,778 113,092 106,818
Business Services 1.9% 157,861 173,439 75,722 43,548 102,095 47,066 65,510 51,647 76,156 51,885 120,003
Recreation Products 1.0% 82,100 56,998 76,514 61,392 61,328 72,885 60,737 52,422 62,406 71,844 68,246
Net Pools & Adjustments 13.5% 1,136,075 1,374,372 1,055,702 1,631,125 1,351,709 831,377 1,313,745 1,072,794 1,226,261 1,060,979 1,039,250
Total 100.0% 8,429,140 7,469,913 6,937,452 7,141,528 7,998,168 6,782,854 7,407,741 6,260,038 7,838,375 6,640,481 6,613,534
*Net Pools & Adjustments reconcile economic performance to periods’ net cash receipts. The historical amounts by calendar quarter: (1) include
any prior period adjustments and payments in the appropriate category/segment and (2) exclude businesses no longer active in the current
period.
Attachment B
City of Palo Alto
www.MuniServices.com (800)800-8181 Page 5
Quarterly Analysis by Economic Category, Total and Segments: Change from 2016Q4 to 2017Q4
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Campbell -3.7% 3.8% 5.7% -18.8% -24.0% 2,470,029 2,563,410 -3.6%Restaurants Business Services Office Equipment Furniture/Appliance
Cupertino 3.4% 10.1% -60.6% 25.4% -14.2% 9,437,048 7,942,209 18.8%Business Services Food Processing Eqp Office Equipment Bldg.Matls-Whsle
Gilroy -2.4% 4.5% 4.0% 23.2% -16.6% 4,302,514 4,021,877 7.0%Auto Sales - New Service Stations Apparel Stores Department Stores
Los Altos -3.2% 2.0% 22.3% 40.0% -0.8% 655,243 642,319 2.0%Restaurants Office Equipment Food Processing Eqp Furniture/Appliance
Los Gatos -4.1% 1.5% 22.1% -13.7% -11.5% 1,733,713 1,784,620 -2.9%Service Stations Bldg.Matls-Retail Miscellaneous Other Business Services
Milpitas -2.2% 3.3% -2.5% 35.8% 23.5% 6,110,432 5,539,071 10.3%Office Equipment Heavy Industry Business Services Light Industry
Morgan Hill -1.5% 4.4% 18.1% 30.0% 54.0% 2,161,964 1,954,455 10.6%Auto Sales - New Bldg.Matls-Whsle Recreation Products Chemical Products
Mountain View -3.9% 4.2% 30.1% 18.0% -42.7% 4,516,789 4,291,080 5.3%Business Services Bldg.Matls-Whsle Office Equipment Recreation Products
Palo Alto -6.7% 2.3% -42.0% 13.5% 66.6% 7,293,063 7,003,235 4.1%Leasing Auto Sales - New Miscellaneous Retail Business Services
San Jose 2.6% 4.6% 3.6% 3.0% -12.8% 41,186,979 39,644,799 3.9%Department Stores Heavy Industry Office Equipment Apparel Stores
Santa Clara -13.9% 0.2% 3.9% 19.8% -58.3% 12,243,704 11,623,504 5.3%Office Equipment Electronic Equipment Miscellaneous Retail Health & Government
Santa Clara Co.-12.3% -14.0% -28.2% 155.0% -39.2% 239,462 270,288 -11.4%Business Services Service Stations Restaurants Miscellaneous Retail
Saratoga -4.2% 8.9% 10.6% -12.2% 25.5% 7,179,320 7,332,315 -2.1%Auto Sales - New Restaurants Electronic Equipment Office Equipment
Sunnyvale -0.2% 5.9% 27.4% 213.6% 0.5% 1,112,223 962,788 15.5%Bldg.Matls-Whsle Heavy Industry Auto Sales - Used Furniture/Appliance
Attachment B
City of Palo Alto
www.MuniServices.com (800)800-8181 Page 6
2014Q4 2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4
El Camino Real 1,102,757 1,105,340 1,090,236 1,088,571 1,140,412 1,188,495 1,210,148 1,258,506 1,282,296 1,261,233 1,241,270 1,227,629 1,254,855
Town and Country 629,346 637,224 644,288 636,497 639,830 642,372 632,157 645,939 634,372 629,484 629,271 621,657 630,914
Midtown 188,251 192,122 194,028 195,907 192,190 193,066 207,568 206,960 206,327 201,948 206,422 206,079 204,816
East Meadow Area 104,735 117,701 172,602 166,805 161,897 173,019 185,564 192,748 191,467 199,789 194,377 197,617 206,026
Charleston Center 87,413 88,622 89,612 90,642 91,711 91,991 92,121 91,914 92,495 92,258 92,657 93,005 92,696
City of Palo Alto - Selected Geographic Areas of the City
Benchmark Year 4th Quarter 2017
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
2014Q4 2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4
El Camino Real Town and Country Midtown East Meadow Area Charleston Center
*Benchmark year (BMY) is the sum of the current and 3 previous quarters (2017Q4 BMY is sum of 2017 Q4, Q3, Q2, Q1)
Attachment B
City of Palo Alto
www.MuniServices.com (800)800-8181 Page 7
2014Q4 2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4
Stanford Shopping Ctr 5,726,273 5,769,236 5,775,751 5,765,715 5,670,796 5,501,966 5,464,490 5,371,067 5,309,725 5,425,743 5,487,406 5,515,681 5,608,672
Stanford Research Park 3,304,003 3,082,331 2,869,143 2,411,043 2,953,900 2,924,944 3,119,427 3,257,664 2,999,685 3,177,058 3,371,781 3,595,493 3,898,022
Downtown 3,220,248 3,251,198 3,318,323 3,351,331 3,399,758 3,445,331 3,672,532 3,838,501 4,144,463 4,202,364 3,990,498 3,938,441 3,646,422
San Antonio 2,495,915 2,504,156 2,465,311 2,483,850 2,476,949 2,517,603 2,451,491 2,414,093 2,448,764 2,420,850 2,174,308 2,219,389 2,161,989
California Avenue 1,120,996 1,113,385 1,108,904 1,106,175 1,097,493 1,091,796 1,090,901 1,073,085 1,048,035 1,034,377 1,050,195 1,035,739 1,026,218
City of Palo Alto - Selected Geographic Areas of the City
Benchmark Year 4th Quarter 2017
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
2014Q4 2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3
Stanford Shopping Ctr Downtown #REF!San Antonio California Avenue
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
2014Q4 2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4
Stanford Shopping Ctr Downtown San Antonio California Avenue
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
2014Q4 2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4
Stanford Shopping Ctr Stanford Research Park Downtown San Antonio California Avenue
*Benchmark year (BMY) is the sum of the current and 3 previous quarters (2017Q4 BMY is sum of 2017 Q4, Q3, Q2, Q1)
Attachment B
City of Palo Alto
www.MuniServices.com (800)800-8181 Page 8
2014Q4 2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4
Valley Fair 7,455,179 7,588,546 7,273,028 7,282,265 7,248,371 7,228,310 7,063,549 7,053,562 6,851,598 6,714,146 6,660,544 6,491,644 6,467,039
Stanford Shopping Ctr 5,726,273 5,769,236 5,775,751 5,765,715 5,670,796 5,501,966 5,464,490 5,371,067 5,309,725 5,425,743 5,487,406 5,515,681 5,608,672
Oakridge Mall 4,040,521 4,159,367 4,236,080 4,215,653 4,158,194 4,075,061 3,871,802 3,909,043 3,831,354 3,625,692 3,650,856 3,626,031 3,626,802
Santana Row 2,565,665 2,634,908 2,706,867 2,735,522 2,834,796 2,807,754 2,754,804 2,933,889 3,005,007 3,047,779 3,057,404 3,090,796 2,709,157
Hillsdale 2,450,278 2,494,792 2,513,866 2,470,404 2,434,086 2,410,095 2,363,729 2,363,729 2,251,467 2,197,768 2,167,994 2,125,369 2,098,448
City of Palo Alto - Regional Shopping Mall Comparison
Benchmark Year 4th Quarter 2017
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
2014Q4 2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4
Valley Fair Stanford Shopping Ctr Oakridge Mall Santana Row Hillsdale
*Benchmark year (BMY) is the sum of the current and 3 previous quarters (2017Q4 BMY is sum of 2017 Q4, Q3, Q2, Q1)
Attachment B
Economic Categories and Segments
Economic Category Economic Segment Description
Business to Business - sales of
tangible personal property from
one business to another business
and the buyer is the end user.
Also includes use tax on certain
purchases and consumables.
Business Services Advertising, banking services,
copying, printing and mailing
services
Chemical Products Manufacturers and wholesalers
of drugs, chemicals, etc.
Electronic Equipment Manufacturers of televisions,
sound systems, sophisticated
electronics, etc.
Energy Sales Bulk fuel sales and fuel
distributors and refiners
Heavy Industry Heavy machinery and
equipment, including heavy
vehicles, and manufacturers and
wholesalers of textiles and
furniture and furnishings
Leasing Equipment leasing
Light Industry Includes, but is not limited to,
light machinery and automobile,
truck, and trailer rentals
Office Equipment Businesses that sell computers,
and office equipment and
furniture, and businesses that
process motion pictures and film
development
Construction Building Materials – Retail Building materials, hardware,
and paint and wallpaper stores
Building Materials - Wholesale Includes, but is not limited to,
sheet metal, iron works, sand
and gravel, farm equipment,
plumbing materials, and
electrical wiring
Food Products Food Markets Supermarkets, grocery stores,
convenience stores, bakeries,
delicatessens, health food stores
Food Processing Equipment Processing and equipment used
in mass food production and
packaging
Liquor stores Stores that sell alcoholic
beverages
Restaurants Restaurants, including fast food
and those in hotels, and night
clubs
Attachment C
Economic Categories and Segments
Economic Category Economic Segment Description
General Retail – all consumer
focused sales, typically brick and
mortar stores
Apparel Stores Men’s, women’s, and family
clothing and shoe stores
Department Stores Department, general, and variety
stores
Drug Stores Stores where medicines and
miscellaneous articles are sold
Florist/Nursery Stores where flowers and plants
are sold
Furniture/Appliance Stores where new and used
furniture, appliances, and
electronic equipment are sold
Miscellaneous Retail Includes, but is not limited to,
stores that sell cigars, jewelry,
beauty supplies, cell phones, and
books; newsstands, photography
studios; personal service
businesses such as salons and
cleaners; and vending machines
Recreation Products Camera, music, and sporting
goods stores
Miscellaneous/Other Miscellaneous/Other Includes but not limited to
health services, government,
nonprofit organizations, non-
store retailers, businesses with
less than $20,000 in annual gross
sales, auctioneer sales, and
mortuary services and sales
Transportation Auto Parts/Repair Auto parts stores, vehicle and
parts manufacturing facilities,
and vehicle repair shops
Auto Sales - New New car dealerships
Auto Sales - Used Used car dealerships
Miscellaneous Vehicle Sales Sale and manufacture of
airplanes and supplies, boats,
motorcycles, all-terrain vehicles,
trailers and supplies
Service stations Gas stations, not including
airport jet fuel
Attachment C
ECONOMIC NEWS & TRENDS
April 27, 2018
Attachment D
HIGHLIGHTS
Economic Indicators
GDP: Real GDP increased at an annual rate of 2.3% in
1Q2018 (advance estimate); was 2.9% in 4Q2017; 3.2% in
3Q2017, 3.1% in 2Q2017, 1.4% in 1Q2017, and 2.1% in
4Q2016). The increase reflects positive contributions
from nonresidential fixed investment, personal
consumption expenditures, exports, private inventory
investment, federal government spending, and state and
local government spending.
California’s GDP for 3Q2017: 3.4%. Real GDP by state
growth for the 3Q2017 ranged from 5.7% in Delaware to
0.5% in South Dakota.
Digital Economy: 6.5% of U.S. GDT or $1.2 trillion in
2016; 5.6% average annual growth from 2006 to 2016;
outpaced overall U.S. economic growth of 1.5%; 3.9% of
total U.S. employment.
Consumer Confidence: The Conference Board Consumer
Confidence Index® increased in April, following a decline in
March. Consumers’ assessment of current conditions
improved with consumers rating both business and labor
market conditions quite favorably; this suggests that the
economy will continue expanding at a solid pace.
Interest Rates: The Federal Reserve raised interest rates
for the first time in 2018, citing strength in the economy.
Inflation: Expected to head up this year; unemployment
in the last year dropped to a 17-year low yet inflation
continues to run below the Fed’s 2% target.
US / China Trade: Some Chinese businesses are
canceling or slowing plans to invest in the American
market because of U.S. threats to restrict investment.
Some businesses are feeling the effects; exports from
small businesses to China had tripled in the past 15 years.
U.S. consumers may feel the effect on the
Administration’s proposed tariffs on Chinese imports to
include a 25% levy on TV’s and related components.
U.S. and California Economic Outlook
U.S Outlook: Continued US growth: 2017: 2.5%, 2018:
2.5 to 2.8%; domestic spending will continue; oil prices
will be steady in the $55-$70 barrel range; inflation is low
but rising; policy uncertainty.
California and Local Outlook: Growth constrained by
limited increases in labor force; leading sectors are
construction, consumer-serving sectors, tourism, health
care, and defense / aerospace; housing shortages (owner
occupied rentals) (Beacon Economics, April, 2018)
Housing
U.S. homeownership was up in 2017 for the first time in
13 years; to 64.2% in 4Q2017 from 63.7% a year earlier.
Sales of Existing Single-Family Homes in California:
423,990 in March up 0.3% from February and 1.6% from
March 2017. California median home in March was
$565,830, up 8.1% from a year ago; the peak was
$594,530 in May 2007. The lowest was $245,230 in
February of 2009 (-59% from the peak). Alameda, Marin,
San Mateo, Santa Clara, San Diego, and Orange counties
are a new peak at $955,000, $1,392,500, $1,615,000,
$1,454,500, $625,400, and $824,450, respectively.
Employment
California’s unemployment rate reached a record low of
4.3% in February. The U.S. unemployment rate was at
4.1% for the sixth consecutive month in March.
Forecast: Ending 2018 at 3.9% down from 4.1% at end of
2017. (Kiplinger) The number of Americans applying for
unemployment benefits week of April 16, 2018 fell to the
lowest level since December 6, 1969. (WSJ)
California WARN Notices & Permanent Closures
Dec 2017: 33 notices / 13 closures; Jan 2018: 76 notices/
30 closures; Feb 2018: 44 notices/ 18 closures; Mar
2018: 41 notices/ 22 closures; As of Apr 25: 56 notices/
25 closures.
Attachment D
HIGHLIGHTS
Fuel
Gasoline Prices: AAA shows (April 25, 2018) the national
average at $2.78.2 per gallon. California’s average is
$3.591. The Energy Information Administration’s shows
this is the highest level on record for the month of April
and exceeds typical summer demand measurements.
Increases from one year ago: California (+55 cents).
California Auto Sales
Rose 1% in January 2018 to 1.2 million. New
registrations for 2017 were above 2 million (third
consecutive year); market declined slightly in 2017 but
annual total exceeded 2009 levels by nearly 100%. The
CNCDA 2018 forecast is 2.01 million units.
Retail
Retail Outlook in 2018: Tax cuts, an improved economy
and a consumer that is less cautious about spending will
make 2018 a better year for retailers. Retail sales are on
track to match or exceed the healthy 4.2% gain they
made in 2017.
Holiday 2017 Retail Sales Between November 1 and
December 24: Up 4.9% for 2017. This is the largest year-
over-year increase since 2011. Online shopping also saw
large gains of 18.1% compared to 2016. (Mastercard)
On-Line Sales
4Q2017: Percent of Retail Sales Increased 3.2% for
4Q2017 from 3Q2017. Total E-Commerce Sales for
4Q2017: $119.0 billion. Total Retail Sales for 4Q2017:
est. at $1,204.3 billion, an increase of 2.7% from 3Q2017.
E-Commerce Sales for 2016 and 2017: 2017 increased
4.4% from 2016. E-commerce sales in 2017 accounted for
8.9% of total sales; 2016 accounted for 8% of total sales.
California’s e-commerce sales comprise approximately
13-14% of the total sales, based on California’s portion of
the national economy. An estimated 40% of the U.S.
online spending goes to Amazon.
Groceries and Restaurants
Grocery Among Fastest-Growing Retail Segments: 674
stores are expected to open in 2018. The other two
fastest growing segments are mass merchandisers and
dollar stores, and convenience stores. Online grocery
spending is projected to grow to 20% of the market, or
$100 billion, by 2025. Amazon now delivers orders to
parked vehicles.
U.S. Food Stamp Program Proposed Reduction - Impact
on Grocers: The Trump Administration is proposing
reducing program budget by $130 billion over a decade,
which is 20% reduction of the current annual allotment.
The grocery sector is bracing for a possible loss of billions
of dollars in purchases.
Food Away From Home: From March 2017 to Mar 2018
(2.5%); Mar 2018 (.1); Feb 2018 (.2); Jan 2018 (-.4%).
Food at Home: From March 2017 to Mar 2018 (.4%); Mar
2018 (.1); Feb 2018 (-.2); Jan 2018 (.1%).
Restaurants: Driving success in a new era of competition:
More than 620,000 eating and drinking establishments.
Imperatives defining industry in 2018: Embrace the
experience, drive employee engagement, dominate
delivery, compete with non-traditional players, and
operational excellence and compliance. (Deloitte)
Hospitality Industry Outlook
Travel is a $1-trillion US industry. Spending will grow by
5% in 2018. Revenue drivers include consumer spending,
airline competition, corporate travel, the move from
products to experience. (Deloitte) Hotel rates will rise
modestly, up 2.4% from 2017. (Kiplinger)
Retail Space
Destination centers are the super-sized versions of the
future. Values centers share the customers’ values.
Innovation centers are digitally-powered. “Retaildential”
centers redefine living over the store.
Attachment D
SECTION 1: U.S. ECONOMY
Consumer Price Index (CPI) (March 2018 From Preceding Month)
U.S. CPI for March 2018: Decreased 0.1% in Mar.
Gasoline: From Mar 2017 to Mar 2018 (11.1%); Mar
2018 (-4.9); Feb 2018 (-.9); Jan 2018 (5.7%); Dec 2017
(.8%).
New Vehicles: From March 2017 to Mar 2018 (-1.2%);
Mar 2018 (.0); Feb 2018 (-.5); Jan 2018 (-.1%); Dec 2017
(.5%).
Used Cars & Trucks: From March 2017 to Mar 2018 (.4%);
Mar 2018 (-.3); Feb 2018 (-.3); Jan 2018 (.4%); Dec 2017
(.7%).
Apparel: Mar 2018 (-.6); Feb 2018 (1.5); Jan 2018 (1.7%);
Dec 2017 (-.3%).
Cigarettes: From Mar 2017 to Mar 2018 (5.9%); Mar
2018 (-.4); Feb 2018 (.2); Jan 2018 (.2%). Alcohol: Mar
2018 (.1); Feb 2018 (.2); Jan 2018 (.0%).
Wine: From Mar 2017 to Mar 2017: Wine At Home
(.9%); Wine Away From Home: (2%).
Cable and Satellite TV Service: From Mar 2017 to Mar
2018 (2.7%).
Wireless Telephone Service From March 2017 to Mar
2018 (-2.4%); Mar 2018 (.2); Feb 2018 (-.5); Jan 2018 (-.2).
Lodging Away from Home: From March 2017 to Mar
2018 (2.4%); Mar 2018 (2.3); Feb 2018 (.0); Jan 2018 (-
2.0%).
Shelter: From March 2017 to Mar 2018 (3.3%).
Services Sector for 4Q2017/ Contributions to Percentage Change in GDP from 4Q2017
www.census.gov/services/index.html (March 8, 2018) ;
https://bea.gov/newsreleases/international/trade/tradnewsrelease.htm (April 5, 2018)
4Q2017 Total Revenue: An increase of 2.2% from
3Q2017 and up 5% from 4Q2016.
Personal Consumption Expenditures: Up 2.1% from
3Q2017.
Exports and Imports: Exports increased 5.9%; Imports
increased 9.1%, year-to-date from February.
Utilities: Decrease of 7.6% from 3Q2017 and up 3.0%
from the 4Q2016.
Transportation and Warehousing: Decrease of 1.2%
from 3Q2017; and up 3% from 4Q2016.
Arts, Entertainment and Recreation: Decrease of 4.6%
from 3Q2017; and up 3.7% from 4Q2016.
Real Estate and Rental and Leasing: Increase 1.2% from
3Q2017; and up 6.5% from 4Q2016.
Accommodations: Decrease 11.9% from 3Q2017 and up
0.7% from the 4Q2016.
Other Services: Includes auto and electronic repair,
personal and laundry services: Increase 11% from
3Q2017 and up 9.9% from 4Q2016.
E-Commerce 4Q2017
https://www.census.gov/retail/mrts/www/data/pdf/ec_current.pdf (Next release is on May 17, 2018)
4Q2017 Percent of Retail Sales: Increase of 3.2% for
4Q2017 from 3Q2017. Total E-Commerce Sales for
4Q2017: $119.0 billion. Total Retail Sales for 4Q2017:
An increase of 2.7% from 3Q2017. Total E Commerce
Sales for 4Q2017: Accounted for 9.1% of total sales.
Total E-Commerce Sales for 2016 and 2017: 2017 up
16% from 2016. Total retail sales in 2017 up 4.4% from
2016. E-commerce sales in 2017 was for 8.9% of total
sales.
California: E-commerce sales comprise approximately
13-14% of the total sales, based on California’s portion of
the national economy.
Amazon: Estimated 40% of U.S. online spending goes to
Amazon. Amazon offering deliveries to parked cars for
Prime members.
Walmart: Website plans for an upscale redesign; online
sales represents 3.6% of its U.S. sales.
Luxury: By 2025, online will represent 25% of luxury
goods.
Attachment D
SECTION 2: CALIFORNIA ECONOMY
https://www.sco.ca.gov/Files-EO/04-18summary.pdf
http://www.dof.ca.gov/Forecasting/Economics/Economic_and_Revenue_Updates/documents/2018/Apr-18.pdf
Personal Income: California grew by 4.1% in 2017
following growth of 3.7% in 2016. U.S. personal income
growth was 3.1% in 2017 and 2.4% in 2016.
Retail Sales and Use Tax for March: $17 million below
the month’s forecast of $1.724 billion. Year-to-date, sales
tax revenues are $26 million below forecast.
SECTION 3: HOME SALES
https://www.car.org/marketdata/data/countysalesactivity (March 2018)
https://www.car.org/aboutus/mediacenter/newsreleases/2018releases/march2018homesales (April 17, 2018)
Sales of Existing Single-Family Homes in California for
March: 423,990 in March up 0.3% from February and
1.6% from March 2017.
California Median Home Price in March: The statewide
median home price in March was $565,830, up 8.1% from
a year ago; the peak was $594,530 in May of 2007; and
lowest at $245,230 in February of 2009 (-59% from the
peak. Alameda, Marin, San Mateo, Santa Clara, San
Diego, and Orange counties are a new peak price at
$955,000, $1,392,500, $1,615,000, $1,454,500, $625,400,
and $824,450, respectively.
Interest Rates Rising: Rising interest rates figure to dent
the mortgage refinance market in 2018.
Refinancing: The average interest rate on a 30-year fixed-
rate loan has hit 4.44%. Refinancing to keep declining in
popularity as rates keep rising and make refinancing a
less attractive option. For the year overall; will make up
only 30% of total mortgage originations, the lowest in 18
years. (Kiplinger)
SECTION 4: AUTO SALES / TRENDS
California Car Sales
https://www.cncda.org/wp-content/uploads/California-Covering-4Q-2017-1.pdf
California, January 2018: Rose 1% in January to 1.2
million.
New Registrations for 2017: Above 2 million for the third
consecutive year; market declined slightly in 2017 but
annual total exceeded 2009 levels by nearly 100%.
CNCDA 2018 Forecast: 2.01 million units.
Total Cars 2016 to 2017: California (-10.3%); US (-11%).
Light Trucks 2016 to 2017: California (7.4%); US (4.4%).
2017 Electric Vehicle Market in California: 2.6%; Hybrid/
Electric is 9.4%.
Used Car Registrations in 2017/ California: Small
increase of 1.2%. Used light truck increased 3.7%; cars
were down .4%.
Older Vehicle Market Share in 2017/ California: 4 to 6
years old increased 49.6%.
Electric Vehicles: Electric vehicle sales grew 30% in 2017.
Governor Brown in January signed an executive order to
put five million zero-emission vehicles on California’s
roads by 2030.
Attachment D
SECTION 5: RETAILER UPDATES, TRENDS AND INFLUENCES
Retail Outlook in 2018: Tax cuts, an improved economy
and an American consumer that is less cautious about
spending will make 2018 a better year for retailers. Retail
sales are on track to match or exceed the healthy 4.2%
gain they made in 2017.
Holiday 2017 Retail Sales Between November 1 and
December 24: Up 4.9% for 2017, setting a record for
dollars spent. This is the largest year-over-year increase
since 2011. Online shopping also saw large gains of 18.1%
compared to 2016. (Mastercard)
Convenience Continues to Expand: The number of
convenience stores reached a new high of 154,958, up
0.3% or 423 units in 2017, from the 2016 year-end total
of 54,535 at the end of 2016. (NACS).
Black Friday 2017: Consumers spent more than $5 billion
on Black Friday, 16.9% more than in 2016. Physical stores
dominated sales; more than 145 million adults spent time
at malls and shopping centers and spent an average of
$377.50 (https://retailleader.com)
Gen Zers Enjoy Malls: Americans under 22 prefer buying
at physical stores rather than ordering from websites.
They like to experience shopping, but not downtown or
at outlets. Just hanging out at the mall is apparently as
much fun for them as it was for teens in the 1980s.
Mother’s Day 2018: Spending to reach $23.1 billion
Apparel: Mar 2018 (-.6); Feb 2018 (1.5); Jan 2018 (1.7%);
Dec 2017 (-.3%). Upscale Uniforms: The future of the
office fashion.
Period from November 1, 2017 to April 25, 2018; http://www.edd.ca.gov/Jobs_and_Training/warn/WARN-Report-for-7-1-
2017-to-04-25-2018.pdf (Updated April 27, 2018)
Albertsons: To acquire Rite Aid stores not sold to
Walgreens
Applebee’s: To close 60-80 restaurants in 2018 following
the closure of 100 in 2017
Ashley HomeStores: To open 800th store (Tijuana)
Backstage: (Macy’s off-price unit): Plans to expand with
100 stores
Batteries Plus Bulbs: Plans to open 47 stores in 2018
Best Buy: Increase holiday sales by 9%; ramped up
electronic toys after Toys R Us announced closure
Black Bear Diner: Adding 19 locations
Blaze Pizza: Plans to develop 400 additional locations
including some in the U.S.
Build a Bear: Closed in Anaheim (EDD WARN report)
Burgerim: Expanding in the Sacramento area and Bay
California Tortilla: Will grow brand in new states in 2018
Chipotle: Plans store upgrades and slower expansion
Costco: Reports that 40% of new member signups are
Millennials
Curry Up: Largest Indian fast casual expanding
CVS: Launching private label hoping to compete with
Sephora and Ulta
Dave and Busters: Expanding; filling large empty store
spaces
Dicks: Pulls assault rifles from stores
Dollar Tree: In 3Q2017 opened 169 stores; ended with
14,744 stores
Dogtopia: 40 new stores in 2018; on pace to reach 400
by 2021
Dunkin’ Donuts: Plans to add 1,000 new locations by
end of 2020; will have 18,000 in the U.S.
Family Christian: 240 closures
Future Perfect: New showroom in Los Angeles
Fred Meyer Jewelers: Closing many mall stores
Gamestop: 100 store closures
Gander Outdoors: Camping World to re-open 69 stores
GNC: Closing up to 200 stores in 2018
Go! Go! Curry: Japanese comfort food plans to expand
GoPro, Inc.: Layoffs in San Mateo (EDD WARN report)
Grocery Outlet: 25 new stores planned
H&M: Closing 170 stores in 2018
HelloFresh: Aims to eclipse Blue Apron
Home Depot: Buys The Company Store, a catalog and e-
commerce retailer of home goods and textiles;
Indochino: Ready-to-wear suits opening 4 new stores
including a San Diego location
JC Penny: Eliminated 360 jobs in response to simplifying
operations and as more people shop online
Jersey Mike’s: Plans to open 200 restaurants in 2018;
aiming to have 2000 stores in the U.S. by 2020
Jimboy’s Tacos: Expanding in Northern California
Attachment D
K-Mart: Closed in Cudahy, Redding, Ontario (EDD WARN
report)
Kohls: Increase holiday sales by 6.3% compared with a
2.3% decline a year earlier
Land of Nod: Owned by Crate and Barrel - Closed the
Land of Nod brick-and-mortar stores in January
Lands’ End: Plans to open 60 new stores in the next five
years
Loves: Travel stop. Plans to open 40 new locations in
2018
Macys Corporate Services: Closed in Redondo Beach
(EDD WARN report)
Macys: Closed in Laguna Hills, Los Angeles, San Francisco
(EDD WARN report)
Mattel, Inc.: Layoff’s in El Segundo (EDD WARN report)
Mattress Firm: Will close 200 stores by mid-2019
McDonalds: To invest $2.4 billion on upgrades in 2018
Modern Market: Acquired by Butterfly
Nestle: Closed in Glendale and Oakland (EDD WARN
report)
Nekter Juice Bar: 100th restraunt to open in Anaheim
Hills
New Seasons Market: Closed in Sunnyvale; will not open
in SF, Carmel and Emeryville
New Leaf Community Markets: New location in Aptos
Nine West: Will close all 70 stores
Nordstrom: Revamping some of its 122 stores. Much of
the company’s success comes from opening Rack off-
price stores and e-commerce
Old Navy: To open 60 stores in 2018
Papa John’s International: No longer will be the official
pizza of the NFL
P.F. Changs: Closed in Burbank (EDD WARN report)
Planet Fitness: More agreements signed; brick and
mortar spaces give expansion opportunity
Reserve: Starbuck’s high-end stores plans 1,000 stores
with fuller service of food and beverages. Several CA
locations - future California locations unknown.
Rituals: Shoppers experiment with products; expands to
California
Sam’s Club: Closed in Rowland Heights, Sacramento, San
Fernando, Stanton (EDD WARN report); shrinking stores
to compete and hopes for more affluent shoppers. In
January 2018, Wal-Mart chain closed 63 U.S. Sam’s Clubs
locations
Shake Shack: Expects to open 32 to 35 new restaurants
in 2018; will open more airport locations
Soft Surroundings: Women’s apparel. Opening a location
in California
Smart & Final: Replaces Ralphs in north Torrance
Sears: Closed in Brea, Citrus Heights, El Cajon, Fairfield,
Roseville Westminster (EDD WARN report)
Starbucks: Closed on-line business
Subway: Closing about 500 stores
Take 5 Oil: Will add dozens of stores in 2018
T-Mobile: Expanding footprint by opening new stores
Target: Plans to increase small-format stores; closing 12
underperforming stores (none in California)
Teriyaki Madness: Fresh Asian fast casual targeting Los
Angeles for expansion; plans for 20-25 additional
locations
TGI Fridays: Closed in Oxnard, Brea (EDD WARN report)
Toys “R” Us: Announced closing 200 more stores due to
bankruptcy
Tractor Supply Company: Opening store 1700; operates
in 49 states
Tuesday Morning: In Spring will have five closures, 19
relocations and one expansion, seven openings
Walmart: Investing $145 million to renovate 34
California stores; adding FedEx offices to 500 locations
Wendy’s: Rolling out smaller model called Smart 55
Wetzel’s Pretzels: New store opening pipeline
Warby Parker: Aims to run nearly 100 stores this year -
other internet based retailers are similarly opening more
brick and mortar locations
7-Eleven: Closed on the acquisition of approximately
1,030 Sunoco LP convenience stores in 17 states
Attachment D
SECTION 6: RESTAURANT AND FOOD INDUSTRY / ECONOMIC INDICATORS
Restaurants as Economic Engine: Industry’s share of the
food dollar is 48%.; Industry sales constitute 4% of the
U.S. GDP. For every dollar spent in restaurants, $2 is
generated in sales for other industries. (National
Restaurant Association)
Restaurant Franchises: Poised for growth in 2018, with
output increasing by around 6%, eclipsing 2017’s 5% rise.
Food: From March 2017 to Mar 2018 (1.3%); Mar 2018
(.1); Feb 2018 (.0); Jan 2018 (.2%); Dec 2017 (.2%)
SECTION 7: GROCERY INDUSTRY
Ace Hardware: Kroger rumored to be in talks to add Ace
stores within its stores (not in CA)
Aldi: Opened Southern California location in La Habra
Albertsons: To purchase Rite Aid stores not sold to
Walgreens
Amazon Go: Plans to open up to six stores by 2019
Brandless: Everything is $3
Bristol Farms: Prototype store in Woodland Hills
Erewhon: Organic store opened fourth in California
Grocery Outlet: Plans 25 store expansion
Island Pacific: Closing six California locations
Lucky: New concept store; first opening in Dublin
“Managed”: Asian American chain and online; opens in
El Monte
Mother’s Market: Expanding with new locations in Los
Angeles
New Seasons: Closing Sunnyvale; will not open in San
Francisco, Carmel and Emeryville
New Leaf Community Markets: New location in Aptos
Raley’s: Extends E-Commerce
Stater Brothers: To open first Pasadena store this Fall;
opens in Norco
Vallarta Supermarket: Opened 50th store location in
Pasadena
Walmart: Using DoorDash for on-line grocery delivery
Whole Foods 365 Store: Concord and Long Beach
locations to open
Whole Foods: Free two-hour delivery of natural and
organic products, includes Sacramento and San Diego
Kohls: To add Aldi groceries to stores
Source: http://www.theshelbyreport.com/ (from
November 1, 2017 to April 27, 2018
Attachment D