A card/stationary shop located in a small convenience center requires sales of $300 psf of gross leasable area in order to be profitable. The store owner is considering moving to a new location in a community shopping center that has 2,500 sf of gross leasable area.

Assume the rule of thumb for outlining the drive-time trade area for this type of product/store is 20 minutes, and the area contains an estimated 85,000 households, with an average household income of $48,000. Three other card/stationary shops are located in the trade area, with combined square footage of 6,500. Recent market data shows that people in this region generally spend 0.11 percent of their income on card/stationary products and that net leakage out of the area is 50 percent.

4. (4 points) Using the drive-time approach, the potential for sales per square foot at the new location is: (Show the steps of your calculations.)

A) $249

B) $498

C) $329

D) $295