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Triangle Mall Management The right triangle for retail operations For further information contact: proposal for Triangle Mall Management, TriCities Office, Sunflowers 1 Triangle Square, Clothes Glen Meadows for living As Sunflowers looks to expand its operations this year, we feel that there is a natural fit between your company's goals and our proven developments that offer retail, entertainment, and dining options for residents of upscale areas with exceptional disposal incomes and exclusive lifestyles. We believe that our "unmall" mall developments, with their elegant architecture and extensive landscaping, perfectly fits the image you seek for Sunflowers. Our park-like streets and casual fine dining anchors create an award-winning environment for retail sales. Our extensive competitive retail analysis coupled with our exclusive demographic and geographic profiles, regional economic analysis, and sales potential forecast analysis ensure that our developments maximize your business opportunities. We at Triangle Mall Management realize that your store opening strategies have been guided primarily by profiled customers living within a fixed radius of your stores. However, we would like to suggest that our proven track record at improving sales for small chain stores is applicable to you. To that end, we have reanalyzed your store sales sample of 14 locations to include the average disposal income of the areas surrounding each store in the sample. As you can see from the data, there is a strong correlation between sales and the average disposal income of each surrounding community. Because Triangle Mall Management establishes its centers only in areas of exceptional affluente, those in which disposal income is no less than 65K dollars, we project, based on your 14-store sample, that Sunflower shops in our developments will do no less than 10.6 million dollars in sales (calculated using the regression intercept -1.94 and the regression coefficient 0.193). We note that some of stores in your sample do much better than this and we would expect the same for any stores established in Triangle developments Please review the 14-store data sample (see attachments) and when you are satisfied, give us a call at your convenience. Respectfully submitted, The Triangle Mall Development TeamTriangle Mail and Sunflowers stores (adapted from Statistics for Managers using Microsoft Excel, Levine, Stephan and Szabat 8th edition, C 2017 Pearson) Leasing agents from the Triangle Mall Management Corporation have suggested that Sunflowers consider several locations in some of Triangle's newly renovated lifestyle malls that cater to shoppers with higher-than-mean disposable income. Although the locations are smaller than the typical Sunflowers location, the leasing agents argue that higher-than-mean disposable income in the surrounding community is a better predictor of higher sales than profiled customers. The leasing agents maintain that sample data from 14 Sunflowers store prove that this is true. Open Triangle_Sunflower.pdf and review the leasing agents' proposal and supporting documents. Then answer the following questions: 1. Should mean disposable income be used to predict sales based on the sample of 14 Sunflowers stores? 2. Should the management of Sunflowers accept the claims of Triangle's leasing agents? Why or why not? 3. Is it possible that the mean disposable income of the sur-rounding area is not an important factor in leasing new locations? Explain. 4. Are there any other factors not mentioned by the leasing agents that might be relevant to the store leasing decision?
