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immediate access by two bridges to several much larger supermarkets on the mainland and a small upscale merchandised grocery store, the Village Market (on the beach near the north municipal/county line), it is very unlikely that residents north of South Beach will travel to the proposed supermarket. The only economically rational addition to the trading area therefore lies to the South. Immediately South of the site is Round Island Park. The St. Lucie County portion of the Barrier Island below it is less developed then South Beach at this time. Its current population is approximately, 2,300.t0 Although the area is rapidly growing the population is also subject to violent seasonal fluctuations. 12. Until future growth occurs these facts lead me to conclude that the 27,860 sq. ft. supermarket may very well operate at low capacity rates, thereby incurring high operating costs per unit, unacceptable return on investment and higher prices to consumers without enhanced retail services or quality products. This result violates the Indian River County Zoning codes purpose and intent.. "to provide an efficient use of land ... promote the economic well being of the County and ensure commercial development compatible with existing and proposed development". 13. The structure of the supermarket industry in Vero Beach also strongly suggests, that competition among the very few and very large local market share firms that operate in Vero Beach will be significantly lessened to the detriment of all Vero Beach residents. Progressive Grocer indicates that Indian River County is served by only 10 supermarkets and 6 of the 10 had sales above 12 million dollars in 1993. Food sales in the County totaled $200 million dollars in 1993." Using store identity and square footage estimates provided by Concerned Mooring Residents for the 8 supermarkets located in Vero Beach and the South/Central portion of the county, I have computed the following market shares: Vero Beach Supermarket Market Structure Publix (4 stores, 137,632 square feet) 52.1% Winn Dixie (2 stores, 59,320 square feet) 22.4% Albertson (1 store, 45,000 square feet) 17.0% Keen's (1 store, 22,500 square feet) 8.590 100% In comparison to other cities in Florida and the U.S. this is a very concentrated market with Publix as the dominant firm. Supermarket chain in such cities can price in an oligopolist, i.e., non competitive fashion.' Adding another Publix and locating it as a geographic monopoly on the Barrier Island does not promote 1'Estimate provided by Gene Winne, 6/20/94, telephone conference. It op.cit., p. 339 12An oligopoly market is one served by a few, large firms, see for example: Leonard Weiss, Concentration And Price, MIT Press: Cambridge, 1989, or Cotterill. op.cit. 33 July 12, 1994 BOOK