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