[NoMo50]

Originally Posted by EdFNJ

You'll NEVER see a Costco in The Villages. That the same "my hairdresser's, Uncle's Brother's dog haircutter's told me story" has been around for years. MAYBE Ocala IMO. I'l bet Costco has no desire to deal with "Villages People."

I'm not sure Costco views the demographic of The Villages as a big part of their target market. Sure, there are a lot of folks here, but Costco tends to seek out people who buy in volume. When we were younger, and raising a family, buying in volume and stocking a freezer made sense. Now, not so much. We still enjoy going to Costco, and using them for many things. But, no longer does a trip include buying 20 lbs of ground beef, and 10 lbs of chicken breasts.

Also, you will never see a Costco located on property within the confines of The Villages. They simply will not pay the vig (percentage of gross sales) demanded by the Developer.

[UpNorth]

Costco is converting a prison in Cranston, R.I. into a new store. I know of a nice facility in Coleman they could consider. Right in the middle of the expanding Villages.

[JoMar]

Originally Posted by NoMo50

I'm not sure Costco views the demographic of The Villages as a big part of their target market. Sure, there are a lot of folks here, but Costco tends to seek out people who buy in volume. When we were younger, and raising a family, buying in volume and stocking a freezer made sense. Now, not so much. We still enjoy going to Costco, and using them for many things. But, no longer does a trip include buying 20 lbs of ground beef, and 10 lbs of chicken breasts.

Also, you will never see a Costco located on property within the confines of The Villages. They simply will not pay the vig (percentage of gross sales) demanded by the Developer.

Just curious what that percentage is compared to what other Developers charge? Have you seen the contracts or commenting on rumors and speculation?

[asianthree]

Originally Posted by JoMar

Just curious what that percentage is compared to what other Developers charge? Have you seen the contracts or commenting on rumors and speculation?

If you have ever owned a business, in your contract, is a clause that percentage of gross sales, cannot be disclosed to other than the contract parties. That is for pretty much any business, in any state, that has a gross sale, plus rent in their agreement.

So unless you have inquired about store front rentals in village properties, then you would know, but couldn’t disclose. At our business, in another state, it was 19% of gross sales.

[Stu from NYC]

Originally Posted by asianthree

If you have ever owned a business, in your contract, is a clause that percentage of gross sales, cannot be disclosed to other than the contract parties. That is for pretty much any business, in any state, that has a gross sale, plus rent in their agreement.

So unless you have inquired about store front rentals in village properties, then you would know, but couldn’t disclose. At our business, in another state, it was 19% of gross sales.

19% wow shocked it is so high

[asianthree]

Originally Posted by Stu from NYC

19% wow shocked it is so high

Not really due to the location, our business was 400% higher than at previous location. Percentage is based on how much foot traffic can the developer bring to you. We had 3 other locations that would have been under 10%, if we chose that location, but foot traffic and clientele was not worth it

[Stu from NYC]

Originally Posted by asianthree

Not really due to the location, our business was 400% higher than at previous location. Percentage is based on how much foot traffic can the developer bring to you. We had 3 other locations that would have been under 10%, if we chose that location, but foot traffic and clientele was not worth it

Never been in retail so new to me.

Shocked that markup had to be so high (to cover cost as well as rent and owner percentage) to allow you a profit.

[JoMar]

Originally Posted by asianthree

If you have ever owned a business, in your contract, is a clause that percentage of gross sales, cannot be disclosed to other than the contract parties. That is for pretty much any business, in any state, that has a gross sale, plus rent in their agreement.

So unless you have inquired about store front rentals in village properties, then you would know, but couldn’t disclose. At our business, in another state, it was 19% of gross sales.

That was my point.

[asianthree]

Originally Posted by Stu from NYC

Never been in retail so new to me.

Shocked that markup had to be so high (to cover cost as well as rent and owner percentage) to allow you a profit.

Kept business at location for 13 years…well worth it. Sold and new owners had continued for more than 20 years until the pandemic basically shut down everything.

[Randall55]

Also, you will never see a Costco located on property within the confines of The Villages. They simply will not pay the vig (percentage of gross sales) demanded by the Developer.[/QUOTE]

hmmm..the percentage of gross sales the developer demands is probably the reason we have subpar commercial. Good to know! Unfortunately, it looks like my wife and I will be making trips to Clermont and Wesley Chapel for many more years.

[JMintzer]

Originally Posted by Randall55

Also, you will never see a Costco located on property within the confines of The Villages. They simply will not pay the vig (percentage of gross sales) demanded by the Developer.

hmmm..the percentage of gross sales the developer demands is probably the reason we have subpar commercial. Good to know! Unfortunately, it looks like my wife and I will be making trips to Clermont and Wesley Chapel for many more years.[/QUOTE]

Why? Any developer of retail space charges similar fees. No one here knows what percentage they charge...

[asianthree]

Originally Posted by JoMar

That was my point.

Not really, point is if there are businesses out of state that have a high percentage, do you really believe that developers would be in the low % bracket.

With all our experience would we open a business in the bubble. Definitely No. outside yes. Foot traffic here may be a captive audience, but spending is far different than demographics in other areas

[JoMar]

Originally Posted by asianthree

Not really, point is if there are businesses out of state that have a high percentage, do you really believe that developers would be in the low % bracket.

With all our experience would we open a business in the bubble. Definitely No. outside yes. Foot traffic here may be a captive audience, but spending is far different than demographics in other areas

The point is that every business has a business plan and that determines where they locate. Since we are focused on retail the differentiator will be projected revenue. As you know, some have escalation clauses, some fixed but I doubt there is a big difference between like NACIS codes. I agree, inside the bubble is not an ideal location for any big box store but close by may make sense in the coming years as the apartments fill up and more families are here. The changing demographics will drive who shows up.

[MrChip72]

Originally Posted by Stu from NYC

More like an hour but would like a closer one. BJ and Sams 20 minutes away.

Nope, 35 mins or less for MANY people in TV.

Map with distance to Clermont

[Stu from NYC]

Originally Posted by JMintzer

hmmm..the percentage of gross sales the developer demands is probably the reason we have subpar commercial. Good to know! Unfortunately, it looks like my wife and I will be making trips to Clermont and Wesley Chapel for many more years.

Why? Any developer of retail space charges similar fees. No one here knows what percentage they charge...[/QUOTE]

Lots of stores here but the ones that seem most competitive to us are on property developer does not own.