© 2010 Marine View Ventures, Inc. All rights reserved. Tribal Summit Survey 2009 Data October 21 st, 2010

© 2010 Marine View Ventures, Inc. All rights reserved.

Tribal Summit Survey2009 Data

October 21st, 2010


Survey Methodology

Data collection• Survey sent via Zoomerang to Tribal Summit members

• Responses received from 8 tribes

• 19 sites represented by the data

– The minimum number of store for a tribe was 1, the maximum was 6

– Our best guess based on state figures is that data represents ~33% of total Tribal fuel volume

Data Analysis• Analysis conducted on a 100% blind basis

– names for individual respondents “un-viewable”

• Tribal data was compared to NACS 2009 Annual report

– NACS is the Association of Convenience and Petroleum Retailing

– Covers 144,541 stores in the United States

… but NACS began in 1970 with only 111 companies reporting


Top Level View of Tribal Summit Stations

• 100% have convenience stores

• 65% sell fuel

• 95% sell cigarettes

• The same 95% sell OTP

• And 20% sell liquor

• $70.69M in merchandise sales

• 26.71M gallons of fuel

• $40.62M in cigarette sales

• $4.21M in OTP sales

• $2.36M in liquor sales

% of participants Annual total across participants

Together, Tribes have significant purchasing power in the State of Washington


Tribal stations tend to sell much more fuel than national stations

Min: 0.04M Av: 2.23M Max: 8.90 M

• Total tribal volume of 31.03M gallons/year

• The average tribal station at 2.39 million gallons /yr sells 54% more than the average non-tribal station at 1.45 million gallons a year

– Non-tribal stations in WA likely sell more than the national average


Tribal stations tend to sell much more merchandise than national stations

Min: 0.23M Av: 3.72M Max: 13.85 M

• Merchandise includes all inside sales except food service sales

• The average tribal station sells 3X the national average in merchandise sales

• There is however, a lot of variation between tribal station sales:

– The lowest sales of $0.23M/yr are 72% below the 4th quartile stations in the nation

– And the highest sales of $13.85M 850% greater than the 1st quartile stations


The Tribal merchandise mix is quite different from the non-Tribal merchandise mix reported in NACS

Superior tribal merchandise sales are in part driven by tobacco/liquor sales


Cigarette sales are the majority of the Tribal merchandise sales

Min: 0.05M Av: 2.26M Max: 13.11 M

• The average tribal cigarette sales ($2.26M/yr) are ~4x the NACS average ($567K/yr)

– And about 3x the top quartile non-tribal stations selling $800K/yr

• Without cigarette/OTP/liquor sales, tribal average tribal merchandise sales would be $639K/yr, which is only 13.7% greater than the NACS equivalent ($562K/yr)


Tribal OTP sales are also greater, but by a smaller amount

Min: 0.005M Av: 0.23M Max: 0.9 M

• The average tribal OTP sales ($234K/yr) are ~4x the average NACS numbers ($63K/yr)

• Unlike liquor and cigarettes, OTP sales have relatively little variation across tribal stations

• … And there is probably an opportunity for this category to grow in tribal sites


The greatest difference between tribal and NACS sales exists in liquor

Min: 0.07M Av: 0.59M Max: 1.24 M

• The average tribal liquor sales ($590K/yr) are ~12X the NACS average ( $49K/yr)

– Even the lowest tribal liquor sales (65K/yr) are above the NACS average

• The tribal advantage may disappear if liquor is deregulated


Customers in the sites

• The tribal sites, combined, see 18,427 customers per day, or an average of 1,084 customers per site

• The sleepiest site sees 129 customer/day

• The busiest site sees 3,980 customers/day

• Each customer spends on average $12 on merchandise per day

• The sleepiest sites average $2/customer

• And the busiest sites average $25/customers

– The busiest sites were also those that sold liquor

Customers per site per day

Sales/ customer


Tribal sites staffed employees according to four main functions:

• On average, sites have three levels of management under the “Management” function

– Most common: general manager, store manager, and assistant manager

• But some had as little as one position, and others had as many as five

• On average, sites have two levels under the “Cashier” function

– Most common: lead cashier, and cashier

• But some had as little as one position, and others had as many as five

• One average, sites had one person in charge of inventory control― often called “stocker”

• But some sites didn’t have anyone for this function, and other broke it up into three- receiving, grocery, and stocker

• Finally, some sites created positions centered on specific product types, the most common being “Deli” with one person on average

• Some stations, usually the ones that sold liquor, created positions focused on managing liquor, tobacco, and fuel

Management

Cashier/POS

Inventory Control

Product-specific activities

On average, stations had 8 different job levels


Total Management Compensation

• The majority of sites didn’t have bonuses, but those who did offered between 5%-25% to the GM, 5%-10% to the Store Manager, and 2%-5% to the Assistant Manager

Min 69K

Min 38K

Min 21K

Av 86.7K

Av 57.2K

Av 38.0K

Max 131K

Max 76K

Max 56K


Staff Compensation

• The average starting salary is $9.34/hr― significantly higher than the NACS average of $7.67/hr

• Over time, the differences compound- the average salary for someone with 60+months of service is $11/hr


Benefits

• Most of the sites provide benefits to full time employees– The least common benefit was Pension

• Instead, the majority of sites either do not provide benefits for part-time employees, or do so under certain conditions

– One site provided benefits to part-time employees who worked above 30 hours/week

• Some people might have been unsure as to the definition EAP or Fund/profit sharing– Sites may have different names for the same service

Medical Dental 401-K PensionFund/Profit

SharingVision EAP*

vacation time

Sick TimeLife

Insrnc./AD&D

Full-time 71% 71% 71% 43% 14% 71% 29% 86% 71% 57%

Part-Time 0% 0% 14% 0% 0% 0% 29% 29% 29% 0%


Labor hours

• Tribal sites average 488 labor hours per week– The site with the lowest labor hours average 95 hours per week

– The site with the highest, averaged 1,326 labor hours per week

• Differences in labor hours may result from differences size, services offered, and/or productivity

• Regardless, at 488 hrs/wk tribal stations average 39% more labor hours than the NACS stations (352 hrs/wk)


Back Office Software used

• Three types of back office software were used

• The majority of the sites used SSCS, but some sites also used Datamax or Super P.O.S:

• Note: results may be eschewed as there was some confusion among respondents regarding software used

Software Used by (% of respondents)

SSCS 64%

Datamax 18%

Super P.O.S. 18%


Top Level View of Tribal Summit Stations

• 100% have convenience stores

• 65% sell fuel

• 95% sell cigarettes

• The same 95% sell OTP

• And 20% sell liquor

• $70.69M in merchandise sales

• 26.71M gallons of fuel

• $40.62M in cigarette sales

• $4.21M in OTP sales

• $2.36M in liquor sales

% of participants Annual total across participants

Together, Tribes have significant purchasing power in the State of Washington

Documents

© 2010 Marine View Ventures, Inc. All rights reserved. Tribal Summit Survey 2009 Data October 21 st, 2010