Chicagoland Suburban Retail Sales

MELANIPHY & ASSOCIATES RETAIL SALES REPORT COVERING 2013 ANNUAL RETAIL SALES Melaniphy & Associates, Inc., International Realty Advisors and Consultants Phone 773-467-1212 Fax: 773-774-0454 Website: www.melaniphy.com John C. Melaniphy, III - Publisher April 2014

CHICAGO METRO AREA RETAIL SALES EXCEED THE PRE-RECESSION LEVELS! METRO SALES ARE AT $110.8 BILLION COMPARED TO 2007 SALES OF $106.9 BILLION

IN 2013, CHICAGO METRO RETAIL SALES RECOVERED BY $5.0 BILLION TO $110.8 BILLION, OR 4.8%  THE CITY OF CHICAGO INCREASED IN 2013 BY $1.1 BILLION TO $24.3 BILLION  CHICAGO AREA SUBURBS INCREASED IN 2013 BY $2.0 BILLION or 4.6% TO $46 BILLION MAJOR METRO RETAIL CATEGORY SALES CHANGES 2012 to 2013  General Merchandise Store sales decreased by $117 Million  Automotive & Filling Stations grew by over $1.4 Billion  Apparel & Accessory Stores increased by over $157 Million  Drinking & Eating Places sales rose by $672 Million  Drugs & Miscellaneous Retail Stores grew by $1.2 Billion  Food Stores rose by over $245 Million  Furniture & Electronics increased by $216 Million  Home Improvement increased by $422 Million

Table 1 METRO CHICAGO CHANGES BY MAJOR RETAIL CATEGORY

Difference Percent Categories 2012 2013 2012-2013 Change General Merchandise $12,121,383,709 $12,003,731,596 ($117,652,113) -1.0% Food Stores $13,226,516,022 $13,471,672,048 $245,156,026 1.9% Drinking and Eating Places $14,186,474,944 $14,858,603,067 $672,128,123 4.7% Apparel & Accessories $4,992,971,500 $5,150,418,064 $157,446,564 3.2% Furniture & Electronics $5,505,736,781 $5,721,885,306 $216,148,525 3.9% Home Improvement $4,667,595,959 $5,090,320,656 $422,724,697 9.1% Automotive & Filling Stations $22,824,307,130 $24,240,938,057 $1,416,630,927 6.2% Drugs & Miscellaneous Retail Stores $16,581,151,452 $17,800,566,733 $1,219,415,281 7.4% Agriculture & All Others $9,829,538,386 $10,481,614,099 $652,075,713 6.6% Manufacturers $1,837,032,929 $2,035,399,393 $198,366,464 10.8% Total $105,772,708,812 $110,855,149,019 $5,082,440,207 4.8%

Source: Illinois Department of Revenue and Melaniphy & Associates, Inc., 2013 - 2014  Melaniphy & Associates, Inc., April 2014. No quotation or copying without written permission.

MELANIPHY & ASSOCIATES, INC. THE 2014 MELANIPHY CHICAGOLAND RETAIL SALES REPORT – 2013 ANNUAL SALES Volume 29.1 April 2014

A COMPARISON OF 2012 AND 2013

Table 1 above shows the 2013 retail sales by major retail categories in comparison to 2012. In 2007, Total Chicago Metropolitan Area Retail Sales stood at $106.9 billion, while in 2013 total retail sales amounted to $110.8 billion. Thus, we have far exceeded the 2007 level. Nonetheless, there are still some problem areas such as Furniture & Electronics and Home Improvement. Both remain significantly below their 2007 level Furniture & Electronics is down -$1.1 billion, while Home Improvement is down by over -$1.3 billion. Both are primarily Durable Goods stores and reflect a significant loss which normally occurs during a major recession. On the upside, Drinking & Eating Place sales rose by over $1.5 billion and Drugs & Miscellaneous Retail Stores increased by $1.2 billion.

Table 2 Chicago Metropolitan Area Retail Sales – 1986-2013 Annual 26 YEARS OF METRO RETAIL SALES Metro Area Annual Percent Year Total Sales Change Change Table 2, to the left depicts total annual retail sales 1986 $41,605,594,520 changes for the Chicago Metro area since 1986. Figure A on the following page depicts the data. The 1987 $51,318,551,280 $9,712,956,760 23.30% data indicate that we have had five major negative 1988 $55,790,652,808 $4,472,101,528 8.70% lows and five shrinking years. The declines in retail 1989 $53,579,836,516 ($2,210,816,292) -4.00% sales – are indicated in red. Those years included 1990 $58,810,837,578 $5,231,001,062 9.80% 1989, 1991, 2002, and the latest and worst in 2008 and 1991 $56,393,030,149 ($2,417,807,429) -4.10% 2009. In 2012, retail sales increased by $4.2 billion, 1992 $57,607,200,150 $1,214,170,001 2.20% or an increase of 4.16% over 2011. In 2013, Total 1993 $60,523,670,277 $2,916,470,127 5.10% Chicagoland Metro Retail Sales increased by $5.0 1994 $65,594,139,971 $5,070,469,694 8.40% billion to Total 2013 Metro retail of $110.8 billion. 1995 $66,788,403,017 $1,194,263,046 1.80% The Chicagoland Metro Total Retail Sales reached an all time high and well above the 2007 pre-recession 1996 $71,190,554,161 $4,402,151,144 6.60% level of $106.8 billion. 1997 $75,066,935,869 $3,876,381,708 5.40% 1998 $78,731,498,357 $3,664,562,488 4.90% Major Retail Category definitions are provided by the 1999 $84,274,918,577 $5,543,420,220 7.00% State of Illinois, Department of Revenue. All of the 2000 $88,520,176,501 $4,245,257,924 5.00% sales data is rounded to the nearest tenth of a million or billion. The individual retail categories by NAICS 2001 $90,670,483,000 $2,150,306,499 2.40% codes include the following: 2002 $89,596,728,900 ($1,073,754,100) -1.20%

2003 $90,684,871,000 $1,088,142,100 1.20% General Merchandise includes sales primarily in 2004 $94,214,162,004 $3,529,291,004 3.90% department and Big Boxes and supercenters selling 2005 $98,402,525,809 $4,188,363,805 4.40% food. Food Stores includes food purchased in 2006 $104,793,501,131 $6,390,975,322 6.50% supermarkets and grocery stores and consumed at 2007 $106,868,471,989 $2,074,970,858 2.00% home. Drinking & Eating Places includes retail sales 2008 $101,785,750,195 ($4,050,257,630) -3.80% in restaurants, quick service food facilities, bars, and 2009 $92,885,554,174 ($8,900,196,021) -8.70% banquet facilities. Apparel & Accessories Stores 2010 $96,658,193,208 $3,772,639,034 4.10% includes apparel and accessories retail stores for the family, women, men, and children. Furniture & 2011 $101,543,893,789 $4,885,700,581 5.05% Electronics Stores includes retail sales for furniture, 2012 $105,772,708,812 $4,228,815,023 4.16% home furnishings, appliances, electronics, and 2013 $110,855,149,019 $5,082,440,207 4.08% decorator items. Home Improvement Stores includes Source: Illinois Department of Revenue and Melaniphy & Associates, 1986 - 2014 Lumber, Building Materials & Hardware. Automobile Dealers & Gasoline Service Stations include new and used automobile dealers and gasoline stations sales. Drugs & Other Miscellaneous Retail Stores includes drug stores, liquor, sporting goods, bookstores, jewelry, toys and hobby, gifts, luggage, leather goods, florists and other miscellaneous store sales. There are two other categories: Agriculture and All Others and Manufacturers which are not germane to the retail sales discussion.

MELANIPHY & ASSOCIATES, INC. THE 2014 MELANIPHY CHICAGOLAND RETAIL SALES REPORT – 2013 ANNUAL SALES Volume 29.1 April 2014

Figure A

RETAIL SALES EXCEED PRE-RECESSION LEVELS IN THE CHICAGO METROPOLITAN AREA, CITY OF CHICAGO AND ALL METRO AREA COUNTIES

Table 3 on the following page depicts retail sales by Chicago Metro County from 2007 through 2013. The data shows that all of the counties that comprise the Metro area increased in sales from 2012 to 2013 by a margin of $5.0 billion. The largest increase was in Cook County which increased by $3.0 billion to 2013 retail sales of $63.9 billion. DuPage County increased by $1.0 billion or 6.1%.

Table 3 shows that the counties in the Chicago Metropolitan Area, along with a comparison of 2007 (the beginning of the recession) to 2013 where we are seeing some strong recovery. All of the Counties increased in retail sales in 2013 over 2012, and all counties are above their 2007 retail sales level. In 2013, the City of Chicago generated total retail sales of over $25.4 billion, an increase from 2007 of over $2.5 billion. Cook County Suburbs, (without the City of Chicago), generated retail sales of over $38.4 billion up by $621 million above the 2007 retail sales level. Overall, the comparison of 2007 to 2013 shows that the total counties are nearly $4.0 billion above the 2007 level.

DuPage County, located to the west of Cook County, recorded 2012 retail sales of $17.1 billion. By 2013, retail sales increased by 6.1 % to $18.1 billion. Since 2007 retail sales in DuPage County increased by $571 million or by 3.2%

Kane County, west of DuPage County, had 2012 retail sales amounting to $5.8 billion and $6.0 billion in 2013. Retail sales in Kane County increased by 3.5 percent between 2012 and 2013. Since 2007, sales in Kane County increased by $77 million or by 1.3 percent

Lake County recorded 2012 sales of $10.7 billion and $11.0 billion in 2013 representing an increase of 3.0%. Lake County’s retail sales increased by 1.6% above the 2007 retail sales level.

McHenry County’s retail sales amounted to $3.4 billion in 2012 and $3.5 billion in 2013. Sales increased by 4.3%. In 2007 retail sales in McHenry County amounted to $3.4 billion thus sales have finally exceeded the 2007 levels over $82 million or by 2.4%

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Will County recorded 2012 retail sales of $7.7 million increasing to over $8.0 billion in 2013 an increase of 4.5%. Sales increased by $344 million between 2012 and 2013. Since 2007 retail sales grew by over $956 million or by 13.5% in Will County. Table 3

Chicago Metropolitan Area County Retail Sales Changes - 2007 through 2013

Percent Civil Subdivisions 2007 2008 2009 2010 2011 2012 2013 Sales Difference Change Chicago $22,954,101,315 $22,204,546,670 $20,621,237,756 $21,703,552,494 $23,010,139,657 $24,300,868,836 $25,487,502,744 $1,186,633,908 4.9% Cook Co. (less Chicago) $37,844,015,866 $36,258,208,887 $32,765,677,421 $33,859,039,591 $35,091,924,200 $36,643,734,389 $38,465,865,877 $1,822,131,488 5.0% Total Cook County $60,798,117,181 $58,462,755,557 $53,386,915,177 $55,562,592,085 $58,102,063,857 $60,944,603,225 $63,953,368,621 $3,008,765,396 4.9% DuPage County $17,622,667,513 $16,847,585,918 $15,185,257,101 $15,883,937,691 $16,594,307,868 $17,140,153,184 $18,193,838,533 $1,053,685,349 6.1% Kane County $5,983,161,786 $5,700,933,750 $5,170,633,716 $5,456,780,112 $5,703,578,015 $5,854,871,965 $6,060,196,946 $205,324,981 3.5% Lake County $10,855,849,976 $10,355,381,486 $9,470,594,524 $9,693,396,696 $10,322,179,447 $10,710,795,139 $11,033,206,616 $322,411,477 3.0% McHenry County $3,467,252,766 $3,365,857,737 $3,101,780,952 $3,159,783,774 $3,335,400,914 $3,401,758,885 $3,549,324,511 $147,565,626 4.3% Will County $7,108,958,603 $7,053,235,747 $6,585,491,084 $6,901,702,850 $7,486,363,688 $7,720,526,414 $8,065,213,792 $344,687,378 4.5% Total Counties $106,868,471,989 $101,785,750,195 $92,885,554,174 $96,658,195,218 $101,543,893,789 $105,772,708,812 $110,855,149,019 $5,082,440,207 4.8% Source: Illinois Department of Revenue and Melaniphy & Associates, Inc., - 2008-2014

Table 4 METRO CHICAGO CHANGES BY COUNTY 2007 and 2013

Difference Percent Categories 2007 2013 2012-2013 Change General Merchandise $11,946,744,992 $12,003,731,596 $56,986,604 0.5% Food Stores $13,068,829,128 $13,471,672,048 $402,842,920 3.1% Drinking and Eating Places $12,652,276,606 $14,858,603,067 $2,206,326,461 17.4% Apparel & Accessories $4,955,874,417 $5,150,418,064 $194,543,647 3.9% Furniture & Electronics $6,625,714,398 $5,721,885,306 -$903,829,092 -13.6% Home Improvement $6,002,576,181 $5,090,320,656 -$912,255,525 -15.2% Automotive & Filling Stations $21,993,291,128 $24,240,938,057 $2,247,646,929 10.2% Drugs & Miscellaneous Retail Stores $15,427,331,691 $17,800,566,733 $2,373,235,042 15.4% Agriculture & All Others $11,518,688,829 $10,481,614,099 -$1,037,074,730 -9.0% Manufacturers $2,677,144,619 $2,035,399,393 -$641,745,226 -24.0% Total $106,868,471,989 $110,855,149,019 $3,986,677,030 3.7% Source: Illinois Department of Revenue and Melaniphy & Associates, Inc., 1986 - 2014

CITY OF CHICAGO RETAIL SALES INCREASED BY $1.1 BILLION IN 2013 AN INCREASE OF 4.9%

Total retail sales in the City of Chicago stood at approximately $24.3 billion in 2012, an increase of approximately $1.35 billion, or 5.87% over 2011 sales of approximately $23.0 billion. In comparison to the beginning of the recession in 2007, the City of Chicago is over $1.3 billion above the 2007 retail sales level. In 2013, retail sales in the City of Chicago increased to $25.4 billion an increase of $1.1 billion or an increase of 4.9 percent. Copyright © Melaniphy & Associates, Inc, April 2014. No quotation or copying without written permission. Page 4

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Table 5 presents a comparison of 2012 retail sales to 2013 levels. The data indicate that Chicago has recovered from the 2007 retail sales level. General Merchandise Store sales in 2013 are above the 2007 level by $229.1 million to retail sales of $1.9 billion. Food Stores retail sales in 2013 rose to $3.8 billion or $346.9 million above the 2007 recession level. Drinking & Eating Places sales advanced to over $6.1 billon in 2013, or approximately $1.2 billion above the 2007 recession level. This was followed by Apparel & Accessory Stores with 2013 retail sales of $1.75 billion and $158 million above the 2007 retail sales level. Unfortunately, two categories have not fully recovered. Furniture & Electronics Stores and Home Improvement Stores recorded sales of $965.7 million and $861.9 million respectively. However, Furniture & Electronics Stores remain -$59 million below the 2007 retail sales level, as does Home Improvement Stores at -$65.6, or -7.1% below. Automotive & Filling Stations rose to $2.9 billion, up $272.9 million over 2007 sales. Drugs & Miscellaneous Retail Stores recorded 2013 retail sales of $4.2 billion, an increase over 2007 of $450.1 million. Agriculture & all Others and Manufactures category is not relevant to this retail discussion.

Table 5 Comparison of Retail Sales by Major Retail Category 2007- 2013 City of Chicago

Difference Percent Chicago 2007 2013 2012-2013 Change General Merchandise $1,737,342,930 $1,966,511,455 $229,168,525 13.2% Food Stores $3,491,838,983 $3,838,740,569 $346,901,586 9.9% Home Improvement $927,554,254 $861,950,948 -$65,603,306 -7.1% Automotive & Filling Stations $2,698,260,913 $2,971,178,515 $272,917,602 10.1% Drugs & Misc. Retail $3,845,137,284 $4,295,309,511 $450,172,227 11.7% Agriculture & All Others $2,245,468,559 $2,155,946,373 -$89,522,186 -4.0% Manufacturers $448,676,734 $485,890,690 $37,213,956 8.3% Total Retail Sales $22,954,101,315 $25,487,502,744 $2,533,401,429 11.0%

Source: Illinois Department of Revenue and Melaniphy & Associates, Inc, - 2008-2014

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Table 6

Comparison of Retail Sales by Major Retail Category 2012- 2013 City of Chicago

Difference Percent Categories 2012 2013 2012-2013 Change General Merchandise $1,925,229,426 $1,966,511,455 $41,282,029 2.1% Food $3,766,316,219 $3,838,740,569 $72,424,350 1.9% Drinking and Eating Places $5,829,251,342 $6,189,890,782 $360,639,440 6.2% Apparel $1,672,902,595 $1,756,311,809 $83,409,214 5.0% Furniture & H.H. & Radio $996,545,124 $965,772,092 -$30,773,032 -3.1% Lumber, Bldg, Hardware $775,999,565 $861,950,948 $85,951,383 11.1% Automotive & Filling Stations $2,839,297,523 $2,971,178,515 $131,880,992 4.6% Drugs & Misc. Retail $4,063,503,285 $4,295,309,511 $231,806,226 5.7% Agriculture & All Others $2,010,291,676 $2,155,946,373 $145,654,697 7.2% Manufacturers $420,912,524 $485,890,690 $64,978,166 15.4% Total $24,300,249,279 $25,487,502,744 $1,187,253,465 4.9%

Source: Illinois Department of Revenue and Melaniphy & Associates, Inc, - 2013-2014

IN 2013, ALL BUT 1 OF THE TOP 20 SUBURBS INCREASED IN RETAIL SALES, AND 17 WERE ABOVE THEIR 2007 LEVEL

Table 7 presents the Top 20 Suburbs retail sales for 2007 through 2013. The changes and percent changes are from 2012 to 2013. The City of Chicago is also included for comparison.

The Top 20 Suburbs in 2013 had total retail sales amounting to $56,328,173,790 or $2,572,732,115 above the 2012 retail sales of $53,755,441,675. This represents an increase of 4.79 %. The only Suburb that declined in retail sales in 2013 was Skokie. The Top 20 communities including the City of Chicago and 14 Suburbs who are above their 2007 retail sales level include Chicago, Naperville, Aurora, Joliet, Niles, Skokie, Glenview, Bolingbrook, Vernon Hills, Elgin, Tinley Park, Oak Brook, and Arlington Heights. The communities that remain below their 2007 levels include Schaumburg, Gurnee, Downers Grove, Lombard, Crystal, Lake and Elmhurst. The big 5 Suburbs in the Top 20 include Schaumburg, Naperville, Aurora, Joliet, and Orland Park all showed increases.

MELANIPHY & ASSOCIATES, INC. TABLE 7

THE TOP 20 CHICAGOLAND SUBURBS IN RETAIL SALES CHICAGO METROPOLITAN AREA 2007-2013

2007 2008 2009 2010 2011 2012 2013 2012-2013 Percent Total Total Total Total Total Total Total Sales Change 2007-2013 Community Sales Sales Sales Sales Sales Sales Sales Difference 2013 Change Chicago $22,954,101,315 $22,204,546,670 $20,606,119,376 $21,703,552,494 $23,010,139,657 $24,300,868,836 $25,489,468,356 $1,188,599,520 4.89% $2,535,367,041 Schaumburg $3,039,835,343 $2,827,566,312 $2,505,521,901 $2,675,251,904 $2,830,618,358 $3,006,062,871 $3,038,654,438 $32,591,567 1.08% -$1,180,905 Naperville $2,729,371,010 $2,608,999,254 $2,460,245,575 $2,644,326,588 $2,770,371,015 $2,949,065,055 $3,200,400,020 $251,334,965 8.52% $471,029,010 Aurora $1,982,339,754 $1,926,557,186 $1,778,311,090 $1,888,371,374 $1,976,683,115 $2,040,041,943 $2,272,224,864 $232,182,921 11.38% $289,885,110 Joliet $1,952,761,842 $1,877,463,614 $1,765,624,242 $1,796,950,941 $1,846,452,181 $1,896,673,674 $1,992,712,256 $96,038,582 5.06% $39,950,414 Orland Park $1,894,092,048 $1,758,759,617 $1,667,326,376 $1,723,893,812 $1,747,382,163 $1,838,897,475 $1,922,881,856 $83,984,381 4.57% $28,789,808 Niles $1,368,885,380 $1,326,920,365 $1,268,443,741 $1,330,925,295 $1,380,839,137 $1,449,004,368 $1,479,173,053 $30,168,685 2.08% $110,287,673 Skokie $1,287,566,312 $1,198,047,317 $1,127,026,681 $1,215,103,399 $1,238,516,725 $1,443,580,993 $1,347,608,779 ($95,972,214) -6.65% $60,042,467 Glenview $1,360,073,032 $1,311,809,000 $1,194,363,346 $1,233,635,341 $1,279,214,495 $1,309,121,828 $1,383,369,746 $74,247,918 5.67% $23,296,714 Bolingbrook $1,106,106,184 $1,108,368,224 $1,016,563,761 $1,078,730,142 $1,227,632,476 $1,304,312,056 $1,352,999,096 $48,687,040 3.73% $246,892,912 Vernon Hills $1,169,758,843 $1,162,387,515 $1,024,358,416 $1,080,524,792 $1,190,259,905 $1,253,781,287 $1,279,715,217 $25,933,930 2.07% $109,956,374 Elgin $1,186,227,085 $1,108,414,844 $1,008,687,803 $1,096,721,057 $1,148,396,597 $1,215,711,565 $1,319,679,634 $103,968,069 8.55% $133,452,549 Gurnee $1,237,600,186 $1,172,530,518 $1,073,173,950 $1,114,403,594 $1,144,495,554 $1,189,089,299 $1,236,839,794 $47,750,495 4.02% -$760,392 Tinley Park $1,067,318,630 $1,037,081,844 $972,316,431 $1,053,339,922 $1,121,485,505 $1,179,696,912 $1,257,140,250 $77,443,338 6.56% $189,821,620 Downers Grove $1,310,701,492 $1,192,958,144 $1,086,415,856 $1,091,381,046 $1,114,042,049 $1,156,835,424 $1,212,286,638 $55,451,214 4.79% -$98,414,854 Oak Brook $1,129,908,539 $1,079,220,162 $990,744,843 $1,071,922,233 $1,105,843,778 $1,121,283,908 $1,189,394,149 $68,110,241 6.07% $59,485,610 Lombard $1,101,696,947 $1,101,548,219 $985,530,538 $1,010,539,562 $1,082,255,154 $1,077,342,421 $1,095,280,294 $17,937,873 1.67% -$6,416,653 Arlington Heights $1,114,184,660 $1,071,434,525 $977,613,462 $1,011,443,261 $1,045,956,085 $1,035,793,029 $1,117,087,211 $81,294,182 7.85% $2,902,551 Oak Lawn $1,067,768,832 $991,593,151 $921,082,854 $970,362,404 $982,518,981 $1,019,398,198 $1,062,439,863 $43,041,665 4.22% -$5,328,969 Crystal Lake $1,095,162,701 $1,061,252,145 $955,334,003 $948,701,597 $1,014,921,319 $993,114,715 $1,037,867,099 $44,752,384 4.51% -$57,295,602 Elmhurst $1,043,238,301 $989,227,129 $790,981,101 $831,697,327 $875,465,376 $975,765,818 $1,040,951,177 $65,185,359 6.68% -$2,287,124 Total Top 20 $52,198,698,436 $50,116,685,755 $47,052,188,262 $49,456,747,170 $51,133,489,625 $53,755,441,675 $56,328,173,790 $2,572,732,115 4.79% $4,129,475,354 Note: All yearly totals exclude the city of Chicago Source: Illinois Department of Revenue & Melaniphy & Associates, Inc., 2014

MELANIPHY & ASSOCIATES, INC. THE 2014 MELANIPHY CHICAGOLAND RETAIL SALES REPORT – 2013 ANNUAL SALES Volume 29.1 April 2014

THE CORE MALL MARKETS

A Core Market is one with a major mall. There are currently 23 Core Markets in the Chicago Metropolitan Area outside of the City of Chicago, which are depicted in Table 8 on the next page. Years 2007 and 2012 are shown with a yellow background for easier comparison. The Core Market represents the immediate surrounding retail concentration including the mall, big boxes, and other retailers and shopping centers.

Please note: The sales indicated are the total retail sales for the indicated suburbs and are not the sales of the individual malls. This is simply an indication of the sales of the retail concentrations including the mall and the surrounding big boxes. For example, Fox Valley Mall is located on Illinois Highway 59 on the dividing line between the suburbs of Aurora and Naperville. The Mall is located in Aurora, while most of the big boxes are located in Naperville. Both communities support the combined retail facilities. Thus, both have been included in the Core definition. It should also be pointed out that many suburbs are included in multiple counties. Thus, the data must be compiled and compared. Overall, the 23 Core Markets account for over approximately 35% of the Chicago Metro Area’s retail sales. Specifically, they account for over $38.4 billion in retail sales, up from $36.7 billion in 2012. A discussion of the 23 core markets and how they have fared since 2007, the start of the recession is as follows.

Table 8 shows that ALL Suburbs and the City of Chicago have bested their 2007 sales in 2013. The City of Chicago with numerous retail concentrations grew by $760 million in 2012 over 2007. The largest Suburban increase in Core Suburban retail sales was in Mount Prospect (Randhurst), which grew over 2007 in 2013 by over $341 million to sales of $1.3 billion. Randhurst Village underwent a major renovation. This was followed by the Promenade in Bolingbrook which increased by over $287.1 million to total retail sales of $1,179.1 billion. The Woodfield Mall Core Market is $216.5 million above its 2007 level with 2013 retail sales of $4,290.9 billion, followed by the River Oaks Core Market Area which grew by $152.5 million above the 2007 level to 2013 sales of $910 million. Also, the Lincoln Mall Core Market grew by $119.6 million over its 2007 retail sales to 2013 sales of $719.1 million. The sales data indicate that even some of the more moderate income markets are finally enjoying increasing retail sales since 2007.

Between 2012 and 2013 some of the biggest sales increases in the Core Markets included Randhurst up 11.4 percent followed by Fox Valley at 9.69 percent, Woodfield up 8.20 percent, Stratford Square up 7.87 percent, Oak Brook up 6.45 percent, and The Plaza -Evergreen Park up 6.24 percent. Meijer and Menards were added to the Plaza - Evergreen Park Core Market.

MELANIPHY & ASSOCIATES, INC. TABLE 8

THE TOP 23 CORE MARKETS RETAIL SALES CHICAGO METROPOLITAN AREA

2007 2008 2009 2010 2011 2012 2013 Changes % Change Changes Core Market Mall Area 2012-2013 2012-2013 2007-2013 Fox Valley Mall - Aurora/Naperville $4,711,710,764 $4,535,556,440 $4,035,853,611 $4,532,697,962 $4,747,054,130 $4,989,106,998 $5,472,624,884 $483,517,886 9.69% $760,914,120 Woodfield Mall - Schaumburg/Roselle/Rolling Meadows/Hoffman Estates $4,074,397,281 $3,869,520,846 $3,432,936,693 $3,569,527,967 $3,732,658,653 $3,965,627,002 $4,290,901,008 $325,274,006 8.20% $216,503,727 Louis Joliet Mall - Joliet/Plainfield $2,412,379,725 $2,303,204,574 $2,171,962,910 $2,210,012,910 $2,288,145,056 $2,362,513,495 $2,477,489,456 $114,975,961 4.87% $65,109,731 Hawthorn Center - Vernon Hills/Libertyville/Mundelein $2,386,738,024 $2,299,863,836 $2,007,168,653 $2,090,556,918 $2,237,300,406 $2,317,870,024 $2,384,108,283 $66,238,259 2.86% $2,629,741 Yorktown Center- Lombard/Downers Grove $2,412,398,439 $2,294,506,363 $2,071,946,394 $2,101,920,608 $2,196,297,203 $2,234,177,845 $2,307,566,932 $73,389,087 3.28% $104,831,507 Old Orchard Center - Skokie/Evanston $2,208,738,444 $2,104,383,174 $1,977,332,386 $2,096,836,481 $2,132,251,916 $2,346,223,475 $2,320,948,035 $25,275,440 -1.08% $112,209,591 Stratford Square. - Bloomingdale/Glendale Heights/Carol Stream $1,995,732,197 $1,902,298,658 $1,663,508,238 $1,700,184,468 $1,763,418,358 $1,787,307,771 $1,927,955,842 $140,648,071 7.87% $67,776,355 Orland Square - Orland Park $1,894,092,048 $1,743,188,068 $1,667,326,376 $1,723,893,812 $1,747,382,163 $1,838,897,475 $1,922,881,856 $83,984,381 4.57% $28,789,808 The Promenade - Bolingbrook/Romeoville $1,505,986,924 $1,532,011,503 $1,414,567,049 $1,483,566,651 $1,661,077,978 $1,736,177,577 $1,793,155,583 $56,978,006 3.28% $287,168,659 Northbrook Court. - Northbrook/Deerfield $1,344,231,804 $1,356,979,400 $1,241,240,238 $1,258,842,007 $1,380,882,923 $1,489,250,284 $1,434,333,673 $54,916,611 -3.69% $90,101,869 Golf Mill Mall - Niles $1,368,885,380 $1,326,920,365 $1,268,443,741 $1,330,925,295 $1,380,839,137 $1,449,004,368 $1,479,173,053 $30,168,685 2.08% $110,287,673 The Plaza - Evergreen Park/Oaklawn $1,422,199,536 $1,336,683,973 $1,232,312,032 $1,299,479,821 $1,316,439,850 $1,341,602,306 $1,425,269,197 $83,666,891 6.24% $3,069,661 Oak Brook Center - Oak Brook/Oakbrook Terrace $1,331,937,372 $1,265,664,550 $1,152,423,017 $1,225,627,592 $1,275,705,891 $1,304,049,994 $1,388,098,335 $84,048,341 6.45% $56,160,963 Gurnee Mills Mall - Gurnee $1,237,600,186 $1,172,530,518 $1,073,173,950 $1,114,403,594 $1,144,495,554 $1,189,089,299 $1,236,839,794 $47,750,495 4.02% $760,392 Randhurst Center - Mount Prospect, Prospect Heights $967,895,314 $1,087,247,029 $973,346,197 $1,106,785,136 $1,134,412,215 $1,175,184,719 $1,309,554,739 $134,370,020 11.43% $341,659,425 Charlestown Mall - Saint Charles $986,163,820 $923,733,172 $876,402,916 $884,969,085 $928,802,462 $963,422,675 $971,865,967 $8,443,292 0.88% $14,297,853 River Oaks Center - Calumet City/Lansing $1,063,169,176 $985,829,010 $904,619,685 $920,609,526 $910,706,754 $909,301,291 $910,602,119 $1,300,828 0.14% $152,567,057 North Riverside Park - North Riverside/Riverside/Berwyn $782,552,477 $757,669,909 $691,943,907 $719,630,692 $759,261,592 $787,808,118 $771,976,987 $15,831,131 -2.01% $10,575,490 Lincoln Mall - Matteson, Olympia Fields $838,799,457 $765,051,832 $685,217,403 $685,403,214 $677,156,755 $693,353,345 $719,168,236 $25,814,891 3.72% $119,631,221 Spring Hill Mall - West Dundee/East Dundee/Carpentersville $734,138,948 $687,369,147 $615,636,085 $640,761,418 $649,639,427 $641,924,331 $645,487,681 $3,563,350 0.56% $88,651,267 Lincolnwood Town Center - Lincolnwood $543,740,345 $497,086,679 $431,879,449 $457,511,879 $473,639,333 $482,741,796 $487,398,520 $4,656,724 0.96% $56,341,825 Harlem Irving Plaza - Norridge $415,340,066 $426,121,774 $394,390,713 $410,731,869 $425,044,829 $434,544,578 $435,755,155 $1,210,577 0.28% $20,415,089 Chicago Ridge Mall - Chicago Ridge $353,489,408 $335,418,943 $299,522,883 $310,131,452 $313,667,572 $322,788,170 $327,331,265 $4,543,095 1.41% $26,158,143 Total 23 Core Markets $36,992,317,135 $35,508,839,763 $32,283,154,526 $33,875,010,357 $35,276,280,157 $36,761,966,936 $38,440,486,600 $1,678,519,664 76.01% $1,448,169,465 Source: Illinois Department of Revenue and Melaniphy & Associates, Inc, 2014

MElANIPHY ASSOCIATES, INC. THE 2014 MELANIPHY CHICAGOLAND RETAIL SALES REPORT – 2013 ANNUAL SALES Volume 29.1 April 2014

GENERAL MERCHANDISE SALES INCREASED IN 2 OF THE TOP 20 SUBURBS IN 2013 AND 7 SUBURBS HAD 2013 SALES ABOVE THEIR 2007 LEVEL

General Merchandise retail sales mainly include sales recorded in department stores, big box discount department stores, and Dollar stores. In evaluating the changes in sales by suburb, the performances of Nordstrom, Macy’s, Carson’s, JC Penney, Sears, Von Maur, Saks, Bloomingdale’s, and Neiman Marcus has been reviewed, along with big box general merchandise operators including Target, Super Target, Wal-Mart, Wal-Mart Supercenter, Costco, Sam’s Club, Kohl’s, Meijer, and Kmart. General Merchandise sales for 2007, 2008, 2009, 2010, 2011, 2012 and 2013 are shown in Table 9.

In 2013, the Chicago Metropolitan Area recorded General Merchandise sales of $12.0 billion down from $12.1 billion in 2012. The General Merchandise category was the only retail category in the Chicago Metropolitan Area to decrease in sales. This is a not a significant decrease in contrast to General Merchandise sales in 2011 which had declined by -$454.3 million. Sales in the General Merchandise category declined by $117.6 million in 2013 a decrease of 1.0 percent. The decline in the General Merchandise category was widespread throughout all of the Chicago Area counties with the exception of Kane County. The widespread decline is likely due in part to the credit card fraud at Target as well as weakness at JC Penney and Sears.

Interestingly, when only the Top 20 Suburbs (excluding Chicago) are considered, General Merchandise sales decreased by $182.9 million to $4.1 billion. The Top 20 Suburbs account for 51.7% of total Metro General Merchandise sales, down from over 59% in 2011. The Top 20 Suburbs include the communities with a major mall and significant retail concentrations.

When 2012 General Merchandise sales are compared to their 2007 sales, the Top 20 still have to recover more than -$261.2 million. In comparison, 2013 to 2007 pre-recession levels, The City of Chicago is up over $229.1 million since 2007. In 2013, there were 13 Suburbs still below their 2007 sales level. These include Schaumburg, Niles, Vernon Hills, Gurnee, Orland Park, Aurora, Naperville, Oak Brook, Lombard, Bloomingdale, Matteson, Skokie, and Batavia. Schaumburg is still down $69.1 million from the pre-recession levels. Evergreen Park was removed from the Top 20 Suburbs since it was overtaken by Bolingbrook in 2013. Conversely, 7 Suburbs are above the 2007 levels including Joliet, Hodgkin’s, Crystal Lake, Lake Zurich, Streamwood, Calumet City and Bolingbrook.

In the Top 20 Suburbs, Joliet continued in the 1st position with General Merchandise sales of $362.8 million, an increase of $12.8 million. Schaumburg’s 2013 General Merchandise sales decreased by $15.5 million to sales of $314.4 million, or a decrease of 4.72%. Niles remained 3rd with sales of $293 million, down $24.0 million or a decrease of 7.58%. Vernon Hills held 4th place with sales in 2013 of $259.7 million, an increase of $11.5 million or 4.275%. Fifth place went to Gurnee with 2013 sales of $252.0 million, an increase of $4.2 million, or 1.73 percent.

MELANIPHY & ASSOCIATES, INC. TABLE 9

GENERAL MERCHANDISE SALES CHICAGO METROPOLITAN AREA - TOP 20 SUBURBAN COMMUNITIES 2007-2013

2007 2008 2009 2010 2011 2012 2013 General General General General General General General Change 2007 Community Merchandise Merchandise Merchandise Merchandise Merchandise Merchandise Merchandise 2012 Percent 2013 Sales Sales Sales Sales Sales Sales Sales 2013 Change Changes Chicago $1,737,342,930 $1,637,158,723 $1,597,349,388 $1,653,606,551 $1,743,540,113 $1,925,229,426 $1,966,511,455 $41,282,029 2.14% $229,168,525 Joliet $347,257,119 $379,414,546 $367,107,800 $366,755,780 $329,831,396 $375,765,797 $362,867,611 $12,898,186 -3.43% $15,610,492 Schaumburg $383,630,007 $347,909,647 $309,792,521 $317,667,149 $325,776,174 $330,059,856 $314,487,409 $15,572,447 -4.72% -$69,142,598 Niles $305,512,721 $308,612,175 $309,676,753 $312,919,715 $291,957,100 $317,735,471 $293,656,980 $24,078,491 -7.58% -$11,855,741 Vernon Hills $295,547,089 $289,181,644 $278,284,658 $282,302,527 $263,333,876 $271,368,876 $259,789,666 $11,579,210 -4.27% -$35,757,423 Gurnee $252,776,785 $231,552,831 $230,469,280 $237,416,891 $222,634,076 $247,807,637 $252,088,254 $4,280,617 1.73% -$688,531 Hodgkins $219,593,300 $208,778,637 $195,142,059 $213,732,603 $212,462,115 $247,397,203 $246,455,065 $942,138 -0.38% $26,861,765 Crystal Lake $218,831,793 $251,583,702 $243,420,497 $240,886,990 $219,523,014 $239,024,049 $234,998,681 $4,025,368 -1.68% $16,166,888 Orland Park $260,127,871 $240,325,514 $224,528,328 $227,933,361 $224,214,543 $223,066,769 $216,216,784 $6,849,985 -3.07% -$43,911,087 Aurora $219,471,492 $216,747,835 $206,633,246 $212,965,813 $192,263,284 $219,212,559 $212,148,554 $7,064,005 -3.22% -$7,322,938 Naperville $224,599,271 $217,914,856 $210,468,595 $210,331,402 $213,359,951 $217,502,049 $198,590,087 $18,911,962 -8.70% -$26,009,184 Oak Brook $238,495,270 $206,424,105 $186,466,432 $198,820,643 $202,525,674 $208,787,261 $185,934,173 $22,853,088 -10.95% -$52,561,097 Lombard $242,528,914 $240,596,303 $215,259,149 $213,185,906 $209,338,967 $206,349,464 $187,963,342 $18,386,122 -8.91% -$54,565,572 Lake Zurich $160,982,903 $157,533,676 $161,352,120 $168,939,213 $168,226,607 $193,932,516 $198,690,023 $4,757,507 2.45% $37,707,120 Streamwood $159,312,497 $159,579,085 $155,576,706 $158,914,176 $159,042,739 $190,919,990 $190,625,578 $294,412 -0.15% $31,313,081 Calumet City $123,360,013 $121,256,589 $151,744,304 $154,787,489 $154,929,639 $153,119,701 $132,586,013 $20,533,688 -13.41% $9,226,000 Bloomingdale $170,151,758 $158,224,170 $152,081,229 $156,587,717 $144,060,686 $150,832,011 $147,622,218 $3,209,793 -2.13% -$22,529,540 Matteson $170,845,613 $168,539,520 $159,350,540 $155,105,231 $143,977,789 $149,157,029 $135,388,143 $13,768,886 -9.23% -$35,457,470 Skokie $157,522,389 $142,771,444 $138,546,790 $150,361,936 $150,507,257 $149,072,731 $141,034,639 $8,038,092 -5.39% -$16,487,750 Batavia $167,949,693 $155,595,374 $140,896,893 $141,460,604 $139,374,990 $145,111,887 $143,186,131 $1,925,756 -1.33% -$24,763,562 Bolingbrook $129,961,715 $117,101,096 $108,448,620 $114,415,801 $118,752,809 $133,948,394 $132,911,798 $1,036,596 -0.77% $2,950,083 Total Top 20 $4,448,458,213 $4,319,642,749 $4,145,246,520 $4,235,490,947 $4,086,092,686 $4,370,171,250 $4,187,241,149 $182,930,101 -4.19% -$261,217,064 Note: Totals by year exclude the City of Chicago Source: Illinois Department of Revenue and Melaniphy & Associates, Inc, 2014

MELANIPHY & ASSOCIATES, INC. THE 2014 MELANIPHY CHICAGOLAND RETAIL SALES REPORT – 2013 ANNUAL SALES Volume 29.1 April 2014

TWELVE OF THE TOP 20 SUBURB’S IN 2013 FOOD STORE SALES’ INCREASED; 8 DECREASED AND 8 SUBURBS ARE ABOVE THEIR 2007 PRE-RECESSION LEVEL

Food Store sales include food consumed at home. Food sold in super stores or supercenters is often included in the General Merchandise category. Thus, food dollars have shifted around toward many big box discount stores. The Chicago area supermarket industry has been turned upside down with the closure of all 72 Dominick’s stores. Several other grocery chains have acquired the most desirable locations. There are still 38 vacant Dominick’s locations available. .Mariano’s continues their rapid expansion with both new stores as well as 11 former Dominick’s locations. There have also been several new entrants into the market such as, Heinen's, Plum Market, and Fresh Thyme. Piggly Wiggly is coming back into the market in Carol Stream and Buffalo Grove and several independents are taking some of the Dominick’s locations as well as other available locations. Whole Foods acquired 7 Dominick’s stores which will not open for a year. Ultra Foods opened in Prospect Heights and Crestwood. Jewel-Osco took several former Dominick’s locations including Rogers Park, Old Town, Merrionette Park, Fox River Grove, and Lake Zurich. Caputo’s is taking 4 former Dominick’s locations including Arlington Heights, Northbrook, Des Plaines, Elk Grove Village plus a new store in Carol Stream. Fresh Farms is taking a former Jewel-Osco in Niles and another location in Buffalo Grove. Tony’s Finer Foods is taking a former Dominick’s in Lincoln Square in Chicago and also opened in the former Ultra Foods locations in Plainfield and Hanover Park. Garden Fresh Market opened a new store in the former Dominick’s in Buffalo Grove. The supercenters and warehouse clubs continue to hold up well since the recession including Costco, Sam’s Club, Wal-Mart Supercenters, Super Target, Meijer, and Woodman’s. National smaller food chains like Aldi, Food 4 Less, Trader Joe’s, and Whole Foods have also added new stores. Wal-Mart Neighborhood Market has added numerous new stores in the City of Chicago and plans their first suburban store in Des Plaines

Total Food Store sales for the Chicago Metro area in 2013 amounted to approximately $13.4 billion, increasing $245.1 million, or 1.32%. The City of Chicago saw its Food Store sales increase by $114.6 million in 2012 to nearly $3.8 billion. In 2013, the City of Chicago saw sales increase by $72.4 million an increase of 1.9 percent. The closure of Dominick’s stores slowed the velocity of Food Store sales growth. Table 10 depicts the Food Store sales results for 2007 through 2013. In 2013 in the Food Store category there were more increases than decreases. (12 increases versus 8 decreases). In the Top 20, the five top leaders Naperville, Evanston, Niles, Joliet, and Arlington Heights. Not surprisingly, Niles experienced a decline in sales with the closure of the Jewel-Osco location at Four Flaggs Shopping Center. Some of the other communities experiencing declines included Schaumburg, Aurora, Palatine, Des Plaines, Carpentersville, and Buffalo Grove. The largest increase was found in Orland Park where sales increased by $23.6 million to sales of $142.7 million, the result of the new Whole Foods Market store. The second largest increase was in Joliet which rose in 2013 by $19.6 million to sales of $204.4 million. Decreases occurred in 8 Suburbs as reflected in Table 10.

Next, we examined the Suburban communities in the Top 20 that had recovered from the 2007 sales level (the beginning of the recession), excluding the City of Chicago. As stated above, eight Suburbs have recovered to their 2007 levels. Naperville led with sales increases over 2007 by $66.2 million, followed by Niles at $44.7 million. Arlington Heights rose by over $34.7 million and Evanston increased by $25.8 million. Schaumburg increased by over $22.8 million over 2007 sales level to $166.8 million. Downers Grove saw is sales rise above the 2007 level by $13.8 million. Des Plaines increased by over $13.4 million and Carpentersville increased by $6.8 million over the 2007 sales level. Decreases in retail sales below the 2007 levels occurred in Elgin -$56.5 million, Joliet at -$15.6 million, Buffalo Grove -$21.0 million and Oak Lawn at -$20.6 million. Decreases of lesser amounts from the 2007 sales level also occurred in Aurora, Palatine, and Skokie. Waukegan, Orland Park, Buffalo Grove, Highland Park and Glenview.

MELANIPHY & ASSOCIATES, INC. TABLE 10

FOOD STORES SALES TOP 20 CHICAGOLAND SUBURBS 2007-2013

2007 2008 2009 2010 2011 2012 2013 2012 2012 to 2013 Change Food Food Food Food Food Food Food 2013 Percent 2007 - 2013 Community Sales Sales Sales Sales Sales Sales Sales Change Change Chicago $3,491,838,983 $3,669,552,593 $3,588,111,160 $3,558,627,522 $3,651,741,845 $3,766,316,219 $3,838,740,569 $72,424,350 1.92% $346,901,586 Naperville $292,418,463 $302,689,396 $313,091,190 $321,053,675 $326,856,287 $344,048,337 $358,696,309 $14,647,972 4.26% $66,277,846 Evanston $209,123,723 $212,676,316 $202,803,915 $203,435,550 $208,327,580 $216,619,229 $234,987,106 $18,367,877 8.48% $25,863,383 Niles $165,185,310 $179,836,551 $203,002,720 $187,431,606 $186,070,923 $211,695,536 $209,944,314 $1,751,222 -0.83% $44,759,004 Arlington Heights $159,521,786 $159,391,933 $159,707,659 $170,963,666 $200,265,572 $194,029,920 $194,300,650 $270,730 0.14% $34,778,864 Joliet $220,122,101 $203,936,786 $197,555,952 $183,974,151 $189,061,227 $184,799,853 $204,484,715 $19,684,862 10.65% $15,637,386 Schaumburg $144,019,484 $140,393,674 $133,688,928 $153,693,911 $166,805,667 $174,687,368 $166,833,981 $7,853,387 -4.50% $22,814,497 Aurora $178,161,263 $171,617,045 $163,977,218 $162,259,591 $169,416,227 $169,209,171 $165,278,803 $3,930,368 -2.32% $12,882,460 Palatine $163,672,338 $163,889,426 $155,635,995 $146,058,984 $140,779,585 $167,042,860 $155,123,474 $11,919,386 -7.14% $8,548,864 Wheaton $167,410,359 $163,155,555 $161,812,493 $154,495,909 $157,651,686 $153,988,015 $162,190,399 $8,202,384 5.33% $5,219,960 DesPlaines $111,530,323 $115,184,430 $110,595,806 $109,545,834 $125,744,851 $127,806,151 $124,996,898 $2,809,253 -2.20% $13,466,575 Elgin $148,029,239 $142,807,020 $127,229,678 $128,596,782 $130,330,787 $124,341,402 $91,506,624 $32,834,778 -26.41% $56,522,615 Carpentersvile $107,358,247 $124,233,002 $120,676,861 $120,536,076 $123,155,533 $119,770,318 $114,233,955 $5,536,363 -4.62% $6,875,708 Orland Park $151,070,256 $139,890,696 $136,566,803 $128,327,731 $120,358,852 $119,152,358 $142,776,702 $23,624,344 19.83% $8,293,554 Oak Lawn $144,050,614 $139,628,501 $140,198,601 $130,821,358 $123,582,527 $118,566,317 $123,406,820 $4,840,503 4.08% $20,643,794 Waukegan $136,183,659 $128,869,409 $122,755,516 $122,124,264 $119,798,790 $117,637,239 $117,956,059 $318,820 0.27% $18,227,600 Downers Grove $108,625,273 $108,174,594 $117,287,938 $119,168,479 $117,780,151 $116,206,697 $122,456,687 $6,249,990 5.38% $13,831,414 Glenview $112,517,781 $118,991,957 $111,145,295 $106,281,353 $108,510,290 $108,333,387 $109,407,799 $1,074,412 0.99% $3,109,982 Buffalo Grove $106,336,565 $110,778,391 $105,120,397 $103,252,457 $94,307,579 $90,207,785 $85,316,308 $4,891,477 -5.42% $21,020,257 Skokie $110,258,087 $112,370,283 $103,599,910 $96,548,777 $93,136,902 $88,260,017 $91,057,181 $2,797,164 3.17% $19,200,906 Highland Park $97,524,348 $99,842,545 $93,923,386 $86,811,565 $84,413,667 $82,588,443 $83,351,916 $763,473 0.92% $14,172,432 Total Top 20 $3,033,119,219 $3,038,357,510 $2,980,376,261 $2,935,381,719 $2,986,354,683 $3,028,990,403 $3,058,306,700 $29,316,297 0.97% $25,187,481 Note: All totals by year exclude the city of Chicago Source: Illinois Department of Revenue and Melaniphy & Associates, Inc., 2014

MELANIPHY & ASSOCIATES, INC. THE 2014 MELANIPHY CHICAGOLAND RETAIL SALES REPORT – 2013 ANNUAL SALES Volume 29.1 April 2014

IN 2013, THE TOP 20 SUBURBS SAW THEIR DRINKING & EATING PLACE SALES INCREASE BY $119.3 MILLION; DRINKING & EATING SALES SINCE 2007 HAVE INCREASED BY $430.2 MILLION

In 2012, Metro Drinking & Eating Place sales (food eaten away from home) increased by $672.1.7 million to sales of $14.8 billion. In contrast, sales increased by over $873 million in this category in 2012. The Top 20, excluding Chicago, Eating & Drinking Place Suburbs generated over $3.2 billion in retail sales. When reviewed in contrast to 2007 retail sales in this category, only one suburb in the Top 20 is below the 2007 level – Arlington Heights which is below 2007 sales by - $15.2 million. Several restaurants have closed in Arlington Heights since 2007 including Lone Star Steakhouse, Yanni’s, Pappadeaux Seafood Kitchen, Grand Station, The Riviera, The Wellington, Le Titi de Paris, Garibaldi’s, Chin’s Restaurant, Max & Erma’s, Seigleman’s Deli, and Applebee’s.

Table 11 indicates that within the Top 20 Suburbs four Suburbs had a decrease in sales in 2013 including Arlington Heights, Skokie Lombard, and Oak Lawn. Overall, The Top 20 Suburbs increased by $119.3 million in Drinking & Eating Place sales. Rosemont had the largest increase in 2013 to sales of $189.5 million, for an increase of $21.6 million. Orland Park in 2013 increased by $16.3 million to sales of $191.8 million, followed by Oak Brook with an increase of $10.8 million to $161.5 million. Elgin was next with an increase of $10.3 million to sales of $123.6 million. Schaumburg had the highest sales of all the Top 20 suburbs with sales of $361.2 million. However, sales growth in 2013 amounted to only $2.6 million or 0.73%.

When the Top 20 Suburbs in 2013 are compared to their 2007 sales level, it shows that sales overall rose by $430.2 million. The change between 2007 and 2012 is shown in Table 11 in the last column in yellow. The biggest winner was Naperville with sales of $79.7 million above its 2007 sales level to sales of $361.2 million. Orland Park was above is 2007 sales by $39.9 million to sales of $191.8 million. Rosemont recovered from the Recession with Drinking & Eating Place sales in 2013 of $189.5 million, an increase of $37.5 million over 2007. Some of the other Suburbs with strong growth since 2007 include Oak Brook ($34.8 million), Bolingbrook ($34.5 million), Elgin ($31.4 million), Evanston ($24.9 million), Aurora $24.7 million and Tinley Park ($23.6 million). Other Suburban changes are reflected in Table 11.

MELANIPHY & ASSOCIATES, INC. Table 11

DRINKING & EATING PLACE SALES CHICAGO METROPOLITAN AREA - TOP 20 SUBURBAN COMMUNITIES 2007-2013

2007 2008 2009 2010 2011 2012 2013 2012 Community Sales Sales Sales Sales Sales Sales Sales 2013 Change Drinking Drinking Drinking Drinking Drinking Drinking Drinking 2012-2013 Percent From & Eating & Eating & Eating & Eating & Eating & Eating & Eating Changes Change 2007 to 2013 Chicago $4,936,371,275 $5,014,751,787 $4,745,136,134 $5,043,233,365 $5,462,807,555 $5,829,251,342 $6,189,890,782 $360,639,440 6.19% $1,253,519,507 Schaumburg $352,373,594 $347,525,298 $307,695,034 $317,355,888 $334,994,254 $358,608,657 $361,240,333 $2,631,676 0.73% $8,866,739 Naperville $255,506,443 $267,970,460 $271,779,393 $288,510,112 $288,354,591 $316,236,210 $335,231,126 $18,994,916 6.01% $79,724,683 Joliet $187,694,943 $188,325,021 $179,288,070 $177,944,157 $180,267,865 $191,724,104 $198,726,216 $7,002,112 3.65% $11,031,273 Aurora $178,225,983 $179,817,162 $168,592,786 $173,328,804 $187,889,945 $197,492,175 $202,935,155 $5,442,980 2.76% $24,709,172 Orland Park $151,899,126 $165,311,527 $156,515,221 $158,366,146 $163,707,139 $175,528,759 $191,882,076 $16,353,317 9.32% $39,982,950 Arlington Heights $156,740,665 $157,617,726 $150,202,275 $144,032,874 $139,101,334 $145,027,687 $141,513,966 $3,513,721 -2.42% -$15,226,699 Skokie $141,238,169 $138,684,596 $141,759,725 $142,966,828 $149,093,528 $159,328,589 $158,977,773 $350,816 -0.22% $17,739,604 Rosemont $151,932,729 $167,586,363 $134,372,445 $140,567,383 $145,385,411 $167,898,656 $189,507,043 $21,608,387 12.87% $37,574,314 Oak Brook $126,689,341 $124,827,222 $127,090,310 $138,888,118 $142,859,765 $150,628,912 $161,502,891 $10,873,979 7.22% $34,813,550 Lombard $124,783,759 $128,689,048 $122,287,785 $125,587,910 $131,906,909 $140,170,462 $138,127,783 $2,042,679 -1.46% $13,344,024 Downers Grove $124,256,851 $120,557,329 $117,821,534 $119,327,880 $125,270,180 $128,369,292 $132,809,393 $4,440,101 3.46% $8,552,542 Gurnee $114,252,189 $117,928,482 $112,889,288 $116,915,672 $117,725,457 $120,243,867 $123,871,904 $3,628,037 3.02% $9,619,715 Evanston $114,023,558 $114,269,380 $111,253,735 $123,724,281 $123,959,207 $129,522,660 $138,932,724 $9,410,064 7.27% $24,909,166 Bolingbrook $102,465,148 $112,931,356 $104,153,141 $119,737,603 $122,840,468 $135,232,543 $137,045,867 $1,813,324 1.34% $34,580,719 Glenview $111,415,121 $108,786,675 $103,632,449 $104,309,044 $111,711,296 $116,659,944 $122,918,442 $6,258,498 5.36% $11,503,321 Elgin $92,236,877 $96,493,965 $99,708,130 $102,914,742 $106,690,097 $113,302,294 $123,639,439 $10,337,145 9.12% $31,402,562 Tinley Park $88,733,334 $95,087,074 $93,729,095 $99,364,008 $101,980,181 $108,503,577 $112,368,652 $3,865,075 3.56% $23,635,318 Oak Lawn $96,209,306 $97,341,577 $93,674,643 $95,245,022 $97,892,081 $110,923,995 $109,186,713 $1,737,282 -1.57% $12,977,407 Crystal Lake $81,876,045 $84,317,128 $85,145,614 $89,307,780 $91,011,025 $97,553,906 $101,802,120 $4,248,214 4.35% $19,926,075 St. Charles $90,934,002 $85,097,652 $80,390,192 $84,256,206 $91,877,561 $91,450,157 $91,542,891 $92,734 0.10% $608,889 Total Top 20 $2,843,487,183 $2,899,165,041 $2,761,980,865 $2,862,650,458 $2,954,518,294 $3,154,406,446 $3,273,762,507 $119,356,061 3.78% $430,275,324

Note: All yearly totals exclude the city of Chicago Source: Illinois Department of Revenue, Sales Tax Receipts & Melaniphy & Associates,Inc., 2014

MELANIPHY & ASSOCIATES, INC. THE 2014 MELANIPHY CHICAGOLAND RETAIL SALES REPORT – 2013 ANNUAL SALES Volume 29.1 April 2014

12 OF THE TOP 20 SUBURBS IN THE APPAREL & ACCESSORIES STORES CATEGORY INCREASED IN SALES

Apparel & Accessories Stores sales rose significantly in 2011 rising by over $886.5 million to total sales of $5.5 billion, and then in 2012, sales declined by -$551.3 million to sales of approximately $5.0 billion. In 2013, sales rose to $5.1 billion an increase of $157.4 million or 3.2%.

The Top 20 Suburbs in the Apparel & Accessory Stores category accounted for 80.8% of all sales in this category. Apparel & Accessory Stores tend to be concentrated in malls, lifestyle centers, and the Near North area of Chicago. With the decline of department store attraction, sales in this category are truly reflective of the strength of the malls or lifestyle centers. Interestingly, the Top 20 Suburbs captured over 82% of the apparel sales in 2012. In 2013, eight suburbs declined — Schaumburg, Aurora, Oak Brook, Orland Park, Northbrook, Norridge, Calumet City and Bolingbrook. Table 12 provides the results.

Overall, the City of Chicago captured $1.7 billion of the total Metropolitan Area sales in this category of $5.1 billion in 2013. The City of Chicago had 2013 sales in this category of approximately $1.7 billion, rising by approximately by $83.4 million, or 4.9%. In 2012, apparel sales in the City of Chicago were only up 1.36 percent. Overall, the Chicago Metropolitan Area had Apparel & Accessory Stores sales of approximately $5.1 billion, increasing by $157.4 million or 3.2% in 2013. This is in contrast to a decline of -$551.3 million in 2012 or a decline of 9.4%.

Skokie led the increases in this category with an increase in 2013 sales over 2012 by $7.0 million to sales of $245.3million, followed by Naperville with an increase of $6.2 million to sales of $106.7 million, or 6.2%. North Riverside increased by $4.4 million to 2013 sales of $72.6 million, followed by Chicago Ridge with an increase of $4.2 million to 2013 sales of $58.4 million.

Aurora declined by -$15.4 million to sales of $313.2 followed by Schaumburg a decrease of -$13.2 million. Oak Brook saw its sales decline by -$4.4 million, followed by Northbrook declining in sales in 2013 in this category by -$3.6 million. The other decreases can be seen in Table 12.

Next, in the Apparel & Accessory Stores category we examined the Suburbs sales experience since 2007. In the last column of Table 12 which is depicted in yellow. Here we compared each Suburbs 2013 sales with 2007 sales (the beginning of the recession) to see if they had recovered to the 2007 level. The largest improvement was seen in Aurora which is now above the 2007 level by over $93.1 million to sales of $313.2 million. Naperville was next with a sales increase of $40.1 million above 2007 sales, rising to sales of $106.7 million. Skokie is now above 2007 sales with an increase of $25.0 million, followed by Orland Park with an increase of $10.9 million. Other Suburbs changes can be seen in Table 12.

Suburbs showing decreases since 2007 include Schaumburg with a decrease of -$28.8 million, followed by Bloomingdale which declined in this category by -$16.2 million and Vernon Hills was found to be approximately -$8.6 million below the 2007 level in this category. The remaining status of the Top 20 in this category can be found in Table 12.

MELANIPHY & ASSOCIATES, INC. TABLE 12

APPAREL & ACCESSORIES STORE SALES CHICAGO METROPOLITAN AREA - TOP 20 SUBURBAN COMMUNITIES 2007-2013

2007 2008 2009 2010 2011 2012 2013 2012 Apparel & Apparel & Apparel & Apparel & Apparel & Apparel & Apparel & 2012 2013 Community Accessories Accessories Accessories Accessories Accessories Accessories Accessories 2013 Percent Changes Store Sales Store Sales Store Sales Store Sales Store Sales Store Sales Store Sales Changes Change 2007 to 2013 City of Chicago $1,597,723,740 $1,539,229,994 $1,402,639,601 $1,549,171,934 $1,650,475,941 $1,672,902,595 $1,756,311,809 $83,409,214 4.99% $158,588,069 Schaumburg $353,252,120 $332,982,459 $292,410,238 $313,292,818 $324,732,662 $337,619,129 $324,412,938 $13,206,191 -3.91% -$28,839,182 Aurora $220,100,693 $233,912,239 $247,400,479 $280,110,428 $325,453,378 $328,646,084 $313,217,027 $15,429,057 -4.69% $93,116,334 Oak Brook $307,529,387 $287,651,053 $271,132,097 $298,746,826 $303,465,356 $311,010,708 $306,561,818 $4,448,890 -1.43% -$967,569 Skokie $220,279,216 $205,946,334 $196,790,720 $213,563,494 $221,359,038 $238,276,502 $245,355,806 $7,079,304 2.97% $25,076,590 Orland Park $174,342,164 $161,239,994 $158,122,604 $165,616,382 $177,717,354 $186,442,088 $185,329,038 $1,113,050 -0.60% $10,986,874 Gurnee $116,626,340 $110,222,056 $98,783,219 $103,173,900 $124,395,865 $114,904,948 $118,348,436 $3,443,488 3.00% $1,722,096 Northbrook $101,450,581 $102,199,133 $90,229,269 $95,307,350 $99,128,831 $107,328,150 $103,646,940 $3,681,210 -3.43% $2,196,359 Naperville $66,516,072 $69,016,456 $74,207,934 $76,740,430 $93,347,470 $100,455,516 $106,710,951 $6,255,435 6.23% $40,194,879 Vernon Hills $86,398,027 $79,713,293 $63,701,490 $68,972,633 $84,488,611 $76,402,734 $77,547,965 $1,145,231 1.50% -$8,850,062 Geneva $71,440,504 $67,655,853 $60,515,785 $64,159,813 $66,190,721 $69,836,890 $70,912,296 $1,075,406 1.54% -$528,208 North Riverside $68,936,255 $63,921,802 $58,437,041 $61,358,287 $66,970,284 $68,192,901 $72,675,148 $4,482,247 6.57% $3,738,893 Norridge $66,255,946 $61,271,442 $54,290,487 $54,974,598 $58,413,013 $61,537,016 $60,840,847 $696,169 -1.13% -$5,415,099 Algonquin $57,527,016 $50,992,475 $45,596,751 $51,943,960 $68,501,238 $58,849,472 $59,320,544 $471,072 0.80% $1,793,528 Calumet City $47,138,525 $43,569,385 $40,021,955 $46,477,209 $51,627,306 $57,605,709 $54,667,805 $2,937,904 -5.10% $7,529,280 Bloomingdale $72,204,456 $66,963,981 $54,780,719 $52,586,936 $61,021,143 $54,981,222 $55,913,937 $932,715 1.70% -$16,290,519 Chicago Ridge $58,046,130 $55,788,249 $48,104,406 $54,992,050 $54,063,213 $54,249,984 $58,461,810 $4,211,826 7.76% $415,680 Lombard $46,491,930 $52,097,838 $49,352,729 $49,586,541 $51,526,939 $52,025,210 $52,266,533 $241,323 0.46% $5,774,603 Deer Park $52,610,060 $49,697,106 $45,471,880 $49,725,427 $46,619,193 $49,822,913 $51,294,664 $1,471,751 2.95% -$1,315,396 Joliet $60,347,669 $54,722,289 $46,782,037 $47,710,365 $88,241,497 $49,725,995 $52,126,849 $2,400,854 4.83% -$8,220,820 Bolingbrook $35,812,421 $42,804,323 $32,143,126 $31,772,899 $45,485,974 $39,933,869 $38,385,185 $1,548,684 -3.88% $2,572,764 Top 20 Suburbs $2,283,305,512 $2,192,367,760 $2,028,274,966 $2,180,812,346 $2,412,749,086 $2,417,847,040 $2,407,996,537 -$9,850,503 -0.41% $124,691,025 Note: Totals exclude the City of Chicago Source: Illinois Department of Revenue and Melaniphy & Associates, Inc., 2014

MELANIPHY & ASSOCIATES, INC. THE 2014 MELANIPHY CHICAGOLAND RETAIL SALES REPORT – 2013 ANNUAL SALES Volume 29.1 April 2014

16 OF THE TOP 20 SUBURBS INCREASED IN THE FURNITURE AND ELECTRONICS STORE CATEGORY; WHILE 4 DECLINED

This category consists of retail sales in Furniture and Household Furnishings, Electronics and Appliances. Total Chicago Metropolitan Area retail sales in this category in 2013 were recorded at $5.7 billion and grew by approximately $216.1 million. This is definitely a sign of recession recovery with sales growth nearly three times the growth of $71 million in 2012. The sales distribution between Furniture and Appliances/Electronics is usually 50% to 52% in Electronics & Appliances and 48% to 50% in Furniture and Home Furnishings. Table 13 depicts the results in this category.

The Top 20 in this category had 2013 sales amounting to approximately $2.4 billion, and experienced an increase over 2012 of $155.4 million. The largest portion was captured in Vernon Hills which had total sales in this category of $477.6 million and grew by $20.5 million in 2013. Glenview experienced the largest numerical increase in sales rising by over $44.6 million between 2012 and 2013 representing an increase of 13.39%. Much of the increase can be attributed to ABT Electronics and the improving sales environment. Lombard was next with sales increasing by $25.8 million or by over 31.69%. Itasca grew by $13.6 million to sales of $567.2 million and Joliet increased by $17.7 million to 2013 sales of $98.6million. Oak Brook recorded sales growth of $16.1 million or an increase of 14.82%. The positive changes in other Suburbs can be viewed in Table 13.

There were four Suburbs which declined including Burbank recoding the largest loss at -$4.9 million. The second highest was Downers Grove which recorded a -$4.8 million decline. Niles showed a decline of approximately -$4.4 million. And Bloomingdale’s sales recorded a loss of -$3.8 million. Again, the data can be found in Table 13.

Next, we examined changes by the Top 20 Suburbs between 2007 (the beginning of the recession) and 2013. The data indicate that only four Suburbs are above their 2007 retail sales level — Vernon Hills is $91.9 million above its 2007 sales level at $477.6 million. Similar to last year, Steinhafels is probably the reason for the large increase, followed by Lombard which recorded an increase of $20.5 million. Oak Brook recorded a sales rise since 2007 of $17.1 million. All others declined.

MELANIPHY & ASSOCIATES, INC. TABLE 13

FURNITURE & ELECTRONICS STORES SALES CHICAGO METROPOLITAN AREA - TOP 20 SUBURBAN COMMUNITIES 2007-2013

2007 2008 2009 2010 2011 2012 2013 2012 Furniture & Furniture & Furniture & Furniture & Furniture & Furniture & Furniture & Total 2013 Change Electronics Electronics Electronics Electronics Electronics Electronics Electronics 2012 - 2013 Percent 2007 Community Sales Sales Sales Sales Sales Sales Sales Change Change 2013 Chicago $1,025,390,920 $961,617,632 $815,540,023 $867,060,951 $994,124,141 $996,545,124 $965,772,092 $30,773,032 -3.09% $59,618,828 Vernon Hills $385,703,151 $395,207,266 $308,371,740 $360,721,643 $426,016,950 $457,184,353 $477,699,566 $20,515,213 4.49% $91,996,415 Glenview $394,204,088 $360,139,188 $309,080,551 $315,835,557 $316,212,342 $333,673,558 $378,349,293 $44,675,735 13.39% $15,854,795 Schaumburg $328,841,291 $300,217,499 $248,546,190 $275,999,944 $277,662,396 $295,673,523 $296,754,191 $1,080,668 0.37% $32,087,100 Naperville $222,333,653 $189,585,745 $165,777,848 $186,221,808 $209,829,581 $219,483,834 $234,716,302 $15,232,468 6.94% $12,382,649 Orland Park $233,355,255 $212,833,255 $181,418,662 $194,752,466 $189,261,818 $206,424,395 $225,062,963 $18,638,568 9.03% $8,292,292 Downers Grove $175,639,758 $149,088,581 $131,924,655 $140,830,252 $129,562,234 $123,361,582 $118,549,221 $4,812,361 -3.90% $57,090,537 Skokie $147,446,685 $124,847,659 $108,416,428 $121,336,937 $114,838,641 $114,082,032 $115,864,399 $1,782,367 1.56% $31,582,286 Oak Brook $108,077,412 $107,683,621 $84,099,876 $95,797,995 $97,547,201 $109,024,385 $125,186,023 $16,161,638 14.82% $17,108,611 Aurora $132,633,606 $110,447,774 $95,800,165 $108,187,734 $98,260,646 $95,585,190 $102,354,739 $6,769,549 7.08% $30,278,867 Northbrook $99,058,522 $96,946,913 $84,625,076 $84,858,917 $84,913,884 $88,324,445 $89,570,763 $1,246,318 1.41% $9,487,759 Lombard $87,019,898 $78,721,949 $72,604,293 $66,925,222 $68,648,969 $81,682,028 $107,570,196 $25,888,168 31.69% $20,550,298 Joliet $113,631,958 $105,786,786 $115,377,254 $100,377,521 $97,006,192 $80,884,950 $98,673,364 $17,788,414 21.99% $14,958,594 Arlington Heights $104,795,516 $95,969,180 $73,715,659 $80,195,856 $78,040,985 $79,137,222 $86,304,607 $7,167,385 9.06% $18,490,909 Gurnee $97,166,493 $83,310,438 $70,183,534 $70,735,269 $70,144,924 $72,743,353 $73,476,611 $733,258 1.01% $23,689,882 Bloomingdale $83,241,554 $76,414,565 $57,824,305 $60,213,103 $60,196,134 $68,147,612 $64,261,419 $3,886,193 -5.70% $18,980,135 Geneva $95,539,311 $76,385,428 $60,848,114 $66,974,643 $68,527,132 $68,134,935 $69,613,179 $1,478,244 2.17% $25,926,132 Niles $94,177,106 $77,227,467 $61,658,560 $66,275,524 $63,135,985 $65,771,317 $61,367,902 $4,403,415 -6.70% $32,809,204 Crystal Lake $84,761,626 $71,390,680 $60,584,133 $66,559,551 $61,270,504 $63,467,515 $64,647,645 $1,180,130 1.86% $20,113,981 Burbank $73,790,264 $68,817,339 $63,292,726 $72,602,369 $59,585,334 $56,531,224 $51,600,407 $4,930,817 -8.72% $22,189,857 Itasca $145,883,935 $70,175,904 $41,823,803 $35,520,622 $40,176,772 $53,611,968 $67,267,531 $13,655,563 25.47% $78,616,404 Total $2,821,597,931 $2,455,989,971 $2,087,601,832 $2,210,201,290 $2,184,821,674 $2,275,745,068 $2,431,190,755 $155,445,687 6.83% $390,407,176 Note: Totals by year exclude the City of Chicago Source: Illinois Department of Revenue and Melaniphy & Associates, Inc., 2014

MELANIPHY & ASSOCIATES, INC. THE 2014 MELANIPHY CHICAGOLAND RETAIL SALES REPORT – 2013 ANNUAL SALES Volume 29.1 April 2014

IN 2013 ONLY 1 OF THE TOP 20 HOME IMPROVEMENT SUBURBS DECREASED IN SALES

The technical name of this category is Lumber, Hardware, and Building Supplies, but is commonly referred to as the Home Improvement category. Total sales in the Chicago Metropolitan Area in this category amounted to $4.7 billion, an increase of $211 million. This category includes Durable Goods, which are usually the slowest to recover from a recession. Sales in the Top 20 suburbs in 2012 (excluding the City of Chicago) amounted to over $1.4 billion, increasing $153.6 million, or 11.7%. Since 2007’s high sales of $1.7 billion, sales declined through 2009. Table 14 depicts the Top 20 suburb performance in this category.

Winners included Naperville, Orland Park, Elgin and to a much less extent, Crystal Lake, Gurnee, Downers Grove and Schaumburg.

Table 14 depicts the sales data for 2007 through 2013. Top 20 Suburb sales actually saw an increase in 2011, and then declined again in 2012. In 2013, sales increased to $1.4 billion an increase of over $153.6 million. Between 2007 and 2013, there were 16 Suburbs that declined in sales. Losers include Joliet (-$38.3 million), Elk Grove Village (-$33.5 million), Schaumburg (-$32.7 million), Palatine (-$30.7 million), Downers Grove (-26.1 million), Aurora (-$21.3 million), Crystal Lake (-$20.0 million), Elgin (-$419.6 million) and Niles (-$19.5 million). Others with losses at a lesser extent include Crestwood, Cicero, and Orland Park.

Since 2007 only four Suburbs have shown increases in Hone Improvement. Naperville, Glendale Heights, Gurnee and Oak Lawn are the four Suburbs. Overall, retail sales in this category since 2007 show a sales decline of -$265.7million. 2013 sales in this category in the Top 20 Suburbs were approximately $1.4 billion.

MELANIPHY & ASSOCIATES, INC. TABLE 14

HOME IMPROVEMENT STORES SALES CHICAGO METROPOLITAN AREA - TOP 20 SUBURBAN COMMUNITIES 2007-2013

2007 2008 2009 2010 2011 2012 2013 2012 Home Home Home Home Home Home Home Change 2013 2007 Improvement Improvement Improvement Improvement Improvement Improvement Improvement 2012 Percent 2013 Community Sales Sales Sales Sales Sales Sales Sales 2013 Change Changes Chicago $927,554,254 $817,406,629 $733,927,480 $748,288,923 $738,310,541 $775,999,565 $861,950,948 $85,951,383 11.1% -$65,603,306 Naperville $143,594,791 $129,833,551 $120,168,023 $123,549,178 $124,276,925 $130,293,695 $152,027,445 $21,733,750 16.7% $8,432,654 Joliet $133,758,857 $93,131,071 $84,651,468 $89,290,257 $85,032,239 $94,178,033 $95,457,031 $1,278,998 1.4% -$38,301,826 Bolingbrook $92,246,747 $81,064,678 $81,122,048 $82,816,263 $83,071,863 $83,562,742 $89,323,629 $5,760,887 6.9% -$2,923,118 Glendale Heights $78,846,726 $74,328,318 $76,443,108 $86,340,465 $84,457,803 $83,443,212 $88,087,880 $4,644,668 5.6% $9,241,154 Cicero $96,670,570 $81,028,128 $75,517,153 $80,258,165 $80,152,009 $79,731,109 $84,831,382 $5,100,273 6.4% -$11,839,188 Niles $107,280,222 $94,600,625 $78,665,027 $81,737,209 $81,924,396 $77,880,762 $87,716,153 $9,835,391 12.6% -$19,564,069 Elgin $106,494,286 $88,915,500 $81,687,681 $88,890,496 $78,587,105 $73,436,414 $86,826,062 $13,389,648 18.2% -$19,668,224 Mount Prospect $80,131,505 $70,497,176 $65,098,675 $66,885,234 $68,390,481 $67,005,719 $75,019,077 $8,013,358 12.0% -$5,112,428 Gurnee $74,294,915 $76,241,989 $69,076,615 $70,460,878 $71,048,298 $66,587,517 $76,840,160 $10,252,643 15.4% $2,545,245 Crystal Lake $93,866,822 $82,113,646 $66,649,798 $58,403,627 $61,270,504 $62,967,675 $73,864,743 $10,897,068 17.3% -$20,002,079 Evanston $69,618,264 $64,147,926 $51,726,311 $53,673,397 $54,976,619 $57,485,923 $66,104,955 $8,619,032 15.0% -$3,513,309 Orland Park $81,966,083 $65,312,745 $56,736,609 $55,683,924 $50,986,134 $55,884,895 $70,855,430 $14,970,535 26.8% -$11,110,653 Carol Stream $60,483,752 $57,237,299 $50,183,736 $50,455,180 $50,516,228 $51,629,890 $56,978,137 $5,348,247 10.4% -$3,505,615 Downers Grove $86,288,947 $72,963,994 $56,650,206 $51,721,858 $52,925,331 $51,282,403 $60,109,499 $8,827,096 17.2% -$26,179,448 Oak Lawn $44,321,407 $40,249,617 $40,594,745 $56,135,857 $51,137,758 $50,835,246 $53,580,072 $2,744,826 5.4% $9,258,665 Crestwood $62,682,833 $56,848,239 $49,207,093 $48,743,501 $46,778,905 $48,111,503 $47,593,498 $518,005 -1.1% -$15,089,335 Elk Grove Village $86,232,821 $74,013,062 $56,483,885 $42,329,130 $58,822,403 $46,204,784 $52,721,574 $6,516,790 14.1% -$33,511,247 Palatine $78,968,506 $67,700,389 $42,547,525 $41,719,884 $45,466,984 $45,246,420 $48,187,242 $2,940,822 6.5% -$30,781,264 Schaumburg $81,979,604 $69,988,998 $55,181,327 $53,797,283 $47,927,579 $41,555,564 $49,245,859 $7,690,295 18.5% -$32,733,745 Aurora $68,130,731 $57,387,735 $48,330,938 $48,369,800 $46,117,424 $41,160,115 $46,769,556 $5,609,441 13.6% -$21,361,175 Total Top 20 Suburbs $1,727,858,389 $1,497,604,686 $1,306,721,971 $1,331,261,586 $1,323,866,988 $1,308,483,621 $1,462,139,384 $153,655,763 11.7% -$265,719,005 Note: City of Chicago is excluded from the totals Source: Illinois Department of Revenue and Melaniphy & Associates, Inc.,2014

MELANIPHY & ASSOCIATES, INC. THE 2014 MELANIPHY CHICAGOLAND RETAIL SALES REPORT – 2013 ANNUAL SALES Volume 29.1 April 2014

ALL BUT TWO AUTOMOBILE DEALER & GASOLINE SERVICE STATION IN THE TOP 20 SUBURBS INCREASED IN SALES BY $534.4 MILLION TO $8.5 BILLION

Table 15 presents the sales for the Top 20 Suburbs. The total Top 20 Suburbs saw their sales in this category rise by $534.4 million (excluding Chicago) to sales of $8.5 billion The City of Chicago’s sales in this category rose by $131.8 million to $2.9 billion, or 4.64%.

Naperville recorded the largest increase in 2013 to approximately $174.2 million to sales of $1.2 billion, or 9.83%, followed by Schaumburg with a gain of $43.3 million to sales of $926.8 million, or 4.91%. Tinley Park reported an increase of $36.1 million to overall sales in 2013 of $433.4 million. Matteson increased by over $35.9 million to sales of $306.3, or 13.30%. Oak Lawn recorded an increase of $32.4 million to sales of $454.5 million. Barrington saw its sales rise by $27.6 million to $263.7 million, or 11.73%. Downers Grove increased by over $27.1 million to sales of $314.1 million, or 9.45%. Westmont sales in 2013 were $443.6 million with an increase of $25.4 million, or 6.08%.

Since 2007 through 2012, 11 Suburbs have shown an increase in sales. Conversely, 9 have shown decreases. Overall, in the Top 20 sales are $407.7 million above the 2007 sales level. Increases occurred in Naperville which rose by over $294 million above the 2007 level of $929.1 million to the 2013 level of $1.22 billion. Elgin sales were found to be $84 million above 2007 levels with sales of $488.8 million. Orland Park is above the 2007 level by $74.5 million to sales of $527.2 million. Schaumburg sales in 2013 rose above 2007 levels to $926.8 million with an increase of $72.0 million. Other changes can be seen in Table 15.

MELANIPHY & ASSOCIATES, INC. TABLE 15

AUTOMOBILE DEALERS & GASOLINE STATIONS SALES CHICAGO METROPOLITAN AREA - TOP 20 SUBURBAN COMMUNITIES 2007-2013

2007 2008 2009 2010 2011 2012 2013 2012 Automobile Automobile Automobile Automobile Automobile Automobile Automobile Change 2013 2007 Community & Gasoline & Gasoline & Gasoline & Gasoline & Gasoline & Gasoline & Gasoline 2012 Percent 2013 Sales Sales Sales Sales Sales Sales Sales 2013 Change Changes Chicago $2,698,260,913 $2,291,746,662 $1,983,067,211 $2,365,605,881 $2,572,596,694 $2,839,297,523 $2,971,178,515 $131,880,992 4.64% $272,917,602 Naperville $929,122,019 $865,662,715 $784,013,754 $880,711,611 $955,524,945 $1,049,478,839 $1,223,763,656 $174,284,817 16.61% $294,641,637 Schaumburg $854,794,185 $764,633,852 $675,054,046 $726,470,711 $804,494,323 $883,437,700 $926,811,534 $43,373,834 4.91% $72,017,349 Orland Park $452,702,864 $410,862,121 $385,142,491 $426,653,809 $451,794,989 $507,483,279 $527,288,625 $19,805,346 3.90% $74,585,761 Elgin $404,724,222 $361,199,508 $333,137,899 $405,899,782 $439,749,306 $463,639,353 $488,808,859 $25,169,506 5.43% $84,084,637 Oak Lawn $461,678,735 $397,982,717 $346,323,986 $380,881,839 $391,679,153 $422,080,388 $454,552,196 $32,471,808 7.69% -$7,126,539 Westmont $473,549,222 $422,573,244 $361,460,040 $384,141,063 $398,704,191 $418,190,426 $443,601,631 $25,411,205 6.08% -$29,947,591 Glenview $370,240,755 $368,357,948 $344,412,022 $365,105,017 $381,106,405 $413,314,334 $404,439,697 $8,874,637 -2.15% $34,198,942 Joliet $422,208,345 $366,390,242 $319,863,585 $360,584,114 $386,179,876 $402,767,518 $424,766,255 $21,998,737 5.46% $2,557,910 Tinley Park $401,959,176 $371,589,163 $315,115,018 $332,999,789 $368,626,479 $397,354,277 $433,486,556 $36,132,279 9.09% $31,527,380 Aurora $371,588,161 $308,330,808 $313,208,520 $357,344,832 $367,278,254 $382,199,052 $388,858,505 $6,659,453 1.74% $17,270,344 Libertyville $427,309,528 $366,312,758 $317,970,146 $332,403,876 $340,450,137 $367,607,695 $390,804,517 $23,196,822 6.31% -$36,505,011 Elmhurst $360,450,119 $310,534,905 $267,572,645 $265,264,975 $275,976,670 $298,512,113 $340,481,828 $41,969,715 14.06% -$19,968,291 Countryside $298,092,376 $279,921,853 $243,793,523 $230,221,964 $259,090,772 $291,430,209 $309,970,518 $18,540,309 6.36% $11,878,142 Downers Grove $330,411,478 $302,593,194 $241,735,140 $243,305,636 $255,656,742 $287,058,332 $314,196,508 $27,138,176 9.45% -$16,214,970 Matteson $316,036,269 $274,593,459 $226,783,089 $228,917,955 $243,688,443 $270,361,866 $306,330,423 $35,968,557 13.30% -$9,705,846 Lincolnwood $253,023,083 $220,150,928 $182,449,410 $208,007,810 $238,422,011 $238,510,327 $239,277,666 $767,339 0.32% -$13,745,417 Barrington $251,353,664 $206,269,966 $184,418,539 $119,459,071 $226,377,981 $236,098,157 $263,783,364 $27,685,207 11.73% $12,429,700 McHenry $209,332,406 $196,343,274 $182,994,924 $206,926,171 $225,965,297 $234,567,599 $243,661,745 $9,094,146 3.88% $34,329,339 Crystal Lake $266,696,532 $253,538,410 $210,546,484 $248,893,966 $209,527,967 $225,272,265 $251,858,901 $26,586,636 11.80% -$14,837,631 Lisle $269,596,116 $232,927,898 $191,029,967 $204,138,656 $211,167,545 $208,859,963 $155,906,696 $52,953,267 -25.35% -$113,689,420 Total Top 20 $8,124,869,255 $7,280,768,963 $6,427,025,228 $6,908,332,647 $7,431,461,486 $7,998,223,692 $8,532,649,680 $534,425,988 6.68% $407,780,425 Note: Totals by year exclude the City of Chicago Source: Illinois Department of Revenue and Melaniphy & Associates, Inc., 2014

MELANIPHY & ASSOCIATES, INC. THE 2014 MELANIPHY CHICAGOLAND RETAIL SALES REPORT – 2013 ANNUAL SALES Volume 29.1 April 2014

IN THE DRUGS & OTHER MISCELLANEOUS RETAIL STORES 15 OF THE 20 TOP SUBURBS INCREASED IN SALES OVER 2012 AND 13 SUBURBS HAVE SALES ABOVE 2007 SALES LEVEL

This category includes drug stores, as well as, other miscellaneous retail stores. Most suburbs with malls will have larger sales in this category because specialty stores are included. Metro Chicago’s retail sales in this category in 2013 amounted to $17.8 billion and increased by $1.2 billion, or 7.4 percent. The City of Chicago’s sales in this category in 2013 increased by $232.4million to sales of $4.2 billion. The data also indicates the improvement since 2011 when many small specialty stores failed during the recession. Table 16 depicts the results for Drugs & Other Miscellaneous Retail Stores.

Skokie had the largest increase in the Drugs & Miscellaneous Retail Stores category in 2013 with an increase of $98.4 million to sales of $228.6 million. This was followed by Mount Prospect with an increase in 2013 of $65.9 million to sales of $408.1 million, or 19.28%. Waukegan was next with an increase of $48.7 million to sales of $232.7 million, or 26.1%, followed by Glenview with an increase in sales of $32.4million to 2013 sales of $142.9 million, or 29.41%. All of the others had sales increases below $10.0 million. Niles was next with an increase of $19.3 million and total sales in 2013 of $262.5 million, or 7.95%.

There were sales decreases in five Suburbs although they were not as significant as in the past. Schaumburg declined by - $77.4 million to sales in 2013 of $262.5 million, for a decline of -22.78%. Orland Park declined in sales in 2013 by -$8.3 million to sales of $271.6 million. Lombard declined by -5.9 million to sales of $182.9 million, or down by -3.14%. Hoffman Estates was down by -$3.0 million or by 2.03% between 2012 and 2013. Carol Stream declined by $432,176 representing a decrease of only 0.36%.

We also examined the retail sales changes that occurred between 2007 and 2013. Thirteen Suburbs have retail sales above the 2007 level. The largest increase occurred in Mount Prospect with an increase of $162.7 million, followed by Waukegan which increased by over $81.2 million. Naperville followed above the 2007 level by $74.9 million. Aurora has risen above the 2007 level in this category by $54.0 million, followed by Joliet with an increase of $46.9 million. Hoffman Estates rose above the 2007 sales level of $33.6million. Lombard’s retail sales in this category increased over 2007 by $32.7 million. Lastly, Skokie increased by $27.2 million over the 2007 sales levels.

Suburbs that remain below their 2007 retail sales level included Schaumburg below their 2007 level by - $102.3 million. The next Suburb below its 2007 level was Orland Park with sales below 2007 of -$31.1 million, followed by Carol Stream which is -$29.6 million below the level. Both Gurnee and Evanston recorded sales below the 2007 level by -$9.1 million. Glenview’s sales were only $5,636 below their retail sales level in 2007. Fortunately, 13 of the Top 20 Suburbs have finally exceed the 2007 sales levels.

MELANIPHY & ASSOCIATES, INC. TABLE 16

DRUGS & MISCELLANEOUS RETAIL STORES CATEGORY CHICAGO METROPOLITAN AREA - TOP 20 SUBURBAN COMMUNITIES 2007-2013

2007 2008 2009 2010 2011 2012 2013 2012 Drugs & Drugs & Drugs & Drugs & Drugs & Drugs & Drugs & Changes 2013 2007 Community Miscellaneous Miscellaneous Miscellaneous Miscellaneous Miscellaneous Miscellaneous Miscellaneous 2012 Percent 2013 Retail Sales Retail Sales Retail Sales Retail Sales Retail Sales Retail Sales Retail Sales 2013 Change Changes Chicago $3,845,137,284 $3,698,540,212 $3,594,890,007 $3,451,065,741 $3,718,365,751 $4,063,503,285 $4,295,977,484 $232,474,199 5.72% $450,840,200 Naperville $311,987,540 $308,090,177 $310,788,738 $333,612,858 $364,270,351 $369,204,248 $386,930,905 $17,726,657 4.80% $74,943,365 Aurora $303,473,852 $308,330,808 $297,716,035 $305,481,459 $327,470,437 $342,953,218 $357,547,417 $14,594,199 4.26% $54,073,565 Mount Prospect $245,460,037 $360,885,456 $327,227,250 $369,939,802 $339,307,264 $342,204,655 $408,173,951 $65,969,296 19.28% $162,713,914 Schaumburg $364,941,284 $324,318,161 $300,162,837 $313,454,568 $324,377,016 $340,034,559 $262,582,064 $77,452,495 -22.78% -$102,359,220 Joliet $270,024,260 $266,202,618 $265,508,424 $270,235,628 $281,395,539 $301,922,509 $316,942,995 $15,020,486 4.97% $46,918,735 Orland Park $302,822,656 $274,786,490 $272,707,235 $279,444,822 $284,799,578 $279,967,370 $271,641,568 $8,325,802 -2.97% -$31,181,088 Niles $238,449,275 $216,864,062 $199,130,820 $208,263,997 $229,684,996 $243,253,098 $262,582,064 $19,328,966 7.95% $24,132,789 Downers Grove $262,424,491 $225,512,492 $229,575,241 $220,676,462 $234,130,735 $242,003,221 $252,470,647 $10,467,426 4.33% -$9,953,844 Bolingbrook $192,744,485 $192,404,183 $177,958,261 $208,424,979 $217,342,414 $211,003,714 $219,971,427 $8,967,713 4.25% $27,226,942 Lombard $150,190,337 $149,842,944 $151,911,655 $170,350,722 $178,078,973 $188,839,847 $182,911,431 $5,928,416 -3.14% $32,721,094 Waukegan $151,568,513 $144,273,132 $146,669,940 $147,550,382 $169,951,957 $183,993,984 $232,776,342 $48,782,358 26.51% $81,207,829 Gurnee $196,584,141 $186,049,844 $168,403,049 $186,615,305 $186,755,309 $181,012,001 $187,405,810 $6,393,809 3.53% -$9,178,331 Oak Lawn $162,685,006 $158,976,843 $154,563,978 $160,789,994 $171,613,348 $175,874,575 $185,220,030 $9,345,455 5.31% $22,535,024 Hoffman Estates $111,951,935 $135,527,368 $143,649,793 $142,617,898 $143,361,389 $148,616,755 $145,604,050 $3,012,705 -2.03% $33,652,115 Evanston $160,839,632 $151,585,065 $152,999,853 $129,620,208 $140,323,435 $144,517,848 $151,694,796 $7,176,948 4.97% -$9,144,836 Arlington Heights $149,997,433 $155,492,609 $127,376,398 $133,153,134 $135,313,425 $139,795,827 $157,640,595 $17,844,768 12.76% $7,643,162 Skokie $201,411,530 $201,330,163 $184,747,909 $175,915,452 $177,907,976 $130,174,889 $228,623,042 $98,448,153 75.63% $27,211,512 Carol Stream $150,818,392 $131,983,252 $110,934,174 $114,346,361 $125,111,957 $121,600,745 $121,168,569 $432,176 -0.36% -$29,649,823 Oak Brook $123,291,814 $114,170,911 $103,981,926 $126,589,021 $147,211,718 $112,498,645 $125,056,926 $12,558,281 11.16% $1,765,112 Glenview $142,954,002 $132,545,811 $127,499,918 $135,085,313 $144,549,608 $110,462,720 $142,948,366 $32,485,646 29.41% -$5,636 Top 20 Total $4,194,620,615 $4,139,172,389 $3,953,513,434 $4,132,168,365 $4,322,957,425 $4,309,934,428 $4,599,892,995 $289,958,567 6.73% $405,272,380 Note: Totals by year exclude the City of Chicago Source: Illinois Department of Revenue and Melaniphy & Associates, Inc., 2014

MELANIPHY & ASSOCIATES, INC. THE 2014 MELANIPHY CHICAGOLAND RETAIL SALES REPORT – 2013 ANNUAL SALES Volume 29.1 April 2014

OBSERVATIONS FOR 2014

In summary, 2013 was a year of continued recovery as many retailers and restaurants experienced increasing sales productivity. The categories that continue to lag include Furniture and Electronics as well as Home Improvement. The majority of the Top 20 Suburbs have reached pre-recession sales levels. Unemployment has decreased and new job growth has improved. The closure of 72 Dominick’s supermarkets in 2013 has inflated retail vacancy rates to a four year high of 10.4 percent and filling retail vacancies will continue to be challenging. Retailers and restaurants continue to “right size” to reduce occupancy costs. Rising real estate costs and property taxes are driving smaller stores. Retailers are focused on execution and consumer preferences.

In 2014, the consumer, in our opinion, will remain cautious until incomes and housing values rise further. Employers shed 8.8 million jobs during the recession but since the end of the recession have added 8.9 million jobs. The improvement in the job market will enhance income growth. The housing sector is always a lagging economic indicator but is improving. Restaurant sales continued to rise with improvement in both the lunch and dinner daypart and we expect that to continue. Retail sales growth accelerated in 2013 by 4.8% or by over $5.0 billion. Melaniphy & Associates, Inc. is forecasting retail sales improvement of over 5.0 percent or an increase of approximately $6.0 billion in 2014.

Note: Our analysis of sales changes is based upon 2007, 2008, 2009, 2010, 2011, 2012 and 2013 retail sales tax data provided in “Report of Sales Tax Receipts by Standard Industrial Classification for 2014” compiled and published quarterly and annually by the Illinois Department of Revenue. If any errors exist in the data, we take no responsibility for them since we have accepted the State’s data as complete. This Newsletter is provided on our Website. If you are an investor, a landlord, or a restaurant or quick service food unit owner, you need a copy of John Melaniphy’s book, The Restaurant Location Guidebook, a comprehensive guide to picking restaurant and quick service food locations. The book contains my experience of over 40 years in assisting restaurateurs and others selecting locations. The book is considered the “bible” of restaurant site selection and articulates picking locations, buying and selling restaurants, cannibalization of sales, site economics, parking, seating, shopping center locations, and much, much more. The book and the Table of Contents are available on our Website at www.melaniphy.com where shipping is free. It is also available at www.barnesandnoble.com and www.amazon.com.

Melaniphy & Associates, Inc. is an international real estate consulting firm engaged in shopping center and restaurant market research, site selection, market feasibility studies, economic impact analysis, revitalization strategies and numerous other disciplines. For more information contact Melaniphy & Associates, Inc. 6348 N. Milwaukee Avenue, Chicago, Illinois 60646. Please visit our Website at www.melaniphy.com where over 30 articles are available for your perusal. For more information on the Chicagoland Retail Sales Reports or our company, please contact us at 773-467-1212.

MELANIPHY & ASSOCIATES, INC.