Annual Sales Estimate of a Retail Chain in Lapad, Dubrovnik
For the client, alongside the feasibility study, we also conducted an analysis of the annual sales of the retail chain in the facility.
Introduction: Market Context and Location Significance
Dubrovnik is an extremely attractive retail destination thanks to strong tourist traffic and high purchasing power of the population. The Lapad Bay is among the busier neighborhoods, and many retail chains recognize this type of location profile as strategically important. The modern discount concept, with a large sales area (2,500 m²) and a significant number of parking spaces (150), has excellent conditions for strong sales, especially during the summer season.

1. Standard (Original) Estimate
   An annual turnover per m² of €8,000 is assumed.
   The projected total turnover value: €20,000,000
   This figure reflects the effective results of similar markets in prominent tourist areas with superior accessibility conditions.

   Conservative Estimate
   A more cautious range of €6,500–7,000 per m² is used.
   Total turnover: €16,250,000 to €17,500,000
   This approach takes into account possible challenges from competition, seasonality of consumption, and realistic limits of the local market. Favorable conditions such as ease of access and parking are included, but caution is maintained.

   Impact of Competition (Tommy and Studenac)
   With the proximity of Tommy supermarket and Studenac (in the same building), the conservative estimate is further reduced by 10–15% (due to overlapping offers and loss of some local customers).
   Expected turnover: €13,812,500 to €14,875,000
   The final figure assumes quality management and business adjustment to market demands and seasonal changes in buying habits.

   Sales Estimate Table

   Scenario	Annual Turnover Range
   Original estimate (8,000€/m²)	€20,000,000
   Conservative estimate (6,500–7,000€/m²)	€16,250,000 – €17,500,000
   Conservative with Tommy & Studenac competition (15% reduction)	€13,812,500 – €14,875,000

   Conclusion
   The analysis shows that a market of 2,500 m² in Lapad Bay, with the advantage of 150 parking spaces, under realistic and conservative parameters would achieve annual turnover between €13.8 million and €14.9 million. This range reflects the market realities of Dubrovnik, relying on factors such as seasonality, competition, and a highly attractive location.
   If conditions aligned with the more optimistic scenario, the amount could exceed €20 million, but business planning in a highly competitive environment is reasonably based on more cautious assumptions.