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Author: Weinstein, Steve

With an abundance of an area attractions, Colorado Springs is popular with consumers--and supermarket operators.

EL PASO COUNTY, WHICH CONSTITUTES MUCH OF the Colorado Springs MSA, is a good place to live and, for many, to own a business. Not that it has a lack of supermarkets; there are about 75 in the area. Chains dominate, led by Safeway, with a 28% market share, followed by King Soopers with 26% and Albertson's with 12.5%.

At the same time, independents do well, primarily serviced by Supervalu and Affiliated Foods out of Amarillo. Adding to the supermarket diversity are two Wal-Mart supercenters with a share of about 4% and a Wild Oats health food store. There also is a big military presence, both at the Air Force Academy and at Fort Carson, and commissaries have a share of 5% to 6%.

Supermarket expansion is expected to continue. Jerry Mickelson, whose three Cub stores have a share estimated at more than 8%, is looking at other sites in the area. "There are a lot of new roof tops," Mickelson says. Population of El Paso County was close to 473,000 last year, an increase of about 100,000 in 10 years. The Pikes Peak Area Council of Governments has two scenarios for population growth. The low scenario foresees a population of 477,453 by 2000, rising to more than 512,000 by 2010. The high scenario envisions 514,000 in 2000 and about 632,500 10 years later.

In addition to the permanent residents, there are many tourists drawn to the area by such attractions as the Air Force Academy, Pikes Peak, the Cave of the Winds and the Garden of the Gods. There are several museums, a zoo and a symphony orchestra.

On the surface, there should be a supply of labor for new supermarkets built in the area. The population is young. The Pikes Peak Area Council of Governments estimates that last year almost 30% of the population was under the age of 18, and 37.6% was between 18 and 39. At the same time, unemployment is relatively low, 4.6% last year, according to the Colorado Department of Labor and Unemployment.

But the biggest bloc of employment was in the service sector. There are many new restaurants and big stores "of the Home Depot type, which has made it hard to get good people," says Mickelson. Conversely, wages are relatively low. The council estimates that per capita income in the county last year was $21,687, compared with $25,189 for all of Colorado and $24,136 nationally.

Five-year population growth:    11.4%
Median age:                     NA
Median household income:        $26,919
Median home value:              $58,150
Households with children:       38.0%
% white collar:                 60.8%

NA = Not available
Source: Spectra/Market Metrics

MAP: COLORADO SPRINGS, COLORADO