20517 App H.pdf [As Published] · 132007.1259

Page 12
Section4 Market Synopsis

41 Potential Area of Trade

The site will primarily trade to the local Al as the planned centre in Peregian
Springs will be more convenient to residents in the remainder of the
Surrounding Al (south and south west of the site). The local Al has a total
retail market of around $33.25 Million in 2006. The majority of expenditure
will be captured in the surrounding centres, however, a proportion of
expenditure will continue to escape the defined areas of influence to be
captured in major centres offering goods and services not provided in local
centres (particularly comparison goods).

4.2 Other Sources of Expenditure

An assumed 20% of turnover is expected to originate from outside the
defined Local Al due to the following factors:
o High percentage of unoccupied dwellings in the area
o Diversity of tourist accommodation
o. The relatively large proportion of food and beverage, and clothing
retailers for a local centre or a neighbourhood centre.
o Exposure to passing traffic.

43 Market and Current Performance

The total retail market of the Local Al is $33.25 Million of which around $17
Million (50%) is attributable to convenience retail expenditure.

On average a local centre such as Peregian Shopping Village will achieve
an 8%-12% share of the convenience retail market. Therefore the local
centre would be achieving around $1.36 - $2.04 Million in turnover from the
trade area (80%). Equivalent total turnover employing the 8% -12% range
is around $1.77 - $2.55 Million or $1,490 - $2,235 per Sq M. This is low
given around $3,500 per square metre would be expected for convenience
retail in such a centre — it is therefore achieving a higher market penetration
than the average 8%-12%.

Generally the average required turnover of convenience retail is $3,500 per
Sq M. The 1,140 Sq M of convenience retail at Peregian Shopping Village
should therefore have a turnover of around $4 Million of which around $3.2
Million (19% of total $17 million market) will originate from the trade area.
Therefore the Peregian Shopping Village's convenience retailers are
currently achieving a 19% share which is well above the general 8-12%
share normally captured by local centres (this share may be higher if
turnover levels are above $3,500 per Sq M). This can be attributed, in part ,
to the centre’s penetration of growing areas currently under serviced by
retail facilities and which will be catered to by the planned Peregian Springs
retail centre (construction begins in November 2006).

\ Core

06/0043 Opportunity Analysis — Peregian Beach Caravan Park Economics