Attachment 7 - Economic Need and Impact Assessment · MCU13/0251

must be weighed against the replacement and improvement of retail facilities that a new
development might bring.
It is also relevant to consider the existing trading performance of retailers, insofar as an impact
greater than 15% on turnover at a centre trading above benchmark levels is unlikely to affect its
viability or its ability to respond to competitive pressure.
In contrast in areas of high growth potential, impacts on centre turnovers well above the 15%
usually can be absorbed with little difficulty. Growth in the pool of retail expenditure available to
support all retail centres usually will quickly restore turnover initially lost to a new competitive
centres in such areas.

5.1.1 Impact of Proposed Retail Development
The extent of impact of the proposed development on other centres is largely driven by the
proposed limited line supermarket. Within the trade area, there are limited take home food or
grocery opportunities. The trade area only hosts a single 290m2 Friendly Grocer food store,
supported by a green grocer and bakery. Existing retail provision within the trade area is
concentrated in in dining & take-away food and personal & other goods retailing. Overall, the
existing Peregian Beach neighbourhood centre has a strong visitor as opposed to convenience
focus.
While material impacts are likely to be sustained by the Peregian Beach neighbourhood centre,
the proposed development is expected to result in a reduction expenditure currently leaking to
supermarket anchored centres outside the trade area located at Peregian Springs and Coolum.
Table 5.1 below indicates that the most significant impacts (in terms of a percentage reduction in
turnover) are likely to be sustained by
• Peregian Springs Shopping Centre (Coles anchored):            7.8%;
• Peregian Beach neighbourhood centre:                          7.1%;
• Coolum Shopping Village (Coles anchored):                     5.3%;
• Coolum Park Shopping Centre (Woolworths anchored):            4.8%; and
• Coolum Esplanade (Main Street):                               4.3%.
The scale of anticipated impacts is not sufficient to threaten the viability of any existing or
approved centre development within or near the proposed development’s trade area. Notably,
approximately 80% of the proposed development’s turnover is in the form of reduced escape
expenditure, rather than impacts on centres located within the trade area.
Centre impacts sustained by the Peregian Springs Shopping Centre are likely to be ameliorated
rapidly by take-up of residential allotments in the Peregian Springs master planned community.
Similarly, residential growth in and around Coolum can be expected to ameliorate impacts at
Coolum based centres.
The proposed development responds to a clear gap in the local retail network, whereby a discrete
community of approximately 4,500 persons has limited access to convenience retail facilities
unless they choose to access centres outside their community. The introduction of a new retail
development in any area results in tenant relocation and trading impacts on individual tenancies.
However, the nature of retail provision within Peregian Beach neighbourhood centre is
characterised by a large number of smaller scale tenancies (i.e. generally less than 200m2), which
can be used for various uses. Any closures of individual tenancies (if any) would be more than



Peregian Village Market Economic Need and Impact Assessment                                      24
December 2013 13034 Report Rev 0