Appendix F- Economic Impact Assessment · MCU23/0078

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5.5 Retail need   The approach to examining retail need is to estimate the amount of additional retail
                  floorspace might be supported as a result of two factors:
                  1. Greater retention of retail demand captured locally within the catchment due to
                     improved local offer and wider array of entertainment facilities (rather than being
                     directed outside the catchment to centres such as Maroochydore); and
                  2. Growth opportunities as a result of additional demand as the residential catchment
                     population grows and from growth in visitation by tourists and other visitors.

                  This is a similar approach to that used in the Noosa Shire Retail Plan prepared on behalf
                  of Noosa Shire Council in 2018.

                  The analysis only looks at opportunities in the traditional retail sector and excludes
                  potential for increased provision of LFR retailing. This is to reflect the focus on traditional
                  forms of retail development at Noosa Civic Village. Nevertheless, strong growth in
                  spending on LFR type merchandise (as per Table 5) will also support additional
                  development within the NBC Showroom precinct in the future.
                  Given the inclusion of a full-line supermarket within the development, a separate analysis
                  of retail need for additional supermarket floorspace has also been conducted.

                  Traditional retail provision analysis

                  On average, traditional retail floorspace is provided at an average of approximately
                  1.6 sqm per capita. This is based on the recognised Australia-wide retail floorspace
                  provision rate of approximately 2.2 sqm per capita, with 0.6 sqm per capita deducted to
                  reflect the typical contribution of floorspace occupied by shops selling LFR goods. These
                  figures are consistent with the approach used in the Noosa Shire Retail Plan.
                  Focussing on the figures for 2022, the average per capita provision rate can be applied to
                  the catchment population to show demand for 152,500 sqm of traditional retail
                  floorspace. These figures are shown in Table 8 on p37 (refer row B).
                  There is currently 114,150 sqm of traditional retail floorspace within the catchment (refer
                  row C) as described earlier in Table 7. An estimated 25% of this retail provision is
                  supported by tourists and other visitors, which means that of the total current traditional
                  retail supply, an estimated 85,600 sqm is directly support by catchment residents (row
                  E).

                  Comparing the underlying demand for 152,800 sqm of retail floorspace by catchment
                  residents against the existing supply of 85,600 sqm that is supported by their demand,
                  these figures imply that 66,900 sqm of the current demand for traditional retail
                  floorspace by catchment residents ‘escapes’ outside the catchment (row F). This would
                  be represented by shopping trips made to centres such as Maroochydore, for example,
                  to access particular goods and services or shopping experiences not present locally.

                  The implication is that only around 56% of locally generated retail demand is retained
                  locally within the catchment in 2022 (row G). This is a particularly low retention rate (that
                  is, an unusually high level of demand escapes outside the catchment) and does not
                  reflect the centre hierarchy present in Noosa Shire and the designation of the NBC as a
                  Major Regional Activity Centre serving a sub-regional function with only Maroochydore

                  Noosa Village Mixed Use Development – Economic Impact Statement for Development Application   Deep End Services