Appendix F- Economic Impact Assessment · MCU23/0078

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Trading effects



6.1 Introduction   This Chapter examines the potential competitive trading effects on other centres that
                   may arise from the proposed Noosa Civic Village development once operational.
                   These trading effects would occur as a result of the redistribution of spending from
                   existing centres to the new Noosa Civic Village development once it opens, and are
                   relevant only insofar as they lead to significant sales impacts such that businesses close
                   and/or the performance of competing centres leads to a loss of services for the local
                   community. In the absence of any significant diminution in the role and performance of
                   existing centres, competitive impacts are not usually a legitimate basis for withholding
                   planning approval.
                   Trading effects are examined by comparing the sales achieved at competing centres in
                   2027 following construction of Noosa Civic Village against existing (2022) estimates of
                   sales performance, and against the sales that would otherwise have been achieved in
                   2027 in the absence of the proposed development.

                   Effects are calculated in dollar terms and as a percentage impact, noting that the
                   significance of any loss in sales is also related to the underlying performance of each
                   centres. For example, centres that already achieve very high sales averages (ie can be
                   considered ‘over-trading’) are able to withstand a larger loss of sales without the risk of
                   business closure.

                   Typically, centre-level impacts up to a 10-15% loss of sales are considered to be within the
                   bounds of normal competition, while impacts greater than 15% warrant further attention
                   as to their effect on the performance of the centre in question, recognising – as stated
                   above – that high-trading centres can withstand larger impacts than those achieving
                   ‘standard’ sales performance.



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