Appendix F- Economic Impact Assessment · MCU23/0078

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6.5 Summary   With respect to competitive impacts the key planning issue is whether the decline in
              sales would lead to any loss of centre role or performance such that the community
              experiences a loss of local services.

              Given the expected competitive effects on other centres in the region, the modelling
              shown in this Chapter indicates that no centres will experience a significant loss of sales
              such that major anchor stores would close or that the role of the centre would be lost.

              In most cases the impacts would result in lower sales expectations for stores that would
              otherwise be trading well above the typical average. For example, the modelling
              underpinning the impact assessment implies that supermarkets in Noosa currently over-
              perform compared to industry benchmarks due to the relative undersupply in
              supermarket floorspace. A decline in sales because of the introduction of a new
              supermarket at Noosa Civic Village would not put these stores at risk.
              In some cases the impacts would simply redistribute sales from one store to another
              within an operator group. This would happen, for example, if a Coles supermarket were
              to be secured, in which case there could be some switching of shopping trips away from
              the existing Coles supermarket at Noosa Junction. In such instances the existing stores
              operated by each brand would continue to trade from the established stores, even if the
              performance of these stores would be somewhat reduced.
              Moreover, the analysis shows that centres would be experiencing large increases in sales
              in the next four years leading up to the development, so that once the impacts occur the
              resulting sales performance is still well above current levels. Further market growth
              would then also help to normalise sales performance over subsequent years.

              Overall, the conclusion to be drawn is that the proposed additional retail floorspace will
              generate some competitive effect, but that this will occur within a larger market at the
              time, and the effects would not lead to any diminution in the role or offer available at
              competing centres.
              The potential adverse consequences arising from added competition are therefore
              minimal when set against the significant positive effects that are expected to be
              generated as a result of the development, as discussed below in Chapter 7.




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