Appendix F- Economic Impact Assessment · MCU23/0078

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11. The inclusion of 13,700 sqm of traditional retail floorspace to be developed at Noosa
    Civic Village is supported by forecasts of future retail need prepared in this report, as
    well as being consistent with supportable floorspace growth as identified in work
    prepared on behalf of Noosa Shire Council. Even with this development, there is
    potential for other retail expansions to occur elsewhere in the catchment.

12. The provision of supermarket floorspace is currently well below the typical average
    provision rate experienced throughout Queensland, with an immediate opportunity
    to increase current supply by nearly 10,000 sqm to reflect typical average provision
    rates, and with further opportunities in the future to expand supermarket provision.

13. Overall, there is a strong need case for additional retail development at the NBC,
    with additional traditional retail floorspace incorporating a full-line supermarket as
    well as other uses in convenience retail, lifestyle retail sectors and food and drink
    outlets.

Competitive trading effects
14. Adverse competitive trading impacts 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 a legitimate
    basis for withholding planning approval.

15. Given the expected competitive effects on other centres in the region, the modelling
    presented in this report 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.
16. A large share of the redistribution of spending would actually involve people
    shopping at Noosa Civic Village rather than within the existing component of the
    Noosa Civic shopping centre. For example, some shoppers might shift a part of their
    supermarket spending to the new competitor at Noosa Civic Village. This effect is
    modelled at equivalent to a one-off 11.5% reduction in sales in 2027. Even so, this
    would be within a range that is considered normal in a healthy retail environment.

17. Other factors are also relevant:
      a. In most cases the impacts would result in lower sales expectations for centres
         that would otherwise be trading well above the typical average.

      b. In some instances the impacts would simply redistribute sales from one store to
         another within an operator group. This would happen, for example, if Coles were
         secured as the supermarket operator at Noosa Civic Village, in which case there
         may be some switching of shopping trips away from the existing Coles
         supermarket at Noosa Junction. In such cases 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.


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