MCU14/0056 Economic impact report Att B - Information response

petrol market has cemented and strengthened the convenience retail component of the
retail fuel industry. With significantly higher margins on convenience retail goods than is
achievable on fuel sales, the sale of retail goods generates a sizable component of a
service station’s profit and can underpin its viability.
Although the service station development is aimed at capturing highway traffic, part of its
forecast sales will come from Cooroy area residents, particularly as other components of
the development, such as the carwash and fast food operation, are also likely to appeal to
local residents and draw them to the site. Consequently, the forecast service station fuel
and retail sales in Table 2.2 linked to Bruce Highway traffic would also incorporate sales
generated by Cooroy area residents, many of whom would probably also use the Bruce
Highway.
Based upon ABS 2009-10 Household Expenditure Survey quintile averages for
Queensland, Cooroy households would have spent around $6.0 million in the year ending
June 2013 on fuel, oils and lubricants. Forecast growth in household numbers should
increase this spending to:
    •    $6.6 million at 2017;
    •    $6.8 million at 2019; and
    •    $7.0 million at 2021 (constant 2013 $ values).
As noted in Table 3.2 of our July report, nearly 60% of Cooroy’s households had two or
more cars at the 2011 Census, compared to 56% for the Sunshine Coast and
Queensland. Consequently, household spending on fuel, oils and lubricants is likely to be
slightly above average.
Under IBISWorld national averages, Cooroy household fuel spending would support the
equivalent of only one service station at 2013. However, under the ATO’s small business
benchmark turnover averages ($2 million or more), the $6.0 million household spending
could theoretically support the equivalent of at least three service stations, if it were
possible to retain all fuel spending locally.
Although most urban area households purchase their fuel close to home, Cooroy
households are more likely to refuel at a range of service stations in Noosaville and
elsewhere in the northern Sunshine Coast region as part of work, higher order shopping,
education and other regular trips. Similarly, Cooroy’s existing service stations would also
rely on business originating from outside the defined Cooroy catchment.

Fast Food
With the scaling back of the supermarket to a more typical service station and
convenience store format, the attached drive-thru fast food restaurant is expected to
achieve a reduced share of Cooroy’s resident market. At June 2017, this component of
the development is forecast to achieve about $1.5 million in turonver, with about a third
this amount ($0.5 million) derived from Cooroy area residents (which is about a 5%
market share of available catchment area household spending on meals out-takeaway)



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Myall Street – Information Request Response
12022-1 Rev 0
22 December 2014