Cooroy Service Station EIA 21_06_16

5.0 DEMAND ANALYSIS
5.1       POOLS OF EXPENDITURE IN THE TRADE AREA

The retail expenditure base is an estimate of that proportion of household income that is spent
at retail facilities. The propensity for, and the direction of, this expenditure is dependent on the
demographic and socio-economic characteristics of the community and the nature and role of
retail facilities within the surrounding area. For instance, an establishing community experiencing
considerable growth in new household formation would have a strong propensity for demand
for establishment items such as furniture, furnishings and appliances. Family communities with
school age children would have a greater propensity for bulk food and supermarket shopping,
and expenditure on clothing and school essentials.

The results of the 2009/10 ABS Household Expenditure Survey (HES) have been utilised to derive
an estimate of the average household retail expenditure base for Queensland, inflated by
changes in retail turnover per household to 2016 dollar values. It is estimated that the average
household retail expenditure base in 2016 dollar values for Queensland is $29,430. All
subsequent expenditures and projected turnovers are provided in 2016 dollars.

Based on the demographic and socio-economic profile of the Trade Area population, a retail
expenditure base of $26,340 is estimated, which reflects the lower household incomes.
Multiplication by the number of households or spending units provides an estimate of the
available retail expenditure derived from residents of the Trade Area, which is anticipated to
increase from around $64.5 million in 2016 to approximately $78.3 million by 2026.

                        TABLE 5.1: Retail Expenditure Base
                                    Year               $million
                                    2016                 64.5
                                    2021                 71.4
                                    2026                 78.3

Increases in the retail expenditure base are due to population growth only, and no allowance has
been made for:

         inflation, which does not create a demand for retail floorspace; and
         changes in real expenditure, which may accrue from changes in the real wealth of the
          Trade Area community.




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