9. Appendix F - Economic Impact Assessment

4.2.      Sales Overview and Impacts

  i.     In order to assess the potential economic benefits and impacts that may arise from the development of
         the proposed Noosa Showroom development, the sales level that the development is projected to
         achieve is outlined.

  ii.    The sales performance of any particular retail facility, be it an individual store or a collection of stores,
         is determined by a combination of the following critical factors:

         — The composition and quality of the facility, including major trader or traders; the specialty mix; centre
             layout and configuration; ease of accessibility and parking; and the overall feel of the centre.

         — The size of the available catchment which the facility serves.

         — The locations and strengths of competitive retail facilities.

  iii.   The sales potential for the proposed large format retail stores and non-retail showrooms at the Noosa
         Marketplace site is now considered, taking into account these factors.

  iv.    Upon completion, the proposed development will total some 8,780 sq.m of large format retail/showroom
         floorspace and will generate sales primarily from the large format retail market as well as from tourists
         and trade sales, as discussed and measured in Section 2 of this report. For the purposes of this
         assessment, it is assumed that all sales for the subject development are from the retail market,
         excluding the trade market. This presents a conservative view of impacts (i.e. highest level).

  v.     As shown in the previous Table 2.6, the total large format retail spending market is currently estimated
         at $396.0 million and is projected to increase to $423.6 million by 2021.

  vi.    The typical trading level for large format retail/showroom facilities within Australia can vary substantially
         depending on the tenant as well as the location, however, the average trading level is generally
         considered to be in the order of $3,000 per sq.m. However, it is difficult to forecast sales for the proposed
         centre at the subject site given the likely inclusion of non-retail showroom floorspace.

  vii. For the purposes of this analysis, we have assumed that proposed development will achieve strong
         sales of around $3,500 per sq.m (i.e. a ‘worst case scenario’ in terms of impacts on existing retailers)
         in 2021 (constant 2018 dollars and including GST), or around $30.7 million. These projections represent
         the upper limit of sales likely to be achieved at the centre.

  viii. Sales for the proposed Noosa Showroom development are likely to be generated from a number of
         sources including total trade area residents and customers residing beyond the defined total trade area,
         resulting from the larger draw of the Noosa region as well as business generated by passing traffic. This
         figure is estimated at 10%.




         Noosa Marketplace, Queensland
         Economic Impact Assessment                                                                              61
         May 2019