9. Appendix F - Economic Impact Assessment

ix.   Table 4.3 outlines the projected impacts from the proposed development. The table commences with
      an estimation of the current and projected total large format retail market. As shown, the large format
      retail market is projected to increase by some $27.6 million, or 7.0% between 2018 and 2021. The
      majority of sales for the subject development, therefore, will be as a result of market growth.

x.    Taking the above into account, the Noosa Marketplace is likely to gain approximately 90% of sales, or
      $27.7 million, from spending generated by total trade area customers ($30.7 million minus 10% from
      beyond). This would equate to around 6.5% of the 2021 total trade area large format retail market
      defined in Table 2.6 ($27.7 million trade area generated sales divided by $423.6 million in large format
      retail expenditure).

xi.   As a result, the average impact on surrounding large format retail stores would be in the order of 6.5%
      in 2021, and therefore, the proposed development is unlikely to affect the viability or continued operation
      of any store with impacts of less than 10% typically considered within the normal competitive range.

xii. This analysis assumes that all impacts resulting from the proposed development will be on existing
      retailers within the total trade area and does not assume that the proposed development will reduce the
      amount of spending currently escaping the trade area. In reality, given that anchor tenants not currently
      provided within the total trade area will likely be targeted, a proportion of sales generated by the
      proposed development will result from the redirection of spending from retailers beyond the total trade
      area.

xiii. It is important to note that impacts outlined in this report are indicative only, as it is difficult to precisely
      project the sales impact of the opening of a new store on existing retail facilities. A number of factors
      can influence the impact on individual centres/retailers, including but not limited to:

       ­      The likely inclusion of non-retail showroom/display suites as part of the development and
              therefore lower sales potential.

       ­      Refurbishment/improvements to existing centres.

       ­      Expansions to existing centres.

       ­      Loyalty programs of existing retailers.

       ­      The existing centre mix and how it competes with the proposed development.

xiv. For all these reasons and other similar factors, sales impacts outlined in this report should be used as
      a broad indication only.




      Noosa Marketplace, Queensland
      Economic Impact Assessment                                                                                  62
      May 2019