MCU14/0106 & OPW15/0001 Appendix B - Retail Needs Response

6:2 PRODUCTIVITY

Information request:

‘The retail analysis suggests that turnover productivity among food retailers is expected to
decline sharply, while turnover productivity for non-food retailers is expected to increase
due to the Noosa Civic expansion.

Turnover productivity in non-food retail is not considered likely to increase as a result of the
development’.

Response:

Table 4.6 on page 59 shows current retail trading levels for Noosa Civic in 2014, and Table 7.6 on page
105 shows the data required to calculate the post development average trading levels for the expanded
Noosa Civic centre.

Overall, the subject centre is forecast to experience a slight decrease in the average trading level
following the proposed development, from $6,926 per sq.m in 2014 to $6,865 per sq.m in 2018. This
comprises the following changes, assuming that the mini-major tenants are all non-food stores, and that
the mini-major store mix is such that the average trading level shown in Table 7.6 of the DA report is
achieved:

CATEGORY 2014 2018 CHANGE
Food $11,751 $9,084 -22.7%
Non-Food $5,392 $5,956 +10.5%
Total $6,926 $6,865 -0.9%

In our view it is quite reasonable to expect that the average trading level of non-food stores will increase
following the development, and conversely that the average trading level of food stores will decline. This
is simply due to a combination of competitive influences, particularly amongst the higher trading
supermarkets, the improved range and variety of non-food stores, the lower weighting attributable to the
lower trading DDSs, and the possibility of higher trading mini-majors.

6.3 CENTRES NETWORK

Information request:

‘Table 8.5 of the Retail Needs Assessment estimates an overall impact of $129M across
identified centres but estimates the increase in turnover for Noosa Civic from the expansion
as $149.6M, leaving approximately $30M of unallocated impacts’.

Response:

The assessed $129 million overall impact, is equivalent to the uplift in turnover forecast for the Noosa
Civic development in the development year of 2018. As outlined on page 106 of the DA report, this is
based on an assume ‘do nothing’ case (i.e. Case 1) with turnover forecast at $167 million , as compared
with a post development scenario (i.e. Case 2) with total centre turnover forecast at $296 million (in

constant $2014).

URBIS .
NOOSA RESPONSE REPORT - RETAIL ECONOMICS JUNE 2015 V2 IMPACT ANALYSIS 1 9