MCU14/0106 Appendix J - Retail Needs Assessment

7           Assessment of Need and Demand
This Section assesses the likely needs of consumers in the trade area and the likely level of demand for
the proposed expansion. The analysis commences with an analysis of current gaps in the market which is
then supplemented by the level of additional demand resulting from growth in the market.


7.1         CONSUMER NEEDS
As a result of numerous cases throughout Australia and overseas that relate to retail developments and
centre expansion plans, the following represents an appropriate principle to apply when considering the
strategic merits of a retail development application:

     The residents of an area should be provided with the broadest range of conveniently located retail
      facilities and services that the market can support, at the earliest possible time without jeopardising
      the sustainability of other centres in the network which are adequately fulfilling consumer needs.

It is relevant to note that this principle is consistent with typical Activity Centre based planning policies,
national competition policy and the precedent set in the famous KFC v Ganditis (1979) High Court case.

In KFC v Ganditis the High Court ruled that the threat of competition to existing business, if not
accompanied by a prospect of a resultant overall adverse effect upon the extent and adequacy of facilities
available to the local community, will not be a relevant town planning consideration.

Clearly while growth in the market is also important in determining changes in the adequacy of facilities
over time, it is also essential to understand whether latent, unsatisfied, demand exists, and whether there
are gaps in the market that can be filled without reliance on growth.

We have employed a step by step approach, firstly examining possible gaps in the provision of major
store types.


7.2         MAJOR RETAILERS GAP ANALYSIS
In order to determine the potential capacity for additional major retail floorspace within the Noosa Civic
trade area, an analysis of the discount department store (DDS) and supermarket floorspace provision has
been undertaken.

While this analysis provides an initial high level assessment of future requirements, it is nevertheless a
useful indicator of supportable supply compared to other locations.

7.2.1       FLOORSPACE PROVISION ASSESSMENT– DDS
The potential to support additional DDS floorspace is an important consideration in determining the need
for the type and scale of expansion proposed for Noosa Civic.

As shown in Table 7.1, the main trade area is currently significantly undersupplied in relation to DDS
floorspace. Big W at Noosa Civic and the small Target at Noosa Heads have a combined floor area of
7,884 sq.m. This represents a provision of 97 sq.m per 1,000 people relative to the main trade area
population. By way of comparison this is approximately half the provision currently serving the needs of
Brisbane residents, which equates to 186 sq.m per 1,000 people.

This suggests that there is currently a deficiency of in excess of 7,000 sq.m of DDS floorspace in the
trade area (i.e. ~50%), regardless of future growth prospects and leaving aside the additional demand
resulting from Noosa’s tourist market.

This deficiency would increase to around 9,900 sq.m by 2031 in the absence of development in the
Noosa area.




98     ASSESSMENT OF NEED AND DEMAND
                                                                                                                          URBIS
                                                                   NOOSA CIVIC - RETAIL NEEDS ASSESSMENT DEC 2014 MASTER - FINAL