MCU14/0106 Appendix J - Retail Needs Assessment

Because an impact assessment seeks to forecast how groups of people are likely to alter their shopping
behaviour in response to a given change in the competitive environment, it is simply not possible to be so
precise as to estimate exactly what will happen to each individual retailer or each group of retailers in
each location. The actions these retailers take individually and collectively, will partly determine the
eventual business impact and the extent of any flow-on effects to other retailers.

It is important to note, therefore, that an economic impact assessment for planning purposes does not
examine impacts on individual business but rather focuses on ‘centres’ and other areas where a group of
retail establishments exist. In this case we examine a number of designated ‘centres’ as well as entire
postcode areas, some of which include retail facilities within Industrial areas.

Therefore, whether or not the introduction of the subject development proposal will have a greater or
lesser impact on other centres throughout the region will in large part depend on the extent and effect of
any competitive response, and particularly performance improvement initiatives. Appropriate responses
may involve design improvements, consolidation, landscaping and other improvements to the physical
appearance and ambience of a centre, and are important considerations which can strengthen the appeal
and trading performance of centres likely to be impacted.

There are two main types of competitive response, namely:

   centre level; and

   individual retailer level.

At the centre level, improvements may typically include:

   centre refurbishment or redevelopment;

   tenancy re-mixing; and

   marketing and promotional events.

At the individual retailer level, the response may include:

   store refurbishment;

   enhancing customer service;

   improved merchandise planning and product offering;

   advertising; and

   pricing changes.

All of these factors need to be borne in mind when considering the likely impact of any additional retailer
into an existing retail network. The existing retailers are not passive participants, but rather will play a
dynamic and major role in the eventual impact which they will experience.

It is also important to recognise that the relevance of an economic impact assessment in planning terms
essentially relates to the broader issue of Net Community Benefit (NCB), which includes consideration of
the sustainability of existing and planned centres in the activity centre network.

The effects of new competition on individual businesses are not a relevant planning consideration in most
situations. The relevant consideration in planning terms relates to the ongoing ability of centres to
continue to provide for the needs of the community which they serve, and to ensure that new
development does not fundamentally undermine the viability and role of existing and planned centres,
particularly their role as community focal points for a range of needs.




110    ASSESSMENT OF ECONOMIC IMPACTS
                                                                                                                        URBIS
                                                                 NOOSA CIVIC - RETAIL NEEDS ASSESSMENT DEC 2014 MASTER - FINAL