MCU14/0106 Appendix J - Retail Needs Assessment

The overall performance of each centre is influenced by the mix of stores and the estimated performance
of the larger stores, in particular (i.e. supermarkets and DDSs). This analysis has also been informed by
the actual spending behaviour of trade area residents, as revealed by the Quantium analysis.


MARKET SHARES AND LEAKAGE
Our analysis indicates that the centre as a whole achieves a Main Trade Area market share of 10.5% of
total retail spending by local residents.

In other words, around 10% of the total pool of retail spending available to all retail stores, generated by
people living within the trade area, is currently directed towards Noosa Civic. Conversely, of course, this
means that 90% of expenditure is currently directed towards the multitude of other retail locations
patronised by trade area residents.

The following Main Trade Area market shares apply to each of the other main business locations in
Noosa based on their mix, role and performance characteristics:

    Noosaville and Weyba Road (excluding Noosa Civic)            20.3%

    Noosa Junction                                                 7.2%

    Tewantin                                                       4.2%

    Cooroy                                                         3.7%

    Hastings Street                                                0.9%

Detailed analysis of expenditure flows reveals that expenditure leakage from the main trade area equates
to 37% of total retail spending, including some 57% in apparel specialty categories. This represents
almost $400 million of main trade area resident retail spending that is being directed outside of the main
trade area, including interstate, overseas and online.

This arises due to the attraction of external centres such as Maroochydore and Brisbane which offer a
greater range, as well as the appeal of online and overseas shopping, which are also related to the lack
of existing facilities within the trade area.


RETAIL DEMAND ASSESSMENT
Our analysis of demand for additional retail floorspace to serve the future needs of trade area residents
has been based on the following key considerations:

    Escape spending is very high at 37% of retail spending, clearly demonstrating that existing facilities
     and services in the trade area are not fully satisfying the market.

    The fact that escape spending is as high as 37% across all retail categories, and higher still in
     discretionary categories such as apparel, suggests that there is a need for Noosa to provide a critical
     mass of specialty stores.

    The provision of discount department stores in the trade area is well below the normal provision for
     markets like Noosa with a substantial population base and shopper profile, and a strong tourist
     market (i.e.~50% below average).

    The supermarkets operating in the trade area currently are understood to be trading very well. This is
     a clear signal that demand exceeds supply at the present time and that the market can support more
     supermarket floorspace.




URBIS
NOOSA CIVIC - RETAIL NEEDS ASSESSMENT DEC 2014 MASTER - FINAL                                  EXECUTIVE SUMMARY   iii