MCU14/0056 - Attachment H -Economic Needs Assessment

          the location of competitive centres of comparable size and/or function;
          access relative to competitive centres; and
          physical attributes of competitive centres, such as age, design, situation (free-
          standing centre or part of a central business area), etc.
No universally accepted standards of impact exist (or are possible) as each retail market
and retail development is different. In Queensland, a frequently used ‘rule of thumb’ is that
an impact of 15% or more turnover should be cause for concern. This concern is not
about the impacts upon the profitability of affected centres and retailers, or about affording
existing centres and retailers protection from healthy competition or from changing market
conditions.
The primary concern is to ensure that the premature or inappropriate introduction of a new
centre or centre extension does not jeopardise the current or future delivery of a range of
retail goods and services available in a variety of centre types and formats to the
community.
This rule of thumb must be applied with considerable caution as each centre and trade
area is different. For example, in stable or declining markets, impacts of 15% or more
upon an existing centre or retail area would be cause for concern. There may be
insufficient prospects for growth to ameliorate these impacts within a reasonable time
period (usually about three years). Even then, the potential loss (or change of use) of
existing retail facilities, which might consist of old or outdated floor space, must be
weighed against the replacement and improvement of retail facilities that a new
development might bring.


3.6.2     Potential Impacts
The forecast supermarket, service station (excluding petrol) and fast-food sales of $10.6
million at 2017 also represent the impact upon the retail network in that year. Almost all of
the supermarket’s potential sales ($8.6 million) are likely to be transferred from the Supa
IGA within the Cooroy Town Centre.
In effect, this impact will be on its sister store, which will be under common ownership.
The Supa IGA in Cooroy, the sister store to the proposal, is trading exceptionally well and
will continue to do so even with the introduction of the proposed new store on the subject
site.
There is unlikely to be any significant impact on other retailers in the town centre as the
proposed development is offering a different and lesser function. The Town Centre will
continue to offer a wide variety of food and other retailers, and therefore should have no
implications for the continued successful function of the town centre.
Fast food impacts are likely to be highly dispersed with no centre or individual store being
significantly impacted. The distance to competitive fast food and takeaway outlets is likely
to diffuse the impact of the proposed development upon the existing network. Outside of
the Subway, Eagle Boys and a fish and chip shop located in the Cooroy Town Centre


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Proposed Myall Street Development
12022 Rev 1
30 May 2014