Attachment 7- Economic Impact Statement

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Supermarket floorspace provision analysis

A similar provision rate approach can be used to examine the need for additional
supermarket floorspace to serve the catchment population and visitors to the catchment
and is presented in Table 9. For this exercise, supermarket floorspace provision is based
on the 2022 surveys, but with amendments to reflect the opening of IGA at Sunrise
Shopping Centre in November 2022, and the approval for the Coles at Peregian Springs
to be expanded by approximately 412 sqm.

In this instance, the demand for supermarket floorspace generated by the residential
population is compared against current supermarket floorspace provision within the
catchment after allowing for incoming demand from tourists and other visitors.

As highlighted in Section 5.3, the visitor contribution to grocery shopping demand is
estimated at 10-15%; however, to be conservative a figure of 10% is adopted in this
analysis, to reflect the likely direction of a larger share of grocery shopping by visitors to
smaller food retailers rather than supermarkets.
The analysis presented in Table 9 demonstrates that a total of 30,950 sqm of
supermarket floorspace was located within the catchment in 2022, of which an estimated
27,900 sqm is supported by catchment residents (ie 90%).
When compared against the catchment population, this indicates a current supermarket
floorspace provision rate of 0.293 sqm/cap, which is:
•    19% below the average provision of 0.362 sqm/cap across the Sunshine Coast;
•    26% below the average of 0.394 sqm/cap in Queensland; and
•    28% below the average of 0.405 sqm/cap for non-metropolitan Queensland.

On any of these comparisons the catchment is clearly under-supplied with supermarket
floorspace, and with ongoing population growth the average provision rate will continue
to decline, reaching as low as 0.26 sqm/cap by 2035 if no new supermarket floorspace is
built.

The extent of undersupply of supermarket floorspace has been modelled in Table 9 by
comparing existing provision against the supermarket demand if the Queensland average
provision rate of 0.394 sqm per capita is applied to the catchment population. The
Queensland average is more appropriate as the figure for Sunshine Coast is influenced
heavily by incoming visitor spending (and in any case the catchment accounts for a
substantial share of the Sunshine Coast region). It is relevant to note that the average
supermarket provision rate for non-metropolitan Queensland (ie excluding Greater
Brisbane) is 0.405 sqm per capita.

According to these calculations there is an existing under-provision of 9,600 sqm of
supermarket floorspace serving the catchment, with the under-provision widening to
11,800 sqm by 2027 and reaching 13,800 sqm by 2035.

The analysis demonstrates that there is significant scope to increase supermarket
provision within the catchment. As the NBC is identified as a sub-regional shopping
precinct for the region, and is acknowledged in the planning scheme as a location for
growth and development, it is appropriate that a new full-line supermarket be
accommodated within the VMU precinct.

Noosa Village Mixed Use Development – Economic Impact Statement for Development Application   Deep End Services