Attachment 7- Economic Impact Statement

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7.3 Noosa Civic             Supermarket
Village sales
                            The new supermarket at Noosa Civic Village will be a full-line module of 3,500 sqm
                            which would be expected to achieve strong first year sales in order to attract an
                            established operator.

                            An estimate of future sales for the supermarket in 2027 (the anticipated first year of
                            trading) is shown below in Table 11, based on the likely share of the food & groceries
                            spending market captured by the new store from within each catchment sector. Note
                            that these market shares are applied to the ‘F&G’ market which excludes spending on
                            takeaway liquor. Liquor spending is incorporated into the ‘FLG’ market as shown earlier in
                            Table 5.

                            With allowances due to spending by tourists and other visitors not living within the
                            catchment (at 10%) and from sales of other merchandise such as small kitchenware items,
                            apparel, and stationery sold at supermarkets (at 7%, which is lower than the figure
                            adopted in Table 10 to examine supermarket sales across the catchment because the
                            store is not assumed to have in-store liquor sales), the proposed VMU supermarket is
                            forecast to achieve total sales of $42.8m in 2027.

                            This forecast is derived from estimated market shares which are expected to range from
                            9.5% within the immediate Primary sector, to just 2.0% from the Secondary South East
                            sector in which Noosa Civic would be a more distant and less convenient option and
                            where both Woolworths and Coles have stores (with the Coles at Peregian Springs
                            approved for an extension of 412 sqm). Relatively high market shares are expected from
                            the Secondary South West and Secondary North West sectors notwithstanding the travel
                            distance involved, but this reflects the lack of full-line supermarkets within those sectors
                            and the requirement to travel into urban Noosa for a significant component of their
                            shopping, as well as likely place of work and other travel patterns for residents living in
                            the hinterland.

                            As shown in the table, the largest component of sales would be drawn from the Primary
                            sector (44%), which reflects the preference to undertake supermarket shopping close to
                            home.

Table 11—VMU supermarket sales and market share

Catchment sector                                  F&G spending ($m)               Market share (%)                        Sales ($m)   Share of sales (%)
Primary                                                         $182.9                          9.5%                          $17.4                 44%
Secondary East                                                   $98.7                          5.0%                           $4.9                 12%
Secondary South East                                            $250.5                          2.0%                           $5.0                 13%
Secondary South West                                             $51.9                          5.5%                           $2.9                   7%
Secondary North West                                            $161.9                          3.5%                           $5.7                 14%
Total catchment                                                 $745.9                                                        $35.8                 90%
Sales from beyond                                                                                                              $4.0                 10%
Total F&G sales                                                                                                               $39.8
Other sales (non-F&G)                                                                                                          $3.0                   7%
Total                                                                                                                         $42.8

Source: Deep End Services




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