Attachment 7- Economic Impact Statement

                                                                                                           iii




      prepared on behalf of Noosa Shire Council. Even with this development, there would
      be potential for other retail expansions to occur elsewhere in the catchment.

17. The provision of supermarket floorspace is currently well below the typical average
    provision rate experienced throughout Queensland, with an immediate opportunity
    to increase current supply by nearly 10,000 sqm to reflect typical average provision
    rates, and with further opportunities in the future to expand supermarket provision.
    This supports the proposed additional 1,000 sqm of supermarket floorspace over and
    above the acceptable outcome specified in Noosa Plan.

18. The undersupply of supermarket floorspace is evident from analysis showing that
    existing supermarkets in the catchment are overtrading, with combined average
    sales likely to be around 40% above typical industry averages.
19. Overall, there is a very strong need case for additional retail development at the
    NBC, including for the proposed full-line supermarket as well as for other uses in
    convenience retail, food dining and non-food retail sectors.
20. Analysis of the market context for the proposed cinema and for other components of
    the development scheme such as an indoor recreation facility have also been
    examined and are shown to be required to serve identifiable demand within their
    respective catchments.

Competitive trading effects

21. The proposed Noosa Civic Village development would lead to some redistribution of
    spending that would otherwise have been directed to other centres in the region.
    These spending flows have been examined to determine their potential effect on the
    role and operation of other centres within Noosa Shire. Potential cumulative effects
    arising from the concurrent development of the Stage 2 Retail application have also
      been assessed.
22. These effects are relevant only insofar as they lead to significant sales impacts such
    that businesses close and/or the performance of competing centres leads to a loss of
    services for the local community. In the absence of any significant diminution in the
    role and performance of existing centres, competitive impacts are not a legitimate
    basis for withholding planning approval.

23. The outcomes from the modelling of competitive effects presented in this report
    demonstrates that no centres will experience a significant loss of sales such that
    major anchor stores would close or that the role of the centre would be lost, either as
    a result of the Noosa Civic Village development in isolation, or the cumulative effect
    when combined with the Stage 2 Retail development.
24. A large share of the redistribution of spending would involve people shopping at
    Noosa Civic Village rather than within the existing component of the Noosa Civic
    shopping centre. For example, some shoppers might shift a part of their supermarket
    spending to the new competitor at Noosa Civic Village. This effect is modelled at
    equivalent to a one-off 8.6% reduction in sales in 2027, or an 11.5% impact when the
    Stage 2 Retail expansion is included. Even so, this would be within a range that is
    considered normal in a healthy retail environment.
Noosa Village Mixed Use Development – Economic Impact Statement for Development Application   Deep End Services