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Southern Grampians Shire
Retail Strategy
Southern Grampians Retail Strategy
We wish to acknowledge the support of Regional Development Victoria in the development of this strategy
Contents
Executive Summary 3 6 Forecasts and Scenarios 37
1 Introduction 7 6.1 Background 37
1.1 The Project 7 6.2 Population Forecast 37
1.2 This Report 7 6.3 Retail demand 38
2 Trends in Retail Development 9 6.4 Current Retail Development 40
Proposals
2.1 The Australian Retail Industry 9
6.5 Retail Development Scenarios 41
2.2 Consumer Preferences 9
6.5.1 Base case 43
2.3 Retailer strategies 12
6.5.2 Low/no growth scenario 44
2.4 Retail Development Policy 15
6.5.3 High growth scenario 44
2.4.1 Activity Centres and 15
Planning Policy 6.5.4 Comparison of Scenarios 45
2.4.2 Council Planning Policy 18 7 Objectives 46
2.5 Outlook 19 8 Supporting activity centres 47
3 Retailing in the Southern Grampians 21 8.1 Objective 47
3.1 Retail Activity 22 8.2 Reasons 47
3.2 Activity Centres and the Retail 22 8.3 Strategies 47
Hierarchy
9 Support Existing Traders 53
3.3 Description of Centres 26
9.1 Objective 53
3.3.1 Hamilton Town Centre 26
9.2 Reason 54
3.3.2 Coleraine 26
9.3 Strategies 54
3.3.3 Penshurst 27
10 Retail planning framework 57
3.3.4 Dunkeld 27
10.1 Objective 57
3.3.5 Balmoral 27
10.2 Reason 58
3.3.6 Local and other centres 27
10.3 Strategies 58
3.4 Retail Floorspace 28
11 Priorities for Action 60
3.5 Retail Sales 29
12 References 61
4 Retail Demand 30
Appendix: Key Activity Centres 62
4.1 Population 30
4.2 Retail Spending 33
5 The Balance of Retail Supply 34
and Demand
Southern Grampians Retail Strategy 1
This strategy is designed
to guide Council action on
retailing and the activity
centre network in the
Southern Grampians Shire.
2
Executive Summary
This draft strategy has been 1. Council will support It is important to note that
prepared by development investment in existing activity this retail strategy is part of a
consultant Tim Nott in centres to deliver the best broader suite of strategies that
conjunction with Geografia, possible service to residents Council is developing or has in
which is preparing the and visitors place that will affect retailing
concurrent economic and activity centres in the Shire.
development strategy for the 2. Council will support These other documents include
Shire. The strategy is guided by existing traders and their the Economic Development
the following objectives: organisations to improve Strategy, the Municipal Strategic
retail industry performance Statement and planning
and the viability of activity strategies and urban design
centres frameworks for Hamilton
and other towns in the Shire.
3. Council will put in place The strategies and actions in
a retail planning and the following table have been
development framework suggested by Council and its
that reinforces the activity consultants in conjunction
centre network and allows with members of the business
appropriate growth community who have been
consulted throughout the
development of this document.
The actions highlighted in red
are suggested as initial priorities
for Council.
Southern Grampians Retail Strategy 3
Executive Summary cont.
Objective/Strategy/Action Performance indicator
Objective: Support activity centres
1 Work with investors to fill identified gaps in the retail mix and to improve the draw of existing centres
1.1 Work with land-holders and potential investors to secure a site Investment in DDS
for a discount department store in the Hamilton town centre
1.2 Identify other sites in the Hamilton town centre and its fringes Investment in bulky goods/
for potential bulky goods/restricted retailing restricted retailing
1.3 Work with stakeholders to secure improved convenience retail Securing investment in
facilities in small town centres commensurate with their role in the convenience retailing in
retail hierarchy neighbourhood and local
centres
1.4 Work with others to secure investment in entertainment and Increase in non-retail
other service sector activities as well as an increase in the number investment in centres
of dwellings in centres
2 Work with investors to improve services to visitors
2.1 Continue to implement the recommendations of the Southern Improved visitation and visitor
Grampians Tourism Strategy and secure increased investment in yield
tourism retail product
2.2 Ensure that urban design frameworks for town centres cater for Visitor services incorporated
the needs of visitors into urban design frameworks
2.3 Encourage investment in a wider range of food service outlets in Improvement in dining options
Hamilton and other centres
2.4 Investigate the provision of wi-fi services throughout Hamilton Feasibility assessment of
town centre providing a free wi-fi service in
Hamilton town centre
3 Work with stakeholders to improve the physical attractiveness of centres
3.1 Implement urban design strategies for centres Increase in pedestrian activity in
centres
3.2 Work with stakeholders to improve the efficiency and access Increase in the number of
to car-parking in the Hamilton town centre, and this may include parking spaces in the town
provision and promotion of an all-day car park for city workers centre
3.3 Ensure that, wherever possible, Council locates its services in Increased proportion of Council
activity centres in order to concentrate demand and generate new jobs located in activity centres
activity
3.4 Ensure a rapid response to maintenance and safety issues Improvement in perception of
within centres centres
3.5 Ensure that, wherever possible, new development creates active Reduction in “dead spots” in
frontages in centres centres
4
Executive Summary cont.
Objective/Strategy/Action Performance indicator
4 Work with stakeholders to reduce the adverse impact of vacant space in key centres
4.1 Identify vacant and under-used shop space in centres Data-base of shop use and
ownership
4.2 Work with owners and community stakeholders to identify Reduction in vacancy rate and
potential activities increased activity
4.3 Identify urban design treatments that can be used to Improvement in perception of
differentiate former shops that are now homes from vacant shops. active streets
4.4 Consider promotion of vacant space as a whole to organisations Identification of potential large-
that may take more than one shop-front scale customers for vacant
space
5 Work with land-holders to ensure sufficient well-located property is available for key activities in
centres
5.1 Convene a regular forum of land-holders in Hamilton town Regular meetings of land-
centre to identify efficiencies in land provision and opportunities for holders in Hamilton town centre
collaboration
5.2 Consider direct intervention (ie purchase of land) to secure Undertake rapid feasibility
appropriate investment; this could involve the provision of a rolling assessment of land purchase
property investment fund in Hamilton town centre to
facilitate DDS development
5.3 Undertake a car-parking strategy for the Hamilton town centre Complete car parking strategy
and identify areas that could accommodate new consolidated car
parking including multi-storey parking
5.4 Further investigate institution of a rolling property development Feasibility assessment of rolling
fund as a means of improving the physical fabric of town centres property fund
6 Dedicate resources to place management
6.1 Employ a place manager to coordinate Council investment in Employment of a place manager
the Hamilton town centre and to implement and further develop
Council policy
6.2 Coordinate and promote the calendar of events for the town Promotion of a calendar of
centre events
Objective: Support traders and their organisations
7 Support traders’ organisations in individual centres
7.1 Consider the provision of funds towards the development of Development of traders’
traders’ organisations in Hamilton and the neighbourhood activity organisations
centres
7.2 Provide funds to traders’ groups for the development of a Business plans for centres
business plan for each centre
Southern Grampians Retail Strategy 5
Executive Summary cont.
Objective/Strategy/Action Performance indicator
7.3 Consider the provision of funds to traders’ organisations to help Improved provision and take-up
provide trader training (including hospitality, customer service, of trader training opportunities
window displays and internet trading)
7.4 Provide funds towards promotional activities in individual Improved targeting of
centres, targeting those key markets identified in business planning promotional expenditure
7.5 Ensure that each centre has a calendar of events and that these Improved coordination of events
are coordinated across the Shire
7.6 Encourage the provision of a higher minimum level of service Longer opening hours on the
in Hamilton town centre across the weekend for visitors and weekend
residents, including opening of cafes and post office
7.7 Encourage existing and new traders to invest in internet trading Growth in internet trading and
improved viability of businesses
7.8 Consider the introduction of a special charge scheme in Growth in funds available to
Hamilton town centre to fund town centre development, trader implement Hamilton town
training and promotion centre business plan
8 Support Shire-wide retail business promotion and development
8.1 Undertake coordination of regional promotion of the Shire’s Regional promotional campaign
activity centres for the Shire’s activity centres
8.2 Coordinate and promote calendar of events in the Shire’s Shire-wide calendar of events
activity centres
8.3 Seek to develop new and complementary events in activity Establishment of new events
centres in conjunction with traders groups
Objective: Develop retail planning framework
9 Ensure that the retail and activity centre policies are clear in Council’s land-use plan
9.1 Prepare a retail development framework that is based on, and Revision of the Municipal
reinforces, the existing network of centres Strategic Statement in the
planning scheme
9.2 Establish the criteria for assessing proposals for retail Adopt the retail development
development, including new centres and out-of-centre retailing criteria
9.3 Ensure that the retail strategy and other relevant documents Reference the retail strategy in
are referenced in the Southern Grampians Planning Scheme the planning scheme
6
1. Introduction
1.1 The Project 1.2 This Report An appendix provides the
strategy as it applies to
The Southern Grampians Shire This report is a draft retail individual centres.
Council has commissioned strategy in two parts:
Geografia to prepare an updated The strategy will be finalised
Economic Development Strategy • The Background provides a following input from Council.
for the Shire to guide Council’s summary of the existing retail
efforts to attract investment situation in the Southern
and to encourage sustainable Grampians Shire, the retail
development. As part of this policy framework and retail
project, Council requires a retail development scenarios for the
strategy that provides guidance Shire.
for retail development. This
retail strategy is being prepared • The Strategy is based around
by Tim Nott in conjunction with the principles of supporting
Geografia. activity centres, supporting
traders and their organisations
and providing a clear retail
development framework.
Southern Grampians Retail Strategy 7
8
2. Trends in Retail Development
2.1 The Australian Retail Industry
In 2006, retailing was the largest industry in Australia,
employing over one million people or 11% of the total
work-force (ABS, Census of Population and Housing). In
that year, the industry comprised around 217,000 firms
which added $53 billion in value to the economy and had a
turnover of $199 billion (ABS, Australian Year Book 2008).
Retailing is shaped by the interplay between consumer
demands, the competing strategies of retailers and
development policies of government. These factors are
explored in the following sections.
2.2 Consumer Preferences over many years. The hierarchy • Convenience
of centres allows the provision
Increased participation in the
• Keen prices of the most often required
paid workforce and longer
Keen prices are a major, if goods and services in the most
working hours in many
not dominant concern of most numerous centres, with goods
families has meant less time
shoppers. However, most and services that are required
for routine shopping. These
also value their time and so less often in the larger and
families are drawn to shops
travel costs of the shopping less numerous centres.
and shopping centres that
trip are also taken into Internet sales are growing minimise time spent on routine
account in the overall price largely as a result of being able shopping trips. This benefits
analysis that is undertaken to access the lowest prices larger supermarkets, and
consciously or unconsciously from Australia and around the one-stop shopping centres.
by most shoppers. The world. For older people, convenience
demand for keen prices has can also mean having shops
created pressure on retailers within walking distance. And
to reduce costs (property for people in small towns,
development, logistics etc) and convenience means having a
has also generated demand local corner shop rather than
for an equitable and rational having to travel to a larger
dispersal of retail facilities centre. Convenience is also a
so that travel costs are factor in the growth of internet
minimised. This is what has sales, as people can shop
driven the development of a from home at a time of their
hierarchy of shopping centres choosing.
Southern Grampians Retail Strategy 92. Trends in Retail Development cont.
2.2 Consumer Preferences • Sustainable and healthy
CONT. products
Many individuals and families
• High level of choice
are increasingly concerned
We live in a diverse community about health issues. Better
in which market segments are information about the effects
increasingly fragmented to of products on individual,
reflect the choices of smaller social and environmental
groups of people. This benefits health is in demand. This
both larger stores that can information is being used by
carry a wide variety of stock some consumers to direct their
and stores that cater to the expenditure towards healthier
needs of growing market products, with a growth in low
niches. High levels of choice, in fat, low salt foods, organic
individual stores and in activity foods, and products which have
centres, allow shoppers to low carbon input (including
compare product features and locally grown food that has low
this drives innovation and the food miles).
development of new products
Farmers’ markets are one
to service smaller and smaller
consequence of the desire
market niches.
to support sustainable food
production in particular. These
allow direct contact between
producers and consumers
without the need for retail
intermediaries.
102. Trends in Retail Development cont.
• Increasing affluence The result has been a real In the Southern Grampians
growth in retail sales per head context, the demand for
Retail spending per person
of population averaging around entertainment and “something
has been increasing steadily in
1% per year since 1983, as different” generates
real terms as a result of real
detailed in the chart below. shopping trips by residents to
increases in average incomes
Warrnambool, Ballarat and
across the community. More • Shopping as entertainment Melbourne. However, the
and more products are being
Shopping for non-essentials activity centres of the Shire
commoditised; that is, things
is part of a day out for attract shoppers from the
that previous generations
many people and may be wider region who are also
made for themselves are now
combined with other leisure or seeking “something different”
sold as ready made goods
recreational activities such as and who appreciate the
(think of biscuits, jams and
dining, visits to the cinema or attractive small town centres
preserves, knitted jumpers,
the art gallery, or a walk in the and the charm of Hamilton’s
barbecues, toys and cubby
countryside. This factor has Gray Street.
houses, for example). In
addition, the increasing supported the growth of tourist
technological sophistication centres and sustained the
of our society has generated demand for multi-functional
a host of new products that activity centres that have
are seen as necessary for a range of entertainment
modern life (mobile phones, options.
computers, video games etc).
Figure 1: Real growth in sales per head of population, Victorian retailers, 1983 to 2010 ($2010)
Source: ABS, 2011; ABS 2011a; Tim Nott
Southern Grampians Retail Strategy 112. Trends in Retail Development cont.
2.3 Retailer strategies development of franchises has seen the growth of shops
and buying groups has been selling new products such as
• Concentration used to create economies computer games, or micro-
Strategies to compete on price of scale in purchasing and specialisation such as shops
have driven the formation marketing whilst still allowing selling just tea or juice.
of larger and larger entities individual operators to manage Specialisation can also involve
with huge buying power. The their own business. These new juxtapositions of old
larger retailers are able to kinds of businesses operate products – coffee with books or
dictate terms to primary in most retail segments from music, women’s fashion with
producers and manufacturers supermarkets (such as IGA) hair-dressing etc.
on wholesale prices and to fast food (McDonalds) and
Many highly specialist shops
the precise specification of homewares (Harvey Norman
can remain independent of
goods. The supermarkets, and Mitre 10).
location – their customers will
for example, are backed by a These tendencies towards go to them no matter where
large, complex and efficient concentration have led many they are. However, there is
supply chain that enables chain stores to maximise a distinct advantage in being
them to deliver low prices on their throughput by locating centrally placed in relation
a very wide range of goods. in regional and sub-regional to the market, and that will
The major chains are able shopping centres where the usually mean a location in a
to obtain almost blanket flow of potential customers is larger shopping centre.
coverage of the market – not the largest. The implication
many people in Victoria are for the Southern Grampians • Cost reduction and big box
very far from a Woolworths retail strategy is that, in order development
or Coles supermarket (and to maximise sustainable retail The need to maximise sales
this contributes to the parent investment, Hamilton should has prompted most traders to
businesses of these chains develop as a sub-regional congregate in activity centres
taking 25% of Australian retail shopping centre (and this where the potential customers
turnover between them). includes attracting a full-line are. However, trends
Price competition forces discount department store towards concentration and
increased concentration and - see later sections of this specialisation have generated
scale in comparison goods as report). larger retail formats (big box
well as groceries. Clothing outlets) which sometimes have
• Specialisation
chains need more stores to difficulty finding space within
improve their buying power As new goods are released and traditional centres, particularly
and reduce unit costs. Book consumer tastes change, new given the desire for large areas
stores have become larger to specialty shops are constantly of convenient car-parking.
increase economies of scale, evolving. As a retail strategy, Many of these traders have
with the result that the major specialisation can be used preferred locations on the
chains were well on the way in market segments where edge of or outside traditional
to displacing the smaller consumers are knowledgeable activity centres where property
independent stores (at least or interested enough to development costs are
until the parent of several of respond, and where sufficient cheaper.
the larger book store chains economies of scale can be
Originally big box outlets were
got into financial difficulties). obtained to compete effectively
concentrated in the hardware
on price or service. In recent
In some cases, the and bulky goods sectors.
times, continued specialisation
122. Trends in Retail Development cont.
Whilst these sectors still Coles or Woolworths) and a • Producer to consumer
account for most of the big box full line discount department
Some producers have always
outlets, there is now a wider store (Target, Kmart or Big W)
sold directly to the public
variety of goods sold through are generally between 4,500
including bakers and craft
these outlets including clothes, and 8,000 sq m. Providing
workers. Latterly, factory
sporting goods, electronic affordable space to develop
outlets have become popular
entertainment media and so or adjust these core retail
as a means of off-loading
on. The big box outlets have activities within centres is a
surplus stock, discontinued
evolved from single locations key function of activity centre
lines and seconds. However,
to collections of traders in planning.
the power of the supermarkets
large home-maker centres.
• Increases in productivity and other major retail chains
These may be on the edge of
to dictate terms to producers
existing activity centres or Reduction in the labour has prompted more producers
in completely stand-alone intensity of big box outlets to establish direct connections
locations. compared with traditional with the consumer. This
Because of the expansion in smaller shops, and the process has been streamlined
the types of goods sold, the introduction of new technology and made cheaper by the
home-maker centres are such as scanners, eftpos, internet. Examples include
competing more directly with reordering at the point of farmers who market and sell
traditional activity centres than sale and so on has generated direct to the public via online
hitherto. The benefits to the higher than average ordering systems and an
consumer are wider choice improvements in labour extensive delivery network.
of goods and increased price productivity in retailing. In the In other examples, farmers
competition. However, there five years to 2009-10, average contract grow for groups of
are also disbenefits of this annual growth in labour consumers who are keen to
form of retail development productivity in retail was 2.8% reduce their environmental
including an increase in compared with an average footprint and to support
travel costs with the need to of 1.5% in a broad range of sustainable local agriculture.
visit multiple centres, and a other industries (Productivity These examples deliver more
decline in the agglomeration Commission, 2011). This of the product value to the
benefits of more multi- increase in productivity, producers. They reduce the
functional centres; that is, coupled with recent slow need for retailing but may
where many different activities growth in retail sales has provide net benefits to regional
are clustered together (as resulted in a slight decline in economies that get a large part
in a traditional town centre) the share of retail employment of their external income from
the customers of one activity in the general economy. “After primary production.
become customers of another, a decade of relative stability,
infrastructure used by one the retail industry’s share
activity can also be used by of total employment in the
others, and so on. economy has fallen from a
peak of 11.8 per cent in 2005
On the other hand, some big
to 10.8 per cent in 2010”
retail boxes form the core
(Productivity Commission,
function of most significant
2011).
activity centres. Branded
supermarkets are generally
from 2,500 to 5,000 sq m (for
Southern Grampians Retail Strategy 132. Trends in Retail Development cont.
• Impacts on strip shopping • The internet The internet provides a high
centres level of choice, although many
The Internet has been heralded people still prefer face-to-face
Many of the trends outlined here as a major breakthrough explanation of product features.
have benefitted large corporate in providing choice and Shoppers may use the internet
centres which are able to convenience for consumers. to undertake research but buy
accommodate the bigger stores New entrants to the market their products from a person
that have regional markets and (mainly US based such as who can explain the alternatives.
which can control the overall Amazon and eBay) have built Conversely, shoppers may also
retail mix and presentation very strong global sales and use the knowledgeable sales
to meet and shape customer many established retailers have person in a bricks and mortar
needs. The home-maker centres scrambled to get into the on-line shop to explain the products to
have also benefitted from the sales market. The Internet has them and then buy online where
drive for low cost locations. also allowed small specialist the price is lower.
Many strip shopping centres manufacturers and retailers to
have found it hard to compete reach a wider market. Currently, The growth of internet
and have suffered a decline many larger retailers have shopping is seen by many as a
in trade. Many small local both bricks and mortar shops fundamental challenge to the
centres without a significant and an online presence. The viability of retailing in Australia.
supermarket have closed online presence may be used Certainly, at the present time,
altogether. to provide potential customers when the Australian dollar is
with information only, although, relatively high and imports
Nevertheless, in recent times, increasingly, the online function are therefore relatively cheap,
some strip centres have may allow direct purchase. buying online from overseas is
experienced a resurgence, very price competitive.
particularly where new housing
has been encouraged in town
centres. The resurgent strips
have been able to contribute to
the lifestyle of urban residents
by providing food service ...debate continues to rage over
from breakfast until late and
encouraging niche retailers the role online shopping has in the
such as bookshops, quirky
homewares, organic food downfall of Australian retail, with
sellers and independent fashion
outlets. This phenomenon has head of the National Retailers’
certainly extended beyond the
metropolitan inner city to strips
Association Gary Black saying that
in provincial centres (such as
Pakington Street in Geelong) and
50,000 jobs are at risk over the next
to some smaller town centres few years due to online shopping.
which may also benefit from
visitor expenditure (including www.smartcompany.com.au, 29 April 2011
Kyneton and Torquay, for
example).
142. Trends in Retail Development cont.
The scale of online retail sales This does have profound 2.4 Retail Development
remains unknown. There are implications for shops. Retailers Policy
no reliable statistics about how selling goods with known
much is sold via the internet. properties (books, music, 2.4.1 Activity Centres
Recent estimates quoted by the films etc) are at a particular and Planning Policy
Productivity Commission appear disadvantage. Those retailers
to indicate that the internet that have a high level of service For the State Government,
accounts for around 6% of total are likely to survive best; that activity centres are “the focus
non-food sales and around 1% is, retailers who can create an of major urban change over
of food and grocery sales. These attractive experience for their the next 30 years” (see www.
shares appear to be slightly customers, who are able to dpcd.vic.gov.au/planning).
lower than sales in the UK and capture and use information Concentration of development
the USA, partly as a result of the about the preferences of their in and around activity centres
strong activity centre network customers, and who are able to creates efficiency in the
in Australia and higher levels close a deal. Of course, some provision of urban infrastructure,
of concern about the security retail outlets will be largely reducing the take-up of rural
and effectiveness of online unaffected by the internet land and generating improved
transactions. – hairdressers, cafes and viability for services such as
restaurants for example. public transport and a higher
It does appear that the internet level of privately provided
will account for a growing share It will become more important services including retailing and
of retail sales as: than ever that activity centres entertainment. Concentration
are attractive and multi- of activity also generates more
• transaction security is functional and that they multi-purpose trips, reducing
improved can cater to many different transport energy use and
constituencies. carbon emissions. This focus is
• internet connection speed expressed in the State Planning
and reliability are improved Policy Framework, as outlined
(especially through the on the next page.
National Broadband Network),
allowing more elaborate In particular the State
product displays and faster Government’s planning policy
ordering is clear that activity centres are
important focal points for the
• the proliferation of internet- community and for economic
capable phones and other development.
mobile devices on which more
and more people are becoming
reliant for their communication
needs and which are used as
sales devices by companies
such as Apple
Southern Grampians Retail Strategy 152. Trends in Retail Development cont.
2.4 Retail Development Policy cont.
Activity Centres in the State Planning Policy Framework
11. SETTLEMENT
Planning is to anticipate and respond to the needs of existing and future communities through
provision of zoned and serviced land for housing, employment, recreation and open space,
commercial and community facilities and infrastructure.
Planning is to recognise the need for, and as far as practicable contribute towards: Health and
safety. Diversity of choice. Adaptation in response to changing technology. Economic viability. A
high standard of urban design and amenity. Energy efficiency. Prevention of pollution to land, water
and air. Protection of environmentally sensitive areas and natural resources. Accessibility. Land
use and transport integration.
Planning is to prevent environmental problems created by siting incompatible land uses close
together. Planning is to facilitate sustainable development that takes full advantage of existing
settlement patterns, and investment in transport and communication, water and sewerage and
social facilities.
11.01 Activity Centres
11.01-1 Activity centre network
Objective
To build up activity centres as a focus for high-quality development, activity and living for the whole
community by developing a network of activity centres.
Strategies
• Develop a network of activity centres that:
• Comprises a range of centres that differ in size and function
• Is a focus for business, shopping, working, leisure and community facilities
• Provides different types of housing, including forms of higher density housing Is connected by
public transport and cycling networks
• Maximises choices in services, employment and social interaction
Support the role and function of the centre given its classification, the policies for housing
intensification, and development of the public transport network.
162. Trends in Retail Development cont.
2.4 Retail Development Policy cont.
Activity Centres in the State Planning Policy Framework CONT.
17. ECONOMIC DEVELOPMENT
Planning is to provide for a strong and innovative economy, where all sectors of the economy are
critical to economic prosperity.
Planning is to contribute to the economic well-being of communities and the State as a whole
by supporting and fostering economic growth and development by providing land, facilitating
decisions, and resolving land use conflicts, so that each district may build on its strengths and
achieve its economic potential.
17.01 Commercial
17.01-1 Business
Objective
To encourage development which meet the communities’ needs for retail, entertainment, office
and other commercial services and provides net community benefit in relation to accessibility,
efficient infrastructure use and the aggregation and sustainability of commercial facilities.
Strategies
• Locate commercial facilities in existing or planned activity centres.
• Provide new convenience shopping facilities to provide for the needs of the local population in
new residential areas and within, or immediately adjacent to, existing commercial centres.
• Provide outlets of trade-related goods or services directly serving or ancillary to industry and
which have adequate on-site car parking.
• Locate cinema based entertainment facilities within or on the periphery of existing or planned
activity centres. Such facilities should not require a permit for use within activity centres and are
not encouraged on freestanding sites.
• A five year time limit for commencement should be attached to the planning approval for all
shopping centres or expansions of over 1,000 square metres in floorspace.
Southern Grampians Retail Strategy 172. Trends in Retail Development cont.
2.4.2 Council Planning Policy
Council’s planning policy does not include a specific direction on retailing or activity centres. However, it
is very clear about the role of the Hamilton town centre which is to be supported as the major regional
retail and business area, as indicated below.
Hamilton Town Centre in the Local Planning Policy Framework
22.01 Settlement
22.01-1 Hamilton
This policy applies to all use and development of land for residential, business and retail purposes
in Hamilton.
Policy Basis
The Hamilton central business district is the major regional retail and business area. Substantial
community and private investment has been undertaken in the central business district. This
investment needs to be supported. Possible future proposals for freestanding retail development
isolated from the central business district could prejudice that private and community investment.
[....]
Objectives
• To support and promote the role of Hamilton as a leading regional centre.
• To support the primacy of the existing central business district.
• To provide a living environment with a high level of amenity with access to a full range of
infrastructure and services.
• To encourage and provide for investment and employment opportunities in Hamilton.
[....]
Implementation
It is policy that:
• Land use and development in Hamilton should be in accordance with the Hamilton strategic
framework plan forming part of this policy;
• New uses and development of land in the Business Zones are supported which are attractive,
well designed and in character with their locality.
• The development and redevelopment of retail premises other than local neighbourhood facilities
outside the Hamilton central business district are discouraged to reinforce and take advantage of
the level of community and private investment already made in the CBD.
[....]
182. Trends in Retail Development cont.
2.5 Outlook
“Households’ greater preference for saving, a high
Australian dollar, the deflation of prices in many sectors,
along with other demands for the consumer’s dollar,
appear to have adversely affected the Australian retail
sector. In addition, it is likely that the growth of orders
placed with offshore online retailers has had some
impact, although the extent of this is not yet clear.”
Productivity Commission, 2011
Given the factors outlined by Figure 2: Confidence index, small and medium retailers in Australia,
the Productivity Commission, 2007 to 2010
above, the general outlook for
shop-front retailing in Australia
in the short and medium term
is rather difficult. This gloomy
picture is reinforced by the
lack of confidence by retailers,
particularly amongst small
and medium sized businesses.
The chart below looks at the
confidence index prepared by the
Australian Retailers Association
over the period to June 2010.
Source: Australian retailers Association, various dates
Note: the Confidence index measures the difference between the percentage of survey
respondents who are confident about the next 12 months and those who are worried about the
next 12 months.
Southern Grampians Retail Strategy 192. Trends in Retail Development cont.
2.5 Outlook CONT. Retailers likely to do best From a public policy viewpoint,
include: Council must be concerned
This chart shows that, following with the health and success of
a rebound in confidence after the • those that can meet the the activity centre network as a
Global Financial Crisis in 2008- customer’s needs for whole, and its ability to deliver
09, the expectations of small convenience, low prices, high quality and sustainable
and medium-sized retailers have choice, sustainability and services to residents. Activity
slumped once again. contribution to their lifestyle centres are likely to be most
healthy where:
In fact though, there are also • those that are large enough to
some reasons to be cheerful exercise control over the cost • the catchment is growing and/
about retail prospects: of goods and create economies or where new residents are
of scale and scope moving in
• real retail spending per person
is likely to continue to rise with • those that can control the cost • they are the focus of
growth in incomes per person of goods by being vertically Government policy and
(and at least until now, this has integrated expenditure (including where
been the historical trend) Government chooses to
• those with a sales presence on safeguard the existing and
• population in Australia will the internet – either internet planned hierarchy of activity
continue to grow, generating only or as part of a physical centres)
stronger demand and virtual retail presence
• property prices are sufficiently
• innovation continues to • those providing services competitive to allow new
generate new products at an – cafes, restaurants and entrants
accelerating rate hairdressers etc
• land-owners are willing
• those that have a high level participants in the continual
of service embedded in their redevelopment of the centre
goods, including bespoke
clothes, bicycles and so on • there are sufficient
land-holders to prevent
• those that can provide monopolistic/oligopolistic
an attractive experience, behaviour
particularly where they are
clustered with like shops (and • the land-use planning regime
this clearly encompasses is flexible and consistent
urban design issues)
All these factors are more or
less relevant to retailing in the
Southern Grampians Shire,
as discussed in the following
sections.
203. Retailing in the Southern Grampians
This section of the report identifies the existing retail
activity in the Shire and provides estimates of retail
sales and the spending of residents and visitors. These
estimates are used as the basis for retail development
scenarios.
Southern Grampians Retail Strategy 213. Retailing in the Southern Grampians cont.
For the Food and groceries –
supermarkets, general
• Other goods –, chemists,
florists, jewellers, second
purposes of stores, liquor outlets,
specialty food outlets
hand goods etc
this report, (butchers, bakers, Food service – cafes,
restaurants and take-away
greengrocers etc)
retail activity food outlets
Non-food goods, comprising
comprises Retail services –
• Clothing – clothes, shoes, hairdressers, beauty
the following manchester parlours, video rental
categories: • Household goods – For the purposes of the
homeware, hardware, analysis presented here,
furniture, floor coverings, retailing excludes selling
curtains and blinds, of motor vehicles, auto
electronic goods etc accessories and fuel. It also
excludes outlets which are
• Recreational goods - mainly engaged in wholesale
sporting goods, toys, sales (that is, sales of goods
bookshops, newsagents to other businesses). This
includes some hardware
outlets.
3.1 Retail Activity • Total value added – 3.2 Activity Centres and
approximately $40 million the Retail Hierarchy
The following statistics tell the
broad picture of retailing in the • Total retail turnover – Retailers most often congregate
Southern Grampians in 2006 at approximately $200 million with other retailers and service
the time of the last Census of providers in activity centres.
Population and Housing. Retailing is the largest of the This concentration provides
service industries in the Shire advantages to consumers, who
• Number of retail businesses – and the mainstay of the Shire’s are able to access different
approximately 250 activity centres. It provides services in one trip; to retailers,
services to residents and visitors who are able to take advantage
• Number of people employed in and is a key part of the Shire’s of a larger customer base; and
retailing – 1,170 or 16% of the tourism industry. to the community as a whole,
people working in the Shire, which can enjoy infrastructure
making it the second largest cost savings.
employer after the agriculture
and forestry sector
223. Retailing in the Southern Grampians cont.
Most communities in Victoria regional level services and offer The following table sets out the
are served by a network of a more complete range of retail activity centre hierarchy used in
activity centres, with each goods; smaller, more numerous this report.
centre performing a different centres offer localised services
role and providing a different, and a smaller range of retail
albeit overlapping, set of goods goods usually providing day-to-
and services. This network is day groceries and convenience
usually described as a hierarchy: items.
larger, fewer centres deliver
Hierarchy of retail activity centres
Level in the Retail role Relevant example Typical Indicative
hierarchy catchment share
population of retail
spending
in its
catchment
Capital City Extensive comparison goods and Melbourne 1 million 5 to 10%
Central services; culture, entertainment; Central Activities plus
Activities dining. Includes department District
District stores and many specialty stores
Regional Extensive comparison goods Ballarat 100,000 30% to 40%
centre and entertainment. Includes plus
Geelong
department store, discount
department store, supermarkets
and many specialty stores. Also
applies to some large specialty
centres that cater to an extensive
catchment
Sub-regional Routine comparison goods as Warrnambool 30,000 plus 30% to 40%
centre well as food and groceries. CBD
Includes discount department
Warrnambool
store, supermarkets and specialty
Eastern Activity
stores. Also applies to some
Precinct
specialty centres that cater to a
significant catchment Mt Gambier
Horsham
Community Food and some comparison goods. Hamilton 10,000 to 30% to 40%
centre Includes supermarkets and 30,000
Portland
specialty stores
Ararat3. Retailing in the Southern Grampians cont.
3.2 Activity Centres and the Retail Hierarchy CONT.
Hierarchy of retail activity centres
Level in the Retail role Relevant example Typical Indicative
hierarchy catchment share
population of retail
spending
in its
catchment
Neighbour- Mainly food and groceries and Coleraine 1,500 - 20% to 35%
hood centre other convenience goods and 15,000
Dunkeld
services. Includes supermarket(s)
and specialty stores Balmoral
Penshurst
Local centre Convenience goods. Usually Cavendish Up to 1,500 2% to 5%
comprises a corner grocery store
Branxholme
and may include take-away food
and local services Tarrington
Glen Thompson
Not every area is served by each level of centre in this hierarchy. In Hamilton, for example, there is
no substantial neighbourhood centre. This means that the Hamilton CBD plays a larger than average
role in retail provision for its catchment. This includes some aspects of regional retailing – particularly
extensive specialty shopping - because of the distance to regional or sub-regional centres.
243. Retailing in the Southern Grampians cont.
The key activity centres in the Southern Grampians are shown in the map below.
Figure 3: Network of activity centres in the Southern Grampians Shire
Source: Base map from ABS and Google Maps
Southern Grampians Retail Strategy 253. Retailing in the Southern Grampians cont.
3.3 Description of Centres Other notable features of the flexible but consistent planning
centre include: regime. Nevertheless, future
3.3.1 Hamilton Town Centre development will rely on willing
• the large areas of vacant land land-holders.
Hamilton town centre provides a and car-parking in the centre
wide range of retail, professional of city blocks 3.3.2 Coleraine
and community services to the
town and the Shire of Southern • the magnificent Botanic Coleraine is a rural service
Grampians. It consists of a Gardens in the most south centre with some small
grid of streets in the heart west of the city blocks manufacturing, wholesale and
of Hamilton, bounded by tourism activities. The town
established residential areas, by • the railway station at the south centre sits astride the wide
the railway line and by arterial eastern edge of the CBD, which Glenelg Highway and provides
roads taking traffic through the acts as a coach stop but is neighbourhood convenience
town. not operating as a passenger goods and services as well as
station since the railway only sales to travellers. Key activities
Within the town centre, Grey carries freight in the town centre are the
Street is the principal shopping chocolate factory, the Eucalyptus
street and the section of Grey The town centre has Discovery Centre (soon to be
Street between Brown Street approximately 102,000 sq m of replaced by an expansion of
and Thompson Street might non-residential floorspace of the hospital), several large
be considered the heart of the which 40,000 sq m is retail and hotels, professional services,
centre. Grey Street is rather nearly 5,000 sq m (5% of the wholesalers and the retail
narrow compared with the total) is vacant. This is rather outlets. The retail offer includes
typical main street in other high vacancy rate but is largely a small IGA supermarket,
country towns. This provides due to two or three large vacant convenience stores and cafes.
for a more intimate experience, premises, including the former
and is reminiscent of a British or Mitre 10 building on Lonsdale Coleraine town centre has
other European town centre. Street. several heritage buildings but
many are vacant. The centre
Key retail magnets within Property in the town centre is has a total of around 15,800 sq
the centre include three mid rather tightly held by relatively m of activity space, of which
to full-sized supermarkets few property owners. In 2,900 is retail and 2,200 (14% of
(Woolworths, Coles and addition, the interpretation of the total) appears to be vacant.
IGA), ALDI, Target Country building heritage and design This very high vacancy rate gives
and Permewens Hardware. by Council has been rather the centre a rather run-down
Other attractors include the restrictive in the past. These feel. However, this appearance
performing arts centre and factors have led to some may be misleading since it is
library, several clubs and a difficulty in undertaking likely that some of the vacant
number of large hotels. redevelopment within the centre premises are being used for low
(that is, land has been expensive intensity storage or residential
and planning controls have been purposes.
inflexible). Council is presently
undertaking a structure plan
for the centre which will identify
potential development pathways
for the centre and create a
263. Retailing in the Southern Grampians cont.
3.3.3 Penshurst judged Victoria’s best Country and cafe. There is no pharmacist
restaurant by The Age Good Food or separate butcher or baker.
Penshurst, in the south of the Guide.
Shire, is a rural service centre. 3.3.6 Local and other centres
The town centre is located The retail offer in the centre is
around a crossroads on the geared mainly to visitors. There Local centres, often comprising
Hamilton Highway. The civic is a grocer but no branded a single shop such as a milk-bar
and commercial buildings have supermarket; there is a second- or general store, are present
a strong heritage character and hand bookshop but no pharmacy. in many smaller settlements
many have been refurbished There are no vacant commercial and in suburban locations
recently. Key activities in the buildings in the centre, around Hamilton. These stores
centre are the Penshurst hotel indicating a strong demand for provide an important function
and the Volcano Discovery commercial space. Total non- in providing “emergency” or
Centre as well as the civic residential floorspace in the last minute supplies for people
infrastructure and the retail and town centre is approximately in smaller towns and outlying
rural supplies outlets. Total 3,500 sq m, of which 1,100 sq m districts, as well as providing a
activity space in the centre is in retailing. community focal point. Centres
amounts to around 4,800 sq m, with a local retail function
of which 1,200 is in retailing Currently, the road from Dunkeld include Branxholme, Byaduc,
and 1,100 (or 23%) is apparently to Halls Gap through the Cavendish, Glen Thompson and
vacant. This is a very high Grampians is closed as a result Tarrington.
vacancy rate and includes of landslides at the beginning of
several recently refurbished 2011. This situation is expected Hamilton also has a large format
buildings. The centre has a milk to continue for some time, retail precinct on the Glenelg
bar and grocer but no branded with adverse consequences on Highway to the north west of
supermarket. Other retail tourism revenues for the town. town containing Mitre 10 and
outlets include a hardware store, Retravision as well as various
pharmacy, cafe and several 3.3.5 Balmoral automotive and trade supplies
second-hand goods shops. outlets.
Balmoral is a rural service
3.3.4 Dunkeld centre in the north of the
Shire. The town also acts as
Dunkeld is a rural service a service centre for visitors to
and tourist centre located the Rocklands Reservoir which
at the foot of Mt Sturgeon, recent rainfall inflows have
the southernmost tip of the taken from 10% to 50% capacity.
Grampians. The attractive town The small but historic town
centre sits astride the Glenelg centre, located on Glendenning
Highway and contains a mix of Street, has a mix of convenience
visitor services, rural supplies retailing, rural supplies and
and civic infrastructure. The civic infrastructure. Activity
key attraction is the Royal floorspace in the centre amounts
Mail Hotel which has been to around 2,600 sq m, of which
extensively refurbished to around 800 sq m is in retailing.
provide conference centre, The retail offer includes a
accommodation and a small unbranded supermarket,
restaurant which was recently clothes, toys, second hand goods
Southern Grampians Retail Strategy 273. Retailing in the Southern Grampians cont.
3.4 Retail Floorspace
The following table provides an
estimate of retail floorspace in
the activity centres throughout
the Shire.
centre sqm
Grampians
remainder
Penshurst
Coleraine
Balmoral
Southern
Hamilton
Hamilton
Dunkeld
Centres
Retail type
Local
Total
town
sq m sq m sq m sq m sq m sq m sq m sq m
Food and 11,830 350 880 450 80 200 660 14,450
groceries
Non-food 23,030 4,340 1,530 560 480 420 0 30,370
goods
Food service 3,670 110 370 160 550 170 370 5,400
Other retail 1,420 0 160 60 0 0 0 1,640
services
Total retail 39,950 4,800 2,940 1,230 1,120 790 1,030 51,850
Proportion of 77% 9% 6% 2% 2% 2% 2% 100%
total
Source: Hansen Partnership, 2010; consultant surveys, 2011
Notes: “Hamilton remainder” consists of several corner stores scattered around Hamilton as well as the large Mitre 10 and Retravision on
the Henty Highway at the north-west edge of town. An allowance has been made for a proportion of the floorspace of some hardware stores
to cater for wholesale rather than retail sales. “Local centres” comprise Branxholme, Byaduk, Cavendish, Glenthompson and Tarrington.
Total retail floorspace in the
Shire is approximately 52,000
sq m, of which 40,000 (77%) is
in the Hamilton town centre.
Coleraine has the largest retail
sector of the smaller towns.
283. Retailing in the Southern Grampians cont.
3.5 Retail Sales
Given the retail floorspace it is possible to make an estimate of total
retail sales in the Shire using estimates of sales per sq m for the
various retail types. A figure for average sales per sq m is estimated
from industry sources and adjusted for local conditions.
Estimate of annual retail sales, Southern Grampians Shire, 2010
Hamilton town centre Remainder of Shire
Retail Average Retail Retail Average Retail Total
Retail type
floorspace sales per sales floorspace sales per sales sales
sq m sq m
Food and 11,830 $7,900 $93.5 2,620 $5,500 $14.4 $107.9
groceries
Non-food 23,040 $3,700 $85.2 7,340 $2,200 $16.1 $101.4
goods
Food 3,670 $4,200 $15.4 1,730 $3,400 $5.9 $21.3
service
Retail 1,420 $2,900 $4.1 220 $2,300 $0.5 $4.6
services
Total retail 39,960 $5,000 $198.2 11,910 $3,100 $36.9 $235.2
Source: Hansen Partnership, 2010; Tim Nott
Note: Different sales per sq m have been applied to Hamilton and the remainder of the Shire. This allows for the lower sales per sq m typically
found in smaller centres and in independently owned stores.
The calculation here provides
estimated annual retail sales in
the Southern Grampians Shire
of $235 million in 2010. Of this,
$198 million or 84% is expended
in the Hamilton town centre.
Southern Grampians Retail Strategy 294. Retail Demand 4.1 Population The retail demand in an area is determined by the spending of residents and visitors. In most areas, the number of residents and their spending power is the key determinant of demand. 30
4. Retail Demand cont.
In 2010, the estimated resident population of the Southern Grampians Shire was 17,531 according to the
ABS (ABS, 2011). If this estimate is accurate, it marks a slight decline on the previous year and a change
in the recent trend for population growth in the Shire, as shown in the figure below.
Figure 4: Estimated resident population in the Southern Grampians Shire, 1996 to 2010
Source: ABS Regional Population Growth Australia
Note: Figure for 2010 is provisional
The following table provides the estimated
resident population for each of the three
Statistical Local Areas comprising the Shire
(and these are shown in the adjacent map).
SLAs in Southern Grampians
Southern Grampians Retail Strategy 314. Retail Demand cont.
4.1 Population CONT.
Table 4: Estimated resident population, SLAs in the Southern Grampians Shire, 1996 to 2010
S. Grampians S. Grampians S. Grampians Southern
(S) - Hamilton (S) - Wannon (S) Bal Grampians Shire
1996 9,461 2,670 5,417 17,548
1997 9,468 2,630 5,393 17,491
1998 9,442 2,600 5,359 17,401
1999 9,441 2,556 5,313 17,310
2000 9,366 2,482 5,245 17,093
2001 9,413 2,461 5,258 17,132
2002 9,397 2,437 5,253 17,087
2003 9,387 2,422 5,269 17,078
2004 9,415 2,402 5,274 17,091
2005 9,453 2,397 5,323 17,173
2006 9,436 2,396 5,377 17,209
2007 9,573 2,382 5,438 17,393
2008 9,634 2,372 5,489 17,495
2009 9,670 2,369 5,525 17,564
2010 9,645 2,346 5,540 17,531
Average annual
growth 1996 to 0.1% -0.9% 0.2% 0.0%
2010
Average annual
growth 2006 to 0.5% -0.5% 0.7% 0.5%
2010
These figures show a relatively and Balmoral) has declined by
slow growth in the Shire as a 0.5% per year, continuing longer
whole over the period since term decline in the area; and the
2006. The township of Hamilton balance of the Shire, including
has grown at the same rate the surrounds of Hamilton, and
as the Shire over the period; the towns of Penshurst, Dunkeld
however, Wannon (the west of and Cavendish, has grown at
the Shire including Coleraine 0.7% per year.
324. Retail Demand cont.
4.2 RETAIL SPENDING is based on the Market Info provide estimates of small area
micro-simulation model which spending patterns. Market Info
An estimate of current retail uses the ABS Household figures have been updated using
spending per person in the Expenditure Survey, Census recent estimates of State-wide
Southern Grampians is provided of Population and Housing retail sales provided by the ABS.
in the table below. The estimate and other data sources to
Table 5: Annual retail spending per person, Southern Grampians and Victoria, 20101
Retail type Southern Grampians Victoria Southern Grampians
$ $ compared with Victoria
%
Food and groceries $5,000 $5,200 96%
Non food goods $4,900 $5,500 89%
Food service $1,500 $1,800 83%
Retail services $300 $300 100%
Total retail spending $11,700 $12,800 91%
Source: MDS Market Data Systems, 2002 and 2006; Australian Retail Trade, 2011; Tim Nott
Table 6: Annual retail spending, Southern Grampians residents, 2010
Retail type Annual Retail spending Total spending by trade Share of total spending
per person area residents %
$ $m
Food and groceries $5,000 $87.7 43%
Non food goods $4,900 $85.9 42%
Food service $1,500 $26.3 13%
Retail services $300 $5.3 3%
Total retail spending $11,700 $205.1 100%
Source: MDS Market Data Systems, 2002; Australian Retail Trade, 2011; Tim Nott
Total retail spending by the This figure constitutes the total The following section looks at
residents of the Southern retail demand by residents. the balance of spending in the
Grampians Shire is estimated at However, not all of that spending Shire made by residents and
$205 million in 2010. is made in the Shire. visitors.
1
The figures in this table and subsequent tables have been adjusted compared with figures in the original background report to reflect new
information available to the author.
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