Wagga Wagga Retail Growth Strategy 2010 - 2025 by Wagga Wagga City Council

Wagga Wagga City Council

Wagga Wagga Retail Growth Strategy 2010 - 2025

Draft - June 2010

Prepared by AEC group

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

Table of Contents TABLE OF CONTENTS........................................................................................... I EXECUTIVE SUMMARY ......................................................................................... V 1.

INTRODUCTION .......................................................................................... 1

1.1

PROJECT BACKGROUND ....................................................................................... 1

1.2

PURPOSE OF THE STUDY ...................................................................................... 1

LOCAL AND REGIONAL PLANNING CONTEXT ............................................... 2

2.1

RETAIL AND COMMERCIAL DEVELOPMENT STRATEGY 2007 .............................................. 2

2.2

WAGGA WAGGA SPATIAL PLAN 2008 ...................................................................... 2

2.3

WAGGA WAGGA DRAFT LOCAL ENVIRONMENT PLAN 2010............................................... 2

2.4

WAGGA WAGGA DRAFT DEVELOPMENT CONTROL PLAN 2010 ........................................... 3

CONSULTATION PROCESS ........................................................................... 6

WAGGA WAGGA RETAIL SECTOR ................................................................. 8

4.1

CONTRIBUTION TO ECONOMY ................................................................................ 8 4.1.1 EMPLOYMENT ......................................................................................... 8 4.1.2 GRP .................................................................................................. 8

4.2

RETAIL HIERARCHY ............................................................................................ 9 4.2.1 TENANCY MIX ...................................................................................... 12 4.2.2 BUSINESS CHARACTERISTICS .................................................................... 12 4.2.3 RECENT BUSINESS PERFORMANCE ............................................................... 13

4.3

BUSINESS SATISFACTION & CONFIDENCE ................................................................ 13 4.3.1 RATING AS A PLACE TO DO BUSINESS ........................................................... 13 4.3.2 PROPOSED EXPANSION OF BUSINESS ........................................................... 13 4.3.3 ANTICIPATED BUSINESS PERFORMANCE......................................................... 14

TRADE AREA ANALYSIS ............................................................................. 15

5.1

TRADE AREA DEFINITION ................................................................................... 15

5.2

POPULATION .................................................................................................. 18

5.3

DEMOGRAPHIC CHARACTERISTICS ......................................................................... 19

5.4

PROJECTED POPULATION GROWTH......................................................................... 19

RETAIL MARKET ASSESSMENT .................................................................. 21

6.1

SUPPLY ASSESSMENT ....................................................................................... 21 6.1.1 TRADITIONAL RETAILING ......................................................................... 21 6.1.2 BULKY GOODS ..................................................................................... 21

6.2

COMPETING CENTRES ....................................................................................... 22

6.3

INDUSTRY TRENDS .......................................................................................... 23 6.3.1 SALES AND SPENDING ............................................................................ 23 6.3.2 BUSINESS AND RETAILING ....................................................................... 25 6.3.3 CONSUMERS AND SHOPPING ..................................................................... 25 6.3.4 PLANNING AND CENTRES ......................................................................... 25

6.4

SWOT ANALYSIS ........................................................................................... 26

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

6.5

DEMAND ASSESSMENT ...................................................................................... 27 6.5.1 HOUSEHOLD EXPENDITURE ....................................................................... 27 6.5.2 MARKET SHARE AND LEAKAGE ................................................................... 28 6.5.3 ROGUE EXPENDITURE ............................................................................. 28 6.5.4 RETAIL EXPENDITURE IN WAGGA WAGGA ...................................................... 29 6.5.5 FLOORSPACE DEMAND ............................................................................ 29

6.6

GROWTH POTENTIAL ........................................................................................ 30 6.6.1 GROWTH SIGNALS & DETERMINANTS ........................................................... 30 6.6.2 STRATEGIC POSITION & COMPETITIVENESS .................................................... 31 6.6.3 PROJECTED FLOORSPACE DEMAND .............................................................. 32

6.7

OPPORTUNITIES .............................................................................................. 32 6.7.1 MYER CARPARK .................................................................................... 33 6.7.2 FORUM 6 CINEMA/SAM’S WAREHOUSE & CARPARK ........................................... 33 6.7.3 PROFESSIONAL DEVELOPMENT ................................................................... 33

COMMERCIAL OFFICE ASSESSMENT .......................................................... 35

7.1

SUPPLY ASSESSMENT ....................................................................................... 35 7.1.1 TENANCY MIX ...................................................................................... 35

7.2

COMPETING CENTRES ....................................................................................... 36

7.3

INDUSTRY TRENDS .......................................................................................... 37 7.3.1 EMERGENCE OF BUSINESS PARKS ............................................................... 37 7.3.2 HOME-BASED OFFICE TRENDS................................................................... 37 7.3.3 GREEN OFFICE BUILDINGS ....................................................................... 37 7.3.4 WORKSPACE RATIOS .............................................................................. 37 7.3.5 INCREASING TECHNOLOGY ....................................................................... 38 7.3.6 LOCATIONAL CRITERIA FOR OFFICE TENANTS .................................................. 38

7.4

GROWTH POTENTIAL ........................................................................................ 38 7.4.1 GROWTH SIGNALS & DETERMINANTS ........................................................... 38 7.4.2 STRATEGIC POSITION & COMPETITIVENESS .................................................... 39 7.4.3 PROJECTED FLOORSPACE DEMAND .............................................................. 39

7.5

OPPORTUNITIES .............................................................................................. 39 7.5.1 MYER CARPARK .................................................................................... 40 7.5.2 FITZMAURICE PRECINCT WOOLWORTH CARPARK .............................................. 40

RETAIL STRATEGY ..................................................................................... 41

8.1

AIMS AND OBJECTIVES ...................................................................................... 41

8.2

CENTRES HIERARCHY ....................................................................................... 42

8.3

VISION........................................................................................................ 44

8.4

STRATEGY OVERVIEW ....................................................................................... 44 8.4.1 PLANNING .......................................................................................... 44 8.4.2 DEVELOPMENT AND INVESTMENT IN SPECIFIC RETAIL CENTRES ............................. 46 8.4.3 MARKETING STRATEGY TO FACILITATE INCREASED INVESTMENT ............................. 49 8.4.4 PLACEMAKING ...................................................................................... 51

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

ACTION PLAN ............................................................................................ 53

9.1

SHORT TERM ACTIONS ...................................................................................... 53

9.2

MEDIUM TERM ACTION...................................................................................... 56

9.3

LONG TERM ACTIONS ....................................................................................... 58

10.

PERFORMANCE MEASUREMENT AND MONITORING MECHANISMS............. 61

REFERENCES ..................................................................................................... 62 APPENDIX A: DEMOGRAPHICS .......................................................................... 63 APPENDIX B: DEFINITIONS .............................................................................. 65 APPENDIX C: ACTION PLAN .............................................................................. 67

Tables E.1: Existing Wagga Wagga Commercial Floorspace

vii

E.2: Existing Floorspace Demand in Wagga Wagga, 2010 ($M)

viii

E.3: Floorspace Demand

E.4: Office Floorspace Demand

2.1: Future Centres Strategy

2.2: Draft Wagga Wagga LEP 2008

2.3: Draft Wagga Wagga DCP 2010

4.1: Employment by Industry in Wagga Wagga, 2009

4.2: GRP by Industry in Wagga Wagga, 2008-09 ($M)

5.1: Census Population by Catchment (2009)

5.2: Projected Population by Catchment

6.1: Wagga Wagga Commercial Floorspace

6.2: Description of Competing Centres to Wagga Wagga

6.3: SWOT Analysis of Wagga Wagga Retail Sector

6.4: Household Expenditure, 2010 ($M)

6.5: Tourism Expenditure on Retail

6.6: Wagga Wagga Rogue Expenditure, 2010 ($M)

6.7: Retail Expenditure in Wagga Wagga, 2010 ($M)

6.8: Floorspace Demand in Wagga Wagga, 2010 ($M)

6.9: Population Projections

6.10: Floorspace Demand

7.1: Office Floorspace Demand

A.1: Catchment Demographics

B.1: Retail Type Definitions

B.2: Property Council of Australia Office Classification Definitions

Figures E.1

Existing Retail Hierarchy

4.1: Existing Retail Hierarchy

4.2: Retail Tenancy Mix

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Wagga Wagga Retail Growth Strategy 2010-2025 Draft

4.3: Length of Time Operating in Wagga Wagga

4.4: Change in Employment over Last two Years

4.5: Planning Expansion within next 2 Years

4.6: Change in Employment over Next two Years

5.1: Wagga Wagga Main Trade Area

5.2: Primary Trade Area Catchments

5.3: Primary Trade Area Catchments â&#x20AC;&#x201C; Zoom

5.4: Estimated Resident Population Trends, Wagga Wagga LGA

5.5: Wagga Wagga Urban Release Areas

6.1: Annual Growth in Seasonally Adjusted NSW Retail Sales - Non-Discretionary Retail Categories 24 6.2: Annual Growth in Seasonally Adjusted NSW Retail Sales - Discretionary Retail Categories 24 6.3: Breakdown of Household Retail Expenditure by Retail Category, MTA

6.4: Estimated Wagga Wagga Market Share of Household Retail Expenditure

6.5: CBD Retail Opportunities

7.1: Commercial Office Tenancy Mix

7.2: CBD Office Opportunities

8.1: Future Retail Hierarchy

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

Executive Summary PURPOSE OF THE STRATEGY The purpose of the Strategy is to provide Wagga Wagga City Council with a comprehensive analysis of its existing retail hierarchy and to provide recommendations to inform Council on future decisions on how to facilitate the growth of Wagga Wagga‟s retail sector in a sustainable manner and which provides the greatest economic, social and environmental benefit to Council, to the Wagga Wagga retail sector and to the greater Wagga Wagga community. The Strategy document provides a detailed qualitative and quantitative snapshot of the current retail hierarchy today, including an audit comprising most of the city‟s retail operators, and identifies and discusses the opportunities for, and issues facing, the continued growth of this key component of the regional economy.

EXISTING RETAIL HIERARCHY The Wagga Wagga retail sector comprises several centres including: 

Wagga Wagga CBD: The commercial and administrative centre for Wagga Wagga and the surrounding region. The CBD is bisected by the Wollundry Lagoon creating two distinct precincts: o

CBD South: The retail centre of Wagga Wagga anchored by the Sturt Mall and Market Place shopping centres with significant strip retail primarily located along Baylis Street including Myer, Target Country and Spotlight.

CBD North: The historical centre of Wagga Wagga located primarily along Fitzmaurice Street.



Kooringal: Neighbourhood shopping centre anchored by a supermarket with 24 smaller tenancies.



Lake Albert: Neighbourhood centre anchored by a supermarket and tavern with 12 smaller tenancies.



Tolland: Neighbourhood shopping centre anchored by a supermarket with seven smaller tenancies.



South City: Neighbourhood shopping centre anchored by two supermarkets and a 13 specialty stores.



Ashmont: Small neighbourhood centre anchored by a small supermarket and hotel with 10 smaller tenancies.



Turvey Park: Neighbourhood shopping centre anchored by a supermarket with 18 smaller tenancies.



Forest Hill: Neighbourhood centre anchored by a supermarket with six smaller tenancies.



Lake Albert Road: Small convenience centre with a grocery store and two smaller tenancies.

There also exists retail provision in some of the outlying rural villages of the Wagga Wagga LGA. The villages of Collingullie, Humula, Ladysmith, Mangoplah and Uranquinty all have a small general store. There are several bulky goods precincts in Wagga Wagga. Homebase is the only dedicated bulky goods centre in Wagga Wagga with major tenants including Harvey Norman, Fantastic Furniture, Office Works, Forty Winks and Captain Snooze. Other mixed use industrial and bulky goods precincts include: 

Hammond Street/Edward Street/Sturt Highway: Strip of light industrial and bulky goods including Good Guys, Petbarn, BCF, Autobarn and Carpet Choice.



Dobney Avenue/Pearson Street: Strip of light industrial and bulky goods including Bunnings Warehouse, Dahlsens, Mitre 10 and BBQ Galore.



South Wagga Business Centre – Morgan Street: There is a mixed use precinct located west of the CBD bounded by Morgan, Docker, Forsyth and Murray Streets. The South

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

Wagga Business Centre â&#x20AC;&#x201C; Morgan Street as it is sometimes known contains office, retail, bulky goods and light industrial premises. Figure E.1: Existing Retail Hierarchy

Source: Wagga Wagga City Council (2010), AECgroup

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

RETAIL MARKET ASSESSMENT Existing Supply There is an estimated 204,000sqm of retail and office floorspace in Wagga Wagga with approximately 11,700sqm vacant (excluding bulky goods) equating to 5.7%. Comprising approximately 83% of the total retail floorspace of Wagga Wagga, the main activity centres of the CBD including Baylis Street (between Morgan and Thompson streets, Fitzmaurice and the major shopping centres record a relatively low vacancy rate of 7% of tenancies. On average, the neighbourhood centres record a higher vacancy rate of 11.8%, though it should be noted that in many cases, the vacancies within the suburban centres have been actioned by the centre managers so as to allow for planned redevelopment or expansions. There is an estimated 57,620sqm of bulky goods floorspace in Wagga Wagga with the bulky goods operators generally located out-of-centre and concentrated on, or are easily accessible by, the Sturt Highway. There is one dedicated bulky goods centre, Homebase (on Hammond Avenue) with the remaining bulky goods operators located along Hammond Avenue or within the largely industrial zone that is located in the western part of Wagga Wagga and which is bisected by Dobney Avenue and Pearson Street. Table E.1: Existing Wagga Wagga Commercial Floorspace Businesses Centre

Floorspace (sqm)

Businesses

Vacancies

Vacant %

Floorspace

Vacant

Vacant %

Marketplace

CIC

22,185

CIC

Sturt Mall

CIC

15,522

CIC

Street

311

7.4%

84,825

4,835

5.7%

Subtotal

423

6.2%

122,532

5,024

4.1%

CBD North

149

9.1%

48,955

4,410

9.0%

Total CBD

572

7.0%

171,487

9,434

5.5%

South City

CIC

6,215

CIC

Kooringal

CIC

5,072

CIC

Turvey Park

CIC

3,762

CIC

Lake Village

Regional Centre CBD South

Neighbourhood Centres

CIC

3,264

CIC

Tolland

CIC

2,841

CIC

Forest Hill

CIC

1,633

CIC

Ashmont

CIC

1,285

CIC

Lake Albert Road

CIC

590

CIC

Total Neighbourhood Centres

11.8%

24,662

1,590

6.4%

South Wagga Business Centre â&#x20AC;&#x201C; Morgan Street

4.5%

7,861

700

8.9%

Total Wagga Wagga Retail and Office

683

7.6%

204,010

11,724

5.7%

Homebase

CIC

21,984

CIC

Street

CIC

35,635

CIC

Total Wagga Wagga Bulky Goods

5.7%

57,619

11,378

19.7%

Bulky Goods

Note: Vacancy data for individual centres has not been published for confidentiality reasons. Source: Centre managers, AECgroup

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Wagga Wagga Retail Growth Strategy 2010-2025 Draft

Existing Floorspace Demand Based on an analysis of the existing expenditure of the population of Wagga Wagga‟s primary and secondary catchments, there is a demand for an estimated 143,600sqm of retail floorspace in Wagga Wagga compared with 141,140sqm of occupied retail floorspace. The 2,450sqm shortfall indicates that there is demand for additional retail floorspace including groceries and specialty food. The retail modelling indicates a significant shortfall in food & liquor catering though this is exaggerated by the fact that demand includes all expenditure on eating out while supply does does not include the significant number of pubs and clubs in Wagga Wagga which account for significant expenditure on meals. Based on household expenditure, there is an oversupply of bulky goods in the order 17,620sqm. This does not include business to business expenditure and when it does it is estimated that there is no significant oversupply in the market. Table E.2: Existing Floorspace Demand in Wagga Wagga, 2010 ($M) Retail Category

Turnover/ sqm

Demand (sqm)

Supply (sqm)(a)

Shortfall

Groceries & Specialty Food

$8,000

36,130

33,858

2,272

Food & Liquor Catering

$6,000

28,043

16,285

11,758

Clothing & Accessories

$5,000

23,407

26,337

-2,931

Furniture, Houseware & Appliances

$4,500

18,333

20,549

-2,217

Recreation & Entertainment Equipment

$4,500

18,604

19,587

-983

Garden & Hardware Goods

$4,000

1,228

3,918

-2,689

Other Goods & Personal Services

$5,500

17,846

20,603

-2,758

143,590

141,138

2,452

28,618

46,241

-17,623

Total Bulky Goods

$4,000

Note: (a) Occupied retail floorspace. (b) Food and liquor catering includes meals at hotels and pubs though pubs have not been included in retail floorspace. Source: AECgroup

The following catchments record an undersupply of convenience retail indicating the need for an expansion of existing centres or the development of new centres:    

North: Shortage of 1,900 (currently no supply) representing the need for a neighbourhood centre with a small supermarket and 4-5 specialty stores; Kooringal: Shortage of 1,700sqm representing the need for an expanded supermarket; South West: Shortage of 1,300sqm representing the need for an expanded supermarket or some additional specialty food stores; and Turvey Park: Shortage of 350sqm representing the need for an expanded supermarket or some additional specialty food stores.

Based on the significant size of the South West catchment and its location about 4km from the CBD, the catchment could support more discretionary retail categories such as clothing, accessories, homewares, entertainment, recreation and appliances. There is currently no supply of these retail categories though the catchment could support up to 3,100sqm. Future Floorspace Demand Based on an analysis of the future expenditure of the population of Wagga Wagga‟s primary and secondary catchments, there will be a demand for an additional 31,320sqm of retail floorspace in Wagga Wagga over the next 15 years. This includes demand for 8,735sqm of groceries & specialty food floorspace indicating the need for 3-4 new supermarkets. Demand for food & liquor catering floorspace is approximately 6,580sqm over the next 15 years equating to a large range of new restaurants and hospitality operations. Demand for clothing & accessories, furniture, houseware & appliances and recreation & entertainment equipment indicates sufficient demand for another discount department store and a range of large retailers.

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Wagga Wagga Retail Growth Strategy 2010-2025 Draft

Table E.3: Floorspace Demand Supply Trade Area

Demand

2010

2015

2020

2025

Change

Groceries & Specialty Food

33,858

36,130

38,677

41,646

44,865

8,735

Food & Liquor Catering

16,285

28,043

29,946

32,144

34,521

6,478

Clothing & Accessories

26,337

23,407

24,837

26,486

28,266

4,859

Furniture, Houseware & Appliances

20,549

18,333

19,363

20,552

21,836

3,504

Recreation & Entertainment Equipment

19,587

18,604

19,688

20,935

22,280

3,676

3,918

1,228

1,299

1,381

1,469

241

Garden & Hardware Goods Other Goods & Personal Services Total Bulky Goods

20,603

17,846

18,967

20,268

21,675

3,830

141,138

143,590

152,778

163,413

174,913

31,323

46,241

28,618

30,257

32,147

34,187

5,570

Source: AECgroup

The majority of future floorspace demand is going to be driven by the urban release areas in the South West and North Catchments. Based on existing supply and additional demand from new residents over the next 15 years, there is projected to be capacity for an additional 5,900sqm of convenience retail in the North Catchment and 4,900sqm within the South West Catchment. Population growth in the South West will drive demand for up to 5,150sqm of more discretionary retail categories such as clothing, accessories, homewares, entertainment, recreation and appliance which could be serviced by a discount department store. Based on the existing supply of 2,200sqm of convenience retail in the Kooringal catchment area, there will be a shortage of 4,000sqm of convenience retail by 2025. It should be noted that an expansion of the Kooringal Shopping Centre has been approved as well as a local shopping centre of approximately 1,500sqm in the suburb of Tatton. At the time of writing, there has not been any confirmation as to when this local centre will be developed.

COMMERCIAL OFFICE SECTOR TRENDS AND CHARACTERISTICS Existing Supply There is an estimated 93,946sqm of commercial office floorspace in Wagga Wagga with 10,825 of vacant floorspace equating to 11.5%. There is no purpose built office space outside the CBD with real estate agents, medical and personal services primarily using retail space within neighbourhood centres. There is overlap between office and retail floorspace as numerous service businesses (such as real estate agents, accountants and lawyers) occupy traditional ground floor retail space. For this assessment, office space has been defined as dedicated office buildings, converted residential buildings used for offices, retail space occupied by service businesses and floorspace above street level. Projected Floorspace Demand Based on an analysis of the per capita commercial floorspace requirements of Wagga Wagga, there will be a demand for an estimated 5,000sqm of additional floorspace over the next 15 years (see Table E.4). There is not a significant forecast need for additional commercial office space within Wagga Wagga. However, it is likely that there exists in Wagga Wagga a latent demand for higher quality office space than that which is currently available. Were there to be an increased provision of higher quality office space, whether through the refurbishment of existing buildings or through the redevelopment of a brownfield site, this could create a flow of existing commercial office tenants into the higher grade offering as well as the attraction of regional government office who might otherwise be dissuaded from locating in Wagga Wagga due to the lack of suitable commercial office accommodation. This could in turn free up lower grade commercial office buildings for redevelopment into other land uses including use as retail premises or centrally located multi-deck carparks.

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

Table E.4: Office Floorspace Demand Projected population (MTA) Average sqm per capita

2010

2015

2020

2025

112,643

115,772

119,589

123,671

0.8

Floorspace demand

90,115

92,618

95,671

98,937

Existing

93,947

1,724

4,991

Additional Required Source: AECgroup

RETAIL STRATEGY The Strategy for guiding the future growth of the Wagga Wagga retail sector is to be based on planning, investment and placemaking. Careful and efficient planning will ensure that the correct type and quantum of retail provision are developed where and when they are needed and ensure that future retail and commercial development does not impinge on or change the character of the Wagga Wagga CBD, including its streetscapes. Future investment in the retail sector and new local retailers will need to come from both outside retailers looking to penetrate the Wagga Wagga market and from the owners of the existing premises through reinvestment in the existing retail centre premises. Reinvestment by the owners of retail premises will improve the quality of existing retail floorspace and increase the potential of the Wagga retail sector to attract outside investment and thus further diversify and improve the retail provision on offer. Placemaking activities will facilitate a greater integration of the retail aspects of the Wagga Wagga CBD and the suburban centres with the greater Wagga Wagga community by making them more attractive and pedestrian friendly and through the increasing of their functionality through the introduction of non-retail activities and facilities. Planning No changes are recommended to the existing planning regime. Both the draft Wagga Wagga City Council Development Control Plans (dWWDCP 2010) and the draft Local Environmental Plan 2010 are, at time of writing, on the cusp of being gazetted by the New South Wales Department of Planning and are unlikely to be changed over the medium term. It is recommended, however, that special consideration be given to the site-specific attributes and net economic, social and environmental benefits of future development applications for retail and commercial development within the CBD that fall outside of the Councilâ&#x20AC;&#x;s planning controls. Much of the difficulty with being able to supply the necessary provision of retail floorspace to meet the demand within the CBD lies outside of the realm of planning, but rather with the quantum of available property for redevelopment within the existing CBD and the difficulty with amalgamating several sites to allow for redevelopment of a significant size. Without an efficient use of available and appropriately zoned parcels of land to accommodate higher densities of retail and commercial properties, it is logical to assume the provision of these lands uses would need to be developed outside of the CBD in and around existing and future suburban centres, which in turn could lead to a destabilisation of the retail hierarchy. Accordingly, it is in the best interest of Council to ensure that these future land uses are kept within the CBD, an in order to achieve this, the most efficient and effective use of available lands will be necessary. In this context, it will be crucial moving forward to determine the most appropriate way to balance the need for higher density land use within the CBD while maintaining its traditional character and streetscapes. Geographic Definition of the CBD It is recommended that Council develop a strategy for facilitating the sustainable development of the CBD to allow for the necessary provision of commercial and retail space to meet future demand while ensuring that the uses of these lands is efficient and does not infringe or change the inherent character of the CBD and its streetscapes.

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

Building Heights Under the dWWDCP 2010, new developments cannot exceed a height of four storeys (five if they are located on the corners). This planning control should be maintained for all buildings located along Baylis Street and Fitzmaurice Street so as to protect the character of the streetscape. It is recommended that, in accordance with the dWWDCP 2010, consideration be given to the relaxation of the height limits for new developments of merit located off the main streets where the impact on visual amenity will not be as significantly felt. Parking The parking provision set out in the dWWDCP 2010 requires all future retail development to provide one carpark per every 23sqm of retail space. Coupled with the planning controls on height restriction, the parking requirements have the potential to make some forms of retail and commercial development unviable. A scenario to address the carparking issues would be for Council to develop and operate a single large multi-deck carpark set in a central location within the CBD (or several smaller multi-deck carparks dispersed in strategic locations throughout the CBD) that would be funded from development contributions or by the levy of differential rate to CBD retailers. The carpark would service the entire CBD and potentially free up the parking requirements for future developments sites where the viability of development may be adversely affected by the required parking provision. An alternative scenario is for Council to undertake a merit-based assessment of potential developments on a case-by-case basis and consider relaxing the parking provision for specific developments so as to ensure their viability and to ensure that they provide the necessary quantum and types of retail floorspace necessary to meet retail need. Development and Investment in Specific Retail Centres Wagga Wagga CBD It is recommended that Council and the retail community work together to develop and implement a comprehensive plan for undertaking placemaking activities to enhance and invigorate the retail experience for the Wagga Wagga CBD. An improved sense of place can contribute not only to higher levels of retail expenditure within a set area, but also instil a sense of pride and community ownership. It is recommended that Council develop an initiative to encourage landlord reinvestment so as to provide a superior retail shopping experience, and improve trading positions, the visual aesthetic of retailing and competitiveness of retailers in the Wagga Wagga CBD precinct. Coupled with placemaking activities to improve the general attractiveness of the CBD precinct and its retail centres, reinvestment in existing retail premises by owners will improve the quality of floorspace of the main street retailer and make the CBD precinct as a whole a more attractive proposition for future investment by national retailers that are currently not positioned within the Wagga Wagga market. Fitzmaurice Precinct The many traits of the Fitzmaurice Precinct that make it the cultural heart of Wagga Wagga and comprise its points of difference should be promoted and leveraged to allow for it to reach its full potential as an alternative retailing and entertainment centre. The Fitzmaurice Precinct is not characterised by convenience shopping; rather consumers are attracted to the retailers of the Fitzmaurice Precinct because they offer a different kind of shopping experience and products that cannot be found in other parts of the city. It is this key point of difference â&#x20AC;&#x201C; that the Fitzmaurice Precinct and its retailers offer a unique experience â&#x20AC;&#x201C; that needs to be promoted. Placemaking activities to enhance the character of the Fitzmaurice Precinct as the cultural heart of Wagga Wagga include continuing to improve the streetscape of Fitzmaurice Street, the introduction of regularly scheduled markets and a better connection with the Murrumbidgee River, including the Riverside Precinct.

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

South City Shopping Centre South City will need to expand its size to accommodate an increase in retail provision to meet the demand from the sizeable increase in population within its catchment area. To meet this increase in demand, an expansion of South City to accommodate a full line supermarket and the addition of several specialty shops is already planned. It is recommended that a discussion be opened between Council and the owners of South City about the alternative utilisation of some of the lands in and around South City. The introduction of public or civic uses (library, park, playground, plaza, etc.) could provide benefit to the owners and retailers of South City, the Council and to the community that utilises and lives around South City. Kooringal Shopping Centre There is currently a substantial shortfall (approximately 3,400sqm) in convenience retail provision within the Kooringal Shopping Centre‟s catchment area and accordingly the shopping centre will need to expand. Kooringal Shopping Centre has addressed this significant existing shortfall in grocery and speciality food retailing with a planned an expansion to accommodate a full line supermarket, though even with this expansion, the catchment will still be undersupplied in convenience retail provision, and it is likely that this catchment area will continue to have an undersupply of this type of retail provision over at least the medium to long term. This will not necessarily be detrimental to the centre; rather it is likely that it convenience retail provision will trade at higher levels than the local and national benchmarks. There are also opportunities for placemaking activities within the Kooringal Shopping Centre to build on its existing central plaza, tenancy mix and loyal customer base. Establishment of a Local Shopping Centre in Tatton The development of a local shopping centre of approximately 1,500sqm has been approved for the suburb of Tatton, which is located within the Kooringal Shopping Centre‟s catchment area. Should this shopping centre be developed, it would absorb the majority of excess demand for convenience retailing within the Kooringal Shopping Centre‟s catchment area. As such, it is recommended that the centre be supported as a local centre in the retail hierarchy. Establishment of a Suburban Shopping Centre in Estella AECgroup recommends that investigation into the establishment of a neighbourhood shopping centre in Estella at the junction of the Olympic Highway and Boorooma Street begins within the next three years and that an objective be set to have the centre operational by 2016. It should be noted that a quantum of land at this location able to accommodate a local centre of up to 4,000sqm has already been zoned by Council for future retail use. Marketing Strategy A marketing strategy for attracting further investment in Wagga Wagga‟s retail sector should be developed and implemented alongside the implementation of Wagga Wagga‟s Retail Strategy. The aim of the marketing strategy for Wagga Wagga‟s retail sector is to position Wagga Wagga as the preferred destination for future retail investment in the Riverina Region of New South Wales, and in particular, minimise the impacts of potential developments by competitors. Wagga Wagga‟s attractiveness as an investment destination is evidenced by the recent approval of further retail development at the Mill site and the significant developer and retailer interest in further development within its CBD precincts. Action Plan An Action Plan has been developed comprising short, medium and long term objectives for the development of Wagga Wagga‟s retail sector and the actions that can be taken to realise these objectives. While the Strategy seeks to facilitate the sustainable development of the required future provision of retail floorspace, the Action Plan puts

xii

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

forth ideas and objectives to enhance the existing retail centres through Wagga Wagga and to improve the retail experience for both the consumer as well as the retailer. Short Term Objectives 

Placemaking Strategy for Wagga Wagga



Placemaking Opportunities for Baylis Street CBD Precinct



Placemaking Opportunities for Fitzmaurice Precinct



Placemaking Opportunities for Ashmont Shopping Centre



Placemaking Opportunities for Tolland Shopping Centre



Placemaking Opportunities for Kooringal Shopping Centre



Placemaking Opportunities for Lake Village Shopping Centre



Developing a Platform for Communication Between Council and Wagga Wagga Retailing Community



Enhance Sunday Trading and Establish Regularly Scheduled Markets

Medium Term Objectives 

Encourage Landlord Reinvestment in Their Retail Premises



Enhance Signage, Street Lighting and Precinct Definition



Encourage Investment Attraction into the Wagga Wagga Retail Sector



Develop a New Local Shopping Centre in Estella

Long Term Objectives 

Manage the Future Growth of Bulky Goods within Wagga Wagga

PERFORMANCE MEASUREMENT AND MONITORING MECHANISMS The Retail Growth Strategy should be reviewed every 5 years to ensure currency and to report back against the objectives of the Action Plan. A review also provides the opportunity to identify the impacts of any new retail and office development in Wagga Wagga. Regular monitoring of the performance of the strategy is also recommended to allow Council to assess what strategies are working and those that need to be amended. The following indicators of the performance of the retail sector have been identified and should be monitored. 

Undertaking of a household shopper survey every two years;



Undertaking of a floorspace audit every two years;



Undertaking of the business survey every two years to gauge changing trends and expectations of businesses and to help identify opportunities to strengthen the economy; and



Undertake research and consultation with real estate agents and representatives to provide data on rental rates and trading performance.

industry

xiii

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

Introduction

1.1

Project Background The City of Wagga Wagga is is a major commercial and administration centre for the Riverina Region and provides a wide range of services and infrastructure to the region. Wagga Wagga has a significant retail sector, representing a significant component of the economy, with a clear hierarchy of retail centres including the Wagga Wagga CBD, a number of suburban centres and bulky goods retailing. Wagga Wagga is projected to record significant population growth in the future which is driving growth in the retail sector. Wagga Wagga City Council has engaged AECgroup to undertake the development of a Retail Growth Strategy with the primary objective being to develop a Strategy to guide and support the development and sustainability of Wagga Wagga‟s retail sector over the next 15 years. The Strategy will assess the existing retail hierarchy and mix in Wagga Wagga and identify strategies to strengthen the retail sector and reduce retail leakage. The Strategy will guide retail planning and development in the City based on the identification of short, medium and long term milestones. The Strategy aims to:

1.2



Identify the existing and future retail character and retail mix;



Quantify the area and type of new retail floor space for future development in Wagga Wagga;



Focus on building retail character and sense of place at a precinct scale;



Build capacity in the City‟s retail sector;



Analyse retail development potential for the City to 2025;



Identify the appropriate location and format of future retail development;



Adhere with the objectives and scope of the existing and future planning mechanisms, including the DCP and LEP;



Identify the retail hierarchy and provide a clear policy framework for the planning and development of the retail hierarchy to meet the retail needs of Wagga Wagga‟s residents and visitors;



Promote the development of Wagga Wagga as the prime retail and commercial centre for the wider region; and



Consider Council, retailer and community viewpoints and concerns associated with retail planning and development.

Purpose of the Study The purpose of the Strategy is to provide Wagga Wagga City Council with a comprehensive assessment of its existing retail hierarchy and to provide recommendations to inform Council on actions to facilitate the growth of Wagga Wagga‟s retail sector in a sustainable manner and which provides the greatest economic, social and environmental benefit Wagga Wagga. A key aim of the Strategy is to guide the future development of the retail sector and assist Council in facilitating investment in the retail sector from major retail chains and independent retailers. The Strategy aims to provide a detailed qualitative and quantitative analysis of the current retail hierarchy, including an audit comprising most of the city‟s retail operators, and identifies and discusses the opportunities for, and issues facing, the continued growth of this key component of the regional economy. A number of recommendations have been put forth regarding the future retail centres hierarchy, the need for the potential expansion of existing centres and the establishment of new centres and an evaluation of key aspects of planning and their potential role in facilitating the future growth of Wagga Wagga‟s retail sector. 1

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

Local and Regional Planning Context

2.1

Retail and Commercial Development Strategy 2007 Leyshon Consulting prepared a Retail and Commercial Development Strategy for Wagga Wagga in 2007. The report assessed the need for retail and commercial development within Wagga Wagga between 2006–21 and informed the preparation of the Wagga Wagga Local Environment Plan (LEP) 2010. Key findings included: 

2.2

Three new centres in Wagga Wagga will be required between 2006-21 including: o

A neighbourhood scale centre in the Lloyd/Bourkelands area anchored by a 2,500sqm supermarket with up to 1,000sqm of specialty retailing;

A supermarket anchored retail centre in the Boorooma/Estella area, in the order of 2,800sqm, to be developed between 2016-21; and

A supermarket anchored retail centre at Forest Hill with about 3,000sqm. This centre was subsequently developed in 2008.



The need for additional bulky goods to be provided either through „strip style‟ bulky goods along the Sturt Highway or an additional dedicated bulky goods centre.



Commercial floorspace to be promoted solely within the CBD and CBD North areas.

Wagga Wagga Spatial Plan 2008 The Wagga Wagga Spatial Plan 2007 maps out key directions for the future of Wagga Wagga and its surrounding villages and rural areas. It contains guiding principles and a structure plan that form the foundation for strategic planning of the local government area. The Wagga Wagga Spatial Plan is the background document to the draft Wagga Wagga LEP 2010. The retail and commercial components of the Spatial Plan were informed by the Retail and Commercial Development Strategy. Key findings relating to the future of retail and commercial are included in the table below. Table 2.1: Future Centres Strategy Zone

Demand sqm

Comment

Wagga Wagga CBD/CBD North

5,000-10,000

Continue promotion as predominant retail centre. Modest expansion appropriate. Increasing floor space ratio for key parcels currently used for car parking, to encourage their redevelopment may be appropriate.

Neighbourhood centres

Modest

Predicted for Tolland, Kooringal, Lake Albert, Ashmont and Turvey Park.

South City

Limited

Competition with other centres is predicted to limit growth.

Proposed centres

Around 9,000

Three new centres required within 2006-21. Around 3,500 sqm in Lloyd/Bourkelands, around 2,800 sqm in Boorooma/Estella and around 3,000 sqm in Forest Hill.

Source: Wagga Wagga (2008)

2.3

Wagga Wagga Draft Local Environment Plan 2010 On 17 February 2010 the Wagga Wagga City Council Planning Panel gave the approval to forward the Final Report on the draft Wagga Wagga LEP 2010 to the Minister for Planning, recommending it be approved and implemented. In relation to the retail sector, the Draft LEP aims to reinforce the primacy of the Wagga Wagga Central Business District (CBD) and protect existing local centres by limiting expansion of zones encouraging infill and redevelopment. Zones relevant to the retail sector include:

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

Table 2.2: Draft Wagga Wagga LEP 2008 Zone

Objective

B1 Neighbourhood Centre

 To provide a range of small-scale retail, business and community uses that serve the needs of people who live or work in the surrounding neighbourhood.  To provide a range of retail, business, entertainment and community uses that serve the needs of people who live in, work in and visit the local area.  To encourage employment opportunities in accessible locations.  To maximise public transport patronage and encourage walking and cycling.

B2 Local Centre

B3 Commercial Core

 To provide a wide range of retail, business, office, entertainment, community and other suitable land uses that serve the needs of the local and wider community.  To encourage appropriate employment opportunities in accessible locations.  To maximise public transport patronage and encourage walking and cycling.  To ensure the maintenance and improvement of the historic, architectural and aesthetic character of the commercial core area.

Source: Wagga Wagga City Council (2010a)

Bulky goods is defined in the Draft LEP as a building or place used primarily for the sale by retail, wholesale or auction of (or for the hire or display of) bulky goods, being goods that are of such size or weight as to require: 

A large area for handling, display or storage, or



Direct vehicular access to the site of the building or place by members of the public for the purpose of loading or unloading such goods into or from their vehicles after purchase or hire, but does not include a building or place used for the sale of foodstuffs or clothing unless their sale is ancillary to the sale or hire or display of bulky goods.

The Draft LEP limits sites identified for use as bulky goods premises, in order to retain the CBD focus and to promote compact, walkable and vibrant retail destinations. Bulky goods premises are prohibited under the Draft LEP in both the IN1 and IN2 zones. Many existing premises that were approved under previous controls are likely to be protected through "existing use rights” provisions.

2.4

Wagga Wagga Draft Development Control Plan 2010 Wagga Wagga City Council is in the process of finalising the Wagga Wagga Development Control Plan (WWDCP) 2010. The purpose of the WWDCP 2010 is to provide more detailed provisions, and to support, the LEP 2010. The Draft WWDCP provides an overview of planning controls for development throughout the Wagga Wagga LGA. The controls relate to urban design, built form, public domain, access and car parking, energy and subdivisions. Design principles and controls for the retail centres include: Table 2.3: Draft Wagga Wagga DCP 2010 Precinct/ Centres

Objectives

Controls

 Support the ongoing viability of the CBD North and its development as a distinctive retail area.  Support the application of heritage controls for the Fitzmaurice Street conservation area.

 Maintain the two to three storey street wall to Fitzmaurice Street with setbacks for upper levels.

City Centre Fitzmaurice Street and CBD North

Wagga Wagga Retail Growth Strategy 2010-2025 Draft Precinct/ Centres

Objectives

Controls

Central Spine

 Consolidate commercial activity and active ground floor uses along Baylis Street.  Retain the continuous street edge, and increase height at corner sites to achieve improved urban design and definition.  Improve legibility and links to parking areas, particularly through links for pedestrians.

 Setbacks are to be in accordance with plan.  Maintain a street wall to Baylis Street up to four storeys in height.  Development on corner sites should be designed to address the corner, and achieve at least 3 storeys and up to five storeys in height.  Reinstate the nil setback along Baylis Street where infill buildings have not been built to the street edge.  Design with nil setbacks unless existing adjoining buildings have established an alternate setback pattern.  Sites adjoining heritage items or streetscape reference buildings are to be sympathetic in scale and character to the adjoining significant building.  Retain articulated and active shop fronts that continue the traditional rhythm of individual shop fronts where site consolidation is proposed.  Retain and reinstate continuous full width awnings.  Service structures and mechanical equipment to be suitably treated, screened or incorporated within roof design.

Eastern Precinct

 Encourage efficient use of land and avoid under-development.  Encourage land uses that support the core commercial area, including those suited to larger sites.  Facilitate improved links to adjoining land uses and areas.  Encourage improved built outcomes by requiring consolidation of smaller sites.

 Design buildings to occupy the western portion of sites on the eastern sides of Blake and Berry Street to avoid impacts on residential land.  Developments are to provide an active interface to the street.  All parking, vehicle access, loading and unloading facilities to be provided from real lanes where available.  No off-street parking in the front setback area.

Peter Street

 Retain the close-built character that derives from the early twentieth century heritage items and streetscape reference buildings.  Encourage professional and service uses that complement the commercial core.  Reinforce the landscape character of the precinct.  Improve the legibility of existing through site links and provide additional links where possible.

 Setbacks determined by adjoining buildings.  Maintain a streetwall height of 2 storeys with upper levels setback behind a parapet.  Development on corner sites should be designed to achieve at least 3 storeys in height.  Developments are to provide an active interface to the street. Avoid black walls and “back of house” services to Peter Street.  All parking, vehicle access, loading and unloading facilities to be from rear lanes were available.  No off-street parking in the front setback.

Mixed Use Development

 Encourage active street frontages and an opportunity for a mix of uses.  Ensure the design and layout of mixed use developments retains good amenity for all users of the site.

 Locate commercial and retail uses at ground level. Any residential component should be on upper level floors.  Provide a ground floor frontage that is compatible with the form, rhythm, scale and character of adjoining developments or the intended future built character for the area.  Provide separate entrances to the residential and nonresidential components.  On-site parking is preferably to be provided in basement parking levels.  Access to basement parking levels is to be from one entry point.  Residential parking areas are to be secure and separate from non-residential parking and servicing areas.

Wagga Wagga Retail Growth Strategy 2010-2025 Draft Precinct/ Centres

Objectives

Controls

Local Centres

 Support the ongoing viability of local centres.  Ensure good integration with adjoining residential areas.

 Design to provide an active address to the adjoining residential precinct.  Setbacks, building design and siting – locate building bulk to ensure acceptable setbacks to any adjoining residential land. A landscaped buffer may be required.  Design and locate signs to minimise light spill to adjoining or nearby residential land.  The location of vehicle entrance and exit points is to minimise disturbance to the functioning of adjoining roads.  Design and location of loading and unloading facilities away from residential properties.  Provide facilities for bike parking.  Locate services and any mechanical vents or equipment away from residential development.  Hours of operation are not to exceed 6am to 9pm daily.

Neighbourhood Shops

 Ensure that the design of neighbourhood shops are compatible with surrounding land uses.  Ensure compatibility with the amenity of adjoining residential development.

 Use good site planning to protect the amenity and outlook of adjoining and nearby residences (as relevant).  Restrictions on outdoor seating.  Hours of operation are not to exceed 6am to 9pm daily.  Signs are not to impact on the amenity of adjoining residential properties.

Source: Wagga Wagga City Council (2010b)

The Draft WWDCP defines bulky goods products as typically requiring large showroom space for display, and handling by fork lift loader. Bulky goods can include carry away finished and semi-complete furniture and furnishings, but not everyday needs such as clothing, small household items, fresh food or produce or office supplies.

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

Consultation Process As part of the Retail Strategy, a comprehensive consultation process was undertaken with internal and external stakeholders, with the inputs from this process helping to identify opportunities and obstacles for future retail growth, and in part assisting in the development of the Action Plan that forms an integral part of the Retail Strategy. Those interviewed as part of the consultation process included representatives from the local and state governments, centre managers, commercial and retail agents and a number of individual local retailers. Aside from face-to-face and telephone interviews, the consultation process also included a three hour Retail Forum which was attended by approximately eighty members of the local retail community as well as representatives from Wagga Wagga City Council.

Stakeholder Consultation The stakeholder consultation process focused largely on external stakeholders and covered a large spectrum of interests in the retail sector. The process was helpful in identifying and discussing issues and opportunities pertaining to the Wagga Wagga retail hierarchy and took place face-to-face or over the telephone and followed a semistructured format. The purpose of the Retail Strategy was explained along with its key objectives and desired outcomes, after which the key findings and issues identified from earlier analysis and consultation were presented. The stakeholder was asked several questions about aspects of the Wagga Wagga retail sector specific to their profession (eg asked centre managers about their shopping centres and asked developers about potential development opportunities and barriers to future development) and explored tangents relative to the Retail Strategy that emerged from these discussions. The consultations ranged in duration from 15 minutes to an hour and a half and averaged approximately half an hour. The stakeholder consultation provided significant insight into the Wagga Wagga retail sector and particularly into the individual centres. A number of issues, opportunities and reoccurring themes were discussed in detail, allowing for a greater understanding of the greater Wagga Wagga retail sector from a number of different perspectives reflective to the interests of the stakeholders. Through this process, it was possible to identify a number of issues and objectives that the Retail Strategy would need to address. Information about the specific retail centres provided by external stakeholders allowed for the fine tuning the retail audit as well as identify specific issues affecting these centres and potential actions that can be taken to rectify these issues and promote sustainable growth and development across the Wagga Wagga retail sector. Themes discussed during the stakeholder consultation included: 

Attributes of the existing retail centres o

Sizes and tenancies areas

Annual turnover

Redevelopment opportunities and planning

Function of retail centres within the Wagga Wagga retail hierarchy



Vision for the future of the retail sector within Wagga Wagga



Opportunities for growth within the retail sector of Wagga Wagga



Obstacles for the future growth of Wagga Wagga‟s retail sector



Observations of specific socio-demographic trends and their implication on Wagga Wagga‟s retail sector



Planning context for the future development of the Wagga Wagga retail sector



Investment attraction opportunities for Wagga Wagga‟s retail sector



Opportunities and obstacles for specific retailing businesses

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

Retail Forum The Retail Forum was held on March 31st, 2010 and attended by approximately 80 individuals from the Wagga Wagga retail community as well as a number of representatives from local and state government. The purpose of the Forum was to present AECgroup‟s initial findings from its analysis of the Wagga Wagga retail sector, to discuss general themes prevalent throughout the national retail sector and their implications and applications in Wagga Wagga, and to discuss the importance of placemaking, how it can influence and enhance the retail sector and what opportunities for placemaking exist within Wagga Wagga‟s retail centres. Unlike the earlier consultation process which had largely targeted centre managers, the Retail Forum sought to capture the input from smaller retailers and to gain insight into their perspectives on the future growth of Wagga Wagga‟s retail sector. The guest speakers, including Scott Driscoll, CEO of the United Retail Federation and Gilbert Rouchecouste, Managing Director of Village Well, were successful in eliciting a substantial response from those attending, with a significant amount of stakeholder input captured and incorporated into the Retail Strategy and Action Plan. The general themes discussed and workshopped during the retail forum included: 

Attributes and characteristics of Wagga Wagga o

Current

Characteristics sought for the future



Attributes and characteristics of the individual retail sectors within Wagga Wagga



Opportunities and obstacles for small and independent retailers within Wagga Wagga



Balance between large national retailers and smaller and independent retailers



Implications of future population growth on the Wagga Wagga retail sector



Planning context of Wagga Wagga and its implications on the future development of its retail sector



Opportunities for growth within the retail sector of Wagga Wagga



Obstacles for the future growth of Wagga Wagga‟s retail sector



The importance of placemaking and its implications on the Wagga Wagga retail sector



Placemaking opportunities and actions that can be undertaken to enhance the retail and community offering of Wagga Wagga‟s retail sectors

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

Wagga Wagga Retail Sector

4.1

Contribution to Economy The retail sector represents an important component of the Wagga Wagga economy. The significant size of the retail sector, including major national retailers, consolidates Wagga Waggaâ&#x20AC;&#x;s role as the major commercial centre for the Riverina Region.

4.1.1

Employment The retail sector is the largest employer in Wagga Wagga with an estimated 3,629 persons in 2009, equating to 13.7% of the total workforce. In comparison to other industries, the retail sector has a workforce which is skewed towards youth, with many working part-time while in full-time education. Table 4.1: Employment by Industry in Wagga Wagga, 2009 Industry Agriculture, forestry & fishing Mining Manufacturing Electricity, gas, water & waste services

Employment

% of Total

1,057

3.8%

0.1%

2,343

8.4%

270

1.0%

Construction

1,441

5.2%

Wholesale trade

1,047

3.8%

Retail trade

3,827

13.7%

Accommodation & food services

2,061

7.4%

Transport, postal & warehousing

1,265

4.5%

Information media & telecommunications

431

1.5%

Financial & insurance services

676

2.4%

Rental, hiring & real estate services

416

1.5%

1,041

3.7%

759

2.7%

Public administration & safety

3,328

11.9%

Education & training

3,005

10.8%

Health care & social assistance

3,462

12.4%

214

0.8%

Professional, scientific & technical services Administrative & support services

Arts & recreation services Other services Total

1,213

4.4%

27,881

100.0%

Note: By place of employment. Source: ABS (2007), ABS (2010)

4.1.2

GRP The retail sector in Wagga Wagga contributed an estimated $185.9 million of value add to the economy in 2008-09. This represented an estimated 6.6% of total industry value add which represents a significantly lower contribution than employment. This represents the lower skill and value-add per employee associated with the retail sector as well as the higher proportion of part time employment.

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

Table 4.2: Value Add by Industry in Wagga Wagga, 2008-09 ($M) Industry

Value Add

% of Total

Agriculture, forestry & fishing

$90.1

3.2%

Mining

$16.9

0.6%

$283.3

10.1%

Manufacturing Electricity, gas, water & waste services

$71.8

2.6%

Construction

$180.6

6.5%

Wholesale trade

$133.0

4.8%

$185.9

6.6%

Accommodation & food services

$104.3

3.7%

Transport, postal & warehousing

$178.2

6.4%

$99.0

3.5%

$252.1

9.0%

Retail trade

Information media & telecommunications Financial & insurance services Rental, hiring & real estate services

$89.1

3.2%

$124.7

4.5%

$95.7

3.4%

Public administration & safety

$322.7

11.5%

Education & training

$200.4

7.2%

Health care & social assistance

$251.1

9.0%

Arts & recreation services

$19.6

0.7%

Other services

$75.3

2.7%

Non-classifiable

$24.6

0.9%

$2,798.3

100.0%

Professional, scientific & technical services Administrative & support services

Subtotal Ownership of Dwellings and General Government GRP

$584.3 $3,382.6

Source: ABS (2007), AECgroup

4.2

Retail Hierarchy The Wagga Wagga retail sector comprises several centres including: 

Wagga Wagga CBD: The commercial and administrative centre for Wagga Wagga and the surrounding region. The CBD is bisected by Wollundry Lagoon creating two distinct precincts: o

CBD South: The current activity centre of Wagga Wagga anchored by the Sturt Mall and Market Place shopping centres, with significant strip retail focussed along Baylis Street including Myer, Target Country and Spotlight.

CBD North: The historical centre of Wagga Wagga located primarily along Fitzmaurice Street. Key activity catalysts include a Woolworths and Cinema with a range of strip retail, cafes, pubs and professional services.



Kooringal: Neighbourhood shopping centre anchored by a supermarket with 24 smaller tenancies.



Lake Albert: Neighbourhood centre anchored by a supermarket and tavern with 12 smaller tenancies.



Tolland: Neighbourhood shopping centre anchored by a supermarket with seven smaller tenancies.



South City: Neighbourhood shopping centre anchored by two supermarkets and a 13 specialty stores.



Ashmont: Neighbourhood centre anchored by a small supermarket and hotel with 10 smaller tenancies.



Turvey Park: Neighbourhood shopping centre anchored by a supermarket with 18 smaller tenancies.



Forest Hill: Neighbourhood centre anchored by a supermarket with six smaller tenancies.



Lake Albert Road: Small convenience centre with a grocery store and two smaller tenancies. 9

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

Hammond Street/Edward Street/Sturt Highway: Strip of light industrial and bulky goods including Good Guys, Petbarn, BCF, Autobarn and Carpet Choice.



Dobney Avenue/Pearson Street: Strip of light industrial and bulky goods including Bunnings Warehouse, Dahlsens, Mitre 10 and BBQ Galore.



South Wagga Business Centre – Morgan Street: There is a mixed use precinct located west of the CBD bounded by Morgan, Docker, Forsyth and Murray Streets. The South Wagga Business Centre – Morgan Street as it is sometimes known contains office, retail, bulky goods and light industrial premises.

A map of the existing retail hierarchy within Wagga Wagga is shown below in Figure 3.1.

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

Figure 4.1: Existing Retail Hierarchy

Source: Wagga Wagga City Council (2010), AECgroup

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

4.2.1

Tenancy Mix There were an estimated 476 retail businesses operating in Wagga Wagga in February 2010. Major retailers included 12 supermarkets and seven discount department stores with a range of smaller operations. There were 97 clothing and accessory and 95 food and liquor catering stores, equating to 20.4% and 20.0% of businesses respectively. There were 33 bulky goods businesses equating to 6.9% of retail businesses. Figure 4.2: Retail Tenancy Mix 6.9%

8.4%

Groceries & Specialty Food

1.5%

Food and Liquor Catering Clothing & Accessories

20.0%

24.4%

Furniture, Houseware & Appliances Recreation & Entertainment Equipment Garden & Hardware Goods Other Goods & Personal Services

1.1%

Discount Department

20.4% 11.6%

Bulky Goods 5.9%

Source: AECgroup

4.2.2

Business Characteristics Wagga Wagga City Council undertook a survey of businesses in October 2009 with 409 respondents. Of the 409 respondents, 87 or 21.3% identified themselves as being in the retail industry. The survey indicates half of retail business respondents have been operating in the the LGA for more than 10 years, indicating a well established retail sector. Approximately 15% of retail respondents have been operating in Wagga Wagga for less than 2 years indicating a relatively low rate of tenant turnover. Figure 4.3: Length of Time Operating in Wagga Wagga Less than 1 year 7.5%

More than 15 years 42.5%

1-2 years 7.5%

3-4 years 10.0%

5-6 years 10.0%

11-15 years 7.5% 9-10 years 2.5%

7-8 years 12.5%

Source: Wagga Wagga Business Survey (2009)

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

4.2.3

Recent Business Performance Retail business performance has remained relatively stable in Wagga Wagga over the last two years with 63.4% of respondents indicating unchanged employment levels. This likely reflects the impact of the economic downturn and lower consumer spending. Despite tough economic conditions nationally in the last two years, a quarter of respondents reporting an increase in employment which can be partially explained by the relatively strong population growth recorded in Wagga Wagga. Figure 4.4: Change in Employment over Last two Years

Increase 26.8%

Unchanged 63.4%

Decrease 9.8%

Source: Wagga Wagga Business Survey (2009)

4.3

Business Satisfaction & Confidence

4.3.1

Rating as a Place to do Business The business survey reports that the majority of retail respondents would recommend Wagga Wagga as a place to establish and operate a business. Overall, Wagga Wagga recorded a weighted average of 6.48 on a scale of 1-10, with 1 being “you would not recommend Wagga” and 10 being “you would strongly recommend Wagga”.

4.3.2

Proposed Expansion of Business Over 30% of retail businesses in Wagga Wagga propose to expand their businesses in the next two years, indicating a positive outlook for the future. These expansion intentions could be interpreted in a number of ways: 

Increased capital expenditure on plant & equipment or refurbishment;



Purchase/leasing of an expanded floor space/premises; and/or



Geographical expansion of the business to other locations.

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

Figure 4.5: Planning Expansion within next 2 Years

Potentially 27.8%

Yes 30.6%

No 41.7% Source: Wagga Wagga Business Survey (2009)

4.3.3

Anticipated Business Performance The business survey indicates a fairly positive outlook for retail business performance in Wagga Wagga over the next two years compared with the recent performance over the past two years. Employment levels are expected to remain fairly steady with over half of responding businesses anticipating no change. Over 40% of responding businesses expect to increase employment levels with a limited number anticipating a decline. Figure 4.6: Change in Employment over Next two Years

Unchanged 53.7%

Increase 43.9%

Decrease 2.4% Source: Wagga Wagga Business Survey (2009)

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

Trade Area Analysis

5.1

Trade Area Definition The trade area and customer markets served by Wagga Wagga reflect its role as the retail, commercial and administrative centre for the Riverina Region. Wagga Wagga‟s customer markets for retail services include:   

Residents in the Main Trade Area (MTA); Visitors to Wagga Wagga from outside the MTA; and People from outside the MTA working in Wagga Wagga.

The extent of the MTA or catchment for any retail and commercial centre is shaped by a number of crucial factors, including (but not limited to): 

The relative attraction of Wagga Wagga‟s retail centres compared with competing retail centres. The factors that determine the strength and attraction of any particular centre are the scale and composition of the centre, quality of major traders, the presentation and layout of the centre, and car parking including access and ease of use;



The proximity and relative attractiveness of competing retail centres serve to restrict a retail centre‟s ability to extend its trade area. Therefore, the location, composition, quality and scale of competitive retail facilities all serve to define the extent of the trade area which the centres are effectively able to service; and



Available road and public transport networks are also important factors contributing to a centre‟s relative appeal given they impact on the ease of access.

The MTA is generally defined as the geographical area accounting for 70%-80% of a centre‟s sales/trade. Centres record the remainder of their trade from tertiary catchments and visitors, generally referred to as “rogue” sales/trade. The above factors have been considered in conjunction with the role and competitive advantages of Wagga Wagga, including its attractors and activity catalysts, along with convenience/access and administrative role to the Riverina Region, to define a MTA for Wagga Wagga. The MTA includes a Primary Trade Area (PTA) and a Secondary Trade Area (STA) and is described geographically in Figure 5.1. 

PTA: Comprises the Wagga Wagga LGA.



STA: Comprises the surrounding LGAs of Coolamon, Cootamundra, Gundagai, Junee, Lockhart, Narrandera, Temora and Tumut.

It should be noted the definition of this trade area does not suggest all households in this area frequent Wagga Wagga for goods and services. Other towns, in some cases, are more accessible, including Young for areas in the north of the secondary trade area. The definition instead defines the geographic area where at least 70% of sales are generated.

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

Figure 5.1: Wagga Wagga Main Trade Area

Source: AECgroup

The PTA has been broken down into smaller catchments to reflect the retail centres within Wagga Wagga. 

Ashmont: Comprises the suburb of Ashmont. The Ashmont centre is located in this catchment.



Central: Comprises the suburbs of Cartwrights Hill, East Wagga Wagga, Gumly Gumly and Moorong. The CBD and CBD North are located in this catchment.



South West: Comprises the suburbs of Bourkelands, Glenfield Park, San Isidore, Springvale, western area of Mount Austin and the Lloyd release area. The South City centre is located in this catchment.



Tolland: Comprises the suburb of Tolland. The Tolland centre is located in this catchment.



Turvey Park: Comprises the suburbs of Turvey Park and the majority of Mount Austin. The Turvey Park centre is located in this catchment.



Kooringal: Comprises the suburbs of Kooringal, Tatton and the northern area of Lake Albert. The Kooringal centre is located in this catchment.



Lake Albert: Comprises the majority of the suburb of Lake Albert. The Lake Albert centre is located in this catchment.



East: Comprises the suburb of Forest Hill. The Forest Hill centre is located in this catchment.



North: Comprises the suburbs Estella/Boorooma release areas.



Villages: Comprises the towns and rural areas including Borambola, Brucedale, Collingullie, Currawarna, Euberta, Galore, Gregadoo, Humula, Kyeamba, Ladysmith, Mangoplah, Oberne Creek, Oura and Tarcutta.

Estella,

North

Wagga

and

the

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

Figure 5.2: Primary Trade Area Catchments

North

Rural

Central Ashmont Turvey Park

South West East

Tolland Lake Albert

Kooringal

Source: AECgroup

Figure 5.3: Primary Trade Area Catchments - Zoom

Rural

North Ashmont

Turvey Park

Central

East Tolland South West

Kooringal Lake Albert Source: AECgroup

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

5.2

Population According to the ABS estimated resident population series, there were an estimated 62,900 persons residing in the Wagga Wagga LGA in 2009, representing growth of 1.6% from 2008 (see Figure 5.4). Over the past nine years the population has increased at an average annual growth rate of 1.2%. Figure 5.4: Estimated Resident Population Trends, Wagga Wagga LGA

70,000

2.5% Number of Persons (Left Axis)

Annual % Growth (Right Axis)

60,000

2.0%

50,000

1.5%

40,000

1.0%

30,000

0.5%

20,000

0.0%

10,000

-0.5%

-1.0% 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Source: ABS 3218.0 Regional Population Growth, AECgroup

The population statistics for each catchment are presented in Table 5.1. The South West catchment has the largest population followed by the Kooringal and Central catchments. Table 5.1: Census Population by Catchment (2009) Catchment

2009

% of PTA

Central

9,072

14.3%

Ashmont

4,560

7.2%

11,453

18.0%

South West Tolland

3,968

6.2%

Turvey Park

7,680

12.1%

11,212

17.6%

Lake Albert

4,776

7.5%

East

2,575

4.1%

North

3,261

5.1%

Rural

5,010

7.9%

PTA

63,568

100.0%

STA

49,076

Kooringal

MTA

112,643

Note: By place of usual residence. Source: ABS (2007), ABS (2010), AECgroup

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

5.3

Demographic Characteristics The demographic characteristics of the Wagga Wagga population differ significantly between the catchments and the surrounding LGAs in the STA. The key demographic attributes of residents within the MTA at the time of the 2006 Census are outlined below with detailed statistics provided in Appendix A:

5.4



Age Structure: Residents of the Wagga Wagga LGA recorded an average age of 35.3 years in 2006, well below the STA (39.7 years) and Non Metro NSW (39.1 years) averages. The East catchment recorded the youngest population with an average age of 29.5 years and almost 50% of residents under 25 years of age. The Ashmont and South West catchments also recorded relatively young populations with average ages of 32.6 and 31.8 years respectively. On the other hand, the Central (38.2 years), Turvey Park (37.4) years and Kooringal (37.3 years) recorded average ages well above the LGA average reflected by higher proportion of residents over the age of 65.



Household Structure: Couple families with children accounted for 31.6% of households in Wagga Wagga in 2006, slightly above the STA and Non Metro NSW averages. This ranged from a low of 18.7% in the Central catchment to a high of 42.9% in the South West catchment. The Central catchment recorded the highest proportion of lone person households (39.2%) while the Ashmont catchment (22.7%) and Tolland catchment (20.0%) recorded the highest proportion of single parent families.



Housing Tenure: Households fully owning their own home accounted for 31.2% of households in the Wagga Wagga LGA in 2006, well below the STA (45.6%) and Non Metro NSW (39.4%) averages. The Rural (44.1%) and Lake Albert (37.6%) catchments recorded the highest level of home ownership while the Ashmont (49.2%) and Central (43.0%) catchments recorded the highest proportion of renters.



Employment: The Wagga Wagga LGA recorded an unemployment rate of 5.6% in 2006, well below the STA and Non Metro NSW averages. The Ashmont (12.5%) and Tolland (9.3%) catchments recorded the highest unemployment levels with the Rural (2.8%) and South West (3.4%) catchments recording the lowest levels.



Household Income: Households in the Wagga Wagga LGA recorded average weekly income of $1,113 in 2006, above the STA ($919) and Non Metro NSW ($1,022). Lake Albert ($1,314) and South West ($1,270) recorded the highest incomes while the Ashmont ($823) and Tolland ($937) catchments recorded the lowest.

Projected Population Growth Wagga Wagga is projected to record average annual growth of 1.2% over the next 15 years with the population increasing by 12,000 to approximately 75,500 in 2025. There is expected to be limited infill development with the majority of residential development occurring in urban release areas on the outskirts of the City including: 

Lloyd: Four stage development within the South West catchment.



Estella and Estella West: Located within the North catchment.



Boorooma East and West: Located within the North catchment.

Other smaller residential developments include Tatton in the South West catchment and the Grange Lifestyle Village in the Lake Albert catchment. The population of the STA is projected to record a slight decline over the next 15 years as larger regional centres such as Wagga Wagga become more attractive. The population projections for each catchment are presented in Table 5.2.

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

Figure 5.5: Wagga Wagga Urban Release Areas

Source: Wagga Wagga City Council (2010), AECgroup

Table 5.2: Projected Population by Catchment Catchment Central Ashmont

2010

2015

2020

2025

Growth

% Ann Growth

9,072

9,122

9,172

9,222

150

0.1%

4,560

4,601

4,649

4,707

146

0.2%

11,453

13,193

14,553

15,753

4,300

2.1%

Tolland

3,968

4,026

4,099

4,174

206

0.3%

Turvey Park

7,680

7,704

7,729

7,754

0.1%

South West

Kooringal

11,212

11,253

11,301

11,359

146

0.1%

Lake Albert

4,779

4,909

5,043

5,117

338

0.5%

East

2,575

2,631

2,703

2,778

203

0.5%

North

3,258

4,546

6,803

9,498

6,241

7.4%

Rural PTA STA MTA

5,010

5,052

5,100

5,158

148

0.2%

63,568

67,038

71,152

75,520

11,953

1.2%

49,076

48,735

48,436

48,151

-924

-0.1%

112,643

115,772

119,589

123,671

11,028

0.6%

Note: By place of usual residence. Source: ABS (2007), ABS (2010), DoP (2008), AECgroup

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

Retail Market Assessment

6.1

Supply Assessment

6.1.1

Traditional Retailing The retail trade sector is defined as businesses mainly engaged in the resale of new or used goods to final consumers for personal or household consumption. There is an estimated 204,000sqm of retail and office floorspace in Wagga Wagga with approximately 11,700sqm vacant, equating to a vacancy rate of 5.7%. The main activity centre of the CBD including Baylis Street (between Morgan and Thompson streets) and the major shopping centres record minimal vacancies. The remainder of the South CBD precinct records higher vacancy levels of around 8% dominated by older style premises on the edges of the CBD and 2nd level premises. The North CBD (Fitzmaurice Precinct) records a higher vacancy rate of 9.1%. On average, the neighbourhood centres record a higher vacancy rate of 11.8% of tenancies and 6.4% of total floorspace. Lake Village (21.4%), South City (20.0%) and Ashmont (18.2%) each record vacancy levels above 15%. It should be noted that in many cases, the vacancies within the suburban centres have been actioned by the centre managers so as to allow for planned redevelopment or expansions.

6.1.2

Bulky Goods The bulky goods sector is a subset of the retail sector that is characterised by larger floorplate premises with sufficient load access (including semitrailers), significant storage areas and adequate car parking facilities for customers. This is in line with the definition of bulky goods within the Draft LEP and Draft WWDCP which defines bulky goods as a building or place used primarily for the sale by retail, wholesale or auction of (or for the hire or display of) bulky goods, being goods that are of such size or weight as to require: ď&#x201A;ˇ

A large area for handling, display or storage, or

ď&#x201A;ˇ

Direct vehicular access to the site of the building or place by members of the public for the purpose of loading or unloading such goods.

Wagga Waggaâ&#x20AC;&#x;s bulky good operators are generally located out of centre and are concentrated on, or are easily accessible by, the Sturt Highway. There is one dedicated bulky goods centre, Homebase (on Hammond Avenue) with the remaining bulky goods operators located along Hammond Avenue or within the largely industrial zone that is located in the western part of Wagga Wagga and which is bisected by Dobney Avenue and Pearson Street. There is an estimated 57,619sqm of bulky goods floorspace in Wagga Wagga including the Homebase Centre and street shops. Homebase records a 10,000sqm vacancy resulting from the relocation of Bunnings (now the largest by floorspace in Australia) to Dobney Avenue. There is approximately 35,635sqm of bulky goods floorspace located outside the Homebase Centre. It is difficult to classify vacant bulky goods premises as several premises that could be classified as such are in fact also warehouses, showrooms or timber and hardware supply retailers and thus not classified as retailers by the Australian Bureau of Statistics. As many of the bulky goods retailers draw a significant amount of their revenue from business to business transactions (such as with tradesmen or other contractors), a large portion of the expenditure within these bulky goods retailers is not classified as retail expenditure. Accordingly, this may cause the existing and forecast need for bulky goods premises to be understated as the models and forecasts only pertain to the expenditure from the retail market. The perceived trading levels and performance of the bulky goods sector indicates that there is no oversupply of floorspace with some vacancies indicating that the sector has an adequate supply.

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

Table 6.1: Wagga Wagga Commercial Floorspace Businesses Centre

Floorspace (sqm)

Businesses

Vacancies

Vacant %

Floorspace

Vacant

Vacant %

Marketplace

CIC

22,185

CIC

Sturt Mall

CIC

15,522

CIC

Street

311

7.4%

84,825

4,835

5.7%

Subtotal

423

6.2%

122,532

5,024

4.1%

Regional Centre CBD South

CBD North

149

9.1%

48,955

4,410

9.0%

Total CBD

572

7.0%

171,487

9,434

5.5%

South City

CIC

6,215

CIC

Kooringal

CIC

5,072

CIC

Turvey Park

CIC

3,762

CIC

Lake Village

Neighbourhood Centres

CIC

3,264

CIC

Tolland

CIC

2,841

CIC

Forest Hill

CIC

1,633

CIC

Ashmont

CIC

1,285

CIC

Lake Albert Road

CIC

590

CIC

Total Neighbourhood Centres

11.8%

24,662

1,590

6.4%

South Wagga Business Centre â&#x20AC;&#x201C; Morgan Street

4.5%

7,861

700

8.9%

Total Wagga Wagga Retail and Office

683

7.6%

204,010

11,724

5.7%

Homebase

CIC

21,984

CIC

Street

CIC

35,635

CIC

Total Wagga Wagga Bulky Goods

5.7%

57,619

11,378

19.7%

Bulky Goods

Note: Vacancy data for individual centres has not been published for confidentiality reasons. Source: Centre managers, AECgroup

6.2

Competing Centres There are several competing centres to Wagga Wagga on a local and regional level, as described in Table 6.2. The surrounding townships of Young, Tumut, Cootamundra and Temora each have a major supermarket and discount department store and represent a competitive centre primarily to residents of the STA. Due to the lower level of retail provision in these towns, it is unlikely that Wagga Wagga residents would consider these centres shopping destinations. The other major regional centres of Canberra and Albury compete with Wagga Wagga for higher order retailing with residents of the PTA frequenting these centres to shop.

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

Table 6.2: Description of Competing Centres to Wagga Wagga Centre

Role

Tenancy Mix

Sydney 450km north east

Capital City

     

Major commercial centre in NSW Numerous large shopping centres with higher order retail businesses Major commercial and professional services Key State and Federal Government services

Canberra 240km east

Capital City

Albury 125km south

Regional City



Major commercial centre for the Riverina region Major shopping centres (Albury City Centre, Centro Lavington, Wodonga Plaza) Key State and Federal Government services

Young 140km north east

Major Town



Anchored by Woolworths, Target, Big W and IGA

Tumut 100km east

Township



Anchored by Coles and Target

Temora 90km north

Township



Anchored by Woolworths, Target and IGA

Narrandera 100km west

Township



Anchored by Coles

Cootamundra 95km north

Township



Anchored by Woolworths, Target and IGA

Gundagai 80km east

Township



Anchored by IGA

  

Major commercial centre for Southern Tablelands Major shopping centres (Canberra Centre and Westfield Belconnen) Key State and Federal Government services

Source: AECgroup

6.3

Industry Trends

6.3.1

Sales and Spending The total NSW retail sector recorded $73.1 billion in retail sales (seasonally adjusted terms) in 2009, an increase of 6.9% from the previous year. The positive result has been linked to positive consumer sentiment following the economic downturn Looking forward, CBRE anticipates retail turnover will grow by 0.1% in NSW in 2010 as a result of stimulus packages being removed and likely increases in interest rates. Growth is expected to increase to 2.0% in 2011 as the economy strengthens. The graph below presents the annual growth in monthly retail sales for the mostly nondiscretionary retail categories compared with total retail sales. The analysis demonstrates the annual growth of total retail sales over the past 5 years has generally fluctuated between 1-9%, though it recorded a decline in late 2008. Average growth in food retail sales has generally moved in line with total retail spending while hospitality and service sales are shown to be more volatile. Hospitality expenditure recorded significant negative growth during 2008 as a result of the economic slowdown, though it bounced back in 2009.

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

Figure 6.1: Annual Growth in Seasonally Adjusted NSW Retail Sales - Non-Discretionary Retail Categories 50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

-10.0%

-20.0% Jan-00

Jan-01

Jan-02

Jan-03

Jan-04

Food

Jan-05

Hospitality

Jan-06

Jan-07

Other

Jan-08

Jan-09

Jan-10

Total

Source: ABS (2010)

Growth in non-discretionary retail categories is linked more closely to prevailing economic conditions and demonstrates more volatility and cyclical behaviour. In the last five years, growth has generally been highest in the clothing and household sectors. Figure 6.2: Annual Growth in Seasonally Adjusted NSW Retail Sales - Discretionary Retail Categories 50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

-10.0%

-20.0% Jan-00

Jan-01

Jan-02

Department Stores

Jan-03

Jan-04

Clothing

Jan-05

Jan-06

Household Goods

Jan-07

Jan-08

Jan-09

Recreational Goods

Jan-10 Total

Source: ABS (2010)

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

6.3.2

Business and Retailing International retailers are entering the Australian retail market looking to challenge the existing dominance of Wesfarmers and Woolworths which represent a major market share. Major US retailer Costco has recently opened a store in Melbourne including photo-processing, optical and tyre outlets as well as groceries, fresh food, clothing, hardware, furniture, jewellery and sporting goods. Costco is planning an expansion with the opening of several new stores by 2014. Lowe's, the world's second-largest home improvement chain, is also looking at expanding into Australia through a joint venture with Woolworths to open hardware stores that would compete with Wesfarmer‟s Bunnings Chain. These moves follow the entry of Aldi into the Australian retail market in 2000 which has opened over 200 stores in the last decade. There has also been increasing out-of-centre development of homemaker and bulky goods retail centres. The growth of the bulky goods centre and freestanding superstore reflects a shift in retailing patterns in the sector away from older style, freestanding provision towards the new provision, which offers consumers more choice and greater convenience. The development of these centres has drawn retail trade away from traditional centres.

6.3.3

Consumers and Shopping Non-store retailers continue to record strong growth especially in the online retailing sector. Direct selling recorded an improvement in current value sales growth due to the effective recruitment and retention of direct selling agents during the economic downturn as a result of fears over unemployment.

6.3.3.1

Online Retailing It is estimated that online shopping currently accounts for approximately 3% of the total retail expenditure in Australia (significantly below the 7-8% of both the United States and the United Kingdom). Online retailing is arguably the quickest growing segment of the Australian retail sector, with Forrester Research estimating that the Australian expenditure on online retailing will increase to $32billion per annum by 2012, a nearly 40% increase from the level of online retail expenditure in 2008. Further statistics suggest that the total percentage of this domestic online expenditure remaining in Australia is shrinking, given the pace at which international retailers are expanding their online businesses relative to Australian retailers coupled with the strength of the Australian dollar over the last year. Online shopping provides little economic benefit to any specific region aside from a possible slight increase in the revenues of freight industries who ship the items purchased online. An increase in online shopping brings about a change over time in the amount of expenditure leakage within any given area. The more that people within any given area spend online, the less they spend in that area‟s retail businesses. Within the context of the Wagga Wagga retail sector, increased future expenditure on online shopping will contribute to an increase in the level of expenditure leakage. It is difficult to gauge the extent of online retailing expenditure within a specific area without carrying out a detailed shopper survey. A comprehensive shopper survey, such as the one that AECgroup recommends that Wagga Wagga City Council carry out on a biannual basis (and which is discussed in Section 10), allows for the quantification of the region‟s total online retailing expenditure and the determination of the true impact of this burgeoning aspect of the greater retail sector.

6.3.4

Planning and Centres Retailing in Australia has changed significantly since the advent of the first enclosed shopping centre in the 1950‟s. Providing an environment that allows for the evolving and dynamic nature of the retail industry is essential in creating a vibrant Town Centre. A new trend in planning has been the theming of precincts within a Town Centre, which offers opportunities for creating a range of destination nodes within the Town Centre. Potential precincts could include heritage, eatery, entertainment, specialist boutique, leisure, weekly shopping, homemaker or comparison shopping precincts. Such theming of precincts is evident in a number of large regional shopping centres and is emerging in

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

strip retail precincts. Entertainment and leisure has also been complementary to the retail industry for some time. The incorporation of cinemas, food courts and more recently games parlours, has been in response to the demand by shoppers for experiences and to be entertained on their shopping trip, in other words to keep shoppers in the centres longer and spending more.

6.4

SWOT Analysis The SWOT Analysis summarised in Table 5.3 identifies the various attributes of the Wagga Wagga retail sector that can be leveraged or built upon to promote sustainable future growth. Conversely, it also identifies weaknesses of the sector and potential threats that could hinder its future development. Many of the attributes in the table below have been taken into account in the formulation of the Retail Strategy discussed in more detail in Section 7. Table 6.3: SWOT Analysis of Wagga Wagga Retail Sector

Strengths  Largest retail, commercial, administrative and population centre in the Riverina region  Well established retail hierarchy  Nine shopping districts targeting different socio-economic and geographic sectors of the market  Extensive regional catchment in terms of population size and geography  Leading retail mix in the region, with relatively diverse and comprehensive retail offering  Strong population growth  Strategically placed supply of local centres  Relatively low retail vacancy rates and strong competitiveness within most retail centres  RAAF base and Charles Sturt University o Additional component outside of resident population that provides additional demand for retail services  Fitzmaurice and Baylis Streets streetscape and the number of historically significant buildings

Opportunities  Improve the leisure and cultural aspects of the Wagga Wagga CBD via promotion of Fitzmaurice Street as a Cultural Precinct  Expansion of existing suburban centres to accommodate existing shortfall in retail provision or to meet the demand from proposed growth areas o Kooringal o South City  Create a neighbourhood centre in Estella to service the convenience shopping needs of the Estella/Boorooma growth areas and a local centre in Tatton to service local demand  Develop multi-level car parking alternatives in the Wagga CBD to improve parking and potentially allow for the relaxation of the parking requirement for specific future retail and commercial developments  Attracting more national retailers through provision of suitable sites  Capitalise on market growth, capture higher regional market share and decrease leakage  Encourage landlord reinvestment via various initiatives  Provide better quality retail space through new retail development and redevelopment of existing floorspace  Attract major tenants interested in locating in the region to fill identified service gaps  Encourage a higher grade commercial development o 4-4.5 Green Star or NABER rated commercial premises o Potential to attract regional government tenants  Improve the level of customer service within Wagga Wagga retail sector through the provision of professional development education and training, as supported and facilitated by Council and the local retail community

Weaknesses  Lack of coordinated marketing initiatives and clear market positioning for retail  Low quality of retail floorspace in many of the regional shopping centres as well as in main street retailing  Inability of large national retailers to find suitable premises within the CBD so as to enter the Wagga Wagga market o Difficulty with site amalgamation to allow for location of larger footprint retail premises  Discernable reliance on retail trade and manufacturing in Wagga Wagga, and agriculture in region  Impediments on future development due to heritage listed buildings, ownership structure of retail premises (no incentive to sell) and lack of additional space for future parking  Fitzmaurice precinct disconnected from CBD and limited in its ability for redevelopment  CBD footprint hasn‟t changed for a significant period while the retail sector has continued to grow  Lack of landlord reinvestment in premises, leading to the perception of relatively high rents  Level of customer service in Wagga Wagga retail sector is perceived as relatively poor Threats  Lack of reinvestment by landlords may see tenants and consumers look elsewhere Lack of incentives to landlords to sell their properties to allow for site amalgamation  Allowing specific suburban centres to grow to a size and to provide a retail offering which could lead to the destabilisation of the retail hierarchy o South City Shopping Centre  Internet shopping alternatives could lead to increased leakage  Most future retail and commercial redevelopment opportunities within CBD is unlikely to be viable due to required parking provision and height restrictions  Encroachment of retail and commercial land uses into areas zoned for alternative uses o Smaller residential and commercial properties being redeveloped for retail use

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

6.5

Demand Assessment

6.5.1

Household Expenditure AECgroup has modelled the estimated retail expenditure by households in Wagga Wagga based on household projections, data from the ABS 2003-04 Household Expenditure Survey and demographic data. The modelling assumes average interest rates since 200304 and average consumer spending growth at the national average. Average weekly household retail expenditure in the PTA is estimated at $552 in 2010 and $505 in the STA. The lower expenditure figure in the STA reflects a combination of lower average disposable income and higher unemployment, and therefore a reduced propensity to expend on retail goods and services. Overall, when multiplying the estimated average household retail expenditure by the number of households, total annual household retail expenditure in the MTA is estimated at $1,250.8 million in 2010, of which $727.3 million (or 58%) is generated from the PTA. The STAâ&#x20AC;&#x;s smaller population and lower average expenditure resulted in a smaller contribution of $523.6 million (or 42%). Table 6.4: Household Expenditure, 2010 ($M) Retail Category

PTA

STA

MTA

Groceries & Specialty Food

$251.5

$184.9

$436.4

Food & Liquor Catering

$132.7

$97.4

$230.1

Clothing & Accessories

$84.4

$57.4

$141.8

Furniture, Houseware & Appliances

$85.1

$62.5

$147.6

Recreation & Entertainment Equipment

$88.6

$60.5

$149.0

Garden & Hardware Goods

$12.8

$9.2

$22.0

Other Goods & Personal Services Total

$72.1

$51.8

$123.9

$727.3

$523.6

$1,250.8

Source: AECgroup

Households in the MTA expend 35% of their retail shopping budget on groceries & specialty food, with food & liquor catering (18%) and recreation & entertainment equipment (12%) the next largest categories of expenditure (see Figure 6.3). Figure 6.3: Breakdown of Household Retail Expenditure by Retail Category, MTA Other Goods & Personal Services Garden & Hardware Goods 9.9% 1.8% Recreation & Entertainment Equipment 11.9%

Groceries & Specialty Food 34.9%

Furniture, Houseware & Appliances 11.8%

Clothing & Accessories 11.3%

Food & Liquor Catering 18.4%

Source: AECgroup

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

6.5.2

Market Share and Leakage Based on shopper surveys undertaken as part of past Retail Strategies prepared for key regional centres of a similar nature to Wagga Wagga, AECgroup has estimated the market share of household retail expenditure for each trade area (see Figure 5.4). The market share estimates reflect the existing supply and trading strengths of Wagga Wagga, particularly relative to towns within the Riverina Region. Overall, Wagga Waggaâ&#x20AC;&#x;s market share is estimated as highest in the PTA at 93.6%. This reflects the significant supply of retail space in Wagga Wagga and the fact that there are no major competing centres within 100km. Market share in the PTA is highest in the convenience categories such as groceries & specialty food and other goods & personal services as well as categories where there is limited competition such as garden & hardware goods. The market share for Wagga Wagga of household spending in the PTA can also be interpreted in reverse i.e. what is not market share is escape expenditure, or spending leakage, to other retailing locations. This escape expenditure equates to 6.4% of spending capacity of the PTA, or $46.4 million in 2010. Leakage is estimated to be highest in the discretionary categories of clothing & accessories, homewares and food & liquor catering. In the STA, market share of household expenditure in Wagga Wagga is estimated to be reasonably high at 41.2% reflecting the regional significant size of the Wagga Wagga CBD compared to the retail sectors in the nearby towns. Anecdotal evidence indicates that a large proportion of households within the STA travel to Wagga Wagga to take advantage of the large range of major retailers. Most towns have supermarkets indicating that expenditure on groceries and specialty food would be largely retained in their local area. Figure 6.4: Estimated Wagga Wagga Market Share of Household Retail Expenditure 100% 90% 80% 70% 60% 50% 40% 30% 20% 10%

MTA

Other Goods & Personal Services

STA

Garden & Hardware Goods

Recreation & Entertainment Equipment

PTA

Furniture, Houseware & Appliances

Clothing & Accessories

Food & Liquor Catering

Groceries & Specialty Food

Source: AECgroup

6.5.3

Rogue Expenditure Rogue expenditure is comprised of expenditure of visitors to Wagga Wagga including tourists, business travellers and people visiting friends and relatives. According to Tourism NSW, there were an estimated 955,000 overnight visitors and 1,163,000 day trip visitors to the Riverina Tourism Region in 2009 spending a total of $501 million. Approximately 33% of tourism accommodation in the Riverina Tourism Region is located in Wagga Wagga indicating that an estimated 30-40% of tourism expenditure in the Riverina Tourism Region is spent in Wagga Wagga.

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

The National Visitor Survey estimated that 32.2% of tourism expenditure by domestic overnight visitors in Australia was spent on the retail sector with this figure rising to 55.1% with day trip expenditure. These national averages have been assumed to be the same for Wagga Wagga. Table 6.5: Tourism Expenditure on Retail Retail Category

Overnight Visitors

Day Trip

14.9%

20.3%

Takeaway and Restaurant Groceries

6.4%

5.7%

Shopping and Souvenirs

11.0%

29.0%

Total Retail Spending

32.2%

55.1%

Source: TRA (2010)

Based on visitor and expenditure data from Tourism NSW and the National Visitor Survey, it is estimated that rogue expenditure in Wagga Wagga totalled $61.3 million in 2010 with the biggest categories being food & liquor catering and groceries & specialty food. Table 6.6: Wagga Wagga Rogue Expenditure, 2010 ($M) Retail Category

Expenditure

Groceries & Specialty Food

$10.6

Food & Liquor Catering

$26.7

Clothing & Accessories

$6.6

Furniture, Houseware & Appliances

$6.8

Recreation & Entertainment Equipment

$7.1

Garden & Hardware Goods

$0.4

Other Goods & Personal Services

$3.0

Total

$61.3

Source: TRA (2010)

6.5.4

Retail Expenditure in Wagga Wagga Based on the combination of household retail expenditure and market share, in addition to rogue expenditure recorded from residents outside the trade area, total retail turnover in Wagga Wagga is estimated at $958.1 million in 2010 (see Table 6.7). Table 6.7: Retail Expenditure in Wagga Wagga, 2010 ($M) Retail Category

PTA

STA

Rogue

Total

Groceries & Specialty Food

$241.4

$37.0

$10.6

$289.0

Food & Liquor Catering

$122.1

$19.5

$26.7

$168.3

Clothing & Accessories

$76.0

$34.4

$6.6

$117.0

Furniture, Houseware & Appliances

$48.9

$29.3

$4.3

$82.5

Recreation & Entertainment Equipment

$50.9

$28.3

$4.4

$83.7

$3.1

$1.7

$0.1

$4.9

$69.3

$25.9

$3.0

$98.2

Garden & Hardware Goods Other Goods & Personal Services Bulky Goods Total

$69.2

$39.8

$5.5

$114.5

$680.9

$215.9

$61.3

$958.1

Source: AECgroup

6.5.5

Floorspace Demand Demand for retail floorspace in Wagga Wagga has been estimated based on retail expenditure and turnover ratio. Average retail turnover per sqm of floorspace has been estimated for each retail category in Wagga Wagga. The rates are lower than capital city averages due to lower population density and retail rents. There is demand for an estimated 143,600sqm of retail floorspace in Wagga Wagga compared with 141,140sqm of occupied retail floorspace. The 2,450sqm shortfall indicates that there is demand for additional retail floorspace including groceries and

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

specialty food. The retail modelling indicates a significant shortfall in food & liquor catering though this is exaggerated by the fact that demand includes all expenditure on eating out while supply does does not include the significant number of pubs and clubs in Wagga Wagga which account for significant expenditure on meals. Based on household expenditure, there is an oversupply of bulky goods in the order 17,600sqm. As noted earlier, many of the larger bulky goods retailers record a significant proportion of their revenue from business to business transactions (such as those between the retailer and tradesmen) which have not been captured in the retail model. Accordingly, this causes the understating of the demand for this type of retail as the model only captures household expenditure. Table 6.8: Floorspace Demand in Wagga Wagga, 2010 Retail Category

Turnover/ sqm

Demand (sqm)

Supply (sqm)(a)

$8,000

36,130

33,858

2,272

$6,000

28,043

16,285

11,758

Clothing & Accessories

$5,000

23,407

26,337

-2,931

Furniture, Houseware & Appliances

$4,500

18,333

20,549

-2,217

Recreation & Entertainment Equipment

$4,500

18,604

19,587

-983

Garden & Hardware Goods

$4,000

1,228

3,918

-2,689

Other Goods & Personal Services

$5,500

Groceries & Specialty Food Food & Liquor Catering

(b)

Total Bulky Goods

(c)

$4,000

Shortfall

17,846

20,603

-2,758

143,590

141,138

2,452

28,618

46,241

-17,623

Note: (a) Occupied retail floorspace. (b) Food and Liquor catering includes meals and beverages at hotels, pubs and clubs. These establishments have not been included in the assessment of supply in Wagga Wagga as they are not defined as retail establishments. Therefore the estimated supply of food and liquor is understated in the above figure. (c) Demand for bulky goods does not include business to business expenditure. Therefore the estimated shortfall of floorspace is overstated in the above figure. Source: AECgroup

There are some areas within Wagga Wagga that record a shortfall between the demand and supply for convenience retail (categorised as groceries & specialty food and other goods & personal services) that is largely serviced by local and neighbourhood centres. The following catchments record an undersupply of convenience retail indicating the need for an expansion of existing centres or the development of new centres:    

6.6

Growth Potential

6.6.1

Growth Signals & Determinants There is significant growth potential for the retail sector in Wagga Wagga evidenced by positive signals in the market including: 

Positive business confidence and outlook in Wagga Wagga with over 60% of retail businesses responding to a recent business survey reporting that they expect conditions facing the retail sector to improve in the next 12 months with 75% expected the sector to improve in the longer term;

Wagga Wagga Retail Growth Strategy 2010-2025 Draft



Low vacancy rates in most centres in Wagga Wagga indicating strong demand for retail floorspace in the shopping centres and main street;



Increased population growth and consumer demand in Wagga Wagga with the PTA projected to record population growth of approximately 12,000 persons over the next 15 years. This population growth will generate significant additional demand for retail goods and services in the Wagga Wagga CBD as well as convenience retail in the growth centres to the north and south west of the City;



Intentions by local businesses to expand operations with over 30% of retail businesses responding to a recent business survey reporting that they have “plans for a significant expansion or modernisation within the next 2 years” with an additional 28% considering it; and



Expressed interest from large international and national retailers to locate in Wagga Wagga with a lack of suitable floorspace having prevented this new investment.

Table 6.9: Population Projections Trade Area PTA STA MTA

2010

2015

2020

2025

63,152

67,038

71,152

75,520

48,018

47,300

46,728

46,189

111,170

114,338

117,881

121,710

Source: AECgroup

6.6.2

Strategic Position & Competitiveness Understanding the current and future strategic position of the Wagga Wagga retail sector and its competitiveness to attract new investment from increased trade is central to assessing the future growth potential of the sector. The following points are noted when assessing the strategic position of the retail sector and its future growth potential: 

Business/tenants: Wagga Wagga boasts an extensive range of retailers including major national retailers, franchises and independent stores. The attraction of businesses to Wagga Wagga will be dependent on strong population growth expectations and a demographic suitable to its product or service range. Wagga Wagga is expected to record an above average population growth and several large national retailers have expressed an interest in locating in Wagga Wagga. There is reported strong tenant demand in the main retail precincts including Baylis Street and the shopping centres, as reflected by low vacancy rates.



Consumers/trade: Maintaining household expenditure in Wagga Wagga is important to the commercial viability of new and existing businesses. Wagga Wagga has a extensive retail range with limited competing retail sectors which results in limited expenditure leakage to other centres and a significant market share from neighbouring LGAs. With major retailers looking to locate in Wagga Wagga, it is expected that trade will remain strong.



Government/planning: Creating an appropriate planning environment is crucial in promoting investment in the retail sector. From Council‟s perspective, outlining a set of planning controls that are attractive to market demands is paramount, including building heights and densities that promote viable investment, active street frontages and best practice urban design to encourage trade at street level. This must be supported by adequate facilitation and assessment skills to ensure responsiveness to the market and developer interests, and to communicate development opportunities.

Investment/development: An investor is focussed on yield which is a function of development costs, rents and vacancy rates. Existing rental yields in the CBD are particularly high, especially for smaller tenancies. While the demand for larger tenancies from national retailers is strong, there is little incentive for owners/developers to provide larger floorplates as the financial return is considerably lower than smaller tenancies.

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

6.6.3

Projected Floorspace Demand There is demand for an additional 31,320sqm of retail floorspace in Wagga Wagga over the next 15 years. This includes demand for 8,735sqm of groceries & specialty food floorspace indicating the need for 3-4 new supermarkets. Demand for food & liquor catering floorspace is approximately 6,480sqm over the next 15 years equating to a large range of new restaurants and hospitality operations. Demand for clothing & accessories, furniture, houseware & appliances and recreation & entertainment equipment indicates sufficient demand for another discount department store and a range of large retailers. Table 6.10: Floorspace Demand Supply Trade Area

Demand

2010

2015

2020

2025

Change

33,858

36,130

38,677

41,646

44,865

8,735

16,285

28,043

29,946

32,144

34,521

6,478

Clothing & Accessories

26,337

23,407

24,837

26,486

28,266

4,859

Furniture, Houseware & Appliances

20,549

18,333

19,363

20,552

21,836

3,504

Recreation & Entertainment Equipment

19,587

18,604

19,688

20,935

22,280

3,676

Groceries & Specialty Food Food & Liquor Catering

(a)

Garden & Hardware Goods Other Goods & Personal Services Total Bulky Goods

(b)

3,918

1,228

1,299

1,381

1,469

241

20,603

17,846

18,967

20,268

21,675

3,830

141,138

143,590

152,778

163,413

174,913

31,323

46,241

28,618

30,257

32,147

34,187

5,570

Note: (a) Food and Liquor catering includes meals and beverages at hotels, pubs and clubs. These establishments have not been included in the assessment of supply in Wagga Wagga as they are not defined as retail establishments. Therefore the estimated supply of food and liquor is understated in the above figure. (b) Demand for bulky goods does not include business to business expenditure. Therefore the estimated shortfall of floorspace is overstated in the above figure. Source: AECgroup

6.7

Opportunities One of the obstacles that Wagga Wagga‟s retail sector faces in regard to future growth is the relatively limited development and redevelopment opportunities within the CBD. In the consultation process, AECgroup was made aware that a number of national retailers would like to penetrate the Wagga Wagga market but are unable to do so as there are no available premises either within the CBD‟s shopping centres or within the main street retailing precincts that can accommodate the large footprints that they require. There are two general scenarios in which an opportunity would arise that could accommodate the development or redevelopment of a site so as to allow a large footprint retailer to enter the Wagga Wagga CBD – either through the amalgamation of a number of smaller sites and their subsequent redevelopment to accommodate a single large footprint retailer, or the „unlocking‟ of key sites currently not utilised for retail use but located adjacent to existing retail centres. The feasibility of the first scenario would be dependent upon a great number of factors outside of the control of Council and would largely rely on the willingness of the owners of the smaller sites to divest their properties, something there is currently little incentive to do given the attractive returns these investments provide. The second scenario is more feasible, but again depends largely

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

upon the willingness of owners to divest their properties and allow for the „unlocking‟ of these sites. The following opportunities identified for future retail development in Wagga Wagga comprise opportunities for development to meet the future retail demand within the CBD and which would be capable of accommodating large format retailers. These opportunities do not include those that would arise from the amalgamation of several smaller sites, nor do they take into account different development scenarios for redevelopment sites which have already obtained development approval (such as the Mill site). 6.7.1

Myer Carpark The carparks adjacent to the Myer store is accessible from O‟Reilly Street and currently services the parking needs of the approximate 10,000sqm Myer store. Comprised of two carparks totally more than a hectare, the site is currently under-utilised. It was learned anecdotally during the consultation process that the car parks are rarely filled to capacity and that a good proportion of the cars within the carparks at any given time belong to people who are not solely shopping at Myer. Since becoming a public company, Myer has begun to implement the policy of divesting its property assets and remaining on their premises as a lessee. Under the assumption that Myer were to divest their property holdings in Wagga Wagga and to remain the tenants of their existing building, the two carparks represent a large redevelopment site of over one hectare. The retail development opportunities for this site would include a retail development capable of accommodating a large footprint retailer or a mix of specialty stores. Other non-retail options for this site would include the development of a commercial office building or a multi-deck carpark capable of accommodating the parking provision for a good proportion of the CBD.

6.7.2

Forum 6 Cinema/Sam’s Warehouse & Carpark There are very limited redevelopment opportunities in the Fitzmaurice Precinct largely due to the prevalence of heritage protected buildings. The lone site within this precinct that has been identified as a future opportunity for redevelopment for a more intensive retail use is the carpark adjacent to, and servicing, the Forum 6 Cinemas and Sam‟s Warehouse. Accessible from Trail Street, the carpark could be redeveloped under two different scenarios. In the first scenario, the existing carpark could be converted into a multilevel carpark to service the Fitzmaurice Precinct; however, current demand for such a provision is unnecessary, future demand for a level of parking provision is, at time of writing, unlikely, and it is can be assumed that this type of development would not be commercially attractive to the owners of the site. In the second scenario, a proportion of the carpark could factor into a larger redevelopment encompassing the building currently tenanted by Sam‟s Warehouse to allow for the development a combined retail premise capable of accommodating a large format retailer. The remaining proportion of the carpark could be retained, or converted into a multi-deck carpark to meet the parking provision of this new retail premise. It should be noted that at time of writing, there is not sufficient demand to justify this type of redevelopment in the Fitzmaurice precinct and that the provision of this type of retail would generally be out of character for the precinct. There also exists that potential that a national retailer would not choose to locate on this site, preferring rather to locate within the Baylis Street CBD Precinct. However, with the forecast increase in demand for retail provision in the Fitzmaurice Precinct in line with the increase in population in the Estella and Boorooma growth areas, as well as the development of the Riverside Precinct, there is the potential for the reaching the critical mass of demand necessary to justify this development.

6.7.3

Professional Development A minor theme discussed in the consultation process with key stakeholders was the level of customer service within the Wagga Wagga retail sector, how it is perceived as relatively poor and how there exists the opportunity, and need, to provide professional 33

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

development aimed at improving the customer service provision within Wagga Wagga. Professional development training aimed at improving the merchandising, customer service and the overall retail experience leads to higher quality staff and can assist with employee retention as well as increasing the potential for the attraction of quality retail staff. Improving the level of customer service within Wagga Waggaâ&#x20AC;&#x;s retail sector can improve the retail experience for the consumer over the long term and potentially contribute to higher levels of future expenditure. Improving the level of customer service within Wagga Waggaâ&#x20AC;&#x;s retail sector through the provision of professional development training is discussed in more detail in the Action Plan in Section 9. Figure 6.5: CBD Retail Opportunities

Source: AECgroup

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

Commercial Office Assessment

7.1

Supply Assessment The commercial office sector is a major employer and occupier of floorspace in Wagga Wagga, with the majority of commercial office floorspace located in the CBD. The CBD generally provides office space for local commercial and professional services businesses, mainly on small office floorplates on ground and first level premises. There are several purpose-built office buildings in the CBD including: 

Council: Purpose built administration centre on Morrow Street



Johnston Street Offices: Four storey office buildings on Johnston Street.



State Government Building: Five storey office building on the corner of Baylis and Morgan streets.



Morrow Street: Finance and government offices on the corner of Baylis and Morrow streets.

Over the last decade, there has been limited new office space built in the CBD which has seen numerous residential dwellings on the edge of the CBD (including Peter, Tongaboo and Trail streets) transformed into office space for medical, financial, legal and personal services. There is no significant purpose built commercial office space outside the CBD with real estate agents, medical and personal services primarily using retail space within neighbourhood centres. There is overlap between office and retail floorspace as numerous service businesses (such as real estate agents, accountants and lawyers) occupy traditional ground floor retail space. For this assessment, office space has been defined as dedicated office buildings, converted residential buildings used for offices, retail space occupied by service businesses and floorspace above street level. There is an estimated 93,946sqm of commercial office floorspace in Wagga Wagga with 10,825 of vacant floorspace equating to a vacancy rate of 11.5%. 7.1.1

Tenancy Mix Wagga Wagga is the administrative centre for the Riverina region and is home to a large range of businesses and State and Commonwealth government agencies that service the local community and wider region. There were an estimated 312 businesses and government agencies occupying commercial and retail floorspace in Wagga Wagga including: 

Professional Services: Approximately 30% of tenants including accountants and legal services.



Finance and Insurance: Approximately 20% of tenants including banks, financial advisors and insurance brokers.



Health and Medical: Medical services and community welfare organisations accounting for an estimated 18.6% of tenancies.



Public Sector: Government agencies and offices accounting for an estimated 12.3% of tenancies.



Property and Real Estate: Local real estate and property services businesses accounting for an estimated 11.9% of tenancies.

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

Figure 7.1: Commercial Office Tenancy Mix

Transport & Postal

2.6%

18.6%

0.4% 18.6%

Information Media & Telecommunications

Financial & Insurance Services 4.5% Rental, Hiring and Real Estate Services

Professional, Scientific and Technical Services

12.3%

Administrative and Support Services

11.9%

1.9%

Public Administration and Safety Education and Training Health Care and Social Assistance

29.4% Source: AECgroup

7.2

Competing Centres Wagga Wagga is the commercial and administrative centre for the Riverina region and thus the preferred location for the majority of professional service and government agencies looking to locate an office within this region. National companies looking to locate one office in the Riverina Region are very likely to choose Wagga Wagga due to its central location, large population base and established commercial sector. Other centres that may be considered include: 

Canberra: Canberra is the major commercial and administrative centre in NSW outside Sydney and services a large catchment extending through South Eastern NSW and the Riverina. Canberra competes with Wagga Wagga with businesses deciding whether to decentralise operations and establish an office in Wagga Wagga to service the Riverina region on having one office in Canberra to service the entire region.



Albury: A similar sized city to Wagga Wagga and competes with Wagga Wagga for regional government services and commercial businesses. The majority of government agencies are located in both Wagga Wagga and Albury though some have chosen Albury for larger operations. Albury also has the advantage of providing access to both NSW and Victorian markets.



Griffith: Not a major competitor to Wagga Wagga with the majority of government agencies and commercial services businesses focuses on the local community rather than the wider Riverina Region.



Young: Not a major competitor to Wagga Wagga with the majority of government agencies and commercial services businesses focuses on the local community rather than the wider Riverina Region.

Smaller towns surrounding Wagga Wagga such as Tumut, Gundagai, Junee, Temora, Cootamundra and Narrandera only compete with Wagga Wagga for local professional services.

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

7.3

Industry Trends Trends in the development of office space provide a useful insight into the potential commercial office space market in Wagga Wagga. As an overview, there is evidence of increasing propensity for demand for efficient, attractive and “green” office space – in short, higher quality office space than what is available. Not only will these trends influence the demand for space in Wagga Wagga, but also the type of space that will be demanded.

7.3.1

Emergence of Business Parks A major trend affecting the demand for multi-storey office buildings in centres where office tenants have traditionally located is the development of business parks providing campus-style office accommodation. These parks are generally located away from centres on large sites with more space, lower cost bases for development, lower rents, high quality landscaping, visually pleasing office buildings, and more onsite car parking. These trends have not had a major effect in Wagga Wagga which has no business park development suitable for office businesses.

7.3.2

Home-Based Office Trends Overall, employees working at home for more hours than elsewhere (home based business operator) accounted for around 7.0% of all persons employed in Australia in June 2001, almost double that estimated in 1995 (3.7%). According to Home-Based Business Australia (HBBA), 12% of households in Australia operate a business from home with the sector reported to be growing strongly. The rapid growth in home-based businesses is due to factors such as: 

Downsizing and outsourcing in large organisations;



High unemployment levels;



Increasing participation of women in the workforce;



Potential of new information and communications technology; and



Changing lifestyle expectations.

Telstra estimates that 25% of the Australian workforce will be working from home in the next decade, translating to approximately two million people, or three times as many as recorded in 2001. 7.3.3

Green Office Buildings It is also noted there has been a recent movement towards „green‟ office buildings which reduce environmental impacts and have a focus on sustainability. The trend has been driven by regulators looking to protect the environment and commercial cost reductions. Office buildings and entire business parks are now being specifically designed to reduce power usage, water usage and emissions while still improving waste management. New buildings are not only providing efficient, technological and modern space, but also attractive working environments for workers, incorporating recreational elements such as a lap pool, or small relaxation or “green” areas for workers. Providing natural ventilation and lighting within buildings in response to demands for environmentally friendly space is also increasingly popular in office space design. The NSW Government Sustainability Policy outlines that all new or refurbished government offices, achieve and maintain a 4.5 NABERS Energy and Water rating from 18 months of the first occupancy, where cost effective.

7.3.4

Workspace Ratios Perhaps one of the most significant factors affecting planning the change in workspace ratios. During the property boom large, impressive office space had significant implications for built, and increased the workspace ratios from around 14sqm

for office markets has been of the 1980‟s, demand for the style of office premises per employee in the 1970‟s 37

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

to around 20sqm by the early 1990‟s. Restructuring, technological and infrastructure changes, demand for open plan environments rather than offices, and more recent trends towards initiatives such as hot desking and telecommuting contributed to a downward movement in the workspace ratios. In 2001 the City of Sydney survey reported the „knowledge based‟ industries had an internal area ratio of 23.82sqm per employee. The internal workspace ratio accounts for non-workspace uses in the office buildings. When compared with the office workspace ratio of 19.65sqm per employee, this suggests an average of 3.06sqm per employee of non-workspace uses. 7.3.5

Increasing Technology The demand for economical, efficient space has also seen the advent of buildings that cater for smaller scale premises and offer shared facilities such as meeting rooms, conference and video facilities, mail rooms, telecommunications, general storage and short term archiving space on a user pays basis. Ensuring modern premises incorporate sufficient infrastructure including the provision of telecommunications equipment, intranets and satellite links is also an important aspect of the design of office complexes. There are a couple of serviced office operations in Wagga Wagga including Fitzmaurice Street Business Centre and Morgan Street Serviced Offices.

7.3.6

Locational Criteria for Office Tenants Many factors are generally involved in making decisions about where to locate and establish businesses, including consideration for the following: 

High quality public domain;



Cafes and restaurants;



Access to retail and major CBD activities;



Access to a skilled workforce;



Mix of commercial offerings;



Appropriate zonings and planning controls;



Quality office space that is new with modern design and telecommunications;



Strategic location close to customers and suppliers;



Access to appropriate parking; and



Likely expansion potential.

7.4

Growth Potential

7.4.1

Growth Signals & Determinants Like retail, the office growth potential of Wagga Wagga into the future depends on the ability to attract new investment, tenant interest and consumer demand, which in turn is related to a number of growth determinants and internal/external factors. Wagga Wagga is well established as the commercial and administrative centre of the Riverina Region. As a result, the growth of the Wagga Wagga office sector will be premised largely on local population growth rather than the potential to increase the City‟s role as a commercial centre. The government and administrative sector has reached close to its threshold with a large number of agencies already located in the CBD. Therefore, the CBD has reached a point with future growth in office space should be driven primarily by population growth and the associated need for local commercial, professional and support services. On the surface, the current office vacancy rate of 11.5% in Wagga Wagga indicates that there is an oversupply of office space. The majority of vacant office space is characterised by lower quality and older buildings (often heritage listed). This has led to many professional service businesses located in transformed residential buildings.

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

7.4.2

Strategic Position & Competitiveness The future role of Wagga Wagga will include it remaining to be the commercial and administrative centre in the Riverina region. The City is best placed to meet the growing population of the PTA and retaining a regional centre role to the STA. Projected population and employment growth will result in the need for new office space though significant consultation and planning is required to ensure it is desirable to prospective tenants. The Wagga Wagga CBD is a well established commercial centre and is characterised by heritage and older buildings. There has been limited office development in the CBD in the last decade with the majority of dedicated office buildings (other than the Council administrative building) constructed more than 20 years ago. Numerous medical and professional services have chosen to locate in the fringe of the CBD in transformed residences. Commonwealth and NSW Government environmental and sustainability policies outline the need for government offices to be energy and water efficient. There is very limited new office space in Wagga Wagga which may place pressure on government offices to move to neighbouring regional centres such as Albury in search of better quality and sustainable buildings.

7.4.3

Projected Floorspace Demand Given the growth potential of the office market in Wagga Wagga being largely determined by population growth, the preferred methodology to estimate future office floorspace is a per capita approach. AECgroup has estimated a future ratio of 0.8sqm of office floorspace per capita in the MTA as a basis for projecting future demand. This figure is based on the role of Wagga Wagga as a regional commercial and administrative centre. Based on the ongoing maintenance of this ratio through both small and larger office space tenants, there would be demand for an estimated 5,000sqm of additional floorspace over the next 15 years (see Table 7.1). Table 7.1: Office Floorspace Demand Projected population (MTA) Average sqm per capita

2010

2015

2020

2025

112,643

115,772

119,589

123,671

0.8

Floorspace demand

90,115

92,618

95,671

98,937

Existing

93,947

1,724

4,991

Additional Required Source: AECgroup

7.5

Opportunities As discussed before in Section 7.4, there does not appear to be a significant forecast need for additional commercial office space within Wagga Wagga. However, it is likely that there exists in Wagga Wagga a latent demand for higher quality office space than that which is currently available. It has been noted that over the last several decades, the only commercial office development has been the Wagga Wagga City Councilâ&#x20AC;&#x;s administrative office on the corner of Baylis and Morrow Streets. Were there to be an increased provision of higher quality office space, whether through the refurbishment of existing buildings or through the redevelopment of a brownfield site, this could create a flow of existing commercial office tenants into the higher grade offering as well as the attraction of regional government office who might otherwise be dissuaded from locating in Wagga Wagga due to the lack of suitable commercial office accommodation. This could in turn free up lower grade commercial office buildings for redevelopment into other land uses including use as retail premises or centrally located multi-deck carparks. Given the general large footprints required by commercial offices and the necessary parking provision (1 space per 40sqm GFA), at time of writing there are only a handful of opportunities within the Wagga Wagga CBD precincts for the development of modern and green star rated commercial office space.

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

7.5.1

Myer Carpark The carparks adjacent to the Myer store is accessible from Oâ&#x20AC;&#x;Reily Street and currently services the parking needs of the approximate 10,000sqm Myer store. Comprised of two carparks totally more than a hectare, the site is currently underutilised. AECgroup learned anecdotally during the consultation process that the car parks are rarely filled to capacity and that a good proportion of the cars within the carparks at any given time belong to people who are not solely shopping at Myer. Since becoming a public company, Myer has begun to implement the policy of divesting its property assets and remaining on their premises as a lessee. Under the assumption that Myer were to divest their property holdings in Wagga Wagga and to remain the tenants of their existing building, the two carparks represent a large redevelopment site of over one hectare. As discussed in Section 6.7.1, were this site to be available for development, one of its potential uses could be for the provision of a four-storey, green star rated commercial building with up to 9,000sqm of commercial office space with one level of carparking, with additional parking to be provided by the portion of the existing carpark that would be retained for this use.

7.5.2

Fitzmaurice Precinct Woolworth Carpark Framing the entrance to the Johnston Street carpark for the Fitzmaurice Precinct Woolworths (whose main entrance is located on Gurwood Street) are two four-storey low grade commercial buildings, which are estimated to have a combined gross floor area of 11,200sqm. These buildings represent an opportunity for a comprehensive refurbishment to a higher calibre of office space. Conversely, these buildings could be demolished and new higher grade commercial offices could be constructed on the existing footprints. There would be no need to utilise a floor in either building for carparking given their use of the adjacent carpark would remain the same. New commercial offices on this site would be attractive to potential tenants due to their location adjacent to the lagoon, the quick pedestrian access to both of the CBD retail precincts and the higher quality of commercial office premises they would offer. Figure 7.2: CBD Office Opportunities

Source: AECgroup

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

Retail Strategy Wagga Wagga City Council and its surrounding secondary catchment records a population of approximately 113,000 persons with a projected annual retail spend of approximately $950 million in 2010 including rogue expenditure. To support projected population growth and improved amenity for Wagga Wagga‟s residents through improved service provision, it is estimated that there is demand for approximately 36,350sqm of additional retail development over the next 15 years, with this demand spread across most of the entire retail spectrum. The aim of the Wagga Wagga Retail Strategy is to provide a comprehensive and impartial analysis of the current retail hierarchy, identify the future retail requirements of Wagga and to recommend the best manner with which to achieve the sustainable provision of the City‟s future retail requirements. This analysis has comprised a comprehensive view of the Wagga Wagga retail sector and has considered the many aspects of the retail sector, including growth trends, potential opportunities and constraints as well as the needs and objectives of retailers, Council and the greater Wagga Wagga community. There is no one-size-fits-all retail strategy. Rather, the strategy must specifically address the needs of the retail sector, and be structured in a way that can be adapted to potential changes in market conditions, regulatory and macroeconomic environments and the general needs of the community that it services.

8.1

Aims and Objectives Future retail development in Wagga Wagga should be guided by the need for additional retail development and an evaluation of the impacts of any additional development on the existing retail market. The aims of the retail strategy are: 

Reinforce Wagga Wagga as the Riverina‟s key regional centre providing the leading supply of retail facilities and services;



Promote the orderly development of retail floorspace in the existing shopping centres of in the CBD, South City, Kooringal, a new neighbourhood centre in Estella and a local centre in Tatton;



Provide recommendations for the planning framework upon which future retail facilities will be planned, assessed and developed; and



Provide recommendations on potential placemaking activities within Wagga Wagga‟s retail centres that can enhance the retail experience.

The key objectives of the Wagga Wagga Retail Growth Strategy 2010-2025 are: 

Maximise the efficient use of existing and planned land zoned for retail and commercial purposes ;



Reinforce nodes of community interest thereby strengthening the development of a cohesive and rational retail market;



Encourage economic vitality through increased linkages between retail centres and with other non-retail precincts;



Replacement or refurbishment of low quality retail space with higher quality retail space by encouraging landlords to increase reinvestment, in turn encouraging retail tenants to remain in Wagga Wagga;



Encourage retail development to locate within nominated shopping districts and appropriately zoned development sites;



Encourage the continued provision and distribution of suburban shopping centres to serve local communities; and



Improve parking and access in line with consumer requirements.

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

8.2

Centres Hierarchy The existing retail hierarchy of Wagga Wagga is well established and, by all accounts, is working well for the greater retail sector. AECgroup does not believe that over the next fifteen years to 2025 that there will be a need for any significant structural change to the existing hierarchy aside from the expansion of several centres and the establishment of a new suburban centre in Northern Wagga Wagga to service the growth areas in that region and a small local centre in Tatton. Measures should be taken to ensure the integrity of the hierarchy, particularly in regard to the supremacy of the retail precincts within the CBD. Long term, above-average population growth will equate to a greater level of retail expenditure and drive the need for further retail provision within Wagga Wagga. This demand will largely be focused on the suburban centres, partly due to their proximity to the designated growth areas of Lloyd, Estella and Boorooma, and partly due to an expected decline in the rural population that makes up much of the Wagga Wagga retail sectorâ&#x20AC;&#x;s secondary catchment. A map of the Wagga Wagga retail hierarchy indicating the centres that will need to expand and any additional centres that will need to be developed, is provided below in Figure 8.1.

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

Figure 8.1: Future Retail Hierarchy

Source: Wagga Wagga City Council (2010), AECgroup

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

8.3

Vision The vision of the future Wagga Wagga retail sector that AECgroup describes below is an amalgamation of the future desires of the local and state government and the local retail community, as extracted from the consultation process, and the realities of the needed future requirements for increased retail provision. The future vision of the Wagga Wagga retail sector is one which goes beyond simply satisfying the retail needs of the customer. Wagga Wagga needs to balance progress with the retention of its past and the need to preserve the character that makes Wagga Wagga unique. The retail precincts within the CBD, and the CBD itself, should reveal the identity of Wagga Wagga, with its heritage protected streetscapes reflecting its history and giving its present a sense of place. Retail centres and their surrounds should be clean, tastefully presented, welcoming and allow for the incorporation, temporary or otherwise, of other uses so as to become public spaces. There is increased pedestrian access and movement throughout the CBD precincts, with adequate multi-deck parking located throughout in centralised positions. The suburban centresâ&#x20AC;&#x; primary purpose remains to service the convenience retailing needs of their catchments, with the larger suburban centres incorporating public and civic uses thus creating a sense of place. Higher order retailing needs will continue to be serviced by the CBD precincts and the out-of-centre bulky goods districts. The vision of the Wagga Wagga retail sector is one that acknowledges its past, embraces the present and takes a progressive stance toward providing for the future a modern and sustainable retailing experience that not only meets needs of the consumer, but which also contributes to the cohesion of the greater Wagga Wagga community.

8.4

Strategy Overview The Strategy for guiding the future growth of the Wagga Wagga retail sector is based around planning, investment and placemaking. The implementation of the Retail Strategy will be done in partnership with local retailers, the Wagga Wagga City Council and other government agencies. In order for all of the stakeholders to achieve their objectives for the future development of the Wagga Wagga retail sector, an open platform of communication and cooperation between all stakeholders needs to be fostered and maintained. Careful and efficient planning will ensure that the correct type and quantum of retail provision are developed where and when they are needed and ensure that future retail and commercial development does not infringe on, or change, the character of the Wagga Wagga CBD, including its streetscapes. Future investment in the retail sector will need to come from both outside retailers looking to penetrate the Wagga Wagga market and from the owners of the existing premises through their reinvestment in the existing retail premises. Reinvestment by the owners of retail premises will improve the quality of existing retail floorspace and increase the potential of the Wagga retail sector to attract outside investment and thus further diversify and improve the retail provision offered. Placemaking activities will facilitate a greater integration of the retail aspects of the Wagga Wagga CBD and the suburban centres with the greater Wagga Wagga community by making them more attractive and pedestrian friendly and through the increasing their functionality through the introduction of non-retail activities and facilities.

8.4.1

Planning It was evident throughout the consultation process and literature review for the Strategy that there are strong views within both the public and private sector of the role that the existing future planning regime of Wagga Wagga City Council will play in regard to the future growth and development of its retail sector. Some, particularly those within the development community, feel that the existing planning controls are restrictive and will hinder the ability of future retail development to respond to market needs. Others feel that the planning controls are appropriate and necessary in order to maintain the character and streetscapes that make Wagga Wagga unique. AECgroup believes that each has a valid point and that further communication is necessary in order to reach a point of compromise.

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

The crux of the issue lies with the notion of increasing densities of land uses within the CBD. Without an efficient use of available and appropriately zoned parcels of land to accommodate higher densities of retail and commercial properties, it is logical to assume the provision of these land uses would need to be developed outside of the CBD in and around existing and future suburban centres, which in turn could lead to a destabilisation of the retail hierarchy. Accordingly, it is in the best interest of Council to ensure that the bulk of these future land uses are kept within the CBD. In order to achieve this the most efficient and effective use of available lands will be necessary. In this context, it will be crucial moving forward to determine the most appropriate way to balance the need for higher density land use within the CBD while maintaining its traditional character and streetscapes. AECgroup does not recommend any changes to the existing planning regime. Both the draft Wagga Wagga City Council Development Control Plans (dWWDCP 2010) and the draft Local Environmental Plan 2010 are, at time of writing, on the cusp of being gazetted by the New South Wales Department of Planning and are unlikely to be changed over the medium term. The AECgroup does recommend, however, that special consideration be given to the site-specific attributes and net economic, social and environmental benefits of future development applications for retail and commercial development within the CBD that fall outside of the Councilâ&#x20AC;&#x;s planning controls. AECgroup considers that much of the difficulty with being able to supply the necessary provision of retail floorspace to meet the demand within the CBD lies outside of the realm of planning, but rather with the quantum of available property for redevelopment within the existing CBD and the difficulty with amalgamating several smaller sites to allow for redevelopment of a significant size. 8.4.1.1

Geographic Definition of the CBD The CBD of Wagga Wagga is defined in the dWWDCP 2010 as being bound by Travers Street to the north, Tarcutta Street to the east, Best Street to the west, and the Railway Station area the South. Over the last several decades, the footprint of the CBD has not significantly increased in size in line with the substantial growth of the Cityâ&#x20AC;&#x;s population and retail and commercial sectors. While this containment of the CBD footprint has supported the growth of the suburban centres to a degree, it has also led to the encroachment of certain land uses into other areas traditionally utilised for non commercial/retail uses (such as the conversion of residential properties into commercial or retail space). While the development of precincts adjacent to the CBD, such as the Riverside and the Mill Site projects will increase its footprint, it is clearly evident that future growth of the CBD footprint will be constrained by natural boundaries (the Murrumbidgee River), transport infrastructure (train line) and by other land uses (residential to the west of the CBD). Accordingly, the future growth in the provision of all land uses within the CBD will be largely dependent upon the intensification of those land uses upon a stagnant quantum of land, and thus place available and appropriately zoned land at a premium. It is recommended that Council develop a strategy for facilitating the sustainable development of the CBD to allow for the necessary provision of commercial and retail space to meet future demand while ensuring that the uses of these lands is efficient and does not infringe or change the inherent character of the CBD and its streetscapes.

8.4.1.2

8.4.1.3

Parking The parking provision set out in the dWWDCP 2010 requires all development to provide one carpark for every 23sqm of retail space or one carpark for every 40sqm of

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

commercial office space. As the water tables of the Wagga Wagga CBD and Fitzmaurice District make the provision of underground parking unfeasible, future retail or commercial development of any substantial size would likely necessitate multilevel carparks. Coupled with the planning controls on height restriction, the parking requirements have the potential to make most forms of retail and commercial development unviable. Public transport in Wagga Wagga is not heavily utilised and because the vast majority of consumers that come to the CBD do so by car, the provision of adequate carparking is necessary. A scenario to address the carparking issues would be for Council to develop and operate a single large multi-deck carpark set in a central location within the CBD (or several smaller multi-deck carparks dispersed in strategic locations throughout the CBD) that would be funded through a variety of funding strategies that are discussed below. The carpark would service the entire CBD and potentially free up the parking requirements for future developments sites where the viability of development may be adversely affected by the required parking provision. It should be noted that in the 2008 Wagga Wagga CBD Parking Strategy, it was recommended that the provision of multi-deck carparks (either Council owned or attached to retail developments) should be considered as part of a medium to long term strategy aimed at increasing the provision of adequate carparking for future increases in land use development within the CBD. There are a number of strategies that can be considered in order to fund the increased parking provision including the development of council owned and run multi-deck carparks. As identified within the 2008 Wagga Wagga CBD Parking Strategy, these strategies include: 

Introducing parking charges for on-street and off street parking throughout the CBD;



Selling off surplus Council owned land not suitable for carparking when consolidating car park locations;



Using levies obtained from Section 94 contributions from new development; and



Using revenue obtained from parking fines.

A further funding scenario is to obtain car parking levies from developers in lieu of off street parking provision within proposed new retail and commercial developments, a strategy identified in the dWWDCP 2010. This scenario would entail Council to undertaking a merit-based assessment of potential developments on a case-by-case basis and consider accepting additional developer contributions and relaxing the parking provision for specific developments so as to ensure their viability and ensure that they provide the necessary quantum and types of retail floorspace necessary to meet the future retail need. 8.4.2

Development and Investment in Specific Retail Centres

8.4.2.1

Wagga Wagga CBD The Wagga Wagga CBD sits atop the Retail Hierarchy and is the main regional retail centre servicing a large secondary catchment area while also servicing the higher order retail needs of residents residing within the primary catchment. The CBD is the predominant retail centre within the Riverina region and should be continued to be promoted as such. There is an existing shortfall of retail provision within the CBD to meet demand and it can be expected that the eventual mixed use development of the mill site at the southern boundary of the CBD will provide additional retail floorspace to meet this demand. There are also several possible future retail development opportunities within the CBD (discussed in Sections 6.6); however the “unlocking” of these sites to allow for their redevelopment into further retail space is dependent upon a number of extraneous factors that cannot be accurately forecast or predicted. Ceteris paribus, future retail growth within the Wagga Wagga CBD is likely to be constrained by a number of factors such as the existing lack of redevelopment opportunities, the quantum of heritage protected buildings, the existing carparking requirements and the difficulties with amalgamating smaller sites to accommodate larger footprint retailers looking to enter the Wagga Wagga market.

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

The potential limit on how much the retail sector within the Wagga Wagga CBD can grow gives rise to the opportunity to bring about an intensification of retail expenditure within this precinct to accommodate the forecast growth in expenditure. Simply stated – as there are likely to be limitations on the continued expansion of the CBD retail market, the onus should be placed on how to ensure that shoppers spend more time within the CBD retail precincts and in turn spend more money. In this manner, a higher expenditure and retail demand can be accommodated within a retail areas whose gross floorspace is relatively stagnant. This intensification of the shopping experience can be achieved through well planned placemaking activities. It is recommended that Council and the retail community work together to develop and implement a comprehensive plan for undertaking placemaking activities to enhance and invigorate the retail experience for the Wagga Wagga CBD. An improved sense of place can contribute not only to higher levels of retail expenditure within a set area, but also instil a sense of pride and community ownership. It is recommended that Council develop an initiative to encourage landlord reinvestment so as to provide a superior retail shopping experience and to improve trading positions, the visual aesthetic of retailing and competitiveness of retailers in the Wagga Wagga CBD precinct. Coupled with placemaking activities to improve the general attractiveness of the CBD precinct and its retail centres, reinvestment in existing retail premises by owners will improve the quality of floorspace of the main street retailer and make the CBD precinct as a whole a more attractive proposition for future investment by national and international retailers that are currently not positioned within the Wagga Wagga market. 8.4.2.2

Fitzmaurice Precinct The Fitzmaurice Precinct can be differentiated from the southern extent of the Wagga Wagga CBD on a number of levels. It‟s dislocation from the northern extent of Baylis Street is not only physical (as per the lagoon), but also psychological. The two precincts are of distinctly different characters with Fitzmaurice Street rightly described as the cultural heart of Wagga Wagga. Given the prevalence of heritage protected buildings and even greater potential difficulties with providing adequate parking within the Fitzmaurice Precinct, it is unlikely that the two CBD precincts can ever be amalgamated into a single CBD entity. However, this differentiation in the characters and the retail, commercial and cultural offerings is precisely what is of benefit to both of the Wagga CBD precincts, particularly the Fitzmaurice Precinct. The many traits of the Fitzmaurice Precinct that make it the cultural heart of Wagga Wagga and comprise its points of difference should be promoted and leveraged to allow for it to reach its full potential as an alternative retailing and entertainment centre. The current character of the retailing within the precinct is eclectic and is home to very few national retailers. There is a prevalence of small commercial offices and shop top housing and a high density of eateries and pubs relative to the rest of the City. The evening brings about a noticeable increase in activity within the Fitzmaurice Precinct, with its many restaurants and pubs attracting people from all parts of Wagga Wagga. The retailing sector in Fitzmaurice Precinct will likely always attract independent and smaller retailers who don‟t rely on the volume of customers that many of the retailers in other parts of Wagga Wagga rely on in order to be profitable. With the exception of some of the larger format retailers in this precinct (Woolworth and Sam‟s Warehouse), retail in the Fitzmaurice Precinct is not characterised by convenience shopping; rather consumers are attracted to the retailers of the Fitzmaurice Precinct because they offer a different kind of shopping experience and products that cannot be found in other parts of the city. It is this key point of difference – that the Fitzmaurice Precinct and its retailers offer a unique experience – that needs to be promoted. Placemaking activities to enhance the character of the Fitzmaurice Precinct as the cultural heart of Wagga Wagga include continuing to improve the streetscape of Fitzmaurice Street, the introduction of regularly scheduled markets (possibly as an alternative venue to the Myer carpark) and a better connection with the Murrumbidgee River, including the Riverside Precinct. Over the medium to long term (8-15 years), there is likely to be an increased demand for retail provision within the Fitzmaurice Precinct in line with the increasing population in the Estella and Boorooma growth centres north of the CBD. However, much of this

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

demand, particularly for convenience retail, will be offset by the recommended establishment of a new neighbourhood shopping centre in Estella (see Section 8.4.2.5). 8.4.2.3

South City Shopping Centre South City Shopping Centre has the most to gain of any of the suburban centres by the continued growth of the population of Wagga Wagga. Firstly, it is the best positioned of the four shopping centres in Wagga Wagga‟s southwestern suburbs to capture the increase in retail expenditure that will arise from the planned residential development in the Lloyd growth centre. Secondly, it has the room to grow. Unlike Ashmont, Turvey Park and Tolland Shopping Centres – all of which have reached or are nearing their capacity of retail provision, South City has several hectares of undeveloped land surrounding it that are zoned for retail use. South City will need to expand its size to accommodate an increase in retail provision to meet the demand from the sizeable increase in population within its catchment area. To meet this increase in demand, an expansion of South City to accommodate a full line supermarket and the addition of several specialty shops is already planned. Approximately 4,500 new residents are estimated to reside in the Lloyd growth centre upon completion of its development, and though much of the expenditure from this additional population can be expected to utilise the Wagga CBD to meet their discretionary retail needs, South City will be the suburban shopping centre that they will most likely utilise for their convenience shopping needs. By the year 2020, there will be sufficient demand within South City‟s catchment to justify the further expansion of the centre including a third supermarket and potentially the location of a discount department store (up to 5,000sqm). Given the relative strength of the retail market of the Wagga Wagga CBD and the substantial catchment that South City will draw from, it is unlikely that the introduction of higher order retailing into this shopping centre would bring about a destabilisation of the City‟s retail hierarchy. It is recommended that a discussion be opened between Council and the owners of South City about the alternative utilisation of some of the lands in and around the shopping centre. The introduction of public or civic uses (knowledge centres, park, playground, plaza, etc.) could provide benefit to the owners and retailers of South City, the Council and to the community that utilises and lives around South City. This is discussed in more detail in Section 9.

8.4.2.4

Kooringal Shopping Centre The Kooringal Shopping Centre is the most diversified of the suburban shopping centres in that a significant proportion of its retail and commercial mix is taken up by tenants that do not trade in groceries, specialty food and other convenience retail. This is a reflection of the loyalty of the demographic of the shopping centre‟s catchment area to these non-convenience retail operators and also contributes to the centre‟s convenience retailing provision relative to the current demand of its catchment. According to the AECgroup‟s proprietary retail model, there is currently a demand for approximately 5,600sqm of groceries and specialty food retail for the Kooringal Shopping Centre‟s catchment area which provides a sharp contrast to the centre‟s current provision of approximately 2,200sqm of this type of retail. It can be assumed that this shortfall is leading to increased leakage from the catchment with the expenditure spilling into the CBD‟s supermarkets as well as into Lake Village Shopping Centre. Kooringal Shopping Centre has addressed this significant existing shortfall in grocery and speciality food retailing with a planned expansion to accommodate a full line supermarket. The aforementioned proposed expansion will increase the grocery and specialty food retail provision within the Kooringal catchment area to approximately 4,000sqm, yet this increased provision will still fall short of meeting both the current and future demand, with the latter forecast to increase to 6,200sqm by 2025 equating to shortfall of 2,200sqm. Given the well established and dense residential land use surrounding the centre and uncertainty about the feasibility of a further expansion of the shopping centre, it is likely that this catchment area will continue to have an undersupply of this type of retail provision unless another centre is developed.

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

There are opportunities for placemaking activities within the Kooringal Shopping Centre to build on its existing central plaza, tenancy mix and loyal customer base. These are discussed in more detail in Section 8.4. 8.4.2.5

Establishment of a Local Shopping Centre in Tatton As mentioned in Section 6.6.3, the development of a local shopping centre of approximately 1,500sqm has been approved for the suburb of Tatton, which is located within the Kooringal Shopping Centre‟s catchment area. Should this shopping centre be developed, it would absorb the majority of the 2,200sqm of excess demand for convenience retailing within the Kooringal Shopping Centre‟s catchment area. As such, it is recommended that the centre be supported as a local centre in the retail hierarchy.

8.4.2.6

Establishment of a Suburban Shopping Centre in Estella There is a current population of approximately 3,000 people in the northern catchment of Wagga Wagga which comprises the suburbs of North Wagga Wagga, Estella and Boorooma. The latter two are two of the three growth regions earmarked for future residential development, which when combined are expected to yield approximately 3,000 new homes and approximately 6,400 new residents over the next fifteen years. With its current population, this catchment of North Wagga Wagga currently demands approximately 1,900sqm of convenience retail floorspace (grocery, specialty food and personal services), equivalent to a small neighbourhood shopping centre of a similar size to the Forrest Hill Shopping Centre. The catchment‟s demand for convenience retail upon the completion of the development of the Estella and Boorooma growth region will be approximately 7,500sqm, the equivalent of the South City Shopping Centre following its planned expansion. The approximate staging schedule for the development of the Estella and Boorooma growth regions has not yet been made publically available, though Council has advised that residential development in Boorooma growth region north of the CBD is likely to commence (on a small scale) in late 2010, concurrent with the commencement of residential development in the Lloyd growth region in the city‟s southwest. However, while development is slated to commence in Boorooma later this year, it has been indicated that, over the short to medium term (3 to 5 years), the bulk of residential development and population growth within Wagga Wagga will be focused in the Lloyd growth area. It is recommended that a neighbourhood shopping centre of between approximately 2,500 and 4,000sqm be established within the Estella and Boorooma growth regions over the medium term (2014-2016) as this will service the existing population and be well positioned to capture the demand from the growing population as these growth areas further develop. A centre of this size will still not completely meet the demand from the catchment area, but it can be assumed that, given the proximity of the growth areas to the Wagga Wagga CBD, a good portion of the demand will be absorbed by the CBD precincts as some of the population of the North Wagga Wagga catchment will be likely to combine their convenience shopping with their higher-order retail and commercial needs in the CBD. It is recommended investigation into the establishment of a neighbourhood shopping centre in Estella at the junction of the Olympic Highway and Boorooma Street begin within the next three years and that an objective be set to have the centre operational by 2016. It should be noted that a quantum of land at this location able to accommodate a local centre of up to 4,000sqm has already been zoned by Council for future retail use.

8.4.3

Marketing Strategy to Facilitate Increased Investment A marketing strategy for attracting further investment in Wagga Wagga‟s retail sector should be developed and implemented alongside the implementation of Wagga Wagga‟s Retail Strategy. The aim of the marketing strategy for Wagga Wagga‟s retail sector is to position Wagga Wagga as the preferred destination for future retail investment in the Riverina Region of New South Wales, and in particular, to minimise the impacts of potential developments by competitors. To best achieve this, a Marketing Strategy should be based on the SWOT analysis, with the goal being to minimise threats and capitalise on

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

business opportunities and interest, and to maintain and preferably increase Wagga Wagga‟s share of total retail investment in the region. Wagga Wagga‟s attractiveness as an investment destination is evidenced by the recent approval of further retail development at the Mill site and the significant developer and retailer interest in further development within its CBD precincts. 8.4.3.1

Target Markets and Development Opportunities Due to its significant regional role, well-developed infrastructure and facilities, Wagga Wagga has the ability to attract investors of any retail type and scale, including national retailers requiring large footprint premises, higher order clothing & accessory tenants, and recognised department stores. This study has identified a number of retail development opportunities in the Wagga Wagga CBD. The target markets for the marketing strategy should be based on these possible development opportunities, addressing service gaps and attracting target companies to fill those gaps.

8.4.3.2

Competitive Advantages Wagga Wagga is already the leading destination for retail investment in the region, having already attracted major retailers such as Myer, Coles, Big W, Kmart, Bunnings and Harvey Norman. Wagga Wagga has excellent transport links from direct highway access between Melbourne and Sydney. Wagga Wagga is the dominant retail performer in the region, is supported by a significant and growing population base and is competitively placed to take advantage of forecast growth in the market.

8.4.3.3

Marketing Strategy The goal of the marketing campaign would be to increase Wagga Wagga‟s exposure as a prime location for retail development. To best meet the aims and objectives of the marketing strategy, the strategy and market positioning should emphasise the strengths of, and opportunities available to, the Wagga Wagga retail sector as outlined in the SWOT Analysis. A mix of direct marketing, public relations and personal selling would form the key marketing components of the strategy. The overarching concepts of the strategy could be (reflecting a “Live, Work, Play” philosophy): 

City for living;



City for business; and



City for fun.

The strategy should work in with existing and future investment attraction material developed by Wagga Wagga City Council. Collateral 

Direct Mailing: Direct mailing information packages should be used to deliver a tailored message to companies outlining the key competitive advantages offered by Wagga Wagga retail sector. These information packages should contain all the necessary information that a company would need to make an informed decision about location within Wagga Wagga including: Retail Strategy, statistics on population, sociodemographics, catchment analysis, expenditure levels and the economic fundamentals of the Wagga Wagga region. These mail out packages should be capable of being tailored to the individual needs of companies;



Public Relations: A public relations campaign may prove successful with target companies. A public relations campaign would present a high level of credibility to, and acknowledgement of, Wagga Wagga‟s retail market, and could be based around networking with key business figures in Sydney, Melbourne and other regional locations, creating a high profile for the retail market and its growth trends (and development opportunities); and



Personal Selling: Personal selling should constitute the majority of the marketing effort, due to the advantages it offers over other communication methods. Direct and interpersonal communication lets Wagga Wagga immediately receive and evaluate

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

feedback from the receiver, allowing for specific tailoring of the message and more personal communications than other forms. 8.4.4

Placemaking Placemaking is an integrated approach to the development and revitalisation of communities and the public realm that responds to the effects of global trends on the local economy in a way that reflects the needs and aspirations of the public, and the unique story of a particular location. Placemaking is about creating meaningful and connected places that reflect the needs of the people who inhabit them and the customers that visit them and seeks to build vibrant, active places, and provide access and wellbeing for all. The implications of placemaking in the Australian retail sector has become of more interest as one of the end results is that potential consumers generally spend more time in and around the retail centres (whether or not shopping was their reasoning for going to the place) and thus generate greater expenditure. The utilisation of placemaking in and around retail centres creates more reasons for people to spend time and for a longer duration at these places– whether it be due to the incorporation of civic uses, public art, playgrounds or simply cosmetic alterations have made it more aesthetically pleasing. Placemaking can add value to the retail sector by: 

Creating greater flexibility to respond quickly to market forces;



Building partnerships and community support;



Creating compelling destinations of choice;



Place Identity - creating meaning and authentic identity;



Place Activation - creating a heart/centre and activities;



Providing a clear role and function;



Bringing more people on the streets;



Attracting people to stay longer and spend more;



Reducing retail leakage;



Creating a social dividend;



Improving innovation and competitive advantage;



Building knowledge and good practice;



Enhancing market positioning;



Making successful businesses and happy traders;



Creating more liveable environments;



Reducing carbon footprint; and



Creating pride.

The concept of placemaking and its potential applications to the various retail centres of Wagga Wagga was the key focus of the Retail Forum that was conducted as part of the consultation process of the Strategy. The potential implications of placemaking within the Wagga Wagga retail sector include: 

Developing an authentic Place Identity



Creating a sense of purpose and connection to the larger community (there for the long term)



Creating an enjoyable and harmonious environment for people, extending their length of stay – ie. they want to be there



Increasing foot traffic and sales as people want to stay longer



Creating a competitive advantage

Wagga Wagga Retail Growth Strategy 2010-2025 Draft



Encouraging businesses to be part of place and give back to the community (they have a larger role)



Increasing loyalty



Enriching cultural understanding



Creating a more responsible relationship to the natural environment

Specific placemaking actions and opportunities are identified among the short term actions of the Strategy‟s Action plan, discussed in more detail in Section 9.

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

Action Plan The following action plan is comprised of short, medium and long term objectives for the development of Wagga Wagga‟s retail sector and the actions that can be taken to realise these objectives. In developing the action plan, it is necessary to focus on the vision on what the Wagga Wagga retail sector would like to be and then determining the necessary steps to achieve this vision. Aside from being able to supply the required provision of future retail floorspace, the action plan puts forth ideas and objectives to enhance the existing retail centres through Wagga Wagga and to improve the retail experience for both the consumer as well as the retailer.

9.1

Short Term Actions The short term objectives of the Action Plan are goals which Council and the retail community aim to achieve within the next one to three years. These actions are largely placemaking exercises which aim to improve the experience provided by the retail centres and which can lead to increased benefit for the retailers and to the community. Of equal importance is the short term action to develop a consistent platform of communication between the retail community and Council.

9.1.1

Action 1: Placemaking Strategy for Wagga Wagga Objective: Create and develop a placemaking Strategy for the CBD Precincts and suburban centres, with a focus on CBD activation and revitalisation. Overview: With the intention of creating people-friendly places that are walkable, vibrant, connected, meaningful and resilient, placemaking should inform each centre‟s positioning and experience. Each centre should be a place that is well loved, where people meet, connect, celebrate, shop and play. Placemaking will allow for better-integrated solutions and a more engaged business and residential community. Actions:

9.1.2



Establish a Placemaking Leadership Group within Council to drive the Placemaking agenda



Undertake Placemaking training for all Council officers and relevant stakeholders to skill up and support integrated delivery



Create a „place story‟ and brand for each centre that is based on the larger regional „place story‟



Create a Placemaking overlay for each centre (working with the current stakeholders)



Focus on creating: o

Shared public spaces

Creating and activating a heart/ meeting place

Landscaping the welcoming entryway

Place identity

Action 1a: Placemaking in Baylis Street CBD Precinct Objective: Develop a placemaking retail plan for the Baylis Street precinct Overview: Baylis Street is the retail core and engine room of the region, and the place where most people meet. The Placemaking plan aims to strengthen the precinct as a people place. Actions (to consider): 

Develop a distinct place brand



Promote the City Centre as a place to experience culture, community, education and lifestyle – not just retail

Wagga Wagga Retail Growth Strategy 2010-2025 Draft



Create a civic heart/meeting place for the precinct



Create a half dozen „sanctuary‟ places to rest within the precinct



Provide quality and inspiring retail tenancy opportunities



Create a history walk



Support new retail entrants by providing opportunities via alternative retail markets such as: night markets and/or artists‟ market in addition to existing Sunday Farmers‟ market o

9.1.3

Create a Friday night market, close Baylis Street to vehicular traffic from 6-10pm and encourage greater outdoor dining



Create a boulevard feel in Baylis Street by slowing traffic to 30km per hour



Develop a „green‟ business program promoting green energy, waste reduction, resource savings, local products and recycling

Action 1b: Placemaking Opportunities for the Fitzmaurice Precinct Objective: Develop a Place Making Retail Plan for Fitzmaurice Street Overview: Fitzmaurice Street‟s positioning is the as Wagga Wagga‟s heritage, arts and entertainment precinct. The Placemaking plan integrates and builds on the place story and brand, with a focus on the positioning of creative industries, café culture, arts, entertainment and lifestyle fashion. Actions (to consider): 

Hold a visioning/placemaking workshop for precinct traders to inspire activation and facilitate ownership



Develop an „evening economy‟ and events plan including lighting strategies



Create a civic heart/meeting place for the precinct



Develop a quirky place brand and positioning



Create a better connection to the Riverside Precinct o

9.1.4

Proposed plaza at junction of Fitzmaurice and Kincaid Street



Activate pavement with an Urban Art Program that is edgy/ gritty, in keeping with the feel of the precinct



Create a preferred leasing or tenancy mix strategy that allows for more street trading and includes quirky individual operators, „funky‟ cafes and food outlets

Action 1c: Placemaking Opportunities for Ashmont Shopping Centre Objective: Revitalisation of this retail precinct to create sense of increased activity, safety and pride through community renewal, „Community Capacity Building‟ and strengthening. Actions: 

Develop „Ashmont Social-Cultural Renewal Plan‟ o



9.1.5

Working with stakeholders and local residents to create a place identity

„Community Blitz‟ around landscaping, community artwork, retail development and activation – to be done as a community renewal, „Community Capacity Building‟ and strengthening project

Action 1d: Placemaking Opportunities for Tolland Shopping Centre Objective: Develop a greater sense of place and meeting spaces. Actions: 

Cosmetic renewal of painting, soft landscaping and entry statements

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

9.1.6



Develop place identity and place strategy. eg. place brand



Create an outdoor community meeting Place

Action 1e: Placemaking Opportunities for Kooringal Shopping Centre Objective: Activate the interior place of Kooringal and transform the shopping centre into a community and retail hub. Actions:

9.1.7



Activate through community art, landscaping, shading, and clustered and loose seating



Plant large tree in the middle of the central plaza for shading and to act as a meeting place

Action 1f: Placemaking Opportunities for Turvey Park Shopping Centre Objective: Develop a meeting place (currently car-dominated) and capitalise on retail opportunities. Actions:

9.1.8



Create small piazza on the edge of the centre



Place activation and community events



Address retail gaps (eg. upscale café and quality fresh food)

Action 1g: Placemaking Opportunities for South City Shopping Centre Objective: Develop a meeting place and a community hub through the introduction of non-retail elements to this shopping centre. Actions:

9.1.9



Create large outside piazza that could act as meeting place



Consider the addition of community facilities (community centre, library)



Place activation and community events

Action 1h: Placemaking Opportunities for Lake Village Shopping Centre Objective: Develop a meeting place (currently car-dominated) and capitalise on retail opportunities. Actions:

9.1.10



Create small piazza on the edge of the centre



Place activation and community events



Address retail gaps (eg. upscale café and quality fresh food)

Establish half-yearly workshops between Council and the retailing community to discuss retail the benefits of, and the issues with, the implementation of the Retail Strategy o

Organised by Council or by Wagga Wagga Business Chambers

Council to provide meeting summary and distribute via email or via Council website 55

Wagga Wagga Retail Growth Strategy 2010-2025 Draft



9.1.11

Establish publication of a yearly assessment of Wagga Wagga retail market and economy o

Ensure all retail stakeholders have access to the latest economic statistics for the region

Retail and economic assessment to be distributed via email or via Council website

Action 3: Enhance Sunday trading and establish regularly scheduled markets Overview: Combining cultural, leisure and hospitality experiences with shopping will enhance the ability of retailers to increase their weekly trade from rouge expenditure. Action Steps: 

9.2

Council to organise monthly street closures to vehicular traffic of several block sections of Fitzmaurice Street or of Baylis Street for the holding of markets o

Consider utilising Fitzmaurice Precinct as alternative venue for the holding of the Sunday Farmers‟ Markets (currently held in the Myer car park)

Council to encourage private body (or service group) to manage markets

Private body (or service group) to manage markets and pay a rental fee to Council (eg Rotary / Lions Clubs)



Council and Wagga Wagga Business Chambers to discuss a coordinated approach to Sunday trading with retailing community, via bi-annual retail forums or through newsletter



Council to implement a marketing and advertising campaign to promote markets

Medium Term Action The medium term objectives of the Action Plan are goals which Council and the retail community aim to achieve within the next three to five years. These actions seek to encourage reinvestment in the non-centre based retail premises by the owners by building upon earlier placemaking exercises to improve the streetscapes and to enhance safety, and to encourage the attraction of new retailers into Wagga Wagga.

9.2.1

Action 1: Encourage landlord reinvestment in their retail premises Overview: To provide a superior retailing experience and to improve the competitiveness of retailers within Wagga Wagga, Council should institute an initiative that seeks to increase the levels of reinvestment in the Wagga Wagga CBD to improve the trading position, shopfronts and the visual aesthetic of retailers. This objective builds on the increased communication between Council and the retailing community and aims to expand on the earlier placemaking exercises to include the surrounding main street retailing and to improve the overall streetscapes and building quality throughout Wagga Wagga. Action Steps: 

Begin education program for retailers to provide information and strategies on how to improve trading position and performance and the quality of retail floorspace o



Council to recruit professional retail advisor to conduct seminars on how to maximise the potential of one‟s retail floorspace and retail investment property (yield examples prior and post investment)

Introduce retailer awards competition and combine with existing business awards to provide an incentive for retailers and landlords to improve the quality of retail space o

Council or Wagga Wagga Business Chambers to invite retail entrants via newspaper advertising or via Council website

Council or Wagga Wagga Business Chambers to coordinate awards and judging

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

9.2.2

Action 2: Enhance signage, street lighting and precinct definition of the CBD Overview: To promote precinct definition and to improve the ambience, security and access between the two distinct precincts of the Wagga Wagga CBD, Council introduces uniform and consistent signage (branding), ensures adequate and consistent street lighting and promotes access to and the linkages between the shopping centres. Action Steps: 



9.2.3

Establish coordinated retail precinct signage to ensure all consumers are provided good signage and that linkages are enhanced between retail precincts o

Council to develop and finalise concept designs for signage in conjunction with consultation from the retail community

Council to identify signage requirements and location

Council to engage manufacturer

Council to install signage

Ensure that coordinated street lighting is in place for the Baylis Street and Fitzmaurice Precincts to improve ambience and security o

Council to identify additional street lighting requirements and locations

Council to engage manufacturer

Council to install additional street lighting

Action 3: Encourage investment attraction into the Wagga Wagga retail sector by national retailers Overview: To promote Wagga Wagga as the leading retail investment destination in southern New South Wales, Council will need to develop appropriate marketing mediums and mechanisms for retail investors and potential retail tenants. Action Steps: 

9.2.4

Establish marketing medium and packages to promote Wagga Wagga as a preferred retail investment destination o

Council to prepare comprehensive retail investment package emphasising the strength of the Wagga Wagga retail sector and an assessment of the region‟s strategic assets and competitive set

Council, in conjunction with NSW Department of Industry and Investment, to identify target companies and developers

Council to distribute packages regionally and nationally

Action 4: Develop a new Local Shopping Centre in Estella to service the Estella and Boorooma Growth Regions Overview: There currently exists a demand in the North Wagga Wagga region for a neighbourhood shopping centre of approximately 2,000sqm. This convenience retail demand for the catchment region is currently serviced by the CBD precincts. With approximately 3,000 new homes to built in the region over the next 15 years, the introduction of a new centre over the medium term is recommended. A quantum of land at this location able to accommodate a local centre of up to 4,000sqm has already been zoned by Council for future retail use. Actions: 

Review previous analysis of the site located at the junction of the Olympic Highway and Boorooma Street that is currently zoned for future retail use



Liaise with land owner and discuss the development of this local centre over the medium term



Review and approve development application for new local retail centre



Obtain pre-commitments from convenience retailers 57

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

9.2.5



Develop and construct a local centre of between 2,500 and 4,000sqm



Have centre operational by 2016

Action 5: Improve the Level of Customer Service with Wagga Wagga’s Retail Sector through Professional Development Strategy Overview: Improving the level of customer service within Wagga Wagga‟s retail sector will improve the retail experience for the consumer over the long term and potentially contribute to higher levels of future expenditure. Professional development training aimed at improving the merchandising, customer service and the overall retail experience leads to higher quality staff and can assist with employee retention as well as increase the potential for attraction of quality retail staff. Actions:

9.3



Ensure that professional development training can be sourced from locally based knowledge infrastructure and that retail and hospitality courses provided at local TAFE and Charles Sturt University address training needs and encourage graduates to look locally for employment opportunities



Encourage local retail community to adopt minimum standards for quality of customer service



Establishment of customer service awards to attract and retain quality retail staff

Long Term Actions The long term objectives of the Action Plan are goals which Council and the retail community aim to achieve within the next five to ten years and beyond. These objectives seek to evaluate and build upon the successes of the earlier achievements and to help determine the direction, continued development and growth of Wagga Wagga‟s retail sector.

9.3.1

Action 1: Manage the future growth of Bulky Goods within Wagga Wagga Overview: Wagga Wagga currently has a sufficient quantum of lands zoned for bulky goods to meet the expected levels of demand for this type of land use for at least the next decade. It is imperative that Council carefully limit the release of additional lands for bulky goods use as well as ensure that non-bulky goods retail is not allowed to infiltrate the out-of-centre bulky goods premises, thus leading to a potential destabilisation of the retail hierarchy. Actions: 

Ensure that all bulky good premises are located in the determined out-of-centre precincts along, or nearby, the Sturt Highway



Utilising the bi-annual shopper survey and retailers audit, carefully monitor the need for future bulky goods provision within out-of-centre locations on the outskirts of Wagga Wagga (particularly Hammond Avenue)



Carefully assess applications of retailers seeking to locate within bulky goods centres to ensure that they meet all of the specifications of the bulky goods definition set forth in the 2010 LEP o

Prohibit the location of any new retailer in a bulky goods centre if their business is more in line with traditional retailing such as that located within the CBD and suburban retail centres

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

9.3.2

Action 2: Ensure that all future commercial office development occurs in the CBD Overview: Most of the existing commercial office provision within Wagga Wagga currently resides within the CBD precincts. It is imperative that all future commercial office provision remain within the CBD to maintain the centres hierarchy and to provide added vibrancy during the day. Actions:

9.3.3



Maintain existing commercial land use zonings



Prohibit any significant future commercial office provision (medium and, if applicable, high density) outside of the CBD



Ensure that all future commercial development provides high grade office space



Council and state government offices to remain in the CBD

Action 3: Ensure diversified retailing mix so as to facilitate the continuance of a vibrant retail sector Overview: A carefully implemented investment attraction strategy can facilitate the provision of a greater variety of independent and national retailers into the Wagga Wagga retail sector. This in turn creates greater competition amongst the retailers while improving the retail offer available to consumers. Actions: 

Continue to implement the investment attraction strategy targeting national retailers



Encourage the location of larger national retailers and smaller and independent retailers into the CBD o

9.3.4

Excluding retailers focusing on convenience retailing

Action 4: Recognise that medium and potentially high density residential will be needed to meet market demand for this style of accommodation Overview: As the population of Wagga Wagga continues to grow at a level above the state average and the needs of the growing population change, it should be recognised that, over the long term, there is likely to be a demand for medium density residential in, or within close proximity to, the CBD. Council should ensure that this type of accommodation occur within these areas so as to support the retail and commercial core and to promote the notion of “Live, work, play” within the CBD. Actions: 

Consider rezoning the land use of existing low grade retail or commercial premises in the CBD precincts to allow for medium density residential developments



Discourage the development of any medium density residential development outside of the CBD precincts

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

Retail Marketing , Education and Communication Activities

Retail Planning Activities

Placemaking Activities

Wagga Wagga Retail Strategy - Action Plan Implementation Schedule Acitivity Responsibility

KEY

Placemaking Strategy for Wagga Wagga

WWCC, LR, CM

High

Placemaking for the Baylis Street CBD Precinct

WWCC, LR, CM

Mid

Placemaking for the Fitzmaurice Precinct

WWCC, LR, CM

Mid

Term Short Medium Short Medium Short Medium

Placemaking for Ashmont Shopping Centre

WWCC, LR, CM

High

Short

Placemaking for Tolland Shopping Centre Placemaking for Kooringal Shopping Centre

WWCC, LR, CM WWCC, LR, CM

Mid Mid

Placemaking for Turvey Park Shopping Centre Placemaking for South City Shopping Centre Placemaking for Lake Village Shopping Centre

WWCC, LR, CM WWCC, LR, CM WWCC, LR, CM

Mid Mid Mid

Short Short Short Medium Short Short

Develop a new Local Shopping Centre in Estella to service the Estella and Boorooma Growth Regions Manage the future growth of Bulky Goods within Wagga Wagga Ensure that all future commercial office development occurs in the CBD Recognise that medium and potentially high density residential will be needed to meet market demand for this style of accommodation Ensure diversified retailing mix so as to facilitate the continuance of a vibrant retail sector Enhance signage, street lighting and precinct definition of the CBD Encourage investment attraction into the Wagga Wagga retail sector by national retailers Developing platform for communication between Council and the Wagga Wagga Retailing Community

WWCC, LR, LH, NR, D

High

Medium

WWCC

Mid

Ongoing

WWCC, G, D

Low

Ongoing

WWCC WWCC, WWBC, I&I, CM WWCC, CM, LR, LH

Low

Long

Mid

Ongoing

Mid

Medium

WWCC, I&I

Mid

Medium

WWCC, WWBC WWCC, LH, WWBC

High

Short

Mid

Medium

High

Ongoing

Encourage landlord reinvestment in their retail premises Improve the Level of Customer Service with Wagga Waggaâ&#x20AC;&#x;s Retail Sector through offering of Professional Development education

WWCC, LR, LKI, WWBC

Priority

2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030

WWCC - Wagga Wagga City Council LR - Local Retailers CM - Centre Managers WWBC - Wagga Wagga Business Chambers LC - Local Community LAC - Local Aborignal Community LKI - Local Knowledge Infrastructure I&I - NSW Department of Industry and Investment NR - National Retailer LH - Landholder/Landlords D - Developers G - Government (State and Commonwealth)

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

10. Performance Measurement and Monitoring Mechanisms A 15-year planning horizon has been adopted for this study. It is recommended a full review of the study be undertaken in 5 years for the following reasons: 

Allow for the first stages of implementation of the Strategy/LEP/;



Monitor development and investment trends and market responsiveness;



Measure changes in shopping patterns following centre hierarchy and market changes;



Monitor residential development and population mass;



Provide the necessary lead-time for longer-term planning; and



Tracking changes and how to judge what is working and what isn‟t.

Regular monitoring of the performance of the strategy is also recommended to allow Council to assess what strategies are working and those that need to be amended. The following indicators of the performance of the retail sector have been identified and should be monitored. 

Undertaking of a household shopper survey every three years to provide information on shopping trends, market shares, leakage and satisfaction levels. This would gauge the community‟s satisfaction with the retail sector and help identify gaps in the market. It would also provide an ongoing indication of the leakage of retail spending to other centres outside Wagga Wagga;



Undertaking of a floorspace audit every three years to provide information on the stock of floorspace by segment and locations as well as commercial vacancy rates. Vacancy rates are a good indicator of the performance of the retail sector and the locations with higher rates indicate areas in need of attention;



Wagga Wagga City Council has undertaken a business survey to get an idea of the characteristics, performance, attitudes and expectations of local businesses and Wagga Wagga as a place to do business. It is recommended that a survey be undertaken every three years to gauge changing trends and expectations of businesses and to help identify opportunities to strengthens the economy;



Business attitudes and identified issues through consultation and the continued undertaking of a business survey; and



Undertake research and consultation with real estate agents and industry representatives to provide data on rental rates and trading performance. This will highlight precincts in need of attention and strategies to improve performance.

The Retail Growth Strategy should be reviewed every 5 years to ensure its currency and to report back against the objectives of the Action Plan. A review also provides the opportunity to identify the impacts of any new retail and office development in Wagga Wagga.

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

References AECgroup (2010). AECgroup Gross Regional Product Estimates, 2008-09. Unpublished data. Atkinson, Stephen ( Jones Lange LaSalle -Centre Manager for Market Place). Personal interview. 10 February 2010. Australian Bureau of Statistics (2006). Household Expenditure Survey, Australia, 200304. ABS, Canberra. Australian Bureau of Statistics (2007). Census of Population and Housing, 2006. ABS, Canberra. Australian Bureau of Statistics (2010a). Regional Population Growth, Australia, 2008-09. Cat. No. 3218.0, ABS, Canberra. ABS (2010b).Tourism Accommodation Data, Small Area New South Wales December Quarter 2009. Cat. No. 8635.0. ABS, Canberra. Boneham, Chris (Myer). Personal Interview. 11 February 2010. Crocker, Matthew (Profinance). Personal Interview. 11 February 2010. Donebas, Manuel (Damasa). Phone Interview. 25 March 2010. DeBruyn, Greg (Profinance). Personal Interview. 11 February 2010. Howick, Greg (PCI Commercial – Centre Manager for Tolland Shopping Centre). Phone Interview. 11 March 2010. Leyshon Consulting (2007). Retail and Commercial Development Strategy City of Wagga Wagga Advisory Report. Prepared for Wagga Wagga City Council. Sydney NSW Department of Planning (2008), Projections for Local Government Areas. NSW Department of Planning. Accessed on 16 April 2010 from http://www.planning.nws.gov.au Millard, Steven (Raine and Horne – Centre Manager for Ashmont, Forest Hill, Lake Village and Turvey Park Shopping Centres). Phone Interview, 3 March 2010. Rowles, Barry (Savills – Centre Manager for Sturt Mall). Personal Interview, 10 February 2010. Stein, Jeff (NSW Department of Industry and Investment). Phone Interview 22 March 2010. Stepfair-Samsa Consultants. Wagga Wagga CBD Parking Study: Development of Parking Policy and Strategies. Wagga Wagga City Council, August 2008. Toohey, Jill (Knight Frank – Centre Manager for Kooringal and South City Shopping Centres). Personal Interview, 12 February 2010. Tourism NSW (2010). Travel to Riverina Snapshot YE Dec 2009. Tourism NSW. Accessed on 16 April 2010 from http://www.tourism.nsw.gov.au TRA (2010). National Visitor Survey. Accessed on 16 April 2010 from http://www.ret.gov.au/tourism/tra/domestic/national/Pages/default.aspx Wagga Wagga City Council (2008). Wagga Wagga Spatial Plan. Wagga Wagga City Council. Wagga Wagga Wagga Wagga City Council (2010a). Draft Wagga Wagga Local Environment Plan 2008. Wagga Wagga City Council. Accessed on 16 March 2010 from http://www.wagga.nsw.gov.au Wagga Wagga City Council (2010b). Draft Wagga Wagga Development Control Plan 2010. Wagga Wagga City Council. Accessed on 16 March 2010 from http://www.wagga.nsw.gov.au Wagga Wagga City Council (2009). Wagga Wagga Business Survey 2009.

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

Appendix A: Demographics Table A.1: Catchment Demographics

Central

Ashmont

South West

Tolland

Turvey Park

Kooringal

Lake Albert

East

North

Rural

Wagga Wagga LGA

Non Metro NSW

STA

Age Distribution 0-14 years

14.8%

26.8%

26.0%

22.6%

21.1%

21.2%

23.7%

23.5%

18.5%

24.9%

22.1%

21.3%

20.4%

15-24 years

20.9%

16.8%

15.7%

17.9%

16.3%

14.9%

14.6%

25.0%

29.9%

11.2%

17.2%

10.7%

12.4%

25-34 years

14.7%

13.9%

15.6%

10.9%

12.0%

10.8%

10.5%

15.0%

11.2%

8.7%

12.6%

10.2%

10.7%

35-44 years

11.6%

12.4%

14.8%

11.0%

12.5%

13.2%

13.6%

12.9%

13.3%

14.6%

13.1%

13.3%

13.5%

45-54 years

12.7%

11.0%

12.5%

13.1%

12.9%

13.7%

16.3%

10.9%

9.8%

17.3%

13.2%

14.2%

14.3%

55-64 years

9.0%

8.4%

7.2%

11.9%

8.0%

12.1%

11.6%

7.4%

6.1%

12.2%

9.6%

12.9%

12.2%

16.2%

10.7%

8.2%

12.6%

17.2%

14.0%

9.6%

5.3%

11.2%

11.0%

12.3%

17.6%

16.5%

38.2

32.6

31.8

35.5

37.4

37.3

35.1

29.5

32.7

36.2

35.3

39.7

39.1

Couple family with children

18.7%

26.6%

42.9%

24.8%

25.8%

31.8%

40.6%

41.2%

34.4%

41.9%

31.6%

30.3%

29.4%

Couple family without children

65+ years Average age (years) Household Characteristics

20.7%

20.1%

25.8%

23.7%

24.6%

28.5%

28.0%

26.3%

28.3%

30.7%

25.4%

29.9%

29.1%

One parent family

8.6%

22.7%

10.7%

20.0%

16.6%

11.8%

11.7%

12.0%

10.2%

8.0%

12.6%

9.9%

12.0%

Other families

1.9%

1.8%

0.9%

1.6%

1.7%

0.9%

1.1%

0.0%

1.3%

0.4%

1.2%

0.8%

0.9%

Lone Person Household

39.2%

25.0%

17.2%

26.8%

27.3%

24.1%

17.5%

18.2%

19.1%

17.8%

24.8%

27.4%

25.6%

Group Household

10.9%

3.8%

2.6%

3.1%

4.1%

3.0%

1.1%

2.3%

6.7%

1.2%

4.4%

1.6%

3.0%

2.1

2.6

2.8

2.5

2.4

2.6

2.8

2.7

2.8

2.6

2.5

Fully owning home

28.3%

20.2%

26.2%

30.0%

32.1%

35.6%

37.6%

23.6%

32.9%

44.1%

31.2%

45.6%

39.4%

Purchasing home

23.3%

28.7%

44.6%

26.7%

31.7%

34.9%

41.2%

47.7%

40.9%

33.1%

34.1%

28.4%

30.0%

Renting

43.0%

49.2%

25.8%

40.1%

32.8%

27.3%

18.9%

26.0%

21.6%

18.2%

31.3%

22.2%

26.7%

61.2%

53.4%

64.2%

54.5%

59.4%

60.6%

60.3%

74.3%

53.2%

65.6%

61.2%

60.6%

56.6%

Average persons per household Housing Tenure

Labour Market Full-time employment (% labour force)

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

Central

Ashmont

South West

Tolland

Turvey Park

Kooringal

Lake Albert

East

North

Rural

Wagga Wagga LGA

STA

Non Metro NSW

Part-time employment (% labour force)

27.1%

26.8%

27.3%

29.3%

28.3%

29.7%

18.0%

31.3%

25.8%

27.4%

27.0%

30.1%

Total employment (% labour force)

93.0%

93.8%

87.5%

96.6%

90.7%

92.9%

95.0%

95.9%

95.8%

92.3%

97.2%

94.4%

93.8%

Unemployment rate (% labour force)

6.2%

12.5%

3.4%

9.3%

7.1%

5.0%

4.1%

4.2%

7.7%

2.8%

5.6%

6.2%

7.0%

Participation rate (% of population > 15 years)

63.0%

57.9%

73.3%

57.9%

57.4%

65.8%

71.2%

72.5%

57.5%

72.7%

65.4%

55.8%

56.0%

% of persons with non-school qualification

41.7%

28.0%

41.6%

32.0%

36.1%

42.9%

45.0%

34.2%

37.8%

40.5%

39.3%

30.2%

36.7%

% of persons with Bachelor degree or higher

17.0%

3.8%

11.2%

7.3%

11.7%

14.2%

13.3%

6.5%

15.0%

14.3%

12.3%

7.1%

10.3%

% of persons with Advanced Diploma or Diploma

6.1%

4.0%

6.1%

5.1%

5.3%

7.9%

7.3%

5.2%

4.6%

6.8%

6.2%

4.6%

6.2%

% of persons with Certificate

18.6%

20.2%

24.4%

19.6%

19.1%

20.8%

24.4%

22.5%

18.2%

19.4%

20.8%

18.5%

20.2%

Average weekly household income

$1,006

$823

$1,270

$937

$986

$1,217

$1,314

$1,146

$1,156

$1,208

$1,113

$919

$1,022

Average monthly housing loan repayment

$1,314

$1,023

$1,406

$1,108

$1,095

$1,334

$1,365

$1,168

$1,275

$1,463

$1,290

$1,043

$1,346

Average weekly rent payment

$179

$137

$193

$141

$161

$174

$201

$169

$214

$88

$168

$116

$170

Managers

11.8%

6.1%

10.6%

9.5%

8.7%

12.5%

11.8%

7.8%

9.0%

36.5%

12.8%

22.6%

14.5%

Professionals

22.0%

9.4%

16.7%

12.9%

19.2%

21.3%

17.1%

9.9%

21.0%

15.0%

17.7%

11.7%

16.3%

Technicians & trades workers

15.2%

16.4%

16.1%

15.6%

15.0%

15.1%

36.3%

14.8%

9.9%

16.1%

13.4%

15.4%

Community & personal service workers

11.4%

11.5%

13.6%

10.1%

10.5%

9.3%

9.0%

9.5%

12.2%

5.3%

10.5%

8.8%

9.6%

Clerical & administrative workers

12.4%

13.3%

14.7%

13.2%

14.2%

14.1%

15.7%

10.5%

13.1%

9.3%

13.3%

10.3%

12.9%

Salesworkers

11.2%

12.1%

11.8%

13.9%

11.9%

12.0%

12.8%

7.3%

11.5%

7.4%

11.3%

7.6%

10.0%

4.0%

9.1%

5.3%

6.7%

5.6%

5.0%

6.5%

7.3%

5.0%

5.9%

5.6%

8.4%

7.3%

10.8%

20.2%

9.7%

16.1%

13.1%

9.7%

10.7%

10.6%

11.5%

9.9%

11.4%

15.8%

12.3%

1.2%

1.9%

1.3%

2.2%

1.2%

1.1%

1.2%

0.8%

1.9%

0.8%

1.3%

1.4%

1.6%

Qualifications

Finances

Occupation

Machinery operators & drivers Labourers Inadequately described/ Not stated Source: ABS (2007)

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

Appendix B: Definitions Retail Sector The retail trade sector is defined as businesses mainly engaged in the resale of new or used goods to final consumers for personal or household consumption. The definition applied in this study closely aligns with the Australian and New Zealand Standard Industrial Classification (ANZSIC) definition which was adopted by the ABS for its 199192 Retail and Services Census and 1998-99 Retail Industry Report, and has been adopted for the purposes of detailing the retail market using the ABS‟ 2003-04 Household Expenditure Survey, as well as categorising retail centres‟ turnover and tenancy details. The retail types defined in this study are outlined in Table B.1. Table B.1: Retail Type Definitions Retail Categories

Goods and Services

Store Types

Groceries & Specialty Food

 Bakery products, meat, fish and seafood, eggs, dairy products, edible oils and fats, fruit and nuts, vegetables, condiments, confectionary, food additives and prepared meals, non-alcoholic beverages

 Supermarkets, local stores, service stations, bakeries, pastry shops, butchers, ice cream shops, fruit stores, vegetable stores, candy shops, drink stores, discount department stores, department stores

Food & Liquor Catering

 Meals out and fast foods, alcoholic beverages for consumption off licensed premises

 Cafes, restaurants, take-aways and fast food stores, liquor stores and bottle shops

Clothing & Accessories

 Men‟s, women‟s, children‟s clothing and footwear, watches, clocks, jewellery and other accessories, travel goods

 Specialty clothing and footwear stores, discount department stores and department stores, jewellers, travel goods stores and other accessory stores

Furniture, Houseware & Appliances

 Kitchen, bedroom, lounge/dining room, outdoor/garden furniture, carpets, floor rugs, mats, matting, vinyl and other sheet floor coverings and floor tiles, blankets, household linen, household furnishings, glassware, tableware, cutlery, household utensils, cooking stoves, ovens, microwaves, hot plates, rangehoods, refrigerators, freezers, washing machines, air-conditioners, dishwashers, clothes dryers, other electrical appliances, non-electrical appliances

 Furniture stores, carpet stores, discount department stores and department stores, antique stores, manchester stores, curtains and blinds stores, electrical / appliance stores, other homewares stores

Recreation & Entertainment Equipment

 Audiovisual equipment and parts, home computer equipment, blank and pre-recorded media, books, newspapers, magazines and other printed material, other recreational and educational equipment and hire

 Electrical and audiovisual stores, computer stores, discount department stores and department stores, sporting, camping and outdoor goods stores, music shops, newsagencies, book shops

Hardware & Garden Goods

 Gardening tools and equipment, other hand and power tools, household non-durables including gardening products

 Garden centres and hardware stores, discount department and department stores

Other Goods & Personal Services

 Stationery, pharmaceuticals and personal care products and services, animal purchases and food, tobacco, other miscellaneous goods

 Supermarkets, local stores and service stations, newsagents and stationery stores, chemists, pharmacies, cosmetic stores, discount department stores and department stores, hair salons, beauty salons, laundromats, tobacconists, tailors and shoe repairs

Source: ABS 2003-04 Household Expenditure Survey, ABS Retail & Services Census, AECgroup

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

The bulky goods sector is a subset of the retail sector that is characterised by larger floorplate premises with sufficient load access (including semitrailers), significant storage areas and adequate car parking facilities for customers. This is in line with the definition of bulky goods within the Draft LEP and Draft WWDCP which defines bulky goods as a building or place used primarily for the sale by retail, wholesale or auction of (or for the hire or display of) bulky goods, being goods that are of such size or weight as to require: 

A large area for handling, display or storage, or



Direct vehicular access to the site of the building or place by members of the public for the purpose of loading or unloading such goods.

Bulky goods retail categories include furniture, whitegoods, electrical equipment, bedding and manchester, lighting, automotive parts, camping and outdoor equipment, tools, building materials and DIY and homemaker products. Bulky goods does not include the sale of foodstuffs or clothing unless their sale is ancillary to the sale or hire or display of bulky goods. The non-retail sector refers to the following store types, services and expenditure categories:                  

Amusements; Appliance rental; Auto accessories and parts; Banks, building societies and credit unions; Cinemas; Equipment hire; Financial and property services; Fuel retailing; Lottery and gaming; Marine equipment; Medical and dental services; New and used motor vehicles; Offices; Post offices; Repair and maintenance of household durables; Travel agency; Vehicle charges; and Video hire.

Office Standard Classifications Office classifications referred to in the analysis are defined in Table B.2 based on Property Council of Australia standards. Table B.2: Property Council of Australia Office Classification Definitions Grade

Size

Floor Plate

Age/Services/Finish

Premium

>20,000m2

>800m2

Top quality modern space which is generally a pace setter in establishing rents and includes:  The latest or recent generation of building services  Ample natural lighting  Good views/outlook  Prestige lobby finish; and  Quality access to/from an attractive street environment.

>5,000m2

>400m2

High quality modern space including:  A high quality of building service  Ample natural lighting  Good views/outlook  Quality lobby finish; and  Quality entrance.

Any

Good quality modern space

Any

Older style air conditioned space

Any

Poor quality space

Source: Property Council of Australia

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

Appendix C: Action Plan Table A.1 below outlines AECgroup’s recommended Action Plan for each of the Council and private sector initiatives identified in Section 9. The tables detail the following for each initiative: 

Action – based on the goal of the initiative;



Overview – a description of the initiative ;



Action steps – specific actions on how to achieve the objective;



Management/responsibilities – who is to be involved and their responsibilities; and



Timings - indicative timings for each objective, when the task should begin and when it should be completed.

Short Term Actions Action 1: Placemaking Strategy for Wagga Wagga Overview: With the intention of creating people-friendly places that are walkable, vibrant, connected, meaningful and resilient, placemaking should inform each centre‟s positioning and experience. Each centre should be a place that is well loved, where people meet, connect, celebrate, shop and play. Placemaking will allow for better-integrated solutions and a more engaged business and residential community. Action Steps Responsibility Timings Establish a Placemaking Leadership Group within Council to drive the Placemaking agenda Council 0-12 months Undertake Placemaking training for all Council officers and relevant stakeholders to skill up and support integrated delivery Create a „place story‟ and brand for each centre that is based on the larger regional „place story‟ Create a Placemaking overlay for each centre (working with the current stakeholders) Focus on creating:  Shared public spaces  Creating and activating a heart/ meeting place  Landscaping the welcoming entryway  Place identity

Council Council Local Retailers Council Local Retailers Centre Managers Council Centre Managers Local Retailers

0-12 months 0-12 months 9-15 months 9-24 months

Action 1a: Placemaking in Baylis Street CBD Precinct Overview: Baylis Street is the retail core and engine room of the region, and the place where most people meet. The Placemaking plan aims to strengthen the precinct as a „people place. Action Steps (to consider) Responsibility Timings Support new retail entrants by providing opportunities via alternative retail markets such as: night markets and/or artists‟ market in Council 0-24 months addition to existing Sunday Farmers‟ Market Promote the City Centre as a place to experience culture, community, education and lifestyle – not just retail Council Ongoing

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

Develop a distinct place brand Create a civic heart/meeting place for the precinct Create a half dozen „sanctuary‟ places to rest within the precinct Create a boulevard feel in Baylis Street by slowing traffic to 30km per hour Create a history walk Create a Friday night market, close Baylis Street to vehicular traffic from 6-10pm and encourage greater outdoor dining Develop a „green‟ business program promoting green energy, waste reduction, resource savings, local products and recycling Provide quality and inspiring retail tenancy opportunities

Council Local Retailers Centre Managers Council Centre Managers Council Centre Managers Council

0-12 months

Council Council Local Retailers Council Council Centre Managers

Ongoing 12-24 months

6-18 months 12-24 months 18-24 months

12-24 months Ongoing

Action 1b: Placemaking Opportunities for the Fitzmaurice Precinct Overview: Fitzmaurice Street‟s positioning is the as Wagga Wagga‟s heritage, arts and entertainment precinct. The Placemaking plan integrates and builds on the place story and brand, with a focus on the positioning of creative industries, café culture, arts, entertainment and lifestyle fashion. Action Steps (to consider) Responsibility Timings Hold a visioning/placemaking workshop for precinct traders to inspire activation and facilitate ownership Council 6-12 months Local Retailers Develop a quirky place brand and positioning Council 6-12 months Local Retailers Develop an „evening economy‟ and events plan including lighting strategies Council 12-24 months Local Retailers Create a preferred leasing or tenancy mix strategy that allows for more street trading and includes quirky individual operators, Council 12-24 months „funky‟ cafes and food outlets Local Retailers Create a civic heart/meeting place for the precinct Council 18-24 months Local Retailers Create a better connection to the Riverside Precinct Council 18-24 months  Proposed plaza at junction of Fitzmaurice and Kincaid Street Activate pavement with an Urban Art Program that is edgy/ gritty, in keeping with the feel of the precinct Council 18-24 months Action 1c: Placemaking Opportunities for Ashmont Shopping Centre Overview: Revitalisation of this retail precinct to create sense of increased activity, safety and pride through community renewal, „Community Capacity Building‟ and strengthening. Action Steps (to consider) Develop „Ashmont Social-Cultural Renewal Plan‟  Working with stakeholders and local residents to create a place identity

Responsibility Council Ashmont Centre Manager Local Aboriginal Groups Local Community

Timings 0-12 months

Wagga Wagga Retail Growth Strategy 2010-2025 Draft Community Blitz around landscaping, community artwork, retail development and activation – to be done as a community renewal, „Community Capacity Building‟ and strengthening project

Council Ashmont Centre Manager Local Aboriginal Groups Local Retailers Local Community

12-24 months

Responsibility Tolland Centre Manager

Timings 0-12 months

Council Tolland Centre Manager Local Retailers Tolland Centre Manager

6-18 months

Responsibility Council Kooringal Shopping Centre Manager Local Community Kooringal Shopping Centre Manager

Timings 6-12 months

Responsibility Council Turvey Park Centre Manager Local Community Turvey Park Centre Manager Turvey Park Centre Manager

Timings 6-24 months

Action 1d: Placemaking Opportunities for Tolland Shopping Centre Overview: Develop a greater sense of place and meeting spaces within Tolland Shopping Centre. Action Steps (to consider) Cosmetic renewal of painting, soft landscaping and entry statements Develop place identity and place strategy. eg. place brand Create an outdoor community meeting Place

18-24 months

Action 1e: Placemaking Opportunities for Kooringal Shopping Centre Overview: Activate the interior place of Kooringal and transform the shopping centre into a community and retail hub. Action Steps (to consider) Activate through community art, landscaping, shading, and clustered and loose seating

Plant large tree in the middle of the central plaza for shading and to act as a meeting place

12-24 months

Action 1f: Placemaking Opportunities for Turvey Park Shopping Centre Overview: Develop a meeting place (currently car-dominated) and capitalise on retail opportunities. Action Steps (to consider) Place activation and community events

Address retail gaps (eg. upscale café and quality fresh food) Create small piazza on the edge of the centre

12-24 months 18-24 months

Action 1g: : Placemaking Opportunities for South City Shopping Centre

Wagga Wagga Retail Growth Strategy 2010-2025 Draft Overview: Develop a meeting place and a community hub through the introduction of non-retail elements to this shopping centre. Action Steps (to consider) Consider the addition of community facilities (community centre, library) Place activation and community events

Create large outside piazza that could act as meeting place

Responsibility Council South City Centre Manager Council South City Centre Manager Local Retailers Local Community South City Centre Manager

Timings 0-24 months

Responsibility Council Lake Village Centre Manager Local Community Lake Village Centre Manager Lake Village Centre Manager

Timings 6-24 months

0-24 months

12-24 months

Action 1h: Placemaking Opportunities for Lake Village Shopping Centre Overview: Develop a meeting place (currently car-dominated) and capitalise on retail opportunities. Action Steps (to consider) Place activation and community events

Address retail gaps (eg. upscale café and quality fresh food) Create small piazza on the edge of the centre

12-24 months 18-24 months

Action 2: Developing platform for communication between Council and the Wagga Wagga Retailing Community Overview: Improving communication channels and working in partnership with the local retail community so as to enable a more informed and coordinated planning and policy environment. Action Steps Responsibility Timings Establish half-yearly workshops between Council and the retailing community to discuss retail the benefits of, and the issues with, Council 3-6 months the implementation of the Retail Strategy WW Business Chambers  Organised by Council or by Wagga Wagga Business Chambers  Council to provide meeting summary and distribute via email or via Council website Establish publication of a yearly assessment of Wagga Wagga retail market and economy  Ensure all retail stakeholders have access to the latest economic statistics for the region  Retail and economic assessment to be distributed via email or via Council website

Council

6-12 months

Action 3: Enhance Sunday trading in conjunction with regularly schedule markets Overview: Combining cultural, leisure and hospitality experiences with shopping will enhance the ability of retailers to increase their weekly trade from rouge expenditure. Action Steps

Responsibility

Timings

Wagga Wagga Retail Growth Strategy 2010-2025 Draft Council and Wagga Wagga Business Chambers to discuss a coordinated approach to Sunday trading with retailing community, via bi-annual retail forums or through newsletter Council to organise monthly street closures to vehicular traffic of several block sections of Fitzmaurice Street or of Baylis Street for the holding of markets  Consider utilising Fitzmaurice Precinct as alternative venue for the holding of the Sunday Farmers‟ Markets (currently held in the Myer car park)  Council to encourage private body (or service group) to manage markets  Private body (or service group) to manage markets and pay a rental fee to Council Council to implement a marketing and advertising campaign to promote markets

Council WW Business Chambers Local Retailers Centre Managers Council Private Body to Manage Markets Local Retailers

6-12 months

Council

9-15 months

6-12 months

Medium Term Actions Action 1: Encourage landlord reinvestment in their retail premises Overview: To provide a superior retailing experience and to improve the competitiveness of retailers within Wagga Wagga, Council should institute a initiative that seeks to increase the levels of reinvestment in the Wagga Wagga CBD to improve the trading position, shopfronts and the visual aesthetic of retailers. This objective ties builds on the increased communication between Council and the retailing community aims to expand on the earlier placemaking exercises to included the surrounding main street retailing and to improve the overall streetscapes and building quality throughout Wagga Wagga. Action Steps Responsibility Timings Begin education program for retailers to provide information and strategies on how to improve trading position and performance Council 1-5 years and the quality of retail floorspace Owners of Retail  Council to recruit professional retail advisor to conduct seminars on how to maximise the potential of one‟s retail floorspace Premises Local Retailers Introduce retailer awards competition and combine with existing business awards to provide an incentive for retailers and landlords Council 2-5 years to improve the quality of retail space WW Business Chambers  Council or Wagga Wagga Business Chambers to invite retail entrants via newspaper advertising or via Council website  Council or Wagga Wagga Business Chambers to coordinate awards and judging Action 2: Enhance signage, street lighting and precinct definition of the CBD Overview: To promote precinct definition and to improve the ambience, security and access between the two distinct precinct of the Wagga Wagga CBD, Council introduces uniform and consistent signage (branding), ensures adequate and consistent street lighting and promotes access to and the linkages between the shopping centres. Action Steps Responsibility Timings Establish coordinated retail precinct signage to ensure all consumers are provided good signage and that linkages are enhanced Council 2-5 years between retail precincts Local Retailers  Council to develop and finalise concept designs for signage in conjunction with consultation from the retail community Centre Managers  Council to identify signage requirements and location  Council to engage manufacturer  Council to install signage Ensure that coordinated street lighting is in place for the Baylis Street and Fitzmaurice Precincts to improve ambience and security  Council to identify additional street lighting requirements and locations  Council to engage manufacturer

Council

3-5 years

Wagga Wagga Retail Growth Strategy 2010-2025 Draft  Council to install additional street lighting

Action 3: Encourage investment attraction into the Wagga Wagga retail sector by national retailers Overview: To promote Wagga Wagga as the leading retail investment destination in southern New South Wales, Council will need to mechanisms for retail investors and potential retail tenants. Action Steps Establish marketing medium and packages to promote Wagga Wagga as a preferred retail investment destination  Council to prepare comprehensive retail investment package emphasising the strength of the Wagga Wagga retail sector and an assessment of the region‟s strategic assets and competitive set  Council, in conjunction with NSW Department of Industry and Investment, to identify target companies and developers  Council to distribute packages regionally and nationally

develop appropriate marketing mediums and Responsibility Council Department of Industry and Investment

Timings 1-5 years

Action 3: Develop a new Local Shopping Centre in Estella to service the Estella and Boorooma Growth Regions Overview: There currently exists a demand in the North Wagga Wagga region for a neighbourhood shopping centre of approximately 2,000sqm. This convenience retail demand for the catchment region is currently serviced by the CBD precincts. With approximately 3,000 new homes to built in the region over the next 15 years, the introduction of a new centre over the medium term is recommended. A quantum of land at this location able to accommodate a local centre of up to 4,000sqm has already been zoned by Council for future retail use. Action Steps Responsibility Timings Review previous site analysis of the site located at the junction of the Olympic Highway and Boorooma Street that is currently zoned Council 1-2 years for future retail use Liaise with land owner and discuss the development of this local centre over the medium term Council 1-2 years Landholder Review and approve development application for new local retail centre Council 2-3 years Developer Landholder Obtain pre-commitments from convenience retailers Developer 2-4 years Landholder Local and National Retailers Develop and construct a local centre of between 2,500 and 4,000sqm Developer 3-5 years Have centre operational by 2016 Developer 5-6 years Action 4: Improve the Level of Customer Service with Wagga Wagga‟s Retail Sector through offering of Professional Development education Overview: Improving the level of customer service within Wagga Wagga‟s retail sector will improve the retail experience for the consumer over the long term and potentially contribute to higher levels of future expenditure. Professional development training aimed at improving the merchandising, customer service and the overall retail experience leads to higher quality staff and can assist with employee retention as well as increase the potential for attraction of quality retail staff. Action Steps Responsibility Timings Ensure that professional development training can be sourced from locally based knowledge infrastructure and that retail and Council 1-2 years hospitality courses provided at local TAFE and Charles Sturt University address training needs and encourage graduates to look Local Knowledge locally for employment opportunities Infrastructure Encourage local retail community to adopt minimum standards for quality of customer service

Council

1-2 years

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

Establishment of customer service awards to attract and retain quality retail staff

WW Business Chambers Council Local Retailers WW Business Chambers

1-2 years

Long Term Actions Action 1: Manage the future growth of Bulky Goods within Wagga Wagga Overview: Limit the release of additional lands for bulky goods to prevent an overprovision of this retail type a as well as ensuring that non-bulky goods retail is not allowed to infiltrate the out-of-centre bulky goods premises, thus leading to a potential destabilisation of the retail hierarchy. Action Steps Responsibility Timings Ensure that all bulky good premises are located in the determined out-of-centre precincts along, or nearby, the Sturt Highway Utilising the bi-annual shopper survey and retailers audit, carefully monitor the need for future bulky goods provision within out-ofcentre locations on the outskirts of Wagga Wagga (particularly Hammond Avenue) Carefully assess applications of retailers seeking to locate within bulky goods centres to ensure that they meet all of the specifications of the bulky goods definition set forth in the 2010 LEP

Council

Ongoing

Council

Ongoing

Prohibit the location of any new retailer in a bulky goods centres if their business is more in line with traditional retailing such as that located within the CBD and suburban retail centres

Council

Ongoing

Objective 2: Ensure that all future commercial office development occurs in the CBD Overview: Most of the existing commercial office provision within Wagga Wagga currently resides within the CBD precincts. It is imperative that all future commercial office provision remain within the CBD to maintain the centres hierarchy and to provide added vibrancy during the day. Action Steps Responsibility Timings Maintain existing commercial land use zonings Council Ongoing Prohibit any significant future commercial office provision (medium and, if applicable, high density) outside of the CBD Council Ongoing Ensure that all future commercial development provides high grade office space Council Ongoing Local Developers Council and state government offices to remain in the CBD Council Ongoing State Government Commonwealth Government

Objective 3: Ensure diversified retailing mix so as to facilitate the continuance of a vibrant retail sector Overview: A carefully implemented investment attraction strategy can facilitate the provision of a greater variety of independent and national retailers into the Wagga Wagga retail sector. This in turn creates greater competition amongst the retailers while improving the retail offer available to consumers. Action Steps Responsibility Timings Continue to implement the investment attraction strategy targeting national retailers Council Ongoing NSW Dept of Industry 73

Wagga Wagga Retail Growth Strategy 2010-2025 Draft

Encourage the location of larger national retailers and smaller and independent retailers into the CBD ď&#x201A;ˇ Excluding retailers focusing on convenience retailing

and Investment WW Business Chambers Council NSW Dept of Industry and Investment WW Business Chambers

Ongoing

Objective 4: Recognise that medium and potentially high density residential will be needed to meet market demand for this style of accommodation Overview: As the population of Wagga Wagga continues to grow at a level above the state average and the needs of the growing population change, it should be recognised that, over the long term, there is likely to be a demand for medium density residential in, or within close proximity to, the CBD. Council should ensure that this type of accommodation occur within these areas so as to support the retail and commercial core and to promote the notion of â&#x20AC;&#x153;Live, work, playâ&#x20AC;? within the CBD. Action Steps Consider rezoning the land use of existing low grade retail or commercial premises in the CBD precincts to allow for medium density residential developments

Responsibility Council

Timings Ongoing

Discourage the development of any medium density residential development outside of the CBD precincts

Council

Ongoing