Business

Centres brace for 10% income slug due to Stockland growth

AN ECONOMIC impact assessment has found the Stockland expansion will damage the bottom lines of other Hervey Bay shopping centres, reducing turnover at the other centres by 10 to 12%.

The assessment also stated that Stockland is expected to capture almost 20% of the area's market share by June 2019.

The information was heard at a meeting of the Fraser Coast Regional Council, but Mayor Gerard O'Connell said he did not expect a larger Stockland complex would impact too much on other centres.

He said the expansion was targeting those who looked outside the area for shopping experiences, with the new centre expected to contain some of the "leakage" as people travelled to Bundaberg, the Sunshine Coast or Brisbane to shop for greater choice and options.

"Stockland identified that leakage and is looking to attract that market," Cr O'Connell said.

With many people heading online to shop, the bigger complex, equipped with a food court and cinemas after stage two is complete, might encourage those people to spend locally instead, Cr O'Connell said.

The report said a reduction in turnover of up to 10% annually had been noted to affect Pialba Place, 12% at Bay Plaza and 10% at Eli Waters Shopping Centre.

The report stated the impact would be moderate if greater than 10% and relatively minor if less than 10%.

The average impact in the local government area was equated at 6.7%.

Stockland Hervey Bay centre manager Paul Kelsey said Hervey Bay had always had a "very fragmented retail offering" and the business would be focused on getting customers to spend and work locally.

"To be successful, retail needs to be fresh, inviting and relevant to customers' needs and we are capitalising on the opportunity we have identified to improve the retail experience in Hervey Bay," Mr Kelsey said.

Sherrie Stone, manager at Pialba Place, said she was not worried about what the competition was doing.

"We focus on what we are doing," she said.

A spokesman for Urangan Plaza declined to comment and Bay Plaza did not respond to a request for a comment.

The report said the impact was to be expected in a dynamic environment.

Topics:  hervey bay, income, shopping centres, stockland hervey bay



NEW BUSINESS: SIP espresso bar already has plans to grow

The new SIP espresso bar in Maryborough is becoming a popular stop for locals.

It catches anyone from early morning tradesmen to hospital staff

Backpacker tax scrapped as changes bite on farmers

Rob Bauer of Bauer's Organic Farm. The farm has launched a paddock-to-plate online shop. Photo: LucyRC Photography

Region's farmers still unhappy with decision

Job plan working, Qld minister says

Magnifying glass over a newspaper classified section with \"Job Opportunity\" text

Our plan to get Queenslander's back to work

Local Partners

Why Chris Hemsworth was spotted wearing nail polish

RED CARPET: Do you think Chris Hemsworth is the typical unpolished but well-natured Aussie bloke?

He's now officially the best bloke in Australia

Testament's new album is a concept album

ROME, ITALY- JULY 27, 2016: Testament photographed at The Roman Collisseium in Rome, Italy on July 27,2016. Gene Ambo

Testament to release new album

'Baby' recreates famous Nirvana cover shot 25 years later

The baby from Nevermind album has recreated the iconic cover shot.

PREVIEW: Luke Cage origin story is a strong addition to MCU

Mike Colter in a scene from the TV series Marvel's Luke Cage.

MIKE Colter stars as latest Marvel superhero to get his own series.

Kate goes down fighting in heated Survivor elimination

Australian Survivor contestant Kate Campbell.

YOGA teacher's 'good guys' alliance fails to get off the ground.

Emily Blunt's (almost) singing career

Emily Blunt nearly became the British Britney Spears.

$40million hotel, shops development project for Mackay

Mt Pleasant hotel and retirement accommodation, proposed at 194-202 Malcomson St.

$40m development to take Mackay to 'the next level'

Huge Gunalda service station set to open by December

NEW STATION: The Gunalda Service Centre, owned by United Petroleum, will include a 350-seat eating area and a truckers lounge.

The massive servo is the biggest United development in Queensland.

Property leader says Fraser Coast market is looking up

Positivity is the buzz word in the Fraser Coast housing market

Property 200m from ocean selling for just over $100K

BEACHCOMBER PARK: Work has started on a new $19.2 million development at Toogoom.

The estate's developer is offering huge discounts for early buyers.

UPDATE: Former rodeo champ's sale rained out, now back on

Larkhill local Ken Consiglio is having an auction of most of the things on his property.

'People kept showing up and we had to turn them away'

First stages of $25 million housing development underway

New development on Madsen Rd - The Springs.

The blocks of land are much bigger than usual