Port Macquarie Hastings Retail Strategy Review ... - Hastings Council

Port Macquarie 

Hastings Retail 

Strategy Review 

2010 

PREPARED FOR 

Port Macquarie Hastings 

Council 

December 2010 

Hill PDA 

ABN 52 003 963 755 

3 rd Floor 234 George Street Sydney 

GPO Box 2748 Sydney NSW 2001 

t. +61 2 9252 8777 

f. +61 2 9252 6077 

e. sydney@hillpda.com 

w. www.hillpda.com

Hill PDA

QUALITY ASSURANCE 

QUALITY CONTROL 

This document is for discussion purposes only unless signed and dated by a Principal of Hill PDA. 

Adrian Hack 

Principal, Hill PDA 

B. Town Planning (Hons) (UNSW) 

M. Land Ec. (Sydney University) 

MPIA 

Email: adrian.hack@hillpda.com 

Dated December 2010 

REPORT DETAILS: 

Job Ref No: C10211 

Version: Final 

Date Printed: 6/12/2010 12:14:00 PM 

File Name: C10211 - Port Macquarie Hastings Centres Strategy Review 061210F.doc

Port Macquarie Hastings Retail Strategy Review 2010 

CONTENTS 

1. EXECUTIVE SUMMARY .................................................................................................... 6 

2. INTRODUCTION ............................................................................................................... 8 

2.1 Study Objectives ............................................................................................................... 8 

2.2 Methodology ..................................................................................................................... 8 

3. HISTORICAL OVERVIEW .................................................................................................. 9 

3.1 Council Studies and Policies ............................................................................................ 9 

3.2 State Government Policies ............................................................................................. 10 

4. RETAIL CENTRES ......................................................................................................... 15 

4.1 Supply of Retail Floor Space .......................................................................................... 15 

4.2 Port Macquarie Greater CBD ......................................................................................... 16 

4.3 Local Centres .................................................................................................................. 17 

4.4 Performance of Retail Centres in Hastings .................................................................... 19 

4.5 Proposals ........................................................................................................................ 19 

5. DEMAND FOR RETAIL SPACE ......................................................................................... 21 

5.1 Resident Projections ....................................................................................................... 21 

5.2 Resident Spending ......................................................................................................... 22 

5.3 Tourism and Regional Spending .................................................................................... 23 

5.4 Demand for Retail Floor Space ...................................................................................... 24 

5.5 Forecast Supply and Demand ........................................................................................ 26 

6. RETAIL STRATEGY ....................................................................................................... 28 

6.1 Objectives of the Strategy .............................................................................................. 28 

6.2 New Centres ................................................................................................................... 29 

6.3 Greater CBD ................................................................................................................... 29 

6.4 Out of Centre Retailing ................................................................................................... 29 

7. DRAFT RETAIL POLICY PLAN ........................................................................................ 32 

Ref: C10211 4 / 36 Hill PDA


LIST OF TABLES 

Table 1 - No. of Shop Front Establishments in Port Macquarie Hastings Shire ........................... 15 

Table 2 - Total Retail and Shop Front Floor Space by Retail Centre (sqm)* ............................... 16 

Table 3 - Population Forecast for Port Macquarie Hastings ........................................................ 21 

Table 4 - Forecast Household Expenditure Generated by Port Macquarie Hastings LGA 

($m2007) .................................................................................................................. 22 

Table 5 - Expenditure by Retail Store Type ($m2007)................................................................. 23 

Table 6 - Forecast Total Expenditure in Hastings ($m) ............................................................... 25 

Table 7 - Expenditure by Retail Store Type ($m) ........................................................................ 25 

Table 8 - Demand for Retail Floor Space in Port Macquarie Hastings LGA (sqm GLA) .............. 25 

Table 9 - Increase in Supply (sqm GLA) ...................................................................................... 26 

Table 10 - Centres Hierarchy in 2031 .......................................................................................... 33 



1. EXECUTIVE SUMMARY 

This report has been prepared by Hill PDA for Port Macquarie Hastings Council as a review of Council’s Retail 

Strategy adopted in 2004. This report presents the findings of an analysis of the future needs for retail and 

commercial services in the LGA to the year 2031, as well as current proposals and the implications on Council’s 

existing retail strategy. This report feeds into the Local Growth Management Strategy. 

Port Macquarie Hastings LGA has around 792 shop front premises totalling some 136,000sqm of lettable floor 

space. Floor space is spatially separated into a number of retail centres. The largest concentration is the Greater 

Port Macquarie CBD which comprises Settlement City, Port Macquarie Town Centre (which includes Port Central 

and surrounding shop front spaces), Gordon Street precinct and Munster Village. The Greater CBD comprises 

88,000sqm (65% of the LGA shop front floor space). The balance is distributed into 14 centres of varying sizes – 

Wauchope and Laurieton being the next 2 largest centres with approximately 12,000 and 11,000sqm respectively. 

Of the 136,000sqm of shop front space around 115,000sqm is occupied retail space (excluding retail space 

outside the centres). The balance is vacant space and non-retail commercial uses. 

Port Macquarie Hastings LGA had a population of 71,285 people in 2006 and is expected to reach 104,591 people 

by 2031. Population growth (from 1.3% increasing to 1.7% per annum) as well as real growth in retail spend per 

capita (of around 1.0% to 1.5% per annum) translates to growth in expenditure from $807m in 2007 to a forecast 

of $1.6 billion in 2031. Tourism and spending in the Port Macquarie Hastings centres from residents outside the 

LGA account for a further $160m to $180m per annum. Increasing expenditure increases demand for retail floor 

space within the commercial centres from 125,000sqm in 2007 to 210,000sqm by 2031. 

There are a number of proposals for expansion of retail floor space – the main ones being Hayward Street 

(4,000sqm), Thrumster (7,500sqm), expansion of Settlement City (10,000sqm), Expansion of Laurieton 

(3,000sqm), Wauchope (3,600sqm), St Josephs School site (20,000sqm), Hastings River Drive (1,500sqm) and 

Lake Cathie / Bonny Hills (5,000sqm). Assuming all proposals are complete by 2016 then there will be almost 

10% oversupply of retail floor space in the LGA. By 2022 however growth in demand will eradicate the condition 

of oversupply. By 2031 the LGA will require a further 40,000sqm over and above what is existing and currently 

proposed for. 

Objectives of the Strategy include: 

• Provide quantity, quality and convenience for consumers as well as a wide range of shopping opportunities 

and commercial experiences; 

• Provide for further growth in retail and commercial space to meet growth in demand generated by 

population and household growth; 

• Protect the integrity and viability of existing centres to the extent that they continue to perform a valuable 

community function; 

• Protect the integrity and viability of the Greater Port Macquarie CBD; and 

• Protect current employment levels in retailing and hospitality industries for the residents of the LGA and 

expand opportunities for further employment. 



Strategies include: 

• Prohibit any new centres with the exception of Thrumster (with a maximum lettable area of 7,500sqm) and 

Area 14 Lake Cathie / Bonny Hills (with a maximum size of 5,000sqm). 

• In order to ensure the viability of the Port Macquarie Town Centre it is recommended that any proposals for 

redevelopment and expansion of retail space in the Town Centre area be supported – particularly proposals 

that will introduce new retailers and new formats. This is the case even if it results in some “oversupply” of 

retail space throughout the LGA. 

• Discourage or prohibit out-of-centre retailing unless it (a) complies with the definition of bulky goods retailing 

under the LEP or Standard LEP Template and is located on Lake Road, Hastings River Drive or Oxley 

Highway, or (b) complies with the definition of convenience retailing and is no larger than 200sqm. 



2. INTRODUCTION 

This report has been prepared by Hill PDA for Port Macquarie Hastings Council as a review of Council’s Retail 

Strategy adopted in 2004. This report presents the findings of an analysis of the future needs for retail and 

commercial services in the LGA to the year 2031, as well as current proposals and the implications on Council’s 

existing retail strategy. 

2.1 Study Objectives 

In order to develop and evaluate a range of options for the planning and management of retailing in the LGA it is 

necessary to have a clear set of objectives. At the commencement of the study key objectives were established – 

these being: 










2.2 Methodology 

The tasks undertaken in the preparation of this report included: 

• Forecast population growth, resident and tourism spending in the LGA to 2031; 

• Forecast demand for retail floor space based on forecast retail spending; 

• Identify areas of shortfall in supply by area and retail store type; 

• Identify proposals that will increase supply; 

• Review Council’s existing strategy in its ability to address current and foreseeable issues; 

• Make recommendations regarding the planning for, and control of, retail provisions in the LGA; and 

• Draft the revised Centres Policy. 



3. HISTORICAL OVERVIEW 

3.1 Council Studies and Policies 

Early Studies 

The first major study on retailing in Port Macquarie Hastings was undertaken by Plant Location International (PLI) 

in 1985. The study included a series of recommendations including the recognition of Port Macquarie as the 

major centre and the need for a discount department store to reinforce this role. In 1990 the study was updated 

by PLI. 

1999 Review 

In 1999 Council reviewed the earlier studies with two background reports prepared by G. W. Smith of Design 

Collaborative including “A Report on a Retail Policy Plan” for Hastings Council and a discussion paper titled 

“Shopping After 2000”. The papers included recognition of a hierarchy of centres, measures to protect the Greater 

CBD of Port Macquarie and a number of other related issues. The reports did not agree with the “Greater CBD” 

concept as the distances between Settlement City, Port Macquarie central and Gordon Street were too excessive 

for the Greater CBD to function as a single centre. 

The report suggested that a better long term alternative to expansions in the Greater CBD is a new “out-of-town” 

centre in the Sancrox-Thrumster area to ultimately include a department store and a large range of retailers. An 

area of at least 20 hectares was recommended to be preserved for this option. 

2004 Retail Strategy Review 

In 2004 Leyshon Consulting prepared a “Retail Strategy Review” which was largely adopted by Council for its 

centres policy. Council largely dismissed the idea of a large regional or sub-regional centre outside the existing 

Greater CBD. Instead it has maintained the hierarchy with the Greater CBD as the main centre, Wauchope and 

Laurieton as the district CBD (or town centres) and the remaining centres as villages or neighbourhoods. 

Only three new centres were identified – all being neighbourhood centres in: 

• Major Innes Drive (now operating); 

• Area 13 (Thrumster); and 

• Area 14 (Bonny Hills). 

Each of these centres was to be capped in size to a retail floor space of 5,000sqm. The capped area for 

Thrumster was increased to 7,500sqm following a review of the economic impacts by Hill PDA in 2007. 

This Hill PDA report is a 5 year review of the 2004 document and Council’s Retail Strategy. 



3.2 State Government Policies 

Draft Integrated Land Use and Transport Policy Package and Draft SEPP 66 

The former strategy of Draft SEPP 66 sought to achieve “…the better integration of land use and transport 

planning at the local level” particularly in relation to the preparation of environmental planning instruments, 

development control plans and the like and the consideration of development and applications. The aims of SEPP 

66 were to ensure that urban structure, building forms, land use locations, development designs, subdivision and 

street layout help achieved the following planning objectives: 

“(a) improving accessibility to housing, employment and services by walking, cycling, and public transport, 

(b) improving the choice of transport and reducing dependence solely on cars for travel purposes, 

(c) moderating growth in the demand for travel and the distances travelled, especially by car, 

(d) supporting the efficient and viable operation of public transport services, 

(e) providing for the efficient movement of freight.” 

Draft SEPP 66 required that before granting consent for development Council must consider whether carrying out 

of the development will further the aims and the planning objectives of the policy and whether the development is 

consistent with the policy on location of specific land uses and the general policies in the Integrated Land Use and 

Transport Policy Package. 

Interestingly there have been some Land and Environment Court judgements that have used Draft SEPP 66 

principles in the consideration and refusal of applications (refer to Terrace Tower Holdings Pty Limited v 

Sutherland Shire Council [No_2] [2002] NSWLEC 150 and Stadurn Pty Limited v Blacktown City Council [2004] 

NSWLEC 348). 

Regional Strategies 

The Draft Mid-North Coast Regional Strategy identifies a hierarchy of centres with Port Macquarie being a major 

regional centre (as well as Taree, Grafton and Coffs Harbour), Kempsey as a major town, Laurieton, Wauchope 

and Lake Cathie/Bonny Hills as town centres. 

As a major regional centre Port Macquarie has the majority of growth and employment opportunities and is the 

major centre for state and regional services. These centres are also expected to have “a concentration of medium 

to high density living, business employment and professional services, higher order shopping, warehouses, 

transport logistics and bulky goods operations”. 

Town centres have more limited trade areas. They have a small to medium scale concentration of retail, health 

and other services with lower density residential. They are reliant on major regional centres and major towns for 

high order services, retailing and employment. 

Page 25 of the Strategy states that "Fragmentation and out-of centre retailing should be resisted unless 

compelling reasons exist in order to maintain the healthy retail and service functioning of particular centres in the 

Ref: C10211 10 / 36 Hill PDA


region." This is key strategy enabling Council to protect and maintain the retail hierarchy and the viability of 

existing centres. 

NSW Draft Centres Policy 

Recently there has been the growing awareness and investigation of barriers to competition in Australia, 

particularly in the retail industry. As a result of these investigations the Australian Government directed state 

governments and planning authorities to review the flexibility of planning regulations and policies regarding retail 

development. In response the NSW Department of Planning released the draft Centres Policy in April 2009. 

The sensitivity of Australian households to retail prices is particularly acute given that Australian’s spend between 

12 and 14% of their after tax income 1 per annum on basic grocery items. Coupled with the pressures of the 

economy, Australian’s have been experiencing an increase in basic grocery prices over the past five years. In fact 

the rate of grocery price increases has been significantly greater (an estimated 6% 2 ) than the headline Australian 

inflation rate and shows no present signs of abatement. 

The growth of grocery prices raised significant political interest and debate over the course of 2008 and 2009. In 

response the Australian Government instructed the Australian Competition and Consumer Commission (ACCC) to 

undertake a full inquiry into factors potentially affecting retail prices including the competitiveness of the retail 

industry and barriers to the entry of new retailers. 

Relevant to this study, the ACCC Inquiry identified the ‘very significant barriers to entry for large-format, one stop 

shop supermarkets’ as a prominent issue. The identified barriers included: 

• Access to retail units within shopping centres owing to restrictive provisions on centre leases; 

• Tactics applied by major retailers to protect their interests against prospective retail developments; and 

• Access to suitable development sites owing to land use zones. 

To address the matter of access to sites for the retail industry, the inquiry recommended that governments across 

Australia look at new ways to incorporate competition into planning decisions. It stated that “Particular regard 

should be had to whether the [development] proposal will facilitate the entry of a supermarket operator not 

currently trading in the area”. 3 

In response to the planning recommendations provided by the ACCC Inquiry and the current economic climate, 

the NSW Department of Planning prepared and released the Draft Centres Policy for commercial and retail 

development in NSW. 

The Policy was released in April 2009 recognising that the market is best placed to determine the need for 

development and the supply of available floor space to accommodate demand. The role of the planning system is 

to accommodate this need whilst regulating its location and scale. 

1. Based on Household Expenditure Survey (ABS cat.no. 6530.0) and Census of Population and Housing (ABS cat. No. 2003.0) data 

2. Urbis Retail Perspectives, June 2009 

3 

Report to the ACCC Inquiry into the Competitiveness of Retail Prices for Standard Groceries, July 2008, Australian Competition and 

Consumer Commission (Page xix) 

Ref: C10211 11 / 36 Hill PDA


In light of these fundamental principles, the Draft Centres Policy focuses around six key principles. The principles 

relate to: 

1. The need to reinforce the importance of centres and clustering business activities; 

2. The need to ensure the planning system is flexible, allows centres to grow and new centres to form; 

3. The market is best placed to determine need. The planning system should accommodate this need whilst 

regulating its location and scale. 

4. Councils should zone sufficient land to accommodate demand including larger retail formats; 

5. Centres should have a mix of retail types that encourage competition; and 

6. Centres should be well designed to encourage people to visit and stay longer. 

The Draft Policy has been publicly exhibited. The DoP is presently reviewing public submissions and aims to 

amend the policy in response, where appropriate. It is understood that the DoP seeks to release the amended 

policy for adoption towards the end of 2009. The six key principles are discussed below. 

Principle 1: Retail and Commercial Activity should be Located within Centres 

The first principle of the Draft Centres Policy reinforces the longstanding strategy to concentrate the predominant 

share of retail and business floor space within town centres. The clustering of uses within centres is justified for 

environmental and economic reasons. By way of example, focusing uses within centres makes efficient use of 

existing infrastructure including public transport, can improve business efficiency and productivity and allow for a 

range of uses to be provided to meet consumer needs. 

Principle 2: Centres should be able to Grow and New Centres Form 

The Draft Centres Policy identifies that areas experiencing significant increases in population and real income 

must be dynamic and respond to “prevailing market demands” through the extension of existing centres or the 

growth of new ones. 

Principle 2 of the Draft Centres Policy recommends the rezoning of land in appropriate centre locations or 

locations adjacent to centres in order to facilitate business expansion and to enable new businesses to enter the 

market. 

Principle 3: Market Determines Need for Development, Planning Regulates Location and Scale 

The third principle of the Draft Centres Policy identifies that the market is best placed to determine demand for 

retail and commercial development. Accordingly, the role of the planning system is not to assess the 

appropriateness of development on the basis of demand, but rather to make an assessment as to the external 

costs and benefits. 

There have been a number of criticisms with the policy including ambiguity with and potential inconsistency or 

conflicts between the principles. We understand that the NSW Department of Planning is currently working to 

remove these ambiguities and inconsistencies for the final policy and that there may also be differences between 

metropolitan and non-metropolitan policies. 

Ref: C10211 12 / 36 Hill PDA


Principle 4: Ensuring the Supply of Floor Space Accommodates Market Demand 

The fourth principle of the Draft Centres Policy emphasises the importance of competition between retailers. The 

key intention of this principle is to create better quality, cheaper and more accessible goods for all consumers 

through enhanced competition. To support opportunities for greater competition, the Draft Policy requires councils 

to ensure that there is sufficient zoned land to enable additional (and new) large format retailers to enter the NSW 

retail market. 

Principle 5: Support a Wide Range of Retail and Commercial Premises and Contribute to a Competitive 

Retail Market 

Principle 5 of the Draft Centres Policy states that, subject to meeting the appropriate location and design criteria, 

the zoning and development assessment process should not consider impacts between existing and proposed 

retailers as a planning consideration. 

Whilst the Principle seeks to extract the matter of individual business impact from planning assessment (in 

keeping with the findings of various Land and Environment Cases) the effect of a proposed development to the 

function and vitality of existing and planned centres will remain as an important local issue. 

In Fabcot Pty Ltd v Hawkesbury City Council (97) LGERA, Justice Lloyd noted "economic competition between 

individual trade competitors is not an environmental or planning consideration to which the economic effect 

described in s 90(1)(d) is directed. The Trade Practices Act 1974 (Cth) and the Fair Trading Act 1987 (NSW) are 

the appropriate vehicles for regulating competition. Neither the Council nor this Court is concerned with the mere 

threat of economic competition between competing business…. It seems to me that the only relevance of the 

economic impact of a development is its effect ‘in the locality’…”. 

In Kentucky Fried Chicken Pty Ltd v Gantidis (1979) 140 CLR 675 at 687 Justice Stephen noted that “if the 

shopping facilities presently enjoyed by a community or planned for it in the future are put in jeopardy by some 

proposed development, whether that jeopardy be due to physical or financial causes, and if the resultant 

community detriment will not be made good by the proposed development itself, that appears to me to be a 

consideration proper to be taken into account as a matter of town planning... However, the mere threat of 

competition to existing businesses if not accompanied by a prospect of a resultant overall adverse effect upon the 

extent and adequacy of facilities available to the local community if the development be proceeded with, will not 

be a relevant town planning consideration.” 

The LEC has stated that Councils should not be concerned about competition between individual stores as this is 

a matter of fair trading. But it should concern itself with impact on established retail centres. These principles 

were reiterated by Justice Pearlman in Cartier Holdings Pty Ltd v Newcastle City Council and Anor [2001] 

NSWLEC 170. “It follows that Section 79C(1)(b) does not require the consent authority to take an approach in 

consideration of the relevant matter different from the approach formerly taken in the application of 90(1)(d).” 

Principle 6: Contributing to the Amenity, Accessibility, Urban Context and Sustainability of Centres 

Principle 6 of the Draft Centres Policy highlights the importance of design quality, development layout, connectivity 

and integration. The Policy recognises that good design supports the vitality and function of a town centre as well 

Ref: C10211 13 / 36 Hill PDA


as the viability and success of a retail development. Accordingly good quality design is in the interests of planning 

authorities, retailers and consumer alike. 

Ref: C10211 14 / 36 Hill PDA


4. RETAIL CENTRES 

4.1 Supply of Retail Floor Space 

Excluding the industrial areas Port Macquarie Hastings has almost 800 shop front premises distributed in around 

16 centres of varying sizes. Around 600 of theses premises are being used for retailing of goods, 167 are being 

used for non-retail commercial purposes (such as real estate, travel agents, finance, medical, etc) and 25 are 

vacant. The number of businesses in the retail centres is provided in the table below. 

Table 1 - No. of Shop Front Establishments in Port Macquarie Hastings Shire 

Retail Centre 

Catered 

Food 

Other 

Foods 

Supermarkets 

Department 

Stores 

Other 

Non- 

Food 

Retail* 

Total 

Retail 

Shop 

Front 

Commercial** 

Shop- 

Front 

Vacant 

TOTAL 

Greater CBD 

Port Central 1 10 3 1 37 52 3 0 55 

Balance of Port Mac 

Town Centre # 

2 45 11 0 122 180 83 12 275 

Settlement City 1 9 6 1 49 66 3 0 69 

Walter St & Foreshore 0 3 1 0 16 20 2 0 22 

Gordon Street 1 9 6 0 15 31 12 0 43 

Munster Village 1 0 2 0 0 3 0 0 3 

TOTAL CBD 6 76 29 2 239 352 103 12 467 

Wauchope ## 1 12 13 1 40 67 26 0 93 

Laurieton 1 13 11 0 33 58 22 4 84 

Lakewood 1 1 1 0 5 8 1 4 13 

Lake Innes 1 2 3 0 2 8 1 3 12 

Lake Cathie 1 3 3 0 6 13 6 0 19 

Lighthouse Plaza 1 3 3 0 5 12 0 0 12 

North Haven 2 4 3 0 17 26 1 0 27 

Lighthouse Beach 1 2 1 0 5 9 2 0 11 

Flynn's Beach 1 5 0 0 4 10 0 0 10 

Waniora Parkway 1 1 3 0 3 8 0 0 8 

Bonny Hills 0 1 2 0 2 5 2 1 8 

Clifton 1 1 2 0 8 12 0 0 12 

TOTAL LGA 20 128 75 3 374 600 167 25 792 

Notes: 

* Other Non-Food Retail include selected personal services as defined by ANZIC and include hair and beauty salons, photo processing, dry cleaners, 

tailors, key cutters and opticians. 

** Commercial refers to shop front commercial users such as real estate agents, travel agents, banks, medical services and the like. It excludes stand 

alone commercial buildings and shop-top space. 

# As defined by the Port Macquarie-Hastings Development Control Plan 20, Port Macquarie Town Centre 2009 Edition. It is the area bounded by Hastings 

River to the north, Munster, William and Murray Streets to the east, Gordon Street to the south and Kooloobung Creek to the west. 

## Wauchope includes the completed floor area for the new supermarket and specialty stores currently under construction. The supermarket is currently 

trading at Timbertown at the time of reporting 

Sources: Australian Property Council Shopping Directory, Draft Retail Strategy Review (Leyshon Consulting) and Hill PDA Floor Space Surveys 2007 and 

2009. 

Supply of retail floor space is measured by a combination of the number of stores and floor space (square 

metres). Floor space is measured by lettable area (the area leased or potentially leased to a store operator and 

includes back of house storage and office) and excludes common areas, plant rooms and loading docks. In the 

Ref: C10211 15 / 36 Hill PDA


case of indoor centres such as Settlement City and Port Central, it includes the area leased to the shop owners 

but excludes common areas, car parking, toilets, plant rooms, fire egress, etc. 

Presently there is around 136,000sqm of shop front space in the LGA of which around 115,000sqm is being used 

for retailing. Total Retail floor space is shown in the table below: 

Table 2 - Total Retail and Shop Front Floor Space by Retail Centre (sqm)* 

Centre 

Supermarkets & 

Grocery Stores Other Retail Total Retail 

Non-Retail 

Shop Front 

Total Shop 

Front Space 

Greater CBD 

Port Central 2,250 12,350 14,600 300 14,900 

Balance of Port Mac Town Centre 5,500 23,500 29,000 10,450 39,450 

Settlement City 4,250 15,050 19,300 500 19,800 

Walter St & Foreshore Precincts 0 4,200 4,200 400 4,600 

Gordon Street 1,600 5,700 7,300 1,400 8,700 

Munster Village 500 250 750 0 750 

TOTAL CBD 14,100 61,050 75,150 13,050 88,200 

Wauchope 1,600 7,500 9,100 3,000 12,100 

Laurieton 2,400 5,450 7,850 2,800 10,650 

Lakewood 3,250 600 3,850 450 4,300 

Lake Innes 3,000 900 3,900 500 4,400 

Lake Cathie 2,800 950 3,750 500 4,250 

Lighthouse Plaza 3,000 1,000 4,000 0 4,000 

North Haven 200 1,900 2,100 100 2,200 

Kew 200 100 300 200 500 

Kendall 200 700 900 200 1,100 

Lighthouse Beach 100 650 750 150 900 

Flynn's Beach 100 800 900 0 900 

Waniora Parkway 300 700 1,000 0 1,000 

Bonny Hills 0 450 450 250 700 

Clifton 200 1,000 1,200 0 1,200 

TOTAL LGA 31,450 8,150 115,150 18,550 136,350 

* Sources: Australian Property Council Shopping Directory, Draft Retail Strategy Review (Leyshon Consulting), Hill PDA Floor Space Surveys 2007 and 

recent development applications. Excludes industrial zoned areas. 

A description of the retail centres in the LGA is given below. 

4.2 Port Macquarie Greater CBD 

Port Macquarie Greater CBD has almost 80,000sqm of retail 

space, almost half of which is in two large indoor shopping 

centres. The two indoor centres are Port Central and 

Settlement City. 

• Port Central is located at 40 Horton Street in the CBD. 

The major anchor tenants include Target (7,100sqm) 

and Ritchies IGA Supermarket (2,247sqm). Port 

Central has 54 specialty shops and a total area of 

15,000sqm. 

Port Central 

Ref: C10211 16 / 36 Hill PDA


• Around Port Central the CBD has around 275 shop-front 

premises totalling some 30,000sqm of space fronting 

Horton Street, Hay Street, Clarence Street and William 

Street. Anchor tenants include a 3,500sqm Coles 

supermarket, 2,000sqm Food for Less supermarket and 

The Warehouse. 

• Settlement City is almost 1.5km west of Port Central 

shopping centre. The major tenants include Big W 

(6,618sqm), Woolworths supermarket (3,968sqm), Base 

Warehouse (1,316sqm) and Best & Less (1,175sqm). 

There are 66 specialty shops and the centre has a total 

area of 19,200sqm. Adjacent to Settlement City are 

some 22 retailers with around 5,000sqm of retail space. 

Anchor tenants include McDonalds, Go-Lo and a large 

Rivers Clothing store. 

Port Macquarie “Main Street” 

• Munster shopping centre is a small centre on the corner 

of Munster Street and Gordon Street. It comprises a 

500sqm Five Star supermarket, a butcher and bakery. 

• There are a number of strip shops and an open court 

shopping centre on Gordon Street between Gore Street 

and Hastings River Road. The centre is anchored by a 

Settlement City 

1,600sqm IGA supermarket, a 1,000sqm fruit and veg store and a 1,500sqm Rebel Sports store. Total 

number of premises is around 40 with a total area of around 8,000sqm. 

4.3 Local Centres 

Wauchope 

Wauchope is approximately 16km west from Port Macquarie 

town centre. The shopping centre had 93 shop front premises of 

which 26 were being used for non-retail commercial services. 

Total leaseable floor space is around 13,000sqm of which 

around 2,000sqm is occupied by four hardware stores and 

3,000sqm is occupied by non-retail commercial services. There 

were no vacancies in 2007 at the time of survey. Anchor 

tenants included a 1,300sqm IGA supermarket and the 

1,300sqm Co-op Department Store (excluding the hardware 

component). 

Wauchope Shopping Centre 

Ref: C10211 17 / 36 Hill PDA


At the time of reporting the IGA supermarket was being redeveloped into a slightly larger Supa-IGA of 1,620sqm, 

a 130sqm liquor store and three 50sqm specialty stores. The IGA supermarket is currently trading in a 1,500sqm 

store opposite Timbertown during construction in Wauchope. 

Laurieton 

Laurieton is the largest retail centre in the southern part of the 

LGA. Its trade area includes North Haven, Laurieton, 

Dunbogan and Kew. It comprises 84 shop front 

establishments of which 22 are used for non-retail commercial 

services and four are vacant. Total shop front space is 

around 10,500sqm of which 7,800sqm is used for retail. The 

main anchor tenant is a 2,400sqm Bi-Lo supermarket. 

Lake Cathie 

Laurieton Main Street 

Lake Cathie is approximately 15km South of Port Macquarie 

town centre. The shopping centre is anchored by 2,800sqm 

Woolworths supermarket and there are 1,100sqm of specialty 

retail shops. The total centre is in the order of 4,000sqm. This 

is a popular centre for shopping due to its high level of ample 

and convenient parking. 

Lighthouse Plaza (Tacking Point) 

Lighthouse Plaza is a recently rebuilt centre comprising 12 

shops anchored by a large 3,000sqm Coles supermarket. 

Lake Innes (West Port Macquarie) 

Woolworths - Lake Cathie 

Lake Innes Shopping Centre on the corner of Oxley Highway 

and Major Innes Drive is the most recent addition to the 

hierarchy of centres. It is a local village centre which includes 

a 3,000sqm Coles supermarket and 12 specialty shops. 

Lakewood 

Lakewood is the second youngest centre, only recently built 

on the Ocean Drive. It comprises 4,300sqm of space 

anchored by a 3,250sqm Woolworths supermarket. 

Other Centres 

Lighthouse Beach Shopping Centre 

Other centres in the local government area are generally small village or neighbourhood centres of less than 

1,500sqm. These centres, including Flynns Beach, Lighthouse Beach, Shellys Beach, North Haven, Kew, Kendall 

and Clifton Drive, are usually anchored by a small or mini-supermarket – less than 1,000sqm in size. 

Ref: C10211 18 / 36 Hill PDA


4.4 Performance of Retail Centres in Hastings 

Settlement City is defined by Shopping Centre News as a mini-gun centre (generally centres below 20,000sqm). 

It had a reported turnover of $140m in 2008-09. It was ranked number 8 out of the 154 reported centres 

throughout Australia. In terms of turnover per square metre it achieved $7,332 ranking number 9 out of the 23 

non-metropolitan Mini-Guns in NSW and 8% higher than the median turnover level of 6,800/sqm Australia wide. 

We would expect non-metropolitan average to be lower than national average – as much as 10% (based on the 

regional differences identified in the 1991-92 ABS Retail Survey). Hence Settlement City is trading quite strongly. 

In 2005-06 the reported turnover figure of the specialty stores was $7,517/sqm which was 12% higher than the 

Australian median at that time. 

Port Central, which is also defined as a mini-gun had a turnover of $95.8m in 2008-09. This equated to 

$6,500/sqm which is a little below the Australian median of $6,800/sqm. However it is ranked number twelve out 

of 23 non-metropolitan centres in NSW making it average performance for a non-metropolitan centre of its size. 

4.5 Proposals 

Current proposals include the following: 

• The IGA in Wauchope is currently being redeveloped to accommodate a slightly expanded supermarket, 

liquor store and three specialty stores. The future use of the temporary IGA opposite Timbertown is 

unknown. 

• A stand alone Coles supermarket of approximately 3,000sqm on the edge of the village centre on Wallace 

Street beside the railway line was approved by Council. Work is yet to commence. 

• A proposal for some expansion in Laurieton including a new Coles Supermarket and the conversion of the 

existing Bi-Lo supermarket into a Target Country store was approved. Work is yet to commence. 

• Settlement City plans to undergo an expansion of around 15,000sqm of which 10,000sqm will be strip retail, 

restaurants and the like and 5,000sqm will be recreational facilities including cinemas and gymnasium. 

Most likely opening date will be 2012-13. 

• Council is currently preparing an LEP amendment for land at Warlters Street, adjoining Settlement City, to 

allow for future retail development. Council has resolved to permit up to 9,000m2 between 2013 and 2015, 

with further retail development possible after 2015. Preliminary plans indicate capacity for retail 

development in the order of 20,000m2 floorspace. 

• Sovereign Hills (Thrumster Area 13) will ultimately have a centre capacity of 7,500sqm to service the future 

10,000-11,000 residents of Thrumster. A Woolworths based centre has been approved for the first stage 

which is likely to open in around 2012. 

• A new shopping centre in Bonny Hills of up to 5,000sqm will service the local area. 

• A 4,000sqm Coles supermarket with 316 public carparking spaces has been approved on Council owned 

land between Gordon Street and Hayward Street at the southern end of the Port Macquarie Town Centre. 

Ref: C10211 19 / 36 Hill PDA


• A 1,500sqm general store (possibly to be operated by ALDI) has been approved on Hastings River Drive. 

Ref: C10211 20 / 36 Hill PDA


5. DEMAND FOR RETAIL SPACE 

This section forecasts demand for retail space in the Port Macquarie-Hastings LGA during the period from 2006 to 

2031. Demand comes from three main sources of expenditure: 

• Residents of Hastings; 

• Residents of surrounding local government areas; and 

• Tourists and visitors. 

5.1 Resident Projections 

The increase in availability of private motor transport over this post-war period resulted in significant demand for 

residential development in coastal areas away from traditional rail-based inland townships. The primary housing 

market role that Port Macquarie-Hastings played during the post-war period was to attract families and retirees 

from areas further south, in particular the Sydney region. There has also been demand for housing resulting from 

the children of those families setting up their own households. This pattern is likely to continue into the future, 

driving development on the outskirts of Port Macquarie and in the Camden Haven. 

In 2001, the total population of the local government area was estimated to be 65,378 people. By 2006 it had 

increased to 71,285 – an average annual increase of 1.75%. Population growth has slowed slightly to 1.3% per 

annum and is expected to continue until 2011 before regaining to 1.7% per annum. The forecast of population is 

provided below: 

Table 3 - Population Forecast for Port Macquarie Hastings 

Locality 2006 2011 2016 2021 2026 2031 

Camden Haven East 6,191 6,498 6,720 6,828 6,929 7,072 

Camden Haven West 2,777 2,845 3,753 4,961 6,048 7,015 

Flynns Beach 3,143 3,248 3,314 3,372 3,427 3,485 

Innes Peninsula 2,175 2,982 4,017 4,748 5,630 6,302 

Kings Creek - Sancrox - Lake Innes 2,467 2,668 2,898 3,177 3,512 4,182 

Lake Cathie - Bonny Hills 5,806 6,275 6,763 7,546 8,576 9,801 

Lighthouse Beach - Greenmeadows 11,388 11,882 12,568 12,965 13,043 12,996 

Port Macquarie Remainder 9,564 9,793 9,901 9,958 10,195 10,347 

Rural North 3,266 3,261 3,251 3,336 3,472 3,570 

Rural West - South 3,119 3,119 3,111 3,137 3,188 3,245 

Shelly Beach - Bellevue Hill 10,587 10,705 10,929 10,929 11,237 11,359 

Thrumster 106 660 2,488 5,125 7,681 10,090 

Town Beach - CBD 1,329 1,412 1,503 1,602 1,704 1,810 

Wauchope 6,219 6,913 7,587 8,269 8,936 9,531 

Westport 3,148 3,310 3,455 3,563 3,674 3,786 

TOTAL 71,285 75,571 82,258 89,707 97,252 104,591 

Source: Port Macquarie Hastings Council 2009 

Ref: C10211 21 / 36 Hill PDA


5.2 Resident Spending 

In addition to population growth there has been real growth in retail spend resulting from increasing affluence and 

economic materialism. From 1991 to 2005 growth in retail spend per capita was around 1.9%. There have been 

periods however where growth has been negative such as 1986 to 1991 and during 2007 to 2008 when rising 

interest rates and petrol prices saw households reducing spend. The more recent GFC and worsening job security 

has had some negative impacts but government stimulus measures combined with a lowering of petrol prices and 

interest rates has maintained levels of retail spend. From 1986 to the present the average per annum growth rate 

has been around 1.3% increase in retail spend per capita. For the purpose of forecasting we have maintained this 

rate. 

Household expenditure was sourced from: 

• ABS Household Expenditure Survey 2003-04 which provides household expenditure by broad commodity 

type by household income quintile; and 

• Marketinfo 2007 database which is generated by combining and updating data from the Population Census 

and the ABS Household Expenditure Survey (HES) using “microsimulation modelling techniques”. 

Marketinfo combines the data from the Census, HES and other sources to derive total HES by commodity type. 

This data, which was validated using taxation and national accounts figures, quantifies around 14% more 

expenditure than the ABS HES Survey. The tables below show that Port Macquarie - Hastings LGA will generate 

considerable growth in expenditure to 2031. 

Table 4 - Forecast Household Expenditure Generated by Port Macquarie Hastings LGA ($m2007) 

YEAR 2007 2011 2016 2021 2026 2031 

Food & Groceries 241.8 268.2 311.4 362.3 419.0 480.6 

Liquor Take-away 53.1 58.9 68.4 79.5 92.0 105.5 

Take-away Foods 35.4 39.3 45.6 53.0 61.3 70.4 

Meals in Restaurants, Hotels & Clubs 28.6 31.8 36.9 42.9 49.6 56.9 

Apparel 64.0 71.0 82.4 95.9 110.9 127.2 

Homeware & Manchester 22.2 24.7 28.6 33.3 38.5 44.2 

Home Entertainment Equip. 19.7 21.9 25.4 29.5 34.2 39.2 

Furniture & Flooring 34.1 37.8 43.9 51.0 59.0 67.7 

Whitegoods 21.6 24.0 27.9 32.4 37.5 43.0 

Hardware & Gardening 27.5 30.5 35.4 41.2 47.6 54.6 

Sporting and Camping Goods 2.3 2.5 2.9 3.4 3.9 4.5 

Other Goods 182.0 201.9 234.5 272.7 315.4 361.8 

Personal Services 18.9 21.0 24.4 28.3 32.8 37.6 

Cinema 1.3 1.5 1.7 2.0 2.3 2.6 

Liquor consumed on Premises 19.9 22.1 25.7 29.9 34.5 39.6 

TOTAL 772.5 856.9 995.0 1,157.4 1,338.5 1,535.5 

* Allows for 1.3% real growth in expenditure per annum per capita in line with historic trend since 1986. 

Source: ABS Household Expenditure Survey 2003-04, Marketinfo 2007 and Hill PDA 

As shown in the above table there is a significant level of growth in household expenditure – equivalent to 29% 

over the next nine years from 2007 to 2016 and 73% over the next 19 years to 2026. 

Ref: C10211 22 / 36 Hill PDA


Note that the estimated figure of $857m of turnover generated by resident spending in 2011 is around 44% higher 

than the estimates in 2004 by Leyshon Consulting. The difference is not attributable to population estimates but 

due to a combination of: 

• Inflation (Leyshon used 2003 dollars which had 13% more value than 2007 dollars); 

• Different sources of expenditure data (Leyshon’s estimates were sourced from ABS Household Expenditure 

survey which underestimated expenditure by around 14% when compared to national account figures); 

• Socio-economic changes since the 2001 Census; and 

• Assumptions on real growth in retail spend per capita. 

The ABS Retail Survey (1998-99 Cat No. 8624.0) provides a cross tabulation of commodity type by store type 

(defined by ANZIC). Multiplying the percentages in the cross tabulation by total dollars spent generates household 

expenditure by retail store type. This is provided in the following table. 

Table 5 - Expenditure by Retail Store Type ($m2007) 

YEAR 2007 2011 2016 2021 2026 2031 

Supermarkets & Grocery Stores 254.8 282.7 328.2 381.8 441.5 506.5 

Specialty Food Stores 86.7 96.2 111.7 129.9 150.2 172.3 

Fast-Food Stores 40.3 44.7 51.9 60.4 69.8 80.1 

Restaurants, Hotels and Clubs* 48.6 53.9 62.5 72.8 84.1 96.5 

Department Stores 71.8 79.6 92.4 107.5 124.3 142.6 

Clothing Stores 44.6 49.5 57.5 66.8 77.3 88.7 

Fabric and Soft Goods Stores 7.2 8.0 9.2 10.7 12.4 14.2 

Furniture & Floor Coverings Retailers 32.4 35.9 41.7 48.5 56.1 64.3 

Domestic Hardware and Houseware Retailing 28.5 31.7 36.8 42.8 49.5 56.7 

Electrical Appliances Stores 54.3 60.2 69.9 81.3 94.1 107.9 

Recorded Music Retailers 3.0 3.4 3.9 4.6 5.3 6.1 

Sport and Camping Goods Stores 3.5 3.9 4.5 5.2 6.0 6.9 

Other Personal & Household Goods Retailing 109.3 121.2 140.7 163.7 189.3 217.2 

Household Equipment & Repairs 3.8 4.2 4.8 5.6 6.5 7.5 

Selected Personal Services** 18.9 21.0 24.4 28.3 32.8 37.6 

TOTAL RETAILING 807.6 895.8 1,040.1 1,210.0 1,399.3 1,605.3 

Note that the total expenditure amount in the two tables above do not equate. This is because some expenditure 

is captured by non-retailers (such as internet shopping) and some turnover captured by retailers is not household 

expenditure related (such as wholesaling and hiring of equipment). Turnover by store type is around 4.5% higher 

than total household expenditure. 

Note also that the above tables show turnover generated by household expenditure. It does not show where that 

turnover is captured. 

5.3 Tourism and Regional Spending 

Port Macquarie is known to capture some expenditure from the neighbouring LGAs of Greater Taree and 

Kempsey. In 2007 Greater Taree had around 48,000 residents and Kempsey had around 30,000 residents. Until 

recently Taree had only one discount department store and Kemspey had only a Target Country store. The retail 

offer in Port Macquarie was considerably stronger. 

Ref: C10211 23 / 36 Hill PDA


However there have been some recent expansions in Greater Taree and Kempsey. Taree City Centre 

constructed in 1997 added a second discount department store (Big W) and full-line supermarket (Woolworths) as 

well as a further 43 specialty shops. Big W and a new Woolworths supermarket are now also in Kempsey. These 

additions have probably arrested some of the escape expenditure to Port Macquarie. 

Estimating the level of expenditure from Taree and Kempsey into Port Macquarie is vexed and there is a danger of 

over estimating from double counting since these day trippers are also included in tourism statistics. 

The National Visitor Survey is the major source of information on the characteristics and travel patterns of 

international, domestic overnight and day tourists. 

By year ending 2008 Greater Port Macquarie (GPM) attracted over 640,000 domestic overnight visitors to the 

region, consisting predominantly of the leisure market. Visitors to GPM represent 21% of the total number of 

visitors to the Mid north coast region (from Port Stephens to Coffs harbour) and 4% of the visitors to NSW 

annually. In 2008 GPM recorded a significant decline in visitor numbers and nights. Visitor numbers for the 

Calendar Year End 2008 recorded over 640,000 domestic visitors. This represents a 12% decline compared to 

2007, which had experienced one of the highest visitation levels in eight years. Visitor numbers also declined. By 

YE 2008 visitors to GPM spent over 2.1 million visitor nights, which is down by over 30% compared to YE 2007. 

Total spend was $296m from overnight tourists and $84m from day trippers. Council estimates the total spend 

from overnight tourism to be more around $400m based on Council’s Visitor Profile and satisfaction (VPS) survey. 

Food and drink, shopping and entertainment make up 51% of overnight visitors’ expenditure. Assuming the retail 

centres capture 65% of this expenditure 4 then this equates to around $100m to $130m of overnight tourism 

expenditure per annum being captured by the retail centres of Port Macquarie Hastings LGA – mostly the Greater 

CBD. 

Average spend per day tripper is $127. Assuming the centres capture 60% of this then this amounts to a further 

$50m captured by Port Macquarie-Hastings. This is consistent with earlier advice by Hill PDA based on capture 

rates from the adjoining LGAs. Hence total spend by non-Port Macquarie residents and captured by the retail 

centres of Port Macquarie amounts to between $160m and $180m per annum. This is a little higher than 

Leyshon’s estimate of $137m in 2003 but in real terms remains a similar level. 

5.4 Demand for Retail Floor Space 

Between 5% and 10% of resident expenditure escapes Port Macquarie mostly in the form of “tourism out” 

expenditure. Assuming this rate is maintained and assuming tourism in expenditure increases at half the rate of 

resident expenditure then total retail spend captured in the LGA is forecast as follows. 

4 

. Some expenditure is captured by motels, tourist attractions, highway convenience centres and other facilities outside the retail centres. 

Ref: C10211 24 / 36 Hill PDA


Table 6 - Forecast Total Expenditure in Hastings ($m) 

YEAR 2006 2011 2016 2021 2026 

Resident Spend 807.6 895.8 1,040.1 1,210.0 1,399.3 

Less escape expenditure -60.6 -67.2 -78.0 -90.7 -104.9 

Tourism and Regional Spend 165.0 174.0 188.0 203.4 219.3 

TOTAL 912.0 1,002.6 1,150.2 1,322.6 1,513.6 

Expenditure by Retail Store type is estimated as follows: 

Table 7 - Expenditure by Retail Store Type ($m) 

YEAR 2007 2011 2016 2021 2026 2031 

Supermarkets & Grocery Stores 287.8 316.4 362.9 417.3 477.6 542.8 

Specialty Food Stores 97.9 107.6 123.5 142.0 162.5 184.7 

Fast-Food Stores 45.5 50.0 57.4 66.0 75.5 85.9 

Restaurants, Hotels and Clubs 54.8 60.3 69.2 79.5 91.0 103.4 

Department Stores 81.0 89.1 102.2 117.5 134.5 152.9 

Clothing Stores 50.4 55.4 63.5 73.1 83.6 95.0 

Bulky Goods Stores 138.2 151.9 174.3 200.4 229.3 260.6 

Other Personal & Household Goods 135.0 148.4 170.3 195.8 224.1 254.7 

Selected Personal Services 21.4 23.5 26.9 31.0 35.4 40.3 

Total Retailing 912.0 1,002.6 1,150.2 1,322.6 1,513.6 1,720.3 

Total Shop Front Retailing* 746.4 820.6 941.3 1,082.5 1,238.8 1,407.9 

* Excluding hotels, pubs, clubs and bulky goods retailing outside the commercial centres. 

Estimating required floor space is calculated by dividing turnover by industry benchmark levels. The benchmark 

turnover levels adopted were: 

• Supermarkets and grocery stores $9,000/sqm 

• Other Food stores and restaurants $7,000/sqm 

• Department stores $3,800/sqm 

• Bulky Goods (out-of-centre) $3,300/sqm 

• Other non-food retailers $4,800/sqm 

These are considered to be industry average turnover levels for non-metropolitan areas sourced from ABS Retail 

Survey 1998-99, Urbis Retail Averages, Shopping Centre News and various consultancy studies. For the purpose 

of the forecast we have escalated the target turnover rates by 0.5% per annum in line with historic trend. Based 

on these turnover levels the following forecast of demand for retail floor space was estimated as follows: 

Table 8 - Demand for Retail Floor Space in Port Macquarie Hastings LGA (sqm GLA) 

YEAR 2007 2011 2016 2021 2026 2031 

Supermarkets & Grocery Stores 31,974 34,458 38,554 43,243 48,269 53,509 

Other Food Stores 24,405 26,301 29,427 33,007 36,843 40,842 

Department Stores 21,326 22,982 25,714 28,841 32,193 35,688 

Other non-Food 47,393 51,074 57,145 64,096 71,545 79,312 

Total in Centres 125,098 134,815 150,840 169,188 188,850 209,351 

Out of Centre 35,591 38,355 42,915 48,135 53,729 59,561 

TOTAL RETAILING 160,689 173,170 193,755 217,323 242,579 268,912 

Ref: C10211 25 / 36 Hill PDA


The above table suggests that with 115,000sqm there is currently some undersupply of occupied retail floor space 

in the commercial centres. By 2011 the undersupply will be around 17,000sqm and by 2021 it will be 51,000sqm if 

there were no additions to supply. 

5.5 Forecast Supply and Demand 

For the purpose of the supply and demand modelling we have assumed the following increases in supply: 

Table 9 - Increase in Retail Floor Space Supply (sqm GLA)* 

Year Centre Increase in Floor Space 

2010 New IGA and specialties in Wauchope** 627sqm 

2011 Hayward Street and Hastings River Drive 5,500sqm 

2012 Thrumster Stage 1 5,000sqm 

2013 Expansion of Settlement City 10,000sqm 

2013 Expansion in Laurieton 3,000sqm 

2014 New Coles in Wauchope 3,000sqm 

2015 St Josephs School Site 20,000sqm 

2015 Thrumster Stage 2 2,500sqm 

2016 Bonny Hills Centre 5,000sqm 

* Refers to retail space only – excludes non-retail spaces – eg banks, real estate agents, medical suites and travel agents 

** Expansion in Wauchope (does not include the store opposite Timbertown) 

The cumulative supply and demand chart is depicted below. 

Figure 1 - Cumulative Supply and Demand for “In-Centres” Retail Floor Space to 2031 (sqm GLA)* 

220,000 

200,000 

Demand 

Square Metres (GLA) 

180,000 

160,000 

140,000 

120,000 

Supply 

100,000 

80,000 

2009 

2011 

2013 

2015 

2017 

2019 

2021 

2023 

2025 

2027 

2029 

2031 

Year 

* Refers to retail space only – excludes non-retailers that occupy shop front space – eg banks, real estate agents, medical suites and travel agents 

Ref: C10211 26 / 36 Hill PDA


The chart shows that the above proposals can reasonably be accommodated without necessarily detrimentally 

affecting existing centres or over-supplying the market. There will be some oversupply following the completion of 

the St Joseph School site, but the level of oversupply will represent 9% of total occupied space – in other words 

retailers on average across the LGA will trade around 9% below the target levels (non-metropolitan average) 

assuming no increase in vacancies. This is a sustainable, if not strong, level of trading. 

Furthermore the level of oversupply will diminish to become undersupply in as little as 6 years (say by 2021-22) 

due to growth in expenditure in the LGA. In other words in around 2022 there will need to be further expansions in 

floor space to prevent undersupply conditions. 

Ref: C10211 27 / 36 Hill PDA


6. RETAIL STRATEGY 

6.1 Objectives of the Strategy 

In order to develop and evaluate a range of options for the planning and management of retailing in the LGA it is 

necessary to have a clear set of objectives. At the commencement of the study key objectives were established – 

these being: 










An important objective of any retail strategy is to achieve the right level of shop front retail and commercial floor 

space. An undersupply of floor space creates the following problems: 

• It undermines the objective of residents having the widest possible range of shopping opportunities and 

commercial services; 

• It undermines the objective of providing quantity, quality and convenience for consumers; 

• It results in longer travel times for shopping and increased car use; 

• It results in increased congestion, parking difficulties and loss of convenience; and 

• It results in more “out-expenditure” escaping the LGA and less “in-expenditure” from other LGAs. 

An oversupply of shop front retail and commercial floor space results in: 

• High vacancies, low rents and neglect of retail centres; 

• Inefficient use of land and other resources; and 

• An uninviting appearance and ambience with lack of users. 

In many cases an oversupply of shop front space occurs as a result of intense competition in the retail industry 

with competitors trying to be first. In high growth areas oversupply is only a short term problem. However in 

areas of stagnant population growth, oversupply is an issue that is more difficult to address. 

Notwithstanding the above, retail space is often increased in quantum leaps due to the sizes of majors or anchor 

tenants and the need to include a component of specialty stores to ensure viability of development. 

Ref: C10211 28 / 36 Hill PDA


6.2 New Centres 

New centres are proposed to service Areas 13 (Thrumster) and 14 (Lake Cathie / Bonny Hills). These centres 

should be contained to a size of 7,500sqm and 5,000sqm respectively. These centres should be allowed to 

develop ahead of their respective population numbers to ensure delivery of services in advance. 

6.3 Greater CBD 

The next significant expansion of the Greater CBD is likely to be the 10,000sqm expansion of Settlement City and 

development in Short Street in the Port Macquarie Town Centre. The St Joseph school site will add a further 

20,000sqm somewhere around Year 2015. Whilst Settlement City and the school site are part of the Greater CBD 

they are some 1.5km from Port Central and the break in continuity of retail and commercial uses along Buller 

Street means that very few people walk between these centres. As a result there is some danger that Port 

Macquarie Town Centre will be outperformed by the newer Settlement City end. 

In order to ensure the viability of Port Macquarie Town Centre it is recommended that any proposals for 

redevelopment and expansion of retail space in the Town Centre be supported – particularly proposals that will 

introduce new retailers and new formats. This is the case even if it results in some “oversupply” of retail space 

throughout the LGA. 

6.4 Out of Centre Retailing 

Bulky Goods 

Requirements for a successful bulky goods centre or cluster include the following: 

• Large land area preferably on the fringe of a major or regional shopping centre; 

• Main road frontage or strong visual exposure from a main road that carries considerable traffic; 

• Having a large trade area and being located in the middle of, or near the entry of, the trade area; 

• Preferably having a trade area that is affluent and/or experiencing household growth. 

There is a shortage of sites for future growth of bulky goods retailing. In the Port Macquarie market the usual form 

for bulky goods retailing is low cost single storey construction with outdoor at grade car parking. Parking under 

the retail level in a semi-basement car park is possible but the feasibility becomes questionable in nonmetropolitan 

areas. Since parking is provided outdoors the FSR is usually no more than around 0.4:1. 

Demand for bulky goods in Port Macquarie will increase at around 1,000sqm to 1,200sqm (GLA) every year which 

translates to a required land area of around 1ha every four years. Around 24,000sqm is required between 2009 

and 2031. 

Notwithstanding that demand increases gradually, supply often steps up in quantum increases due to the large 

formats of bulky goods retailers. A super centre with one or two anchor tenants and 15 to 20 specialties could be 

Ref: C10211 29 / 36 Hill PDA


say 20,000sqm. A scenario like this would have strong impacts on existing bulky goods retailers but the impacts 

on centres are not necessarily significantly adverse. A super centre of this scale would also attract more 

expenditure from Kempsey and Greater Taree which could have some minor positive benefits with day trippers 

doing dual shopping in the Port Macquarie CBD. 

Furthermore a single retailer such as the new Woolworths hardware house concept requires a significant floor 

area of 13,500sqm and site area of around 3ha. A large proportion of the building is used for storage of home 

building supplies and a significant proportion of trade relates to wholesale trade. This is a model which blurs the 

boundary between retailing and industrial use. 

An ideal model is a super centre with the Woolworths hardware house (13,500sqm), a large furniture retailer (such 

as Domayne or Nick Scali of 3,000sqm) and around 15 specialties including bedding stores, electrical appliances 

and home entertainment, outdoor furniture and barbeques, indoor furniture stores, floor coverings, curtains, 

kitchens, lighting, tiles, etc. Total floor area would be around 25,000sqm. The supercentre need not be in single 

ownership but it should be in a cluster thereby enabling or encouraging shoppers to walk, rather than drive, 

between stores. Around 6-8ha would be required to accommodate this option. 

Given that there are very few, if any, remaining opportunities in Lake Road and Hastings River Drive the best 

location for a significant expansion bulky goods (super centre or cluster) is along Oxley Highway between the 

Pacific Highway and Innes Lake. This is the main entry point to Port Macquarie from the highway. The site has 

considerable visual exposure from the road and accessibility is very good. 

Bulky goods would also provide a buffer between the main road and residential. Furthermore bulky goods 

contribute little problem to traffic on working days. Generally the majority of trade is weekend trade. 

Bulky goods are defined in the LEP 2001 as “the use of land for the sale by retail or auction, or the hire or display 

of articles which are of such a size, shape or weight as to require: 

“(a) a large area for handling, storage or display, or 

(b) direct vehicular access to the premises by members of the public for the purpose of loading articles into 

their vehicles after purchase” and 

“It does not include the use of land for the sale of clothing and foodstuffs, or a motor showroom”. 

Under the Standard Instrument (Local Environmental Plans) Order 2006 bulky goods: 

“means 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) a large area for handling, display or storage, or 

(b) 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.” 

Ref: C10211 30 / 36 Hill PDA


The Retail Strategy Review by Leyshon Consulting in 2004 went into some detail about options for controlling 

bulky goods retailing in out of centre locations. The recommendations or suggestions in the review were made to 

reduce risk of “inappropriate” out-of-centre retail development which could result in unacceptable impacts on the 

existing centres. To date however there hasn’t been any strong evidence that the LEP definition or the Standard 

Template definition is failing, or will fail, in its role to protect the viability of existing centres. 

The main reason why out-of-centre bulky goods retailing has not, or does not, strongly impact the viability of 

existing centres is because bulky goods retailing is not prevalent in the existing centres. 

Convenience Retailing 

The recent case of the proposed 1,500sqm food and grocery store in Hastings River Road highlights the need to 

have greater control over the type of retailing in out-of-centre locations. It should be made clear in the planning 

instruments that retailing, other than bulky goods, is not permitted in the industrial areas unless the predominant 

or majority proportion of its trade is derived from workers in the immediate employment zone within a 1km radius. 

Council has included in its draft standard LEP, a maximum floor area of 200m2 for neighbourhood shop, which 

would be permissible with consent in the B5 zone. This floor space restriction should apply to the industrial zones 

as well. 

Ref: C10211 31 / 36 Hill PDA


7. DRAFT RETAIL POLICY PLAN 

The Hastings Retail Policy Plan (RPP) is designed to establish Hastings Council’s position regarding planning for 

future retail investment in the Local Government Area. 

Broad Goals 

Broad Goals of the Retail Policy Plan include: 

1. Provide quantity, quality and convenience for consumers as well as a wide range of shopping 

opportunities and commercial experiences; 

2. Provide for further growth in retail and commercial space to meet growth in demand generated by 


3. Protect the integrity and viability of existing centres to the extent that they continue to perform a valuable 

community function; and 

4. Protect current employment levels in retailing and hospitality industries for the residents of the LGA and 


Specific Objectives 

Specific Objectives of the Retail Policy in the Port Macquarie Hastings LGA include: 

1. To maintain and enhance the present hierarchy of retail centres throughout the Port Macquarie Hastings 

Local Government Area. 

2. Protect the integrity and viability of the Port Macquarie Town Centre; 

3. To encourage new retail development to occur within the existing identified Commercial Business 

Districts of the LGA (Greater Port Macquarie CBD, Laurieton and Wauchope); and 

4. New retail centres to be restricted to Area 13 (Thrumster) and Area 14 (Bonny Hills). 

Policy Plan Provisions 

The following policy provisions will achieve these objectives: 

1. Centres Hierarchy 

Recognising that centres should be allowed to expand but generally within the total floor areas shown in the 

following table unless: 

• Demand for additional floor space is warranted; 

• The retail hierarchy is not undermined; and 

• The viability of other centres is not threatened. 

Ref: C10211 32 / 36 Hill PDA


Table 10 - Centres Hierarchy in 2021 

Classification Centres Appropriate Size (sqm GLA)* 

Greater Port Macquarie CBD 

Includes Settlement City, Port Central and 115,000 

surrounding retail and Gordon Street 

Town Centres Wauchope 12,000 

Laurieton 12,000 

Large Villages Lakewood 5,000 

Lake Innes 5,000 

Lake Cathie 5,000 

Lighthouse Plaza 5,000 

Bonny Hills (Future Centre) 5,000 

Thrumster (Future Centre) 7,500 

Small Villages 

North Haven, Kew, Kendall, Lighthouse 

Beach, Flynn's Beach, Waniora Parkway, 

Bonny Hills and Clifton 

Various but no more than 2,000sqm per 

centre 

TOTAL 170,000 to 180,000 

* Excludes non-retail shop front space such as real estate agents, medical, travel agents, etc 

2. Out of Centre Retailing 

• Restricting bulky goods retailing outside the defined centres to: Lake Road, Hastings River Drive, Oxley 

Highway and Area 13. 

• Prohibiting retailing, cafes and restaurants (other than bulky goods) in the industrial areas unless the 

predominant or major proportion of any store’s trade is derived from workers in the immediate employment 

zone generally within a 1km radius and provided that the size of any one store, café or restaurant is less 

than 200sqm. 

2. Employment 

• Encouraging the growth of retail and services in the Port Macquarie-Hastings CBD and town centres (being 

Port Macquarie Greater CBD, Wauchope and Laurieton). 

3. Planning 

• Rejecting applications made to create new commercial centres in the Port Macquarie-Hastings LGA except 

those relating to new local centres required to service settlement in new urban areas (Area 13 Thrumster 

and Area 14 Bonny Hills). 

• To require that any additional department store or discount department store greater than 3,000sqm in size 

be located only in the Greater Port Macquarie CBD. 

4. Assessment 

Ensure rigorous assessment of new retail development and re-zoning applications by requiring: 

• Demonstration of a need for the retail services in terms of: 

o any identifiable shortfalls in the supply of retail services within the LGA in general or relevant parts 

of the LGA in particular; or 

o 

providing a positive net benefit to the community in terms of retail offer, price competition, 

convenience, travel cost savings and all other quantifiable and non-quantifiable costs and benefits; 

Ref: C10211 33 / 36 Hill PDA


and 

• An assessment of the impact of the proposal on existing and proposed/approved retail centres. 

5. Review 

To review this Retail Policy Plan every five (5) years from the date of its adoption. 

Ref: C10211 34 / 36 Hill PDA


DISCLAIMER 

This report is for the confidential use only of the party to whom it is addressed (the client) for the specific purposes to 

which it refers. We disclaim any responsibility to any third party acting upon or using the whole or part of its contents 

or reference thereto that may be published in any document, statement or circular or in any communication with third 

parties without prior written approval of the form and content in which it will appear. 

This report and its attached appendices are based on estimates, assumptions and information sourced and 

referenced by Hill PDA. We present these estimates and assumptions as a basis for the reader’s interpretation and 

analysis. With respect to forecasts we do not present them as results that will actually be achieved. We rely upon the 

interpretation of the reader to judge for themselves the likelihood of whether these projections can be achieved or not. 

As is customary, in a report of this nature, while all possible care has been taken by the authors to prepare the 

attached financial models from the best information available at the time of writing, no responsibility can be 

undertaken for errors or inaccuracies that may have occurred both with the programming or the financial projections 

and their assumptions. 

Ref: C10211 35 / 36 Hill PDA

Port Macquarie Hastings Retail Strategy Review ... - Hastings Council

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