UPDATE: Coles eyes off $340 million opportunity in Gladstone
WHAT WE KNOW:
- Coles project they would take $37.5million off Gladstone supermarkets, shopping centres and specialty stores
- The project is expected to bring 180 jobs to Gladstone
- The total size of the complex will 19,992sqm
- Coles wants to build a supermarket, liquor store, two specialty shops and a service station.
- The site is on Dixon Dr, directly opposite Kirkwood's Woolworths, Caltex, and McDonalds.
- Two applications with council are at different stages
COLES sees a $340 million dollar opportunity for its New Auckland shopping centre by 2026.
The projection, deep in the Coles planning, are an increase from $222.20 million dollars last year.
It expects its supermarket to compete for a fair chunk of the $108.8 million shoppers in the Kirkwood trade area will spend at supermarkets (pictured).
The total retail spend of shoppers in the Kirkwood trade area is expected to grow $37.5million each year until 2026.
It mean it spending would grow to $230.5 million this year, $278 million by 2021, and $340 million by 2026.
The money up for grabs is set to begin a price war between Coles and what would be its neighbour, Woolworths, which is directly across the road.
But Coles said the $37.5 million increase in shopper spending each year would alleviate the pain Woolworths Kirkwood feels when it loses $13.5 million of its market share.
"This spending impact is approximately three times the projected impact on the Woolworths centre," Coles wrote.
It also wrote that Woolworths Kirkwood wouldn't feel the impact too sharply as it "is achieving above average sales at present".
It wrote Woolworths is project to earn $55 million this year -- or in excess of $13,000 per sqm --, well above the average of $10,540 per sqm.
THE development of a Coles Shopping centre at Kirkwood is expected to bring a big boost to employment in Gladstone, with 180 full and part time jobs up for grabs.
Out of the 180 jobs Coles will create, many of those will occur during the construction phase.
Construction will be broken down into two stages.
Stage one will include the Coles supermarket, liquor store and nine specialty shops and stage two will comprise of approximately five shops, including a service station.
Once completed Coles projects that 20, 18 and 10 people will be employed "at any one time" at the supermarket, nine speciality shops in stage one and five shops in stage two.
At present Coles has applied to transform 6.136 hectares of vacant land owned by land developers Walker Gladstone.
COLES is expecting to rake in $37.5 million dollars in their first year of trading.
It means their local competitors are set to lose. And the burden would be shared across Gladstone's major shopping centres.
In a detailed planning application submitted to council, Coles expect to take millions of dollars off its local competitors, including Woolworths Kirkwood, Stockland, Sun Valley, and The Valley Shopping Centre.
According to Coles' estimates, Stockland is set to be the biggest loser, with Coles taking $16.9 million of its earnings.
Woolworths Kirkwood, which would be across the road, would lose a whopping $13 million to Coles, according to the supermarket giants estimates.
MAYOR Matt Burnett is gunning for Coles to develop a shopping centre and service station at New Auckland.
Mayor Burnett met with officials from Coles on Monday who indicated they were "very keen" to set up shop opposite Woolworths and McDonalds.
"Coles are very keen to develop the site…but the most important thing is gaining community support for the development," Mayor Burnett said.
"There are issues with access on Kirkwood Rd and you don't want congestion on Dixon Dr.
"But what we need to do is see if it is the right thing to do at Kirkwood," he said.
Mayor Burnett said he believed the Kirkwood site would be an appropriate place to build the new shopping centre but did not want to proceed without community support.
"We want development and construction and jobs but not at any cost," he said.
"We need to get it right."
It's understood if Coles' application is approved, the supermarket giant will be "ready straight away".
There are four separate development applications that have been lodge by Coles which are Impact Assessable and require Public Notification.
The council released this statement: "The three [material use of change] applications are expected to commence Public Notification by the applicant in the near future (during which time the public will be able to view and/or make submissions).
More to come.
VIEW MAP | Gladstone's shopping centre projects
COUNCIL is expected to release the development application (DA) in the next hour.
This will contain the finer detail of what exactly Coles Group Property Developments plans to build and when construction should begin.
THE BATTLE for supremacy between supermarket giants Coles and Woolworths is set to continue with advanced plans for Coles to build a shopping centre and service station at New Auckland.
In two separate applications made to the council, Coles Group Property Developments plans to build a supermarket, liquor store, two specialty shops and a service station directly opposite Woolworths and McDonalds.
An undisclosed source confirmed the site for the proposed development is on the corner of Dixon Dr and Kirkwood Rd.
MAP | Coles plans to build a new complex at Kirkwood
The two applications are at different stages of approval with the council awaiting Coles to notify the public.
The proposal for the shopping centre is one step behind.
More to come.