We have received the consultants’ Retail Assessment report for Powys Council. It contains good news, on the whole coming down in favour of the Co-op expansion and criticising the Tesco Retail Impact Assessment, while leaving the door open for a compromise of a smaller Tesco store. We know if this were to happen that Tesco would soon reapply for an extension.
Highlights:
“If the Council is satisfied that the Co-op store can be extended and that this enlarged store can meet the identified need and address the deficiency in food store provision in Machynlleth, then it would be inappropriate to permit a further food store within a sequentially inferior site.”
“sequentially” meaning adjacent to existing shops, ie the Farmers mart site is a bit further away.
“In our view there is a qualitative need to improve food store provision in Machynlleth.”
It says that if Tesco opened the Co-op would likely close.
It criticises the Tesco (DPP - their consultants) report:
“We believe DPP has under-estimated the level of impact.”
“In our view DPP has not provided conclusive evidence there is quantitative capacity for the scale of food store proposed (1,711 sq m net)”
“DPP has under-estimated the level of impact on convenience shops because the assessment assumes the store will trade significantly below the company average. DPP may also have over-estimated the turnover of existing convenience facilities in Machynlleth by about 19%.”
What about drawing in traffic and shoppers from outside the area?
“the alleged benefits of trade draw from zones 4 and 5 can be discounted because, on balance, it is likely to lead to longer and less sustainable, rather than shorter, shopping trips. Expenditure capacity within these zones should ideally be provided elsewhere e.g. Aberystwyth and Tywyn. This is a disbenefit of the Tesco proposal.”
The impact on local shops:
“Impact on comparison shops is estimated to be about 9%. This level of impact should be offset by expected comparison expenditure growth in the catchment area up to 2014, but again is a disbenefit of the proposal, if not a ground for refusal on its own.”
“The main impact of the Tesco store is the potential closure of the Co-op”
Conclusion
“The proposed Co-op extension, as a town centre proposal, complies with the relevant factors set out in MIPPS, and in our view there are no retail planning related grounds for refusal.”
“There is insufficient expenditure capacity to support the scale of Tesco store proposed, particularly if the Co-op extension is permitted and implemented.”
Therefore if Tesco is green-lighted:
“the benefits of the Tesco store improving choice and competition may be lost, because Machynlleth would still only have one large store.”
So:
“The Council needs to decide whether the potential to improve choice, i.e. two stores in Machynlleth, is worth the risk of Co-op closing.”
Finally, the door is left open for a fudge by the Council:
“If the Council is minded to approve the Tesco proposal then it is appropriate to impose planning conditions to restrict the amount of net sales floorspace, i.e. 1,711 sq m net including checkouts, of which not more than 249 sq m net of comparison sales floorspace. The provision of in-store franchises such as post office, dispensing chemist and hairdressers etc should also be restricted. These conditions would help to minimise the impact of the proposal on the town centre.”
Click here to download the retail assessment
