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0802135
RECEIVED
18 NOV 2008
MARTHY
Morbaine Ltd Proposed Retail Development at Spring Valley Industrial Estate, Cooil Road, Douglas Retail Assessment November 2008
1.0 INTRODUCTION ..... 3 Scope and Purpose of the Report ..... 3 The Proposed Development ..... 3 The Application Site ..... 3 Planning Policy Background ..... 3 Structure of the Report ..... 4 2.0 EXISTING SHOPPING FACILITIES ON THE ISLE OF MAN ..... 5 Introduction ..... 5 Douglas Town Centre ..... 5 Other Shopping Facilities ..... 9 Summary ..... 11 3.0 NEED ..... 13 Introduction ..... 13 Quantitative Need ..... 13 Qualitative Factors ..... 14 Retailer Demand ..... 15 Summary ..... 15 4.0 THE SEQUENTIAL APPROACH ..... 16 Introduction ..... 16 The Requirement for Extensive Sales Area ..... 16 The Requirement for Adjacent Car Parking ..... 17 Summary ..... 17 5.0 TRADING EFFECTS ..... 18 6.0 SUMMARY AND CONCLUSIONS ..... 20 The Application Proposals ..... 20 Existing Shopping Facilities ..... 20 Need ..... 20 The Sequential Approach ..... 20 Trading Effects ..... 21 Conclusion ..... 21
1.01 This supporting statement has been prepared on behalf of Morbaine Ltd in respect of an application for two new retail units on the Spring Valley Industrial Estate, Cooil Road, Douglas. 1.02 This statement specifically considers the retail planning policy issues arising from the proposal based on the provisions of the Development Plan and in the context of the Isle of Man Island Retailing Study prepared by Roger Tym \& Partners.
1.03 The submitted application seeks outline planning permission for retail warehouse development with a combined floorspace of 18,000sq.ft (1,672sq.m.), and adjacent car parking. The illustrative scheme submitted shows two large retail units of 10,000sq.ft and 8,000sq.ft, and 82 car parking spaces serving both units. However, the detailed design of the scheme is a reserved matter. It is anticipated that the units will be occupied by operators requiring large, flexible, showroom-style sales areas and selling predominantly bulky goods (e.g. carpets, flooring, car accessories, bicycles, electrical and DIY goods, pet supplies, and furniture).
1.04 The application site is located approximately 3 km west of Douglas town centre and was until recently occupied by a car wash facility. The site occupies a prominent location on the trading estate, along with the existing B\&Q store, and is next to the A24 Cooil Road. Other units on the estate include quasi-retail uses, light industrial units, workshops, and warehousing/storage space.
1.05 The Town and Country Planning Act 1999 requires the production of a Development Plan to consist of a Strategic Plan and one or more Area Plans. The Strategic Plan was adopted in July 2007. The Bradden Parish Plan is the relevant Area Plan for the site and was adopted in 1991. 1.06 The application site is zoned for industrial use in the Bradden Parish Plan. In essence, prevailing planning policy relating to the application proposals in the Island Plan are encapsulated in the following policies:
Strategic Policy 9: All new retail development (except neighbourhood shops and those falling within Business Policy 5) must be situated within the town and village centres on land zoned for these purposes.
Business Policy 5: Retailing will not be allowed on land zoned for industrial purposes except where items could not be reasonably sold within town centres because of their size and nature or the items sold are produced on the site and their sale could not reasonably be severed from the overall business, and it can be demonstrated that the sales would not detract from the vitality and viability of centres. 1.07 Whilst the application proposals are not within the Douglas administrative area, it should be noted that the adopted Douglas Local Plan contains a policy which states that retail development should be restricted to the defined town centre. However, it also indicates that the development of units for the sale of non-food bulky goods may be suited to appropriate sites outside the town centre.
1.08 This supporting statement reflects the key requirements of prevailing planning policy as set out above. In addition, the statement addresses the 'need' for the development having regard to quantitative and qualitative factors, retailer demand, and the findings of the Isle of Man Retailing Study. Accordingly, the remainder of the report is structured as follows:
Section 2: Examines existing shopping provision on the island;
Section 3: Assesses the need for the proposed development;
Section 4: Considers whether the proposed development and the type of goods to be sold could reasonably be accommodated in a town centre location;
Section 5: Assesses the trading effects of the proposed development;
Section 6: Provides a summary of the findings and presents the conclusions
| Retail Sector | Units | UK Average | Gross Floorspace | |
|---|---|---|---|---|
| Convenience | 20 | 6% | 9% | 9,840 sq.m. |
| Comparison | 141 | 44% | 45% | 30,840 sq.m. |
| Service | 109 | 34% | 33% | 14,720 sq.m. |
| Vacant | 47 | 15% | 11% | 5,610 sq.m. |
| Miscellaneous | 7 | 2% | 1% | 1,040 sq.m. |
| Total | 324 | 100% | 100% | 62,050 sq.m. |
2.01 This section of the statement assesses shopping provision on the Isle of Man. It describes general shopping provision in the main town centres on the island and, in light of the type of goods which are to be sold from the proposed units, this section assesses existing retail outlets on the island selling predominantly bulky goods, including pet supplies and accessories.
2.02 The retail core of Douglas town centre is situated around the north-south pedestrianised spine of Castle Street, Manor Road, Strand Street, and Duke Street. In addition, shopping areas extend to the south-west along Victoria Street, Ridgeway Street and around North Quay.
2.03 In the shopping index produced by Management Horizons Europe UK (MHE), based on a weighted scoring system which takes account of each location’s provision of food and non-food multiple retailers and the strength of anchor stores, Douglas is ranked 243rd, alongside Chorley, Cirencester, Dorchester, Hinckley and Skegness in the UK. No other town centres on the Isle of Man feature in the MHE rankings. In terms of competing centres, Liverpool, some two and a half hours from Douglas by ferry, is ranked 14th in the UK, and Belfast, some 2 hour 45 minutes away by ferry, is ranked 25th.
2.04 Figure 2.1 below illustrates the composition of the town centre, as surveyed by Experian, in terms of the number and size of retail and service units.
Figure 2.1: Retail Composition of Douglas Town Centre 2007
Source: Experian Good Survey, October 2007 Figures may not add due to rounding
2.05 Figure 1 shows that, overall, there are 324 units in the town centre, 44% of which are dedicated to
the comparison goods sector. Key attractors and UK-based multiple retailers within this sector include the following:
2.06 Complementing these multiple retailers, the town centre also has many local independent shops in the comparison goods sector. A covered market, adding variety to the retail offer, is located on Market Hill. 2.07 In the context of the application by Morbaine, it is relevant to note that, according to Experian Goad, very few units in the town centre are occupied by bulky goods retailers, and specifically only
6 of the retail units in the town centre (just $1.9 \%$ ) have a competitive overlap with the type of goods which are to be sold from the proposed units (carpets, flooring, car accessories, bicycles, DIY goods, electrical goods, pet supplies, and furniture). These are as follows:
Ports of Call Furniture (Strand Street) 340sq.m. Basil Callow Antiques (Duke Street) 30sq.m.* MEA Showrooms (Ridgeway Street) 250sq.m. Quality Furnishings Showroom (Fort Street) 400sq.m. The Pet Shop (Duke Street) 60sq.m. The Kitchen Gallery (John Street) 120sq.m.
2.08 In terms of floorspace, these stores occupy 1,200sq.m. gross floorspace representing just $1.9 \%$ of the total occupied floorspace in the town centre. This analysis demonstrates: (a) the lack of shops selling carpets, flooring, car accessories, bicycles, DIY goods, electrical goods, pet supplies, and furniture in the town centre, and (b) the fact that these sectors of the retail market contribute little towards the overall economy of the town centre. 2.09 Turning to the convenience sector, there are 20 convenience units ( $6 \%$ of the total number of units) in the town centre. These include two large supermarkets, Tesco and Shoprite. Smaller stores include a Co-op supermarket, Spar, Holland and Barrett and Julian Graves healthfood shops, a butcher, fishmonger, baker and off licences. The Marks and Spencer store also has a foodhall. 2.10 In addition to retail uses, there is a broad range of service uses in Douglas town centre. Service uses (as classified by Experian Goad) account for $34 \%$ of all town centre units. Within this sector, the town centre has hairdressers, health and beauty salons, travel agents, estate agents, and the major banks are also represented. In terms of recreation, leisure and entertainment, the centre has many pubs, cafes, and restaurants, and visitors and residents also have access to libraries and a theatre.
2.11 It is relevant to note the change in retail and service composition in Douglas town centre over recent years. Figure 2.2 below shows the changes that have occurred between 2000 and 2007 according to surveys by Experian Goad.
Figure 2.2: Retail Composition 2000 – 2007 Source: Experian Goad Surveys, September 2000, June 2003, and October 2007
2.12 Figure 2.2 shows that overall the number of shops and service units within the town centre has increased by 34. The comparison sector grew between 2000 and 2003 but has since declined, although the overall number of comparison units is only slightly less than the figure in 2000. The number of service units has increased by 22. The number of convenience stores has remained steady.
2.13 Importantly, Figure 2.2 shows that the number of vacancies in the town centre decreased by 7 from 35 to 28 over the period 2000 to 2003. The much larger number of vacancies recorded in the 2007 survey (47) is misleading as 17 of these are located at the Villa Marine Colonnade which was being redeveloped at the time and is now nearing completion. Vacancies in the rest of the town centre are relatively dispersed or in peripheral areas, away from the main footfall, such as North Quay.
2.14 In addition to retail and service uses, Douglas attracts visitors for other reasons, not least as it is the main administrative centre for the island. In this context, Douglas town centre contains a number of Government buildings and office buildings employing large numbers of people. The town centre attracts visitors for financial and professional services too (solicitors and accountants, for example).
2.15 Douglas (and the Isle of Man generally) also attracts a significant number of tourists. Information from the Isle of Man Government indicates that in 2004 there were 341,000 tourist visitors to the island spending approximately £113m. The tourism industry is an important contributing factor in the vitality and viability of Douglas town centre, particularly in terms of its hotels, pubs, cafes, restaurants and amusement arcades. Douglas also has a theatre, the Royal Marina and the Royal Hall hosting shows.
| Retail Sector | Units 2000 | Units 2003 | Units 2007 | Change 2000-2007 |
|---|---|---|---|---|
| Convenience | 21 | 21 | 20 | -1 |
| Comparison | 144 | 157 | 141 | -3 |
| Service | 87 | 106 | 109 | +22 |
| Vacant | 35 | 28 | 47 | +12 |
| Miscellaneous | 3 | 5 | 7 | +4 |
| Total | 290 | 317 | 324 | +34 |
2.16 An indicator of vitality in a town centre is footfall. Footfall was observed to be particularly high in the pedestrianised areas of the town centre, but also reasonably strong flows were observed in more peripheral areas of the city centre, particularly on Victoria Street and Prospect Hill.
2.17 The main shopping streets are rather narrow but the pedestrianisation of these streets has created a safe and pleasant shopping environment. The built environment is reasonably attractive and the streets are tidy and relatively free of clutter. Whilst there is a general absence of soft landscaping and few areas of open space in the town centre, the promenade and sea front is within easy walking distance which offers fine views across Douglas Bay towards Onchan Head.
2.18 Douglas town centre is accessible by both car and by public transport. There are bus services from the town centre to all major towns and villages on the island and convenient stops on Lord Street, Victoria Street, and Loch Promenade. Rail services operate in the summer months with the Manx Electric Railway departing from the terminus at Derby Castle serving Ramsey and Laxey, and the Isle of Man Steam Railway operates from North Quay serving Ballasalla, Castletown, Port St Mary and Port Erin. 2.19 There are several car parks for visitors, the main facilities being located at Chester Street (640 spaces), Market Street/Marks \& Spencer (300), Church Street (316), and Lord Street (140).
2.20 In summary, Douglas is a vital and viable town centre with a broad shopping offer serving the whole island. It has a particularly strong non-bulky comparison goods sector comprising a range of UK-based multiple retailers and local independent operators. The centre has a safe, pleasant shopping environment, reasonably low levels of vacancies, and attracts high levels of footfall. Accessibility by public transport is good and there is a broad diversity of non-retail uses.
2.21 The remainder of this section focuses on shopping provision outside Douglas town centre and, in particular, describes shops and outlets selling carpets, flooring, car accessories, bicycles, electrical goods, DIY goods, pet supplies, and furniture.
2.22 Aside from the five stores in the town centre mentioned above, Douglas has a number of additional retail outlets selling the types of goods which may be sold from the proposed retail units. These include units selling sofas and other furniture, carpets, flooring, fitted kitchens, DIY goods, and bicycles and associated equipment. 2.23 With the exception of B\&Q and Magnet, these outlets are independent traders who manufacture and/or store the products on the premises. Indeed, in some of the units, the sales/showroom element of the operation often comprises just a small proportion of the floor area. 2.24 In Ballanard, to the north of Douglas, is the Cubbin \& Bregazzi shop at Tynward Mills. This large showroom with mezzanine floorspace offers furniture.
2.25 Onchan has a small shopping centre situated at the junction of Main Road and Avondale Road. The centre predominantly serves local residents and comprises a mix of convenience shops (including a Co-op supermarket) and comparison shops. The centre also has a purpose built shopping precinct, a library and an information centre. In terms of the types of goods which are to be sold from the proposed units, there is a carpet shop, a shop selling flooring, a pet shop and a furniture store in Onchan, three of which are within or close to the shopping centre
2.26 Ramsey is located 20 km north of the application site and is the second largest town on the Isle of Man in terms of its population. Shoprite and Co-op underpin the convenience retail offer in the town centre, and there is a range of independent comparison shops including those selling clothing and footwear. The centre serves predominantly local needs and there is a number of restaurants, cafes, and take-away food outlets. The town centre has an indoor swimming pool, and the Town Hall, Library and Information Centre is located on Bowring Road. 2.27 2.27 In terms of the type of goods to be sold from the application site, stores in Ramsey town centre include AJ Millichap (furniture store), and Furnitureland / Carpetland, both offering limited ranges of goods, and the MEA Showroom (electrical goods). The town centre also has a pet store, Splinters DIY store, Feltons hardware, Wm Daniels Carpets, and the Outdoors shop whose offer includes bicycles. In addition, outside the town centre, there is a tool shop and a shop selling second hand furniture.
2.28 Peel is situated on the west coast of the Isle of Man, some 15 km from the application site. The town centre's narrow and attractive streets have a range of relatively small convenience and comparison stores, cafes, restaurants and services such as hairdressers. Within the town centre is the MEA Showroom, Paradise \& Gell sell furniture, Castle Carpets on Stanley Road sell carpets, and there is a pet shop on Douglas Street. Compared to the application proposals, these stores are very small and sell a limited range of goods.
2.29 Port Erin is situated on a peninsula on the south-west coast of the island, some 18 km from the application site. Most of the town centre's shops are located on Station Road and Church Road, and these shops serve mainly local shopping needs including those of nearby Port St Mary. Wise Mann Carpets offers floor coverings with a small showroom attached to workshops and storage areas. Pets and Pals is a pet shop and Ken Quine sells hardware from a small shop on Station Road. MEA also have a showroom in Port Erin.
2.30 Port St Mary's shops are mainly located on High Street and Bay View Road. These include the small Homemaker DIY store.
2.31 Castletown is on the southern coast of the Isle of Man and has an attractive and historic town centre on the quayside. The town centre includes a pet shop and the MEA Showroom.
2.32 Three of the largest stores selling bulky goods on the island are located on the Snugborough Trading Estate near Union Mills, 2 km north of the application site. These out-of-centre stores sell furniture and carpets.
2.33 Douglas is the principal shopping destination on the Isle of Man and, having regard to a range of indicators, has a vital and viable town centre offering, in particular, a choice of supermarkets and stores selling a broad range of non-bulky comparison goods. Other town centres on the island cater predominantly for local needs.
2.34 In terms of shops selling carpets, flooring, car accessories, bicycles, electrical goods, DIY goods, pet supplies, and furniture (the type of bulky goods to be sold form the proposed units), there is a number of outlets in town centre locations across the island. However, these stores mostly operate in cramped conditions and consequently have limited ranges. Outside town centres, outlets selling predominantly bulky goods are larger and are capable of storing more stock. However, these units are generally used for storage and manufacture with limited floorspace dedicated to the customer showroom/sales area. Sufficient levels of dedicated, adjacent parking are lacking in respect of most bulky goods outlets on the island, mainly due to the fact that they were not designed for this purpose. 2.35 The next section of this statement will assess the benefits of the application proposals in terms of providing the residents of the island with two units operated by retailers requiring large-scale, flexible, showroom-style sales area and sufficient, convenient, adjacent car parking.
3.01 Whilst prevailing planning policy does not require applicants proposing retail development outside town centres to demonstrate a need for the development, it is pertinent to consider reasoned justification of the need for additional floorspace and, importantly, the potential consequences of failing to meet this need. This section makes reference to the findings of the recent Island Retailing Study prepared by consultants which also examined likely future shopping floorspace requirements.
3.02 In quantitative terms, the need for additional floorspace can arise when the amount of available expenditure within a catchment area exceeds the benchmark turnovers of stores within that catchment area. The applicants expect the proposed development to serve residents from across the island. This assumption is supported by the Retailing Study containing surveys demonstrating that Douglas serves as the principal shopping destination on the Isle of Man and attracts residents from across the island, whereas other towns serve more local needs. 3.03 The Retailing Study also assessed the potential need and capacity for new retail development to help inform the potential scale of retailing and associated service provision which could be sustained across the Isle of Man (Section 8 of the Study). 3.04 The consultants preparing the Study assessed shopping patterns on the island in 2007 and, taking account of the type and scale of existing facilities, have benchmarked turnover levels. Existing and future retail expenditure capacity was then calculated taking into account population growth and expenditure forecasts. The resulting expenditure capacity was broken down into the broad type of goods, and an indication of floorspace and location for new facilities was provided. 3.05 In terms of comparison goods, the Study indicates that growth in available expenditure will be as follows between 2007-2012:
Non-Bulky Comparison Goods: $£ 34 \mathrm{~m}$ Bulky Comparison Goods: $£ 34 \mathrm{~m}$ Comparison Goods Total: $£ 68 \mathrm{~m}$ 3.06 Comparing the amount of available expenditure with the theoretical turnover based on existing
floorspace on the island, the Study indicates that in 2007 there was a surplus of $£ 55 \mathrm{~m}$ and this will grow to $£ 99 \mathrm{~m}$ by 2012 , and $£ 162 \mathrm{~m}$ by 2017 . As the Study indicates: "The detailed projections indicate that there is considerable scope for new comparison floorspace at the current time, equivalent to 121,000sq.ft.net (over 11,000sq.m.net). This will increase with the potential for an accumulated 190,000sq.ft.net (18,000sq.m.net) by 2012 and 271,000sq.ft.net (25,000sq.m.net) in 2017." (paragraph 8.16) 3.07 As previously indicated the gross floorspace provided as part of the application proposals for the two new retail units is $18,000 \mathrm{sq} . \mathrm{ft}$. Assuming an $80 / 20$ split between net sales and back up areas, this will provide $14,400 \mathrm{sq} . \mathrm{ft}$.net sales ( $1,338 \mathrm{sq} . \mathrm{m}$.net). Therefore, the proposed development represents just $12 \%$ of the need for additional floorspace in 2007, $8 \%$ of the need in 2012, and just $5 \%$ of the total requirement by 2017. It is clear that there is a quantitative need for the proposed development.
3.08 Section 2 of this statement has assessed shopping provision on the island and, in particular, assessed stores selling carpets, flooring, car accessories, electrical goods, bicycles, DIY goods, pet supplies, and furniture. Existing stores on the island mostly operate in cramped conditions and consequently have limited ranges. Outside town centres, outlets selling bulky items are larger and are capable of storing more stock. However, most of these units were not built for retail purposes and are predominantly used for storage and manufacture with limited floorspace dedicated to the customer showroom/sales area. Most existing stores on the island do not have sufficient adjacent car parking. 3.09 There is a need to improve the range and choice of stores selling carpets, flooring, car accessories, bicycles, DIY goods, electrical goods, pet supplies, and furniture. Large-scale retail warehouses are required to bring about qualitative improvements to the benefit of the island's residents. 3.10 The proposed development will enable retailers to keep up with customer demands and retail trends by providing two units with spacious, flexible, showroom-style floorspace enabling extensive in-store displays thus modernising the retail offer on the island. Resisting such development would stifle innovation within the retail sector on the Isle of Man. Customers of the proposed development will also benefit from sufficient levels of adjacent car parking, currently lacking at most of the existing stores selling bulky goods on the island. 3.11 The Island Retailing Study concurs that "bulky goods retailing has limited representation, with one
UK multiple retailer (B\&Q) competing directly with several competitive Manx businesses. This broad assessment might suggest that subject to demonstration of quantitative need [see above] and market demand [see below], there may be scope for a wider range of retailers which would benefit residents from increased competition and choice similar to that in the UK and Republic of Ireland" (paragraphs 1.11 and 1.12).
3.12 It is relevant to take into account the known requirements of the retail sector. The applicants are experienced developers and, although no operators are formally associated with the proposals at present, they are aware of strong interest from UK-based multiple retailers for new retail provision of the type proposed. 3.13 If retailer demand remains unmet, investment in retail facilities on the island will be prevented and residents will be deprived of an increased range and choice of carpets, flooring, car accessories, bicycles, electrical and DIY goods, pet supplies, and furniture sold from modern premises.
3.14 There is a clear need for additional floorspace dedicated to the sale of bulky goods including carpets, flooring, car accessories, bicycles, electrical and DIY goods, pet supplies, and furniture, evident through the following:
4.01 In accordance with Development Plan policy, it is appropriate to assess whether the items proposed to be sold could not reasonably be sold from a town centre location because of their size and nature. The Retailing Study recommends that the sequential approach to site selection is continued with a presumption in favour of central areas. However, the Retailing Study also acknowledges that "there will be forms of future retail development which will not be suited to or be able to be accommodated in Douglas or the established town centres. Where this occurs there will be a need to facilitate edge of centre or out of centre sites. This requirement will be restricted to the retailing of bulky comparison goods," (paragraph 21, Executive Summary)
4.02 There are two reasons why the proposed development and the type of goods to be sold cannot reasonably be accommodated in a town centre location.
4.03 The goods proposed to be sold from the two proposed units are bulky goods including carpets, flooring, car accessories, bicycles, DIY and electrical goods, pet supplies, and furniture. As previously mentioned, the proposed development will be operated by retailers requiring a large showroom area in order to display the full range of goods in an attractive and innovative manner. To take furniture sales as an example, retailers try to create replica domestic spaces such as bedrooms or living rooms within the sales area to display the many different furniture ranges on offer. A design-themed bedroom may include a bed, bedside tables, wardrobes, chest of drawers, dressing table etc. A living room may comprise a sofa, armchair, coffee table, cabinets, shelving units etc. This form of modern showroom retailing has extensive space requirements.
4.04 In the case of floor coverings, modern retailers require sufficient floorspace to display carpets, laminate and real wood flooring, rugs, mats, carpet tiles, floor tiles, and vinyl flooring. A large unit is required for these ranges to be displayed attractively.
4.05 DIY retailers require large sales areas for the same reasons. Pet suppliers, car accessory and bicycle retailers also require extensive sales areas to display their full range of products attractively and innovatively instead of the less-customer friendly method of storing goods on numerous rows of shelving or keeping goods stocked in the warehouse area.
4.06 On the basis of our surveys, there are no suitably large units or sites available in town centres to
meet the above requirements.
4.07 The goods proposed to be sold from the two units are predominantly bulky goods. Whilst some customers making purchases may arrange for their goods to be delivered, many will expect to take purchases home in their vehicles, and the Isle of Man has a relatively high level of car ownership (paragraph 2.18 of Retailing Study). Therefore, in practical terms, sufficient and adjacent car parking is required. It is not reasonable to expect customers to buy products from a shop in, for instance, Strand Street in Douglas then carry the bulky goods to one of the multi-storey car parks to transport the goods home. 4.08 On the basis of WYG surveys, units or sites capable of accommodating the required sales area and the necessary adjacent car parking do not exist within the island's town centres.
4.09 In the context of the identified need for large-scale retail warehousing on the island, there are no available units or sites in a town centre location which are suitable to accommodate the proposal and the type of goods to be sold. The requirements for large showroom areas and adjacent car parking mean that a town centre location would not be appropriate.
5.01 This section of the statement considers the potential trading effects of the proposed development on the island's town centres, and in particular Douglas town centre. 5.02 As noted in Section 2 of this statement, stores selling the type of bulky goods proposed to be sold from the two new retail units account for a very small proportion of town centre units. In Douglas town centre, the nearest centre to the application site, there are just 5 units selling these goods representing just $1.5 \%$ of the total number of units in the centre. In this context, the effects of the proposed development on town centres are going to be virtually imperceptible. 5.03 The assessment in Section 2 demonstrates that stores selling similar items are dispersed across the island and many are located in out of centre locations. For example, Fine Furnishings in Onchan and Cubbin \& Bregazzi at Tynward Mills are reasonably modern units with large sales areas but both are out of centre. Therefore, the trade draw to the proposed development is likely to be predominantly from out of centre stores and will not affect any centre. 5.04 Notwithstanding the above, an assessment of the economic impact of the proposal can be undertaken. Figure 5.1 below provides an estimate of the turnover of the proposed development.
Gross sales area of proposed development: Net sales area of proposed development*: Benchmark sales density**: Estimated turnover of proposed development:
1,672sq.m. $1,338 \mathrm{sq} . \mathrm{m}$. $£ 2,500 / \mathrm{sq} . \mathrm{m}$. £3.34m
** assumption based on UK retailers of the type of goods proposed to be sold (from Retail Rankings) 5.05 Even if the total turnover of the proposed development was diverted from Douglas town centre, this would represent just $3.6 \%$ of the estimated comparison goods turnover of the town centre, as shown in Figure 5.2 below.
Comparison goods floorspace in Douglas town centre (gross): 30,840sq.m. Net sales floorspace: 23,130sq.m. Sales density of town centre comparison goods floorspace: $£ 4,000 /$ sq.m. Turnover of comparison goods sector: $£ 92.52 \mathrm{~m}$ Turnover of proposed development: $£ 3.34 \mathrm{~m}$ Residual town centre comparison goods turnover: $£ 89.18 \mathrm{~m}$ Impact of proposed development: $3.6 \%$
assumed net sales area is $75 \%$ of gross floor area * estimated sales density is based on WYG experience of UK town centres
5.06 Given that the town centre enjoys healthy levels of vitality and viability (as described in Section 2, an impact of $3.6 \%$ on the comparison goods sector of Douglas town centre is unlikely to materially affect its continued strength as a shopping destination. However, it should be noted that the above assessment of impact is based on the whole of the turnover of the proposed development being diverted from town centres shops. 5.07 As noted previously, given the location of stores selling similar type of bulky goods across the island, mainly in out of centre locations, this level of trade draw from Douglas town centre is unlikely to occur. In reality, the trade diversion from comparison goods stores in Douglas town centre will be less than $2 \%$, and when taking into account the contribution of the convenience goods sector and the service sector on the overall town centre economy, the effects on this or any other centre on the island, will be virtually imperceptible. 5.08 In summary, the proposed development will not materially affect the vitality and viability of Douglas town centre. The trade draw to the proposed units will be dispersed across existing stores on the island, many of which are in out of centre locations, which will dilute the trading effects. Even if the total turnover of the proposed development was derived entirely from stores in Douglas town centre, this would represent just $3.6 \%$ of the existing comparison goods turnover of the centre, but in reality the trade draw is likely to be less than $2 \%$. This level of impact will not materially affect a centre which is assessed to be performing strongly in terms of its vitality and viability.
6.01 The submitted application seeks planning permission for retail warehouse development with a combined floorspace of $18,000 \mathrm{sq} . \mathrm{ft}(1,672 \mathrm{sq} . \mathrm{m}$.), and adjacent car parking. It is anticipated that the units will be occupied by operators requiring large, flexible, showroom-style sales areas and selling predominantly bulky goods (e.g. carpets, flooring, car accessories, bicycles, electrical and DIY goods, pet supplies, and furniture).
6.02 Douglas is the principal shopping destination on the Isle of Man and has a vital and viable town centre. Other town centres on the island cater predominantly for local needs. 6.03 In terms of outlets selling bulky goods, existing town centre stores mostly operate in cramped conditions and consequently have limited ranges. Outside town centres, outlets are larger and are capable of storing more stock. However, these units are predominantly used for storage and manufacture with limited floorspace dedicated to the customer showroom/sales area. Sufficient levels of dedicated, adjacent parking are lacking in respect of most furniture and carpet stores on the island.
6.04 There is a strong need for the proposed development having regard to quantitative and qualitative factors. This is supported by the findings of the recent Island Retailing Study prepared by independent consultants. The key benefits of the development can be summarised as follows:
6.05 In the context of the identified need for large-scale bulky goods retailing on the island, there are no available units or sites in a town centre location which are suitable to accommodate the proposal and the type of goods to be sold. The requirements for large showroom areas and
adjacent car parking areas mean that a town centre location would not be appropriate.
6.06 The proposed development will not materially affect the vitality and viability of Douglas town centre. The trade draw to the proposed units is likely to be dispersed. However, considering a worst-case scenario where the total turnover of the proposed development is derived entirely from stores in Douglas town centre, this would represent just $3.6 \%$ of the existing comparison goods turnover of the centre. In reality, the impact will be far lower. This trade diversion will not materially affect a centre which is assessed to be performing strongly in terms of its vitality and viability.
6.07 In light of the above, it is concluded that the proposed development is acceptable having regard to the retail policies contained in the Development Plan.
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