The Future of Retail in Albany

Purpose of this position paper
• To examine the need for retail shopping space in the City of Albany.
• To examine the concept of investment in retail shopping space or companies owning it.
• To analyse the investment potential of opening a shop or office-based business in Albany in comparison to other cities in Australia.

City of Albany - The Heart of the Great Southern

The City of Albany has a current population of some 32,000 people (June 2006). The City serves a region in excess of 4,000 square kilometres, The City itself is the main regional shopping, commercial and professional services centre for this region in south-western WA and comprises of a network of activity centres that provide varying degrees of retail, commercial, professional and trade services. Albany ’s role as a regional trading and services effectively means that the provision of retail, commercial, trades and professional services, facilities and floorspace is geared for a population significantly higher than that which resides within the City of Albany boundaries.

Key assumptions driving this position paper

• Stronger Wages and less unemployment
• Increasing number of sea-changers
• Rainfall is sustainable
• Rising public consumption
• Rising consumer confidence
• Continuing population growth
• Recovering housing market
• New industry: on-land aquaculture
• Huge local infrastructure development
• Rising spending on road and rail infrastructure
• The “greenest” town in mainland Australia?
• Efficient agricultural production
• Not much coastline left
• Growth in Tourism outpaces National Average
• Increasing static population and increasing tourist numbers.

Increasing static population and increasing tourist numbers
More people coming to Albany with more money mean more shops are needed for them to spend it.

The City of Albany has a current population of some 32,000 people (June 2006). The City serves a region in excess of 4,000 square kilometres, The City itself is the main regional shopping, commercial and professional services centre for this region in south-western WA and comprises of a network of activity centres that provide varying degrees of retail, commercial, professional and trade services. Albany ’s role as a regional trading and services effectively means that the provision of retail, commercial, trades and professional services, facilities and floorspace is geared for a population significantly higher than that which resides within the City of Albany boundaries.




Increasing projected local population means that the magnitude of change in the City’s retail system will be significant over the next 25 years. Growing population will require a regional bulky goods function, and changing demography plus increasing tourist numbers will require a range of new services and roles, particularly in health and professional services, education, hospitality and tourism.



Future retail floorspace requirements are determined by the number of residents in the regional catchment area and the level of household retail expenditures generated by residents within the catchment area. A 40% growth in population means at the very least a 40% growth in the need for retail floor space; regional growth will put even greater pressure on retail space, and if regional industry including mining expands with the prospect of relatively cheap renewable energy, even greater pressure will be put on retail space. It is assumed that the population projections referred to in the Government publications cited in the first part of this paper will be achieved. It is assumed that the approved floorspace that is current or yet to be developed will be brought into operation by 2016.


Retailing in Australia, particularly at the regional city and centre level, is highly dynamic. A series of important social, economic and technological factors have reflexively influenced social values, preferences and behaviour patterns. Within this context, there have been significant changes in the workplace, family and home and in patterns of habitual and discretionary behaviour, which encompass shopping. The impacts on retailing have been further amplified by changes to products and services, store types and formats and consequential changes to the layout and amenity of shopping centres and precincts. Key changes have encompassed: the theming of centres, to provide a range of specialised trading precincts within activity centres, such as food halls, fashion malls, sports and leisure precincts, electronics and business services. creation of distinctive social spaces, to provide places for people to meet or gather, relax, and participate in a range of social and cultural events, such as viewing of exhibits and observing performances.

This has led to the following;
• Emergence of new types of stores, which are focused on particular products or life-cycle groups.
• Emergence of mid-sized stores, offering an enhanced product and service range to that provided by traditional specialty shops, but still cater for a well-defined niche market, in contrast to department and discount department stores.
• The development of entertainment type retailing, where a new market has been developed that links new technology with leisure/lifestyle requirements (focused on home-based theatre systems, computers and electronic games). Changes in layout and store formats of department stores, necessitated by increased specialisation and competition with discount department and specialty stores.
• The emergence of a seven-day trading week for a range of stores and services. These are particularly focused in the supermarket and small household goods sectors. In larger centres, this is extended to a wide range of stores, encompassing most forms of discretionary purchases, including the emergence of new specialised stores to cater for small business.
• Semi-retired folk who sea-change also require the increased provision of professional services in centres.
• Another ongoing trend that has developed over the past ten years is the shift from providing a generic store-brand, to a targeted market-segment approach, with a focus on personalised service and high-quality store environments, and distinctive store brands.

Albany has already seen a demand for an increased range of community facilities and services in centres, with a significant demand for lifestyle products and services. It has seen the increasing popularity of fairs and farmers markets, and the emergence of new types of fresh food retailing. These trends, which are still unfolding, are likely to have a significant future effect on retailing in Albany.