Major overhaul for retail development planning in NSW

Major overhaul for retail development planning in NSW

6 April 2018

The NSW government is proposing major changes to the state planning system to better support retailers and the supply chain in the face of online retailing and urban densification.

The initial amendments will ease current planning restrictions for artisan premises (such as microbreweries), garden centres, local distribution centres, neighbourhood supermarkets, and centres handling bulky goods.

Specific proposals and examples include the following:

1. Artisan premises

Artisan premises are a mix between an industrial and retail use. For example, microbreweries are a growing form of artisan premises without an appropriate land use definition.

The proposed changes would allow artisan premises to be more readily accommodated in light industrial or business zones and permit them to offer complimentary services such as restaurants, tours, workshops, and tastings.

2. Garden centres

Garden centres have evolved into places where customers can shop for a wide variety of gardening and outdoor improvement needs.

The adjusted legislation will allow garden centres to sell complementary products such as outdoor furniture, BBQ’s, Pools and spas, pets and pet supplies, fresh produce, and to operate restaurants.

3. Local distribution premises

The rise of online shopping and the growing demand for fast delivery of purchases increases the need for ’last mile’ distribution centres — places that support the final leg of parcel delivery from a central distribution centre to a place closer to the destination. This allows delivery by smaller delivery modes (bicycles or vans) on local roads.

Currently, however, most councils only permit distribution centres in one of five possible industrial of business zones.

Future strategic planning will allow councils to determine appropriate zones and locations to permit or prohibit local distribution premises.

4. Neighbourhood supermarkets

Small-scale supermarkets up to 1,500 square metres in size in the BI Neighbourhood Centre zone will provide convenient daily shopping for consumers and encourages people to walk rather than use a car.

It could also rejuvenate smaller neighbourhood centres or allow for a suitable ground floor use in shop top housing.

5. Specialised retail premises (incorporating bulky goods premises)

Currently, bulky goods premises must provide a large area for handling, display or storage of goods AND direct vehicular access for customers to load and unload their purchases.

Because many homemaker centres and “showroom style” retailers do not need both facilities to operate their business, the new rules will allow retailers to decide if they wish to provide a loading facility.

The retail sector is a key economic driver in NSW, employing around 420,000 people with an annual turnover estimated at almost $100 billion.