Bendigo’s Retail Boom

Tuesday, 15 April 2008

BENDIGO'S economy is set for big things, with record retail developments taking place in and around the city.

From Epsom in the north, right along the Calder through to Kangaroo Flat in the south, Bendigo is booming, and there's plenty for the retail, tourism, trade and local business communities to be happy about.

Council has received multiple applications for large-scale retail developments including two new Aldi stores, a shopping centre at Strath Village and the subdivision of the former Stafford Ellison site in Eaglehawk Road.

The number of applications for these developments backs up results from the recent Compelling Economics REMPLAN analysis of Bendigo's retail sector, which found that as the city's population increases, Bendigo's role as a service centre for the wider region has strengthened.

Other projects nearing completion or due to begin construction include the Rocklea Homemaker Centre, The Howard Street Epsom Village and the Marketplace expansion.

Prue Mansfield, City of Greater Bendigo Director of Planning & Development, says this is the first time in a decade that the city has enjoyed such growth and development.

‘‘There's certainly been a high level of activity and that could be a result of pent-up demand while the commercial strategy was put into place, a reaction to our strong economy and our predictions of growth,'' she says.

The flow-on effects of the city's projected developments are expected to have positive impacts on other business sectors in the region.

Retail is Big Business in Bendigo

The REMPLAN findings estimate that the retail sector spends $252 million on locally sources goods and service. This includes $74 million from manufacturing and $73 million from property and business services based on the 2006 Census data.

On an employment level, the retail sector accounts for around 20 percent of the city's employment figures, with current levels expected to rise significantly upon completion of some of the larger developments. Based on the REMPLAN data, the retail sector currently accounts for 6,747 jobs in the municipality.

Output for the retail sector will also improve over the next few months. The current retail figures, which are already significant when compared against all other industries in Bendigo, will increase as each new development reaches completion.

Matthew Nichol from Compelling Economics, the company which collates and delivers the REMPLAN statistics, says the retail sector will continue to generate positive financial flow-on effects for the city.

"The REMPLAN data has really highlighted Bendigo's role as a service centre for a much larger region, not just in retail, but across the board," he says.

"Retail plays a large role in this data. People often walk into shops, see products manufactured overseas and think that retail doesn't add much value to the financial wealth of the city, but that's not really true.

"Retail is a great value-adding sector - the margins between what is purchased wholesale and then sold on are quite high. Now many shoppers might think that's not such a great thing, but when you consider the fact that retailers supply service and support for these products and employ such a large sector of the working community, you can see that the retail sector has some broad financial flow-on effects.

"I think a lot of people take the retail sector for granted - they consider it more a function of population growth and tourism, but it's really a driver of these two elements. Retail has the ability to attract people to the region, and that's particularly obvious in places like Melbourne or Singapore - people are attracted to these cities because of the shopping experience."

Bendigo - a Shopping Mecca

Along with the record number of new developments and retail projects set for establishment, there's also a city-wide focus on updating existing shopping precincts.

The new owners of Myer have indicated a commitment to a strong ongoing presence in Bendigo, and are understood to be currently planning an upgrade of their Pall Mall store - birthplace of the famed business.

Bendigo's Chancery Lane is also set for renewal, with planned enhancements which will signal a revival in laneway culture within the city centre, much like Melbourne has successfully achieved with its laneways focus.
Over the past couple of months, the City has been working closely with the tenants of Chancery Lane to develop a comprehensive upgrade of the laneway, with the major focus being on improving the "address" to Hargreaves Street.

Permits have now been issued for the construction of a series of partially suspended/cantilevered canopies and blades (posts) that will define and enhance the Hargreaves Street entrance to the laneway. The project is being funded by the City of Greater Bendigo and the Department of Planning and Community Development. Works are expected to be completed by July 2008.

Other established laneways in the Bendigo CBD will also undergo upgrades over the coming months.

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