Bulky goods retailers have welcomed changes introduced by the Victorian Government that alter the definition of bulky goods retailers and relax regulations around floor space that had previously stopped companies from opening smaller stores in shopping centres.
The changes include widening the definition of bulky goods retailing to include sectors such as outdoor equipment, recreational supplies, pet supplies, baby equipment and accessories, along with sporting equipment.
A push to stop bulky goods retailers from setting up on land zoned for industrial purposes has also been abandoned.
Both these developments make Victoria one of the most flexible states for planning legislation, and come amid a heated debate over whether existing planning regulations are excessive.
Managing director of Leasing Information Services, Simon Fonteyn, told SmartCompany the move comes as retailers call for opportunities to diversify within shopping centres.
"This is all driven to some extent for greater demand for specialty stores in centres. There are more opportunities to develop centres now – it's about getting a building centre that attracts a better mix."
Planning Minister Matthew Guy confirmed the changes yesterday, after flagging them in August.
"Hundreds of new jobs will be created under these reforms, allowing the dynamic retail industry to expand to meet changing consumer needs," he said. "These sensible changes to the planning scheme will allow expansion of new and existing retail businesses in Victoria."
Several retailers including Baby Bunting, Officeworks, Beacon Lighting and industry group Associated Retailers, have welcomed the changes.
The changes will also allow councils to assess each permit application on their own merits.
Fonteyn says the changes aren't necessarily driven by a demand for smaller stores – although that is certainly happening – but a desire for bulky goods retailers to have varieties of stores and for shopping centres to show off a wider array of shops.
"In a 1,000-metres squared floor plan, it's difficult to get that many retailers on board. So these changes are all about providing a building centre with a better mix."
"It's driven in some part by demand, because there is a demand for that kind of speciality in a centre, but overall it's about providing variety."
However, the Shopping Centre Council of Australia has criticised some of the changes, telling the Australian Financial Review they may give a competitive advantage to other sectors that aren't even in the bulky goods business.
"It is to be hoped that the Victorian Government will now turn its attention to removing planning restrictions that hinder the development and redevelopment of shopping centres, such as excessive development contributions, unrealistic urban design guidelines and caps on the amounts of retail floor space."
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