KEY ISSUES OF PUBLIC INTEREST

DEVELOPMENT OF NEW STORES

Woolworths stores can be a focal point for the communities in which we operate, both in regional and metropolitan areas. We aim to make fresh food available across Australia and New Zealand through our stores, and with these stores come many community benefits such as new jobs and apprenticeships.

When we choose new sites, we investigate how our store will fit in with state and local government objectives for urban growth and economic development. We also analyse local demographics to make sure that there is a need for the new store, to understand what size of store is most appropriate and how people spend on food, groceries and liquor.

We acknowledge that in some communities people may have concerns about the potential economic impacts a new supermarket may have on local existing businesses. In these cases we would commission additional studies to assess the economic impact. In most instances, our research has shown that when a new Woolworths store comes into an area there is an increase in sales at specialty retailers in the area.

Building a new supermarket is a complex process that can take a number of years from start to finish. The steps can include identifying an appropriate site, negotiating lease or purchase of the site, undertaking environmental assessments, obtaining development approvals through local, and sometimes state, planning authorities, and finally building the store. While we comply with legislative requirements in relation to planning and environmental management, we realise we need to improve the way we engage with local businesses, residents and other stakeholders throughout the development process to try to address their needs and demonstrate that we are genuine about achieving a good outcome for the community.

For one of our current developments at Mullumbimby in New South Wales we have made a number of modifications to the store design to address community concerns, such as moving the loading dock away from the car parking area to improve safety for shoppers and making changes to the façade so that the store will fit in better with the streetscape. Different interest groups have competing concerns and we work to balance these concerns as much as possible.

To help improve this aspect of our business we are developing a program to build capacity in our property division in the area of stakeholder engagement.