DELEGATED DC/2014/00951 PROPOSED DEVELOPMENT: TO VARY CONDITION 4 OF PLANNING CONSENT M?10593 TO ALLOW THE SALE OF A1 NON FOOD GOODS BY A CATALOGUE SHOWROOM RETAILER FROM UP TO 100 SQUARE METRES OF THE EXISTING SALES AREA. SITE LOCATION: Homebase, Beaufort Park Thornwell Chepstow Case Officer: Kate Young Registered: 02/09/14 1.0 APPLICATION DETAILS 1.1 In 2005 planning permission was granted for a new out of town Homebase store in Thornwell Chepstow. Condition no 4 of that approval stated that: “The premises identified as DIY store on drawing PL07 shall not be used for purposes other than the sale of DIY/hardware and garden related products and shall not be used for any other purpose (including any other purpose in Class A1 of the schedule to the Town and Country Planning (Use Classes) Order1987) without the prior written approval of the Local Planning Authority.” 1. The store has been built and has been trading for several years. The current application seeks an Argos insert to operate from inside the store covering an area of 100 square metres. The business model of ‘Argos Inserts’ as described by the applicants is that customers shop on line and then either ‘click and collect’ or ‘click and reserve’. The proposal does not involve any external alterations to the building and does not involve any alterations to the current car parking arrangements. 2. The Council commissioned an independent expert to assess the retil impact of this proposal upon Chepstow. 2.0 RELEVANT PLANNING HISTORY M 10593 Class A1 Retail Store and Garden centre. Class B1 Office Development and associated works Approved 10/02/05 DC/2006/00514 Sprinkler tank and landscaping - Approved 3.0 LOCAL DEVELOPMENT PLAN POLICIES Strategic Policies S6 Retail Hierarchy S16 Transport Development Management Policies RET2 – Central Shopping Areas RET3 Neighbourhood Centres RET4 New retail Proposals E1 Protection of Existing Employment Land SAE2 – Protected employment Sites 4.0 REPRESENTATIONS Consultation Responses Local Member – No response received to date Town Council – approve James Williams Independent Consultant. Findings The application proposal is for modification of Condition 4 of planning permission M/10593 to allow for the sale of all Class A1 non-food goods by a Catalogue Showroom Retailer from up to 100 square metres of the existing Homebase sales area at Thornwell. The existing Homebase store has a gross internal area of 3,384 sq.m. The proposed occupier of the insert space is Argos, who are proposing to operate their new ‘click and collect’ digital store business model from the premises. Planning Policy Context The retail spatial strategy as set out in PPW 2014 and the Local Plan 2014 is to focus new retail development in existing centres, Local Plan Policy S6. In planning policy terms the application site is an out-of-centre retail location and is therefore inconsistent with this strategy. Local Plan Policy RET4 states that the preferred location for new retail development is in the development plan defined Central Shopping Areas (CSAs). Being outside Chepstow CSA, the application proposal does not meet this requirement. Policy RET4 also requires that where new retail development is outside the CSA it should meet specified requirements. The relevant requirements in this case relate to ‘need’, ‘sequential approach’, and trade impact. Need The turnover of an Argos Insert store would be very modest compared with available comparison goods expenditure within Chepstow’s catchment area, Furthermore a high proportion of Chepstow residents’ comparison expenditure (approximately 70%) is lost to centres elsewhere and a new Argos Store offers some prospect of this being clawed back to Chepstow (but not the town centre). There is therefore some quantitative and qualitative need justification for the new store. Sequential Approach Plainly the Argos Insert business model can only be achieved within the existing Homebase store at Thornwell. The applicants have therefore tested the alternative of a new Argos store within the prime or semi-prime pitches of Chepstow town centre. This would require a larger unit of 500-750 sq.m floorspace. The applicants have found no sites or premises within the town centre that would meet this requirement. From a longstanding knowledge of the town centre these findings appear to be soundly based. However, I have not inspected the town centre recently and we do not therefore have the same local knowledge as officers on the circumstances in the town centre at the present time. Impact The only impacts of potential significance are those within Chepstow town centre. National and local planning policy requires that the vitality and viability of the town centre is safeguarded. We have tested the implications of an Argos Insert turnover of around £2.25m. We have allowed for 25% of this turnover to have been attracted from the town centre, which could result in a trade impact on the comparison goods turnover of the town centre of just under 2%. This is a very modest impact in quantitative terms. The existing town centre traders with whom the Argos Insert would compete most are those selling a similar range of goods. These include Tesco (in an edge-of-centre location), Herbert Morris, The Original Department Store, and Wilkinson. Any significant impact on the latter three traders in particular is of concern because of the role they play in drawing trade into the town centre. However, the low overall quantitative impact that would be experienced by the town centre does suggest that the it should be capable of absorbing the resulting trade diversions without significant adverse effects on its role and function. Set against any impact that might be experienced by comparison traders in the town centre, is the positive effect that the proposal could have on drawing trade back to Chepstow (although not the town centre). We have assumed that 75% of the Argos Insert turnover would be trade that was previously being attracted elsewhere. There are benefits from this trade being retained within the town, including a possible reduction vehicle mileage. Neighbour Consultation Responses None Received 5.0 5.1 EVALUATION The Impact on Chepstow’s Retail Economy. The main issue in this case is the effect of the proposal upon the vitality and viability of Chepstow Town Centre. Policy S6 of the LDP establishes a Retail Hierarchy stating that all new or enhanced retail and commercial developments will be focused in the main towns and in local/neighbourhood centres. Proposals which would undermine the retail hierarchy will not be permitted. Policy RET2 establishes a Central shopping Area for Chepstow and says that proposals which will safeguard the vitality, attractiveness and viability of the Central Shopping Area will be permitted. Policy RET3 also allows for retail proposals in neighbourhood centres. Policy RET4 states that the preferred location for new retail development, including extensions to existing retail premises will be in the designated Central Shopping Areas. Where it can be demonstrated that no suitable sites exist in the CSA, then sites on the edge of the CSA should be considered before finally considering out of town sites. The Argos Insert business model can only be achieved in an existing Homebase Store but the applicants have therefore tested the alternative of a new Argos store within the prime or semi-prime pitches of Chepstow town centre. This would require a larger unit of 500-750 sq.m floor space. The applicants have found no sites or premises within the town centre that would meet this requirement. Although there are many vacant shop premises within the Chepstow CSA not are of sufficient size to accommodate a new Argos store. It is likely that if the proposed Argos was not to be located within the Homebase Store it would not locate in Chepstow at all and any potential sales would be lost to the county as shoppers when to other retail centre such as Bristol, Newport and Cardiff. James Williams tested the implications of an Argos Insert turnover of around £2.25m. and allowed for 25% of this turnover to have been attracted from the town centre, which could result in a trade impact on the comparison goods turnover of the town centre of just under 2%. This is a very modest impact in quantitative terms. The existing town centre traders with whom the Argos Insert would compete most are those selling a similar range of goods. These include Tesco (in an edge-of-centre location), Herbert Morris, The Original Department Store, and Wilkinson. Any significant impact on the latter three traders in particular is of concern because of the role they play in drawing trade into the town centre. However, the low overall quantitative impact that would be experienced by the town centre does suggest that the it should be capable of absorbing the resulting trade diversions without significant adverse effects on its role and function. The retail impact on existing shops in Chepstow CSA is considered to be low. The items to be sold from Argos are likely to be brought on line and thus not in direct completion with existing shops. James Williams concludes that set against any impact that might be experienced by comparison traders in the town centre, is the positive effect that the proposal could have on drawing trade back to Chepstow (although not the town centre). We have assumed that 75% of the Argos Insert turnover would be trade that was previously being attracted elsewhere. There are benefits from this trade being retained within the town, including a possible reduction vehicle mileage. On balance this proposal would not significantly undermine the vitality or viability of Chepstow’s CSA. It is not likely that if the proposal was refused in this location it would locate in the town centre. The proposed Argos Insert will take only a negligible amount of trade away from existing shops in the town centre. If the proposal was not allowed in this location it is likely that shoppers would use similar facilities outside of the county as thus retail trade would be lost. 5.2 Loss of Employment Land This site is allocated under Policy SAE2j as Protected Employment Site. However there is an existing retail unit. The Argos Insert would be within the retail area of the Homebase store and would not therefore cause the loss of any employment land. Visual Impact 5.1.1 There is no visual impact as a result of this proposal Residential Amenity 5.1.2 There are no residential properties in close proximity to this store. Highway Implications Vehicular Access to this site is very good being just of the Thornwell roundabout. The increase in the level of car parking required as a result of this proposal is relatively small and can easily be accommodated within the existing car park. 6.0 RECOMMENDATION: Approve Conditions: The premises identified as DIY store on drawing PL07 shall not be used for purposes other than the sale of DIY/hardware and garden related products and for the sale of Class A1 non-food goods by a catalogue showroom retailer from up to 100 square metres as shown on plan 2193.001 Rev A (17/06/14). The Premises shall not be used for any other purpose (including any other purpose in Class A1 of the schedule to the Town and Country Planning (Use Classes) Order1987) without the prior written approval of the Local Planning Authority. For the avoidance of doubt a Catalogue Showroom Retailer is defined as a retailer selling a wide selection of non-food goods selected by the visiting public from a catalogue or digital browser and supplied to them fully packaged”