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Peter Buchan for CPD 2012 Limited Dated: 6 November 2020

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Peter Buchan for CPD 2012 Limited Dated: 6 November 2020 Before a Hearings Commissioner appointed by the Central Otago District Council Under the Resource Management Act 1991 And In the Matter of an application under section 88 of the Act by CPD 2012 Limited for the construction and operation of a Countdown supermarket between Centennial Avenue and Ventry Street in Alexandra (RC200029) Statement of Evidence of Peter Buchan for CPD 2012 Limited Dated: 6 November 2020 Lane Neave Level 1, 2 Memorial Street Queenstown Solicitor Acting: Joshua Leckie/Annabel Hawkins Email: [email protected]/ [email protected] Phone: 03 409 0321/03 377 6783 Page 2 of 13 INTRODUCTION 1. My name is Peter Buchan. I hold the dual position of Portfolio Manager Countdown (South) and National Manager Property Super Value / Fresh Choice for Woolworths New Zealand Limited (Woolworths). 2. I hold a Bachelor of Science degree in Land Economics from Paisley University, Scotland (1987) and am an Elected Member of the Royal Institute of Chartered Surveyors (1989). I have over 30 years’ experience working in the property industry in the United Kingdom and New Zealand. 3. I have worked for Woolworths for nine years. I am responsible for a property portfolio of approximately 130 Countdown, Fresh Choice and Super Value supermarkets. As part of my remit, I am also responsible for the development of new stores. In particular, I have obtained resource consents and plan changes for several supermarkets on or adjacent to residentially zoned land. 4. Alexandra has been identified as a ‘target town’ by Woolworths for a number of years (which precedes my involvement). Put simply, Woolworths’ desire to invest and establish a supermarket in the town has been frustrated by our inability to secure a suitable consented site opportunity. 5. In terms of my involvement, I have been the Woolworths representative with responsibility for securing a suitable supermarket opportunity in Alexandra for approximately five years. 6. As part of this remit, prior to entering into an agreement with CPD 2012 Limited (the Applicant), I both reviewed previous potential opportunities considered by Woolworths (formerly Progressive Enterprises Limited) in Alexandra and considered whether there were suitable alternatives. 7. The conclusion of my earlier investigations was that there is a lack of suitable commercially zoned opportunities with the town centre of Alexandra and that to achieve a development which can both meet our operational requirements and provide a desirable and competitive commercial offering to customers, an edge of town centre location would be required. CPD7471 8827463 Page 3 of 13 8. The lack of suitable alternative opportunities was integral to the decision by Woolworths (through its property holding arm) to acquire part of the application site to facilitate advancement of the proposed scheme by the Applicant. 9. I led the negotiations with the Applicant in relation to the Development Agreement entered into for the proposed Countdown development and have subsequently liaised closely with the Applicant in relation to the operational considerations for the proposed scheme, the proposed design for the store / site development, and the consenting process. As part of this, I have inputted into responses to matters raised in the Council’s request for further information and points raised by submitters. SCOPE OF EVIDENCE 10. In my evidence I will: (a) Provide an overview of Woolworths’ business; (b) Outline the background to the proposal; (c) Address site requirements and the proposal; and (d) Explain the proposed management of operational effects. EXECUTIVE SUMMARY 11. Woolworths regularly receives enquiries asking when we will be opening a store in Alexandra. The town is currently served only by one large format supermarket and three smaller grocery stores and this is an under supply to be addressed. 12. Supermarkets require large sites that are easily accessible and convenient for customers, central to their catchment population and able to be configured in an efficient manner. 13. The subject site sits on the fringe of the Alexandra town centre as zoned, is adjacent to a motel and a number of other existing commercial activities, fronts an arterial route and is central to a large Central Otago catchment population. It meets all of Woolworths’ criteria for successful supermarket development. CPD7471 8827463 Page 4 of 13 14. Despite wide-ranging investigation, there was a lack of other suitable sites within the town centre that could meet Woolworths’ operational requirements and provide a desirable and competitive commercial offering to customers. 15. The Applicant, together with Woolworths and supported by technical noise, traffic, construction and planning expertise, has developed the design and operational parameters of the proposed Countdown such that it will not cause adverse “edge” effects, or effects on amenity and residential character in this location. 16. In particular, since lodging the resource consent application, significant changes have been made to the design, including signage and the Ventry Street frontage, and proposed operations, including delivery hours. With these measures in place, in my view the proposed Countdown will operate successfully and responsibly within the community it will serve. 17. Woolworths accordingly supports the Applicant’s position that the proposal will bring many benefits to the community and the potential adverse effects will be appropriately managed, such that it would be appropriate to grant consent for the proposal. WOOLWORTHS OVERVIEW 18. Woolworths is one of New Zealand’s two leading supermarket operators. Woolworths currently operates over 180 Countdown stores nationwide, together with a portfolio of 70 plus franchisee stores operating under the Super Value and Fresh Choice brands. 19. At its Countdown stores alone, Woolworths employs around 20,000 people across New Zealand, making it one of the country’s largest employers. 20. In the Central Otago region, Woolworths operates 6 Countdown stores and employs over 635 people. There are also 5 Super Value and Fresh Choice stores in the region. CPD7471 8827463 Page 5 of 13 BACKGROUND TO THE PROPOSAL 21. When considering future supermarket development opportunities, Woolworths first identifies the areas and communities that have a need for, and would benefit from, additional supermarket services. 22. The Otago Region, including the Central Otago, Queenstown Lakes, Dunedin and Clutha Districts, has long been assessed by Woolworths as an area under serviced for supermarket customers and in need of additional investment. Notwithstanding recent store developments by the Woolworth brands (Countdown, Fresh Choice and Super Value) in the Region, with the growth in population and tourism, in particular, this situation has become more rather than less pronounced over recent years. 23. In terms of Alexandra specifically, the town has been identified as under serviced from a customer perspective. Woolworths regularly receives specific enquiries asking when we will be opening a store in the town. 24. Alexandra is currently served only by one large format supermarket and three smaller grocery stores (a Four Square, Bin Inn and Night ‘n’ Day). For a town of over 5,000 people in a tourist district of New Zealand, this can only be viewed as an under supply (as more fully discussed by the specialist economics report and evidence by Natalie Hampson from Market Economics). 25. This operationally has been demonstrated by supermarket activities in the town including: (a) The progressive expansion of the only current large format supermarket to the maximum achievable on their site; (b) Fresh Choice Cromwell providing an alternative service to the town’s current bricks and mortar supermarket via its online service. This service is trading strongly and growing beyond that which could reasonably have been anticipated; and (c) Countdown providing an online service via its Queenstown store, although this is currently limited by capacity issues. CPD7471 8827463 Page 6 of 13 26. In terms of the journey and stages Woolworths gone through in pursuit of our objective of investing in Alexandra this can be summarised as follows: (a) Pre-2014 – Pursuit of a suitable Countdown site opportunity; (b) 2014-17 – Strategy and priority review followed by re-assessment of Alexandra from both a planning and alternative site opportunities perspective; (c) 2017-18 – Consideration of Alexandra as a Fresh Choice location (smaller supermarket opportunity); and (d) 2018-present – Further strategy review leading to current Resource Consent application for a Countdown Store. 27. Simplistically from an operational perspective therefore Woolworths’ view is that: (a) Anything less than a full range Countdown will not accommodate our customer requirements; and (b) With the recent expansion of the other current large format supermarket retailer in the town, a smaller supermarket offer would not be in a position to compete and potentially would fail. 28. It is also worth commenting that our operational experiences with Covid-19 have impacted our thinking to new store development. Of particular relevance to Alexandra is the need to focus on the increased desire from customers to both shop locally and have a choice. SITE REQUIREMENTS AND PROPOSAL Site Requirements 29. Once an area of demand is identified, Woolworths then either progress with site selection, design, consenting and development itself, or advances a proposal in conjunction with a landowner / developer. 30.
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