Randwick Council identify ways to attract supermarket operators to trade at Kensington, Kingsford

An eastern suburbs council is calling on supermarket operators to launch large-scale sites in two fast growing suburbs. However, a new trend of small, convenient supermarkets could pose a problem.

Randwick Council will discuss the possibility of attracting Woolworths, Coles or other major supermarkets to the Kensington and Kingsford town centres.

The fast-growing suburbs of Kensington and Kingsford in Sydney’s eastern suburbs may soon welcome two large-scale supermarkets, with Randwick Council exploring ways to attract operators to the area.

A report prepared for tonight’s council meeting states $305m was being taken out of the suburbs due to residents being forced to travel to neighbouring suburbs to purchase groceries.

The council is seeking to attract major operators to deliver two supermarkets of at least 2000sq m to the suburbs, with an “anchor” operator identified as a key part of the transformation of the area.

The suburbs are expected to welcome about 2000 new homes across the next six to 10 years, almost half the housing growth projected for the Randwick council area.

The council report states supermarket spend was the second largest contributor to residents travelling outside their suburb to spend money, with Kingsford losing $141m and Kensington losing $164m across the past 12 months.

Coles, Randwick.

Woolworths Randwick before it was changed Metro. Pictured at Coles in Randwick

Currently, Randwick Junction’s Woolworths Metro and Coles are the closest supermarkets for Kingsford residents with East Village Coles in Zetland the nearest retailer for Kensington locals.

‘The Randwick Housing Strategy’ and ‘Randwick Local Strategic Planning Statement’ have identified the two suburbs as “important local centres” to council’s future commercial, retails and residential growth.

Development bonuses for supermarket uses have been suggested in the council report, including allowing developments to exceed existing height limits if a major supermarket was to trade the site. It comes as supermarket operators indicate a trend to smaller-scale supermarkets, with shoppers moving online or shopping regularly.

The report will be considered at tonight’s council meeting, with council officers recommending Randwick Council continue discussions with supermarket operators in an effort to attract them to the fast-growing suburbs.