Woolworths to build full-sized supermarket with home delivery at new Glenvale Town Centre in Toowoomba

A developer’s plan for a huge $65m town centre slated for a fast-growing part of Toowoomba includes a new full-sized supermarket, with the new tenant revealed.

Overhead concept layout of the Glenvale Town Centre on Hursley Road in Glenvale, Toowoomba.

Supermarket giant Woolworths will build its newest Toowoomba location as the anchor point in a $65m town centre in a fast-growing suburb creating more than 700 jobs during construction and operation.

The planned Glenvale Town Centre, slated for land previously occupied by the old Newtown rugby league grounds along Hursley Road, is back before the Toowoomba Regional Council again after owner Gallagher Development Investment Group lodged a change application.

The application is currently open to submissions from the public in line with the assessment process.

It comes five years after council endorsed the original plans for the masterplanned mixed-use precinct, which also includes a service station, childcare centre, tavern, bottle shop and motel, along with other specialty stores.

Original concept art for Gallagher Development Investment Group's Glenvale Town Centre project on Hursley Road in Glenvale.

The new proposal would see the main tenancy, identified as Woolworths in planning documents, expanded from 1500 to 4000 sqm of floor space, large enough to cater for a full-line supermarket.

But the most significant change is the introduction of a 1200 sqm warehouse next to the supermarket to cater for an “e-commerce hub” and home delivery hub to handle automated online orders.

According to the attached economic impact assessment by Location IQ, the new hub has been added to meet the changing demands and needs of consumers.

Dean Gallagher of GDI Group.

“In late 2020, Woolworths was the first retailer in Australia to launch a “dark” automated e-commerce store designed to pick and pack online orders,” the report said.

“Largely automated, these e-commerce hubs use a network of conveyor belts and storage units to deliver products to team members who then hand-pick customer orders.

“Existing Woolworths supermarkets in Toowoomba are in multi-level centres, making online hubs difficult to execute.

“Given the increasing demand for last mile logistics and increasing competition from companies such as Amazon, online hubs are important to fulfilling customer needs.”

Location IQ argued the expansion of the Glenvale Town Centre to include a full-line supermarket would generate an extra $20m a year in sales once opened by 2028 when compared to the original proposal (from $25m to $45m).

It also pointed out the main trade area of Glenvale was currently only serviced by one full-line supermarket in the Coles on the corner of Glenvale Road and Greenwattle Street, which would stand to be most affected if the Woolworths was built.

“The largest impact in percentage terms at -12.5 per cent would fall on Coles Glenvale, however, this impact is expected to be ameliorated in the short term with population growth (by 2031),” the report added.

“Overall, the proposed redevelopment of the full-line supermarket at Glenvale Town Centre would not impact on the viability or continued operation of any existing or proposed centre within the main trade area or the surrounding region.

“It is concluded that the combination of the substantial positive economic impacts serves to more than offset the trading impacts that could be anticipated for a small number of existing and proposed retail stores, particularly supermarkets, in the region.”

News of Woolworths’ addition to the proposed centre was met positively by members of development and property sectors.

Colliers Toowoomba managing director Dan Dwan said the GTC would underpin house prices in the area to ensure future returns.

“Dean was always long-term and there was always the view that a full supermarket was needed in that area,” he said.

“The precinct is going to assist with making those areas more appealing (to live), it’s not going to have a negative impact on house prices, and it will help with growth and demand.”

HF Capital Management director Edward Hodge was equally supportive, calling it a win for a corridor tipped to house more than 24,000 people by 2031.

“I’m supportive of development in the area, and we’ve got a number of residential projects under way in the area and this would be a great addition, and would bring much-needed retail amenity to the area,” he said.

“Projects like this will only build on the rental demand for Glenvale.

“There is a healthy runway of housing in the area, and this is much-needed retail amenity for the area to support it.”

Gallagher Development Investment Group director Dean Gallagher was contacted for comment.