ECONOMIC DEVELOPMENT QUARTERLY
THE ECONOMIC IMPORTANCE OF
MAIN STREETS
Facts, figures and analysis of main streets is often
not readily available compared with the available
information on the private enclosed centres. The
latter constantly measure footfall, turnover, use of
parking spaces, employment levels and tenancy
mix. The lack of this information through which
the performance of main street centres could be
measured and compared undermines their capacity
to demonstrate their worth, their contribution to
economic development and hence, their ability to
attract funding and support from various tiers of
government. To address this in 2011 Mainstreet
Australia, with the assistance of the Victorian
Department of Small Business, engaged consultant
Essential Economics 2 to undertake an assessment
of the economic importance of Victoria’s Main
Streets. The consultants concluded that:
“Main Street activity centres are in highly
accessible locations across Victoria, providing
the wider community - from residents to tourists
and other visitors - with a broad mix of retail,
commercial, professional, and community facilities
and services. Approximately 370,000 jobs are
supported in Main Street centres, generating
$15,500 million in wages income each year. Main
Streets provide opportunities for small business
development, with many successful national and
international businesses having expanded from a
Main Street location. Main Streets have a vital role
to play in serving communities, ranging from small,
local centres, to much large centres of metropolitan
and state-wide importance. Importantly, they are a
source of community identity.
The case for investing in and supporting Main
Street activity centres is compelling for any
stakeholder with an interest in contributing to
Victoria’s economic, social and environmental
wellbeing”. Essential Economics 2011.
The research revealed that there were 680 activity
centres in Victoria that met the definition of a
traditional main street, high street, town centre
or urban village. Of these centres, 211 had a
floorspace of over 5000 sqm and as a whole the
centres accommodated 45% of all retail floorspace
in Victoria and 41% of all retail sales in Victoria.
The centres also provided jobs for 370,000
Victorians (183,000 in retail sales and 154,000 in
non-retail activities). These are significant numbers
in regard to the economic and employment basis for
Victoria and reinforce the importance of the centres
and that they deserve the support of all tiers of
government.
Why Do We Want Successful Main Streets?
Community Benefits Economic Benefits Environmental Benefits
• Integrate with local communities
• Accommodate a wide range of
community and social services
(from hospitals to train stations to
churches
• Focus of community identity and
civic pride
• Focus for day to day services and
requirements of the community
• Meet anything from localised
needs up to a large regional
service role
• Are where most urban activities
can co-locate (retail, transport,
residential, government services
etc
• Source of community contact and
interaction
• Are the face of a community
• Locations of historic importance
• Location of cultural activities •
•
•
• • Integrate with public transport and
non motorised transport
infrastructure
• Are location of substantial public
infrastructure
• Existing infrastructure a “sunk” cost
to government that makes
additional investment cost effective
and efficient
• Encourages multi-purpose trip
making
• Reduce carbon footprint (shop
local)
• Are able to accommodate higher
density residential development
• Often incorporate or integrate with
major sport and recreation areas
(e.g. gyms, sporting ovals)
•
•
•
•
•
•
•
•
•
Approximately 680 centres across Victoria
Contain 5,300,000m2 of retail floorspace
Generate $29.2 billion retail sales
Contain a high share of non-retail
floorspace
Generate 374,000 direct jobs
Create $15.5 billion in wage income
A high share of traders are
owner/operator and independent
Proven business incubator (JB HiFi,
Grill’d)
Focus of activity for leading retailers (e.g.
50% of Coles and Woolworths
supermarkets are in Main Street centres
Generate tourism visitation and positive
perception of Victoria as a place to visit
Accommodate substantial public
infrastructure
Efficient location for private and public
investment
Support for local and state economies
• Existing focus for local and state
government capital works.
Source: Essential Economics 2011
VOL.12 NO.3 2019 | 24