EPA Exempts Large Format Retail in WA’s Margaret River

Amid a boom in the large format retail sector, a hardware and showroom scheme in a Western Australian wine and surfing hotspot has won Federal clearing approval and will not need to be assessed by the state’s Environmental Protection Authority.

The project at Margaret River, in WA’s idyllic Southwest region, comprises two buildings—a 5055sq m hardware structure and a 6854sq m building divided into eight large retail tenancies. 

The scheme is being advanced by Lex Group and Colchester Pty Ltd, whose proprietors, the Tribe family, owned Perth’s and Adelaide’s IKEA franchises before selling them back to the Swedish homewares behemoth in 2017.

Clearing on the 2.96ha site would include vegetation that provides habitat for the critically endangered Western Ringtail Possum and endangered Carnaby’s and Baudin’s white-tailed black cockatoos.

WA’s EPA has declined to assess the project, noting the Federal Government had approved the clearing pursuant to the Environment Protection and Biodiversity Conervation Act and would likely require offsets.

The plans, by Perth-based Meyer Shircore Architects, are out for public comment until March 9. The renderings arrive as new data shows that WA recorded $413 million of retail investment in 2025, with large format retail accounting for $243 million or 59 per cent of total activity.

▲ A rendering of the Lex Group’s planned large-scale retail project at Margaret River, which will not need to be assessed by WA’s EPA.

Colliers’ chief executive WA Richard Cash said large format retail significantly outpaced neighbourhood shopping centre transactions that totalled $137 million for the year.

“Large format retail has become one of the clearest expressions of Western Australia’s growth story,” he said.

“Strong population growth, resilient household spending and constrained supply are combining to drive sustained investor demand.

“Well-located centres that cater to everyday needs are proving to be some of the most defensive and scalable retail investments in the current cycle and that dynamic is set to continue.”

Cash said recent sales, including Stonebridge Property Group’s and Colliers’ $53 million transaction of the Treendale home and lifestyle centre in Australind, 120km north of Margaret River, in 2026 reinforced confidence in large format retail centres in the Southwest.

He said WA’s annual retail trade was now $54 billion and household goods retailing outperformed the national average by 23 basis points.

“These dynamics are flowing directly into investment decisions, particularly within the middle-market segment, where large format retail represented 62 per cent of WA retail transactions,” Cash said.

“What we are seeing on the ground is investors prioritising scale, accessibility and essential retail exposure.

“Large format centres offer a compelling combination of defensive income, strong tenant covenants and underlying land value attributes that are increasingly attractive as capital becomes more selective.”

The Lex Group was contacted for comment.