Khaleej Times: Retail entertainment and leisure – what’s next?
Leisure and entertainment destinations are key factors in the retail industry in the region, which features a thriving market for family entertainment centres (FECs) and multi entertainment centres (MECs).
The young population demographics, hot summer weather and the increasing popularity of the shopping centres in the Mena (Middle East and North Africa) region have created a huge growth in leisure and entertainment opportunities in shopping centres.
Leisure and entertainment options draw significant footfall in any mall today around the world but most noticeably in the Mena region. Consumers across the world look for a modern shopping centre where they can shop, relax, socialise, have great family time, dine and be entertained. In the GCC countries the growth and sophistication of retail leisure and entertainment centres have blossomed. The top quality execution and delivery of the leisure and entertainment outlets are now world leading.
Leisure and entertainment destinations are key factors in the retail industry in the region, which features a thriving market for family entertainment centres (FECs) and multi entertainment centres (MECs). In part, this growth is fuelled by retail real estate developers such as Emaar, Majid Al Futtaim, Arabian Centres, Al Othaim, Unified, Hamat and Asala which continue to transform the retail sector that is underserved regionally. In recent years, multi-brand retailers have introduced several leisure and amusement concepts that are attractive, diverse and safe. Some of these concepts range from indoor parks – Sparky’s and Sky Zone – to edutainment avenues – Kidzania and Billy Beez – to amusement and games room areas – Faby Land, Magic Planet and Saffori Land.
Often, these amusement concepts serve as key anchors in many shopping malls. This is a strong indication that the Mena region is a true retail entertainment success story, offering massive growth opportunities regionally. However, the balance is shifting aided by a strong desire by ever more sophisticated customers of all ages for new concepts. Much of the future success for the leisure and entertainment segment depends on innovation and investment. The next few years will see the segment evolving further, focusing on achieving critical mass through new and innovative amusement concepts.
Huge success has been made in regards to the growth of leisure and entertainment components of shopping centres regionally. The large retail players which are already pioneers in the entertainment business, continue to add uniqueness, excitement and fun to this segment. This move is in line with its commitment to develop and support the younger generation and the local community.
Trampoline parks are also popular, franchised from Bounce, Jump Boxx, Sky Zone and other brands from abroad have arrived to the region and have been incorporated into some of the regional shopping centres. Combining intense physical activity with fun, these trampoline parks are just beginning to become very popular.
A critical catalyst in the evolution of leisure and a place of social interaction is the dynamic growth of food and beverage (F&B) retail. The F&B category now stretches from boutique grocers, to food courts to fine dining formats. The region again leads the world with total foodservice sales accounting for nearly 35 per cent the annual gross sales in the GCC retail market. The gross annual sales of the food and beverage component of shopping centres is predicted for continual growth at 6.8 per cent CAGR through 2018.
F&B continues to be a lucrative revenue stream for a mall, but future growth depends on the mall’s capacity to deliver this change. Regional shopping centres are at the forefront of this trend globally. The smart players plan to increase the F&B mix from the current five-10 per cent to 15-20 per cent and in some cases even 40 per cent of the Gross Leasable Area (GLA), showcasing premier F&B brands and a variety of restaurants. Proper planning including power, water and abundant vehicle parking are key to the continued success and growth of F & B in regional shopping centres.
The writer is chief executive of Middle East Council of Shopping Centres. Views expressed are his own and do not reflect the newspaper’s policies.
The surge in F&B activity in shopping malls is expected to continue to attract foreign retailers over the next few years, introducing brands to the market in an effort to capitalise on a currently underserved sector. These openings will also mark the regional launch of these new global brands, a nod to the region’s role as an increasingly dominant retail F&B player globally.
In conclusion, the leisure and amusement business is rapidly growing across the Mena region. The coming years will increasingly see a significant shift to innovative leisure and entertainment options, driven by a strong desire by consumers for newness and ever evolving family entertainment avenues. For brands able to invest, support and contribute to this growth, potential rewards are vast today and far into the future. The same can be said for the food and beverage industry in this region.
By David Macadam
Link to Article: http://khaleejtimes.com/business/retail/retail-entertainment-and-leisure—whats-next