Page 38 - December 2021 / January 2022

RLI LEISURE INSIGHT

Leisure Creates A

Retail Destination

As retail recovery continues after the pandemic, destinations across the globe have begun
exploring new ways of enticing shoppers back into stores. What will it take to encourage
people to get off their smartphones and sofas and return to bricks-and-mortar retail shops?
Sue Shepherd, General Manager of London Designer Outlet (LDO), the UK capital’s leading
fashion and lifestyle outlet centre, explains how leisure and F&B is essential to creating a
thriving retail destination.

Blockbusters came back with a bang in the Autumn with the arrival pick up items that they have been meaning to grab or even see a
of the latest Bond caper, No Time To Die. Daniel Craig’s last – and bargain that is too good an opportunity to miss, it’s also important to
long-delayed – hurrah, as the world’s most famous spy. His arrival was provide a sense of vibrancy to your retail destination.
not only eagerly awaited by cinema groups, but also by retailers and A strong leisure offering is as much about the spaces around bricks-
restaurateurs as movie-lovers flocked to spend their money eating, and-mortar as it is the places themselves. At London Designer Outlet,
drinking and shopping on their day out. for example, we not only have family-friendly restaurants and cafés,
No Time To Die might well have been the moment that saved we install colourful and vibrant displays, operate a children’s play area,
cinemas. It was certainly the moment that reinforced why leisure is and also benefit from the amenities of Wembley Park that includes a
so important to the future of retail destinations. year-round programme of arts, culture and events such as the annual
In the first full week that the Bond film was screened in LDO’s Winterfest. All of this helps to create a pleasant environment and
Cineworld cinema, we saw total sales at the outlet centre up 6.3 offer things to do to keep people entertained while they duck in and
per cent and footfall up 6 per cent compared to the previous week. out of shops.
The increase, in part driven by film fanatics’ love of the irreplaceable Of course, leisure and F&B don’t even have to be confined to the
big-screen cinematic experience, follows a steady growth in the spaces outside retailers’ front doors. Retailers that also embrace
proportion of our total sales from cafés, bars and restaurants. Our the customer experience within their stores are in an even better
F&B brands consistently account for more than a quarter of sales, position to benefit in the post-Covid 19 landscape. We’re seeing a
with total F&B sales up 6 per cent in September 2021 compared real drive from brands to do more than offer their guests a simple
to September 2019, before the word ‘pandemic’ became a part of transactional service.
everyday life. Over the past year, we’ve seen the rise of the concept of the
This sits alongside a period of increased investment into 15-Minute Neighbourhood, a place in which you can find anything you
restaurants at Wembley Park, with brands looking to improve the could want or need within a short walk or cycle from your front door.
dining experience and consider new concepts, including LDO’s This can range from retail, F&B and leisure to green spaces, health and
wagamama which expanded by 92 per cent, almost doubling its education services, and your workplace. While this concept attracts
footprint. This investment has seen average transactional values increasing interest (including from champions including the Mayors of
going up and a stronger leisure offer created. Across Wembley Park, London and Paris), it’s something that retailers increasingly need to
catering spend is up 18 per cent compared to August-October 2019 consider when reviewing their store portfolios. And the answer isn’t
in the same period this year despite little net change in the number to shift your operations online. It’s to shift your stores to somewhere

of physical F&B spaces, demonstrating that improved leisure leads to where they will thrive and where your customers are. And, as the
improved sales. outlet proposition continues to prove its attractiveness – to both
The increase in sales isn’t just good news for those F&B operators. brands and cost-conscious consumers – compared to full price,
It’s also good news for our retailers. destinations that offer discounted designer shopping, F&B and leisure
While the rise of online shopping is often considered a challenge for are a compelling recipe for success.
bricks-and-mortar retailers, they need only fear shoppers preferring Leisure and F&B, whether in-store or in a well-managed mixed-use
the sofa-and-smartphone combo when they offer a transactional destination, combine with retail to create somewhere where people
service. The experience that leisure and F&B can offer will – and, as we want to visit and want to spend their money. As retailers consider
can see, does – bring people back to physical shopping destinations. the future in the post-Covid and digital era, the smart bet is on
That has been the case for some time, but in the post-pandemic strategically located retail & leisure destinations.
era when people crave the opportunity to come together and to
experience those little joys that they’ve missed out on, it is doubly so.
The role of F&B and leisure is undeniable in creating thriving retail
destinations. A strong mix of cafés, restaurants, bars and leisure
operators – as well as other amenities such as public and play spaces
– can boost sales, drive footfall, improve dwell time, and attract guests
from harder-to-reach demographics.
Through cafés, restaurants and bars, retailers benefit from a steady
stream of footfall throughout the day, beginning with breakfast or that
caffeine pick-me-up when shops begin to open, through to lunch and
dinner or cocktails with which to end the day.
While this footfall often translates into sales in-store, as people

38 RETAIL & LEISURE INTERNATIONAL DECEMBER 2021 / JANUARY 2022