Page 34 - #201 September 2025

Retail Insight

Flexible Spaces for

One-Hit Wonders

In this edition’s Retail Insight, Joanna Brown, a Partner
at Forsters LLP, a leading law firm in London, offers her
viewpoint on how flexible spaces are becoming a new go-to
in the industry. She also highlights that these environments
must be adaptable and offer a variety of options moving
forward in order to stay relevant and attractive. Freight Island, Manchester, UK

he shift towards experiential retail spaces is chips experience in Selfridges in London. These On the horizon for flexible experiential retail
T reshaping how global brands engage with experiences help customers to form lasting in the UK is Freight Island at Eldon Square in
consumers worldwide. Traditional shopping associations with the brand, encouraging repeat Newcastle. Set to arrive later this year, the space
models focused solely on product transactions are visits and ultimately driving customer loyalty. has the ability to act as an entertainment venue,
giving way to environments that offer immersive The success of such ventures underscores the function rooms, a microbrewery, restaurants,
experiences. Experiential retail or ‘competitive broader trend around consumers increasingly seek- bars, play areas and temporary markets, including
socialising’, as it is often referred to in the UK, has ing experiences that offer novelty and social inter- Christmas markets and arts and crafts. Freight
-
been heralded as saving the high street and bring action. This shift is particularly pronounced among Island’s capacity to transform into different retail
ing footfall back to towns and cities worldwide, younger demographics that prioritise experiences offerings makes it a space which is attractive to all
from major urban centres in Europe to pop-up over material goods, a trend observed not only in ages and interests. This versatility not only entices
venues in North America. the UK but across global markets in urban centres a broader audience but also enables the venue to
But how resilient is this type of retail given with Millennial or Gen Z populations. adjust its offering based on consumer trends.
changing trends? Venues dedicated to activities For instance, the popularity of activity bars The financial viability of experiential retail
people typically engage in only once or twice are like Boom Battle Bar, Puttshack and Flight Club in hinges on the ability to generate consistent foot-
going to struggle in the long term. These venues London highlights a growing demand for venues fall and engagement. Venues that offer unique
must be adaptable to host a variety of experiences that combine leisure activities with socialising experiences can command premium pricing and
and to cater to diverse consumer interests, espe- opportunities. The latter two have even expanded foster customer loyalty. The rise in hospitality
cially once brands identify a sense of consumer to the US and Australia, tapping into the compet - venues across the globe featuring such activi-
apathy towards certain activities that were in itive socialising experience by fusing leisure and ties is testament to this trend, from immersive
vogue one week and out of favour the next. After nightlife into retail hybrids. Dubai Mall, the world’s dining in Seoul to interactive museum-bars in
all, how many times would you really be willing to largest destination for shopping, is also embracing New York. According to the Hospitality Market
spend money on axe throwing? experiential retail, including offering attractions Monitor, themed bars and competitive socialising
Experiential retail refers to the creation of such as an aquarium, zoo and ice rink. venues have grown by 24.3 per cent in the last 12
environments where customers can engage with However, the core challenge in experiential months in the UK, now nearly treble the size it was
a brand or product in an interactive and memora - retail is designing spaces that are flexible enough in March 2020.
ble way. This approach goes beyond shopping by to accommodate a range of activities which can Moreover, the success of these venues is
creating experiences that resonate emotionally adapt as customer demand fluctuates. Unlike reflected in their financial performance. XP
with consumers. Notable examples include Lulu- traditional retail spaces, which are often static Factory, the operator behind Boom Battle Bar,
lemon offering in-store yoga classes in Toronto and purpose-built, experiential venues need to be reported a record revenue of £57.3M at their most
or soft toy retailer JellyCat launching its fish and more adaptable. recent full-year results, a 17 per cent increase
from the previous year. This growth underscores
the lucrative potential of experiential retail when
executed effectively.
In the digital age, technology plays a pivotal
role in enhancing the experiential retail land -
scape. Interactive elements such as gamified
interfaces and augmented reality features can
enrich the customer experience and encourage
repeat visits. Venues like Electric Shuffle have
integrated technology to automate scorekeeping
and create engaging visuals, a tactic mirrored
in immersive experiences such as Paris’ Atelier
des Lumières.
The future of retail lies in the ability to create
spaces that are not only functional but also flex-
ible and engaging. By embracing the principles
of experiential retail, businesses can transform
one-time activities into recurring experiences
that resonate with current consumer trends.
Brands across the globe must design spaces that
offer unique, memorable experiences to attract
and retain customers in an increasingly compet-
Swingers Crazy Golf, London, UK
itive market.
34 RETAIL & LEISURE INTERNATIONAL SEPTEMBER 2025