The O2, a popular live entertainment, leisure, and retail destination in Greenwich, South East London, has conducted a study in collaboration with data specialists CACI to analyze the impact of social spending on retail sales. The study revealed that the emergence of a new type of consumer spending behavior at The O2, driven by socialization, has significantly boosted the destination’s performance.
The O2 comprises an entertainment district, Outlet Shopping at The O2 mall, and a variety of dining options, all aimed at creating a cross-generational and multi-faceted appeal. Consumers are choosing The O2 as the ideal place to spend quality time with friends and family, leading to increased cross-category spending. This trend has resulted in The O2 outperforming across multiple UK benchmarks.
According to the study, 43% of visitors to the outlet mall at The O2 go on to dine within the Entertainment District, surpassing the UK benchmark of 33%. Additionally, 34% of those who visit The O2 for attractions and leisure activities proceed to spend on food & beverage, exceeding the UK benchmark of 14%. These findings indicate that social spending is driving incremental spend at The O2, outperforming industry norms.
The shift towards incorporating dining and leisure experiences within retail spaces is a growing trend across the UK. Mall operators are converting space from pure retail to include activities such as mini golf, zip lines, and cinema complexes. This shift is reflected in the performance of The O2, where sales at the outlet mall have risen by 58% since Q3 2022, outpacing UK outlet sales in general.
In addition to traditional retail openings, The O2 district has welcomed F&B operator Chopstix, with plans to introduce leisure operator Clip ‘n Climb. Janine Constantin-Russell, Managing Director of the Entertainment District and Outlet Shopping at The O2, emphasized the importance of socialization in driving consumer spending. She stated that investing in a holistic offer that meets consumers’ social needs is crucial for driving performance and benefiting all brands within the destination.
Freddie Slemeck, Principal Consultant at CACI, highlighted the significance of providing a comprehensive experience encompassing retail, F&B, and leisure to optimize consumer spending in competitive markets like London. The study’s insights underscore the growing importance of social spending behavior in shaping the future of retail and leisure destinations.
As consumer preferences continue to evolve, destinations like The O2 are adapting to meet the demand for socialization-driven experiences. By offering a diverse range of attractions and activities, these destinations are not only attracting visitors but also driving increased spending across various categories. The success of The O2 serves as a testament to the transformative power of social spending on retail sales and consumer behavior.