Making the most of Competitive Socialising

‘Competitive socialising’ at Topgolf.

Roy Menachemson sees that the massive impact of COVID -19 on the retail sector presents opportunities to reimagine the design, branding and operations of leisure spaces

The change in how people how shop, accelerated by the COVID-19 pandemic, has seen a seismic shift from bricks and mortar stores to on-line trading.

The retail market in Australia is expected to decrease by 3.2% in 2020 wiping some $17 billion off the sector.

Yet the leisure time experience of shopping, that cannot be achieved online, is being increasingly recognised by shopping centre developers and owners who, as many retailers close stores, are revisiting their tenant mix to offer products that attract people other than shoppers.

Landlords know that prime retail space must not sit idle as maintaining a solid level of foot traffic becomes paramount in saving smaller retailers from closure. As a result, tenant mix in the post Coronavirus world will see faster change as developers and owners move to attract leisure attractions to fill spaces vacated by larger tenancies.

Major shopping malls are expected to evolve from fashion and food retailing to more leisure and non-retail services.

Gyms and family entertainments centres (FECs) – which as a result of the demographic of their users being more than just families I feel should be known as social entertainment centres (SECs) - have long been a familiar offering in retail areas. Readers may already have come across other retail locations with facilities such as climbing walls, swim schools, wellness lounges as well as libraries, childcare, medical centres and dentists.

With variety set to be key as landlords work towards creating a good experience for shoppers, leisure providers now have a unique opportunity to hire hitherto unaffordable spaces by providing malls and centres with high quality facilities designed to maximise the growing trend of ‘competitive socialising’ (see opposite) - a key to driving foot traffic and extending trade beyond traditional ‘shopping’ hours.

Landlords recognise that including such components into their tenant mix will unlock additional value for those tenants looking to maintain established stores by climbing aboard the opportunity of extending trading hours and benefitting from the high spend demographics attracted to these social entertainment experiences.

The current tidal wave of tenants exiting leases due to the

view that any recovery in their business will be slow can be significantly reduced as these tenants see an increase in business levels due to an uplift in foot traffic driven by SECs – essentially by a higher spend demographic.

While looking to attract leisure businesses, shopping centres will not compromise on the quality offering of the venue and to create commercial success operators in this space will need to provide consumers with a place to share, discover, explore but more than this, through sharing – put simply, creating a place to belong.

Notwithstanding the difficulties being confronted by shopping centre owners as traditional retailers pivot towards investing in digital strategies, they nonetheless will be seeking high quality operators who recognise the need to bring the joys of activity, entertainment and socialising to a post COVID world where social contact will be limited albeit with strong visitations.

In other words, developing a balance of reassurance and reinvigoration.

Amid this rapid growth we are already seeing an increase in venues in prominent leisure locations and shopping centres.

Demographic shift marks the rise of Social Entertainment Centres The transformation of the amusement arcades enjoyed by past generations to the FECs of the current millennium is now seeing further evolution with the emergence of SECs.

Entertainment centres that hitherto catered to ‘families’ as their main consumer base have steadily been moving towards opening their demographic reach to include a wider group of consumers more attuned to the array of new attractions that combines with a strong food and beverage component to provide a great social experience that spans across generational borders.

With amusement arcades impacted by the rise of homebased console games during the 1980s and 1990s, the move towards catering for a demographic that included young adults is often credited as having begun with the opening of Barcode at the then new Crown Casino complex in Melbourne in the late 1990s.

Barcode was a ‘games bar’ with new and ‘classic’ arcade games, pool tables, air hockey and pinball machines which players could play while consuming alcohol.

Other Barcode venues opened in new locations in the following years, including in New York’s Times Square in May 2000, while its concept was widely emulated with the arrival of locations such as Holey Moley Golf Clubs and the evolution of many tenpin bowling locations to include entertainment concepts.

The significance of the sector’s identification offering SECs is also explained by Ben Keenan, Principal of Melbourne creative branding consultancy The Thought Police, who notes “kids who

Leisure has the potential to transform the retail experience.

REIMAGINING THE STRATEGY, DESIGN,BRANDING AND OPERATIONS OF RECREATION SPACES.

Established in 2020, we are an end-to-end solution bringing together world class expertise in business planning, strategy, design, branding, technology and implementation. Every moving part you need to adapt and thrive in the one solution.

Let’s start a conversation.

recreationcollective.com

Roy Menachemson roym@nbrc.com.au

Swingers Crazy Golf. Competitive socialising is the fast-growing sector catering for people going out and playing games with their friends, family and colleagues at a location that is serving speciality food and drink - combined with activities such as boutique bowling, mini/crazy golf, bingo, axe-throwing, pool tables and escape rooms. Some venues offer a mix of these attractions as well as arcade games, air hockey and other speciality activities.

Competitive Socialising generates a great experience particularly as it facilitates the opportunity for people working from home to escape the isolation as they enter a social environment that provides escapism from the daily grind.

The new normal?

Today’s consumers value ‘experience’ over ownership. The essence of competitive socialising is to bring people together to share an experience and create memories.

The rapid global change in consumer behaviour has left many traditional leisure activities with decreasing footfall notably shopping malls and Cinemas which have seen rapid declines. The instant gratification and dopamine hit that comes from social sharing has changed the motivation behind nearly every aspect of how we spend our downtime. By way of example, luxury fashion houses release catwalk collections directly through have grown up with FECs are coming of age, and will never lose their love of games and immersive experiences.

“As they mature, so do the experiences we create. With vast amounts of socialising happening online, this generation craves a place to meet, to interact and play. Expertly constructed SECs aren’t mere games and food, they are complete ‘worlds’ and will be the all-important attractor of customers to struggling retail and entertainment precincts.”

Zachary Pulman of UK-based Zachary Pulman Design Studio, which has set new standards for competitive social spaces (competitive socialising) for the likes of Swingers Crazy Golf and Topgolf UK, US and International, and has extensive expertise in retail and residential innovation, agrees with how SECs recognise a demographic shift.

He adds “we’ve seen a shift in demand from venues with a family-focus to those with a broader social-focus, particularly catering for experience-hungry Millennials and Gen Z.

“The so-called ‘Instagram generation’ value experience over ownership and competitive socialising provides share-able experiences that surprise and engage.

“Digital integration within gameplay connects the competitive socialising experiences with the customer’s digital world. Teamed with an evocative design aesthetic and challenging and rewarding playability it’s a winning solution for the changing

Competitive Socialising

retail landscape.” Credit: Walltopia. Credit: Maniax

social platforms, even before they reach their stores. Marketing has been shifted from billboards and TV’s to the palm of our hand with social media ‘influencers’ becoming more valuable to brands than even Hollywood A- listers.

The marketing halo from visitors sharing images on their own social platforms cannot be overstated. According to Brandwatch 96% of people sharing perspectives about brands or experiences online don’t even follow the brand profile. So what is driving these Brands forward and why now?

Consumers are quickly evolving their wants and needs and while this is contributing challenges in the retail sector, it is seeing a diversion of spend to leisure, accounting for (according to UK statistics) 14.3% of consumer spend.

Competitive socialising is on one hand counter-culture to people’s lives going on line as it brings people together socially into the real world, but on the other hand provides exactly the kinds of experiences that people love to share on social media.

The key is building a brand and advances in social media and technology that are driving new concepts forward in a way that wasn’t possible previously. Provided specialist operators can provide a world class concept that will keep them ahead of the competition it will flourish even in a congested market.

Location-Based Concepts The growth across all of the competitive socialising market is a good counter narrative to other parts of the market and while some concepts have been around for decades it is clear that the growth expected in this sector will be closely tied to technology and consumer preferences.

Landlords are also beginning to understand that introducing a leisure business goes beyond whether the tenant can pay a certain rent.

With location-based concepts being challenging to design, develop, open and operate, these concepts, by virtue of the variety of attractions available, have definitive requirements in regard to ceiling heights, columns and retaining walls and could add significant accommodation cost which might not be capable of being recouped through additional rent. Landlords particularly those managing large malls, need to recognise that spending time at an attraction or entertainment venue, means customers will be spending more time at the centre. Entertainment concepts can be a significant ‘backfiller’ for spaces vacated by retail operators but re-purposing the same for the intended use can work out expensive and this is not a cost that can be passed onto the user.

If shopping centres are to have ‘buy-in’ to shifting historical trends to a greater focus on expanding their consumer offering it will be necessary to demonstrate that these entertainment spaces are busy day and night with a concept that offers something for everyone; lucrative corporate groups, families, groups of friends, couples and casual visitors building a broad audience segmentation.

While environments need to be safe, they do not have to be boring. Developing a post COVID facility necessarily means rethinking how to adhere to social distancing rules where keeping your distance doesn’t diminish the quality of the experience.

Challenges to traditional retail have created a vacancy quagmire worldwide with Australia being no exception. Entertainment is emerging as one the most in-demand categories of brick and mortar retail in the e-commerce era. Roy Menachemson is Managing Director of NBRC and co-founder of newly formed consultancy and advisory service Recreation Collective.

Recreation Collective launches, aiming ‘to change the game of competitive socialising’

Newly formed consultancy and advisory service Recreation Collective is ready to offer services for the ‘re-creation’ of amusements and entertainment.

In a world where social distancing and social entertainment will, according to Recreation Collective cofounder Roy Menachemson, “need to learn how to play together”, the service will offer a balance of reinvigoration and reassurance needed to bring customers back.

Explaining that, with “a clean sweeping of manuals, an emphasis on creativity and innovation to re-consider barriers to entry”, Menachemson (pictured) explains that the re-creation of the recreation business starts now.

With 40 plus years of building multi-site leisure businesses, Menachemson has seen all of the challenges of building and adapting businesses to changing times first-hand.

He advises “in great change, there is always great opportunity.

“One of the greatest challenges is finding world class expertise in the diverse disciplines that make a recreation space a success. Whether you are adapting your space, or building a new entity from the ground up, a strong collaborative force that includes planning, design, branding, operations and marketing is needed. That’s what inspired The Recreation Collective to form.”

The Recreation Collective consists of Menachemson’s own Sydney based strategy, implementation and operations business NBRC, whose credits include pioneering properties such as Bowl Australia and Attractivity, partnered with London-based Zachary Pulman Design Studio.

The Recreation Collective is completed by Melbourne creative branding consultancy The Thought Police, who have conceived and built branding, content and digital experiences for some of the world’s biggest brands.

The Thought Police Principals Ben Keenan and Dan Jones are internationally awarded creatives who cut their teeth at top ranked agency Clemenger BBDO Melbourne.

Menachemson goes on to state “we are here to help businesses reinvent their spaces, and reimagine new ones as the retail and social entertainment worlds adapt to changing times.

“We are tackling our industry’s biggest problem - how do we innovate and meet new safety precautions and expectations that adds to the customer experience?

“With our unique cross-disciplined approach, the Recreation Collective is the one-stop-shop our industry will embrace.” For more information contact Roy Menachemson on E: roym@nbrc.com.au or go to www.recreationcollective.com.