Retailtainment hits the mainsteam

Retailtainment hits the mainsteam

23 August 2019

According to a recent report from CBRE, retailtainment – the convergence of retail, leisure and entertainment – has entered mainstream lexicon in recent years as retail landlords and tenants realise that surviving ecommerce disruption requires a far more extensive offering than mere products.

More landlords are transforming their malls into retail destinations to create more engaging consumer experiences and build retention, while an increasing number of retailers are devoting more space and even entire stores to providing more personalised experiences to market their newest and most innovative goods and services.

Although retailtainment emerged relatively recently, it is evolving rapidly, with many landlords now making experiential retail a permanent feature of their malls and a host of specialised entertainment-based retailers emerging to cater to every niche.

CBRE highlight a few tips that can help landlords that can provide experiences for consumers. These include placing experience at the core of a landlord’s tenant mix, building properties as “retailtainment hubs” instead of just shopping malls, and leveraging consumer analytics to obtain deeper insights.

Experience-focused activities like indoor theme parks, cinemas, sports clubs, children’s edutainment centres, games arcades and studios, can all assist in meeting the demand for entertainment and personalised experiences.

Growing consumer demand for fun and entertainment is driving strong spending on entertainment-based retail in Asia Pacific, with Euromonitor projecting that additional experience-based retail spending in the region will total US$ 825 billion between 2018 and 2030.

An increasing proportion of this spending will be on high value and personalised products and experiences as part of an overarching shift towards premiumisation.

As Asia Pacific’s increasingly sophisticated consumers demand a more personalised, interactive and memorable retail offering, CBRE advises landlords to place retailtainment at the core of their tenant mix and position their shopping malls as experience hubs rather than locations to purchase products.

Shopping mall landlords are also advised to leverage data-driven insights to guide leasing strategies and enhance asset performance. Leading-edge consumer analytics tools such as CBRE’s Calibrate can help landlords benchmark competitor performance, increase share of wallet, and gauge the effectiveness of marketing campaigns.

As deeper digital engagement and consumer demand for more personalised products and services prompts retailers to rethink shop rollout, format and footprint, retailers are advised to engage with developers at an early stage to design, configure and optimise their stores to ensure they continue to engage consumers

Landlords should also adopt a more consumer-centric approach towards reviewing retailtainment tenant performance. Although such tenants may require longer lease terms and lack the capacity to pay high rents, they have a critical role to play in attracting and retaining consumers in this new era of retail experience.