Data shows sales at The O2 bolstered by ‘social spending’

24th June 2024 | Jack Oliver

The O2, in conjunction with data specialists CACI, has identified what it has dubbed ‘social spending’ as a key driver of strong performance at the venue.

Home to the Entertainment District and Outlet Shopping at the O2, both of which are operated by AEG Europe and Crosstree Real Estate, The O2‘s offer extends beyond the arena, spanning retail, F&B, and leisure.

As a result, consumers are choosing The O2 as a venue to spend time with friends and family. Consumers coming to socialise at The O2, rather than for a singular reason such as shopping, is leading to increased amounts of cross-category spending.

The data from CACI found that 43% of visitors that begin their visit at Outlet Shopping at The O2 then go on to dine within the venue’s Entertainment District, whilst 6% proceed to then visit a leisure experience or attraction. This compares to the average UK benchmarks of 33% and 3% respectively.

CACI also found that 34% of visitors to The O2 who come for its attractions and leisure then go on to spend of food and beverage, a figure significantly higher than the UK benchmark of 14%.

Conversely, 8% of those who visit the destination for food and beverage then go on to enjoy The O2‘s leisure offering, up against the UK benchmark of 3%.

This behaviour is driving incremental spend that is outperforming the industry norms.  Since the third quarter of 2022, sales at Outlet Shopping at The O2 have grown by 58%, compared to 36% for UK outlets and 31% in London.

Janine Constantin-Russell, managing director of the Entertainment District and Outlet Shopping at The O2, said: “We always knew that socialisation plays a key role in how and where consumers choose to spend their time and money, both of which are under increasing pressure, but this research pinpoints exactly how significant it is to our performance.

“We believe ‘social spending’ is a behaviour that is going to become even more important for all destinations in the future, and we will continue to invest in a holistic offer that provides not only what people need, but what they want in order to feel connected to their loved ones. By doing so, as the research demonstrates, we will drive performance, which has obvious benefits to all of our brands, be they outlet retailers, F&B operators, or leisure experiences.”

Freddie Slemeck, principal consultant at CACI, added: “These insights highlight that, to optimise consumer spending, particularly in a highly competitive market such as London, it is crucial to provide a 360-degree experience encompassing retail, F&B and leisure. By providing more choice, The O2 is more relevant to consumers, more of the time. Consequently, it can serve a higher purpose in consumers’ lives than simply somewhere to shop or be entertained, with the focus shifting to how the destination facilitates social interaction, which leads directly to increased spend across the entire offer provided at The O2.”

This announcement follows several new openings at The O2 this year, including retailers All Good Things and Castore, F&B operator Chopstix, as well as the upcoming arrival of leisure operator Clip ‘n Climb, which is set to open later this summer.


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