Consumers are reducing expenditure at cinemas but increasing their spend at ‘competitive socialising venues’ that offer activities such as social darts or bowling, according to research that highlights changing UK social trends.
Consumer and location intelligence specialist CACI says post-pandemic challenges continue within the cinema sector, with transactions down 27% and sales down 23% among the six leading operators when comparing comparing October 22 – March 23 with the same period a year earlier.
However, average transaction value is up 5% at five of the six key cinema brands, suggesting that those who do visit are engaged and willing to spend.
By comparison, the number of transactions at competitive socialising venues are up 9%, while sales are up 5%.
Social darts venue Flight Club and bowling outfit Hollywood Bowl have performed particularly well, with a 22% and 31% increase in transactions, and sales boosted by 17% and 13%, respectively.
Arabella Dalloz, principal consultant and head of leisure at CACI, commented: “The significant uplift in transactions and sales at leading competitive leisure concepts such as Flight Club and Hollywood Bowl is likely down to considered growth strategies, with both brands expanding and picking up on the changing social trends. Flight Club has even taken the world by storm, opening across the US and Australia.”
Rob Arthur, founder of the leisure, entertainment and cinema consultancy, Paguro Ideas, added: “Now more than ever, audiences need cinema to offer something they can’t get at home. This may be the content itself, the social experience, with family, friends or a roomful of like-minded strangers, a chance to disconnect from people or gadgets; or unrivalled technology - the biggest screen, luxury recliner seats with exceptional F&B offers and immersive sound. Finding the motivating factors for different audiences and titles will be key in tempting people out of their homes, particularly in times of economic crisis and market disruption.
Arthur added: “The cinema industry has historically remained robust throughout numerous recessions and economic uncertainty, and for this reason, many operators remain complacent, assuming the sector will bounce-back on its own accord. However, being solely a cinema that only focusses on transactional ticket sales in times of easy and convenient access to streaming services is not working anymore. These brands need to invest in understanding their audience better and think differently about how they can actively engage with their customers, evolving entertainment experiences and create more reasons to visit for all age groups”.
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