The retail report entitled, ‘Focus on Food Services: Is there a correlation between food services and entertainment’, reveals that there are instances where the performance of certain food services sub-categories was better in centres with entertainment facilities.
Broll Property Group: divisional director for Research, Elaine Wilson says, “There is an ongoing debate on whether having entertainment tenants, who tend to pay lower rentals and occupy large areas, in certain instances, are necessary in shopping centres. In order to understand the role of entertainment, this report aims to determine whether the presence of entertainment has an impact on the performance of food services.”
She explains that even though the findings could not give a definite answer on whether the presence of entertainment in a shopping centre affects the performance of food services, there are instances where the performance of certain food services sub-categories was better in centres with entertainment facilities.
However, she notes that in centres without entertainment facilities, overall food services trading densities per square metre fared better, but on a year-on-year growth comparison, centres with entertainment experienced a higher growth trend over a 12-month period. This may be an indication that consumers are more conscious about planning their shopping trips and view shopper-entertainment as a full-day shopping experience.
The snapshot focuses on shopping centres (with and without entertainment) measuring between 25,000sqm and 65,000sqm across South Africa over a two year period from July 2014 to June 2016.
Download the report on www.broll.com/publications on 7 September, when it is officially launched.
