The O2 Reveals The Positive Impact Of ‘Social Spending’ On Driving The Destination’s Out-Performance Of Uk Benchmarks

The O₂, the world’s most popular live entertainment, leisure, and retail destination, has revealed the emergence of a new type of consumer spending at the destination, one it believes will become a dominant behaviour. Working with CACI, the data specialists focused on people and places, The O₂ has identified what it has termed ‘social spending’ as a key driver of the destination’s strong performance.

 

Home to a bustling Entertainment District alongside Outlet Shopping at The O₂, both of which are owned and operated by AEG Europe and Crosstree Real Estate, The O₂ provides consumers with a multi-faceted offer which extends beyond its world-famous arena and spans retail, F&B and leisure. An ever-evolving destination with a broad generational appeal, consumers are consistently choosing The O₂ as the ideal place in which to spend quality time with friends and family. This socialisation purpose, rather than a singular visit driver such as shopping, is leading to significant cross-category spending, resulting in The O₂ out-performing across multiple UK benchmarks:

• 43% of consumers that begin their visit at Outlet Shopping at The O2 go on to dine within the destination’s Entertainment District, and 6% proceed to visit a leisure experience or attraction.  This compares to the average UK benchmarks of 33% and 3% respectively;
• 34% of consumers who visit The O2 to enjoy the destination’s attractions and leisure offering then go on to spend on F&B – a figure significantly ahead of the UK benchmark of 14%;
• 8% of those who visit The O2 for an F&B experience also then enjoy The O2’s extensive leisure offering, versus a UK benchmark of 3%.

This behaviour is driving incremental spend that outperforms the industry norms.  Since Q3 2022 for example, sales at Outlet Shopping at The O₂ have grown by 58%, compared to 36% for UK outlets and 31% in the capital.

 

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.