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Leisure sector faces 'tough market conditions'
The leisure sector is facing increasingly tough market conditions with slowing consumer expenditure growth and increasing competition between in-home and out-of-home leisure according to the latest research by FPDSavills.
Andrew McGregor, head of leisure at FPDSavills, said leisure operators and developers will have to ensure their product remains fresh, innovative and well-targeted to maintain or increase their share of the British consumer's leisure pound: 'Despite the forecast slowing of the housing market and income growth, all the data points to the UK consumer placing an increasing value on recreation,' he said. 'However, it must represent good value for time and money.'
The research states that just as in 2002, when rapid expansion in the leisure sector resulted in many operators falling foul of market forces, the remainder of 2003 will also see a variety of winners and losers.
According to FPDSavills, winners for 2003 will include the multiplex cinema operators, for continuing to drive footfall; the bowling operators, for picking up the market lead of the cinemas; the 'chameleon bars' which have been flexible to adapt to daytime and evening customers; health clubs with sports, for attracting a wider audience and gaming, where spend per head has increased with the relaxation of legislation.
Those already losing out to the boom in the sector apparently include out of town nightclubs, where policing difficulties have caused serious security issues, and 'average' out of town leisure schemes, which may have been superseded by new competition from modern updated leisure offers.
'Problems associated with these sectors may worsen if, and when, new licensing legislation is introduced to the UK. We believe that this will create further emphasis on the town centre for our leisure activities,' adds McGregor. Details: +44(0)20 7409 8781