Beyond the storefront

Exciting new concepts are driving playful and immersive retail experiences

Driven by dramatic shifts in the retail sector, many retail locations across Europe and North America face vacancies left by the closure of mainstream retailers, including department stores, which historically served as major anchor tenants.

In the UK alone, 85% of department stores have closed over the last decade, and with many located in shopping centres, this was causing headaches for landlords struggling to fill these large spaces.

But in the era of omnichannel and a strong consumer desire for experience-based retail and entertainment, some of these empty spaces have created opportunities for landlords to diversify their retail offering by attracting modern and innovative replacement concepts into these spaces that drive shopper footfall, engagement, dwell time, and sales.

The power of play in shopping centres

A broad array of leisure and entertainment attractions, food and beverage, and fitness concepts are being incorporated into shopping centres and retail districts to provide unique experiences. From upscale pickleball and trampoline parks to functional fitness and wellness, these new and emerging concepts are creating social and community-centric gathering spaces centered around recreation, and playful experiences that transcend traditionally conforming gyms. The Bouldering Project, for example, is more than a climbing experience, offering rotating configurations, fitness classes, weights and cardio, yoga, youth teams, camps, and parties that cater to novices and professionals alike. Ranging from 20,000 – 50,000 sq. ft., these locations serve as a community hub and have even revitalized American historic areas such as The Granary District in Salt Lake City, Utah.

In the UK, global leisure operator, Gravity, has occupied two former Debenhams department stores in prime shopping centres in London and Liverpool converting them into large entertainment venues which include go-karting tracks, AR bowling, and virtual darts. Since opening in London in 2021, the venue has driven a 25% increase in footfall within the shopping centre, highlighting the benefit of having leisure-based tenants within a predominantly retail-based location. At Stonestown Galleria in San Francisco, California, Round One Entertainment has announced it will open a 49,000 sq. ft. venue in 2024 featuring bowling, billiards, ping pong, karaoke, and arcade games on the lower level of the former Nordstrom store. Meanwhile, in Toronto, Canada a former Nordstrom at One Bloor has been leased to luxury wellness and social club AVANT by Altea Active and plans to open the facility in 2025.

Whilst food and beverage operators have always been present in shopping centres, the offering has evolved over the last decade with many prime centres now anchored by a range of eateries, from food-on-the-go (fast food or higher-end quick service restaurants) to fine dining. At The Well, a new mixed-use scheme in Toronto, Oliver and Bonacini Hospitality has recently opened three high-end restaurants across 70,000 sq. ft., a steakhouse and two concepts focussing on French and British cuisine. In Lyon, France, Unibail-Rodamco-Westfield redeveloped La Part-Dieu shopping centre, one of the biggest urban shopping centres in France, to provide a new shopping and leisure experience for visitors. The newly added Rooftop is home to a 43,000 sq. ft. dining centre, 75,000 sq. ft. of hanging gardens where visitors can walk around, a 7,500 sq. ft. climbing facility, and an 18-screen cinema complex.

Technology is reshaping retail

Technology is enhancing the retail experience and changing the way consumers interact with physical and digital worlds and allowing new concepts to redefine the way shoppers experience product, content, and media. Cosm is one example of the future of immersive entertainment expanding the realm of what’s possible in entertainment using Cosm’s proprietary domed and compound curve LED screen technology. Cosm will feature cutting-edge visuals in rotating films, live sports and entertainment, art, and music including a partnership with Cirque du Soleil. They will also offer educational events including planetariums, aquariums, and wilderness exhibitions. Merchandise, content partnerships, and an elevated food and beverage program complete the overall customer experience. The first two permanent US Cosm locations are expected to open in 2024 at Grandscape at The Colony in Dallas, Texas and at Hollywood Park in Inglewood, California, adjacent to SoFi Stadium. The venues are approximately 65,000 sq. ft. and can hold up to 1,700 guests. Another example is Ballerz, an immersive 500-person capacity football (soccer) dome opening at Bluewater Shopping Centre, in Kent which claims to be the UK’s most immersive competitive socialising space. It will feature an interactive skillzone, a football pitch with stadium-style seating, a players’ tunnel, pro changing rooms, and real-time pitch technology with big screen action replays on the sidelines.