Although consumers are currently under pressure, shopping still takes place with total national retail sales amounting to R73.825 billion in June 2016.
The Broll Q3 Retail Snapshot, to be launched next week, focusses on food services and the possible correlation between these services and entertainment in a shopping centre.
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 the snapshot entitled: Focus on Food Services: Is there a correlation between Food Services and Entertainment reveals that even though the findings could not give a definite answer on whether the presence of entertainment in a shopping centre impacts 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 shoppertainment as a full day shopping experience.
The snapshot focuses on shopping centres (with and without entertainment) measuring between 25,000m2 and 65,000m2 across South Africa over a two year period from July 2014 – June 2016.
Download the report on www.broll.com/publications/ on 7 September when it is officially launched at the South African Council of Shopping Centres Congress in Sandton, Johannesburg.