It sounds a bit like Beauty and the Beast, however, there’s no happy ending where you make out with a prince. Talking candlesticks and sourdough starters, for sure. A recent report from Mintel explored the impact that COVID-19 is likely to have on the out-of-home leisure industry, which includes restaurants, casinos, gyms, cinemas, and my employer’s unique position in music entertainment.
“COVID-19 will inflict severe damage to the out-of-home leisure industry over the next few years, whilst sectors that were already struggling, such as nightclubs, may never fully recover. However, the crisis will also prove to be the catalyst for the launch and development of more digital services that allow consumers to replicate out-of-home experiences in the comfort and safety of their own homes.
Crucially, the underlying consumer trend towards valuing experiences over possessions means that the sector will eventually regain lost ground, even if the brands and the formats are very different to the pre-COVID world.”– Paul Davies, Category Director – Leisure, Foodservice, Travel and B2B Research – 24 June 2020
Having read the report, here’s a TLDR;
- Estimated severe impact on the sector in the medium term (6 to 24 months), with a medium impact in the next 2 to 5 years
- Consumer anxiety levels align with case curve (so currently diminishing in the UK, rising in the US)
- Gyms may not recover as alternate fitness routines continue
- Consumer confidence in their financial situation over the next year? 50% within the UK are concerned but think it’ll be ok, and 30% confident it will remain stable
- Boutique is best, and differentiation is better than discounting
As with everything right now, let’s wait and see how this pans out.
Bonus reading: on losing the American desire to shop — I Don’t Feel Like Buying Stuff Anymore, via BuzzFeed.