Property managers and retailers in the U.K. are mixing shopping and the outdoors.  In the next year, IntoOutdoors will open on 125 acres of English countryside.  This project will combine traditional stores with outdoor attractions like cycle tracks, skateboard parks and two fishing lakes.  The hope is that IntoOutdoors will lure customers to its destination with entertainment and then keep them there all day.  The project will also include multiscreen cinemas, Michelin-starred restaurants, hotels, and a network of country walks.

The premise of IntoOutdoors is modeled after shopping experiences in the United States, where property managers hope to create an all-day experience.  The U.K. lags behind the U.S. in mixing entertainment and retail.  In addition, the U.K. economy remains stagnate and consumer confidence is markedly low.  20 percent of new shopping center space is being used for leisure activities; this is up from just 5 percent 20 years ago.   Leisure venues may pay up to 20 percent less in rent than traditional retailers.  However, landlords are willing to accept that as it is better than empty space and the leisure activity might keep customers on site longer.

Discussion Question

Why do property management firms want to include leisure and outdoor attractions in new mall development?

 

SOURCE: Peter Evans, Wall Street Journal, February 21, 2012