MARKET
TECHNOLOGY
CONSUMER
PROPERTY
Evolution of the leisure experience
Themes

20 consultations
8,000 consumers
4,800 locations / 80,000 occupiers
8 sub-markets
Evolution of the leisure experience
Methodology

• Leisure spend growth
consistently outpaces retail
• Household restaurant spend
has levelled but due to
increase
• Cinema admissions have
flat lined, but revenue (GBO)
has increased
0.0%
2.0%
4.0%
6.0%
Spend yoy growth
Retail Goods Leisure services Restaurant
800
1,000
1,200
1,400
1,600
155
160
165
170
175
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
GBO£m
AdmissionsMillions
Cinema market admissions and GBO
Admissions m Gross box office £m
Market dynamics & change
Industry growth
£2,400
£2,600
£2,800
£3,000
£3,200
£0
£50,000,000,000
£100,000,000,000
Restaurant Spend
Restaurant Spend (£) Restaurant Spend (£) Per Household
Source: Oxford Economics / Dodona

• 72% of leisure units are on high streets…
• But density higher in schemes
• 75% of leisure/F&B growth in last 5 years has been
from change of use - not new development
• Growth in F&B has been well ahead of other sub-
sectors
• London high street units still ahead of the UK for
leisure provision – but the gap is narrowing (36%
compared to 22%)
• Independent sector covering new ground
Market dynamics & change
Size & usage
72%
1%
13%
1%
2%
4%
7%
Leisure units by location type 2018
High Street
In Town Leisure
Town Centre
Shopping Centres
Other Shopping
Centres
Regional Mall
Out Of Town
Leisure Schemes
Retail & Shopping
Parks
Source: Savills
-
2,000
4,000
6,000
8,000
10,000
Growth in ‘branded’ leisure units
2010 2012 2014 2016 2018

Market dynamics & change
Challenges & prospects
79% 78%
73% 72% 70%
62%
50%
37%
19% 14% 17% 15% 23%
27%
9%
19%
An
increase in
the cost of
raw
materials
Business
Rates
Increased
staff costs
Fall of
pound
Increased
costs of
imported
goods
Decreased
staff
availability
The
impact of
terrorism
Rising
rental
values
Challenges envisaged by business leader
Anticipate having an effect in the next six months Already had an effect on business
• Headwinds, saturation & CVAs
• Has Casual Dining had its day?
• F&B growth anticipated to grow at
subdued level outside of key markets
• Other markets will grow cautiously
where there are good opportunities
Source: CGA Business Leaders Survey 2018

Consumer Context
Understanding different leisure journeys
• Polarisation of leisure experiences… but
consumers constantly switch between them
• Blending of day parts
• Relationship with retail and other uses
• Importance of a mixed use offer
“After a cinema visit, 22% of
audiences go for a meal and/or
drink, 14% visit a fast food
restaurant of café and 9% go
shopping.”
UK Cinema Association

• Convenience, Experience, Service
• Streamlining and simplifying booking &
payment
• Social media
• Smart phones have been the key enabler
• Entertainment experiences & VR
Role of technology
Consumer experience

• Enhanced asset utilisation
• Improved customer satisfaction and
experience
• Loyalty & promotions
Role of technology
Operational benefits
18%
23%
27%
35%
40%
48%
90%
23%
28%
33%
22%
21%
21%
6%
59%
49%
41%
42%
39%
32%
4%
Order via app
Pay via app
More ways to pay
Technology to
place orders
Pay via phone
Ability for
consumers to split
bills
Contactless
payments
What advancements in technology have you
already implemented or are you planning on
implementing in 2018?
Already implemented
Planning on implementing in 2018
Not implemented/not planning on implementing in 2018
Source: CGA Business Leaders Survey 2018

• A controversial but significant disruptor
• UK delivery market worth £1.6bn
• 54% of UK pop have used an app when ordering a takeaway (83% London)
• There are operational benefits for many…
• …But challenges persist too with some operators having reluctant but necessary
involvement
Role of technology
F&B & delivery
pre 199
ad-hoc delivery from local
takeaway
1999
Domino’s
launches online
ordering
2001
JustEat launches
as ‘menu
aggregator’
2011
Domino’s
launches
delivery app
2013
Deliveroo
launches in UK
2016
Uber Eats
launches in UK
2018
Deliveroo YOY
revenue growth
of 600%

• Relationship between retail & leisure increasingly symbiotic
• Greater synergies between retail & leisure should create more engaging and
memorable consumer experiences that will be even more effective at driving
footfall and repeat visitation
• Mixed uses
• Some occupiers seeking less prime space
Property considerations
Space & location

• Leisure industry is so diverse that there is not one simple solution that fits all
• Right operator, right location, right adjacencies and right lease structure
• Tapping into footfall – wherever it comes from
• Importance of independent operators
• Less homogeneous schemes may require landlords to take bigger risk on tenants…
But this is what consumers want…
Property considerations
Flexibility of approach