Shopping Trolley | finnCap Consumer quarterly sector note
Experiential leisure is a fast-developing sector, offering the potential for high future growth. Despite significant macro-economic uncertainty and weak consumer confidence over the past two years, numerous data sources (e.g. Visa’s UK Consumer Spending Index and Barclaycard monthly spending data) point to the relative resilience of low-ticket leisure spending, often highlighting it as perhaps the only consistent growth area of Consumer over the past 18-24 months. A number of sentiment surveys also show consumers prioritising ‘going out’ and other ‘experiential’ leisure activities, with consumers searching out experiences – rather than the ownership of goods – with their disposable income. In particular, we have noted a huge increase in activity-based social entertainment experiences. In this Quarterly report, we have assessed the five most promising emerging sub-sectors of experiential leisure (Urban mini-golf, Competitive socialising in bars/clubs, Escape rooms, Outdoor adventure, Virtual reality/Video gaming/eSports), outlined the key dynamics (both the opportunities and challenges) of each, and identified the up-and-coming specialist operators as well as the larger quoted leisure/retail operators making initial moves in these sub-sectors in locations across UK and even internationally.
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