Retailtainment trend continues
/"Retailtainment" is not new with more and more malls adding entertainment venues to their retail and dining offerings. Likewise, some retailers are launching new flagships to expand their retailtainment offerings, Ulta Beauty's new Times Square flagship under development comes to mind.
But are we likely to see more examples of retail and entertainment combined in the store experience?
Netflix House is one of the clearest recent examples of “retailtainment” within the store, which means a blending of retail, entertainment, dining and immersive experiences to drive foot traffic and customer engagement.
Netflix House sells merchandise that is tied to Netflix's intellectual property. It also offers themed restaurants, bars and specialty food offerings that extend the storytelling experience and rotating exhibits, seasonal attractions, live entertainment and special events to encourage repeat visits and patronizing its streaming channel. Just as notable is that the venue features highly photogenic environments designed to generate Instagram, TikTok and other social media sharing.
Retailtainment can occur within regular retail environments, not just the flashy TV and movie industry enhancing its merchandise displays. (RH) Restoration Hardware has quietly become one of the more interesting retailtainment case studies by combining furniture shopping and hospitality. The RH store in New York’s Meatpacking District spans 90,000 square feet across six levels and pairs the store with a rooftop restaurant, wine terrace and art installations.
Mars's M&Ms' Times Square flagship in Midtown Manhattan is one of the pioneering examples of retailtainment. In fact, it helped establish the model that many experiential retailers have followed over the past two decades.
There are many other tenant examples like Meow Wolf, Topgolf, Dave & Buster's Inc., CAMP and IT'SUGAR. Malls are equally bringing entertainment uses to enhance the retail experience. In the New York are alone, there is American Dream, Westfield World Trade Center, Palisades Center and Westfield Garden State Plaza, all with strong entertainment uses.
Retail property owners link the time customers spend at the property to an increase in sales per square foot, almost always resulting in higher market rents. Entertainment venues coupled with food can extend a visit from about an hour to several hours, which tends to increase spending across restaurants, apparel and specialty retail.
Do you think this trend is leveling off or about to increase in the next five years?