Going out! Entertainment – no longer just an anchor tenant…

The idea of positioning a shopping centre as a place to spend leisure time is gradually becoming popular in Russia. Shopping centres are no longer just places to make purchases, they are destinations. Developers have been looking for ways to make shopping centres an important aspect of social life, where people come for family fun and entertainment; where shopping is part of that experience and not just the reason for it. Of the shopping centres in Moscow and St. Petersburg, 70% and 78% respectively have introduced entertainment programmes. The share of entertainment in shopping centres in terms of leased space is 10% and 15% in Moscow and St. Petersburg respectively.

Multiplex cinemas occupy more than half of the entertainment areas in SCs in Moscow and Russia. Half of the quality SCs both in Moscow and St. Petersburg have cinemas, but we are still far beyond European market with its 80% of cinema penetration.

Other forms of entertainment include bowling and billiard centres, shooting galleries, recreation areas and demonstration halls, playgrounds for children and entertainment parks. Bowling and billiard operators are desired tenants in St. Petersburg market where they are present in 40% of retail schemes, whereas in Moscow and Europe their presence is much lower, at 10% and 13% respectively. Children’s entertainment operators are more developed in the capital of Russia, whereas St. Petersburg suffers from the lack of professional players.

The entertainment part in a SC tenant mix is now a necessity for any successful shopping centre in Russia. But the attractions are becoming more alike, and so the need for something new and unique is more apparent. Because of technical characteristics and the threat of lower attractiveness with time, the unique attractions have not been popular until recently. The situation is changing though – SCs in Moscow and in regional cities will be more interested to attract unique and individual entertainment operators in the near future and help drive footfall.

Read more about retail entertainment in Russia in our latest report: http://www.joneslanglasalle.ru/ResearchLevel1/JLL_Russia_Going-out-EN_March_2011.pdf)