Table of Contents
Overview
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- What you need to know
- Key issues covered in this Report
- Markets covered in this Report
Executive Summary
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- Short, medium and long-term impact on the industry
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- Figure 1: Expected impact of COVID-19 on out-of-home leisure and gambling, short, medium and long-term, 24 June 2020
- Opportunities and threats
- Leisure takes a backseat
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- Figure 2: Anticipated expenditure on leisure/entertainment over the next month compared to usual spending habits, 16 April – 3 June 2020
- Recovery may be too slow for many venues
- Underlying demand for experiences will remain strong
- Impact on the out-of-home leisure market
- Out-of-home leisure to bear the brunt in 2020
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- Figure 3: Forecasted value of the UK out-of-home leisure market, excluding foodservice and gambling, (adjusted for COVID-19 on 24 June 2020), 2014-24
- Impact on the gambling market
- Remote resilience limits overall losses within the gambling sector
- Overall gambling expenditure
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- Figure 4: Forecasted value of consumer expenditure on gambling, online and offline, (adjusted for COVID-19 on 24 June 2020), 2014/15-2024/25*
- Retail gambling expenditure
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- Figure 5: Forecast of consumer expenditure on retail gambling (adjusted for COVID-19), 2014/15-2024/25*
- Online gambling expenditure
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- Figure 6: Forecast of consumer expenditure on gambling online (adjusted for COVID-19), 2014/15-2024/25*
- Youth unemployment presents a major threat to both leisure and gambling operators
- How a COVID-19 recession will reshape out-of-home leisure and gambling
- Leisure spending can be sustained by escapism
- Differentiation beats discounting
- COVID-19: UK context
The Impact of COVID-19 on Consumers
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- Anxiety levels align with case curve...
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- Figure 7: Mintel COVID-19 exposure anxiety index, 28 February – 3 June 2020
- … but consumers remain anxious about their health
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- Figure 8: People’s level of concerns about the risk of being exposed to the coronavirus, 28 February – 3 June 2020
- COVID-19 concerns by demographics
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- Figure 9: Proportion of consumers showing the highest degree of concern (4 or 5 out of 5) regarding the risk of being exposed to the coronavirus, by age, 28 February – 3 June 2020
- UK begins to soften lockdown measures
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- Figure 10: Government COVID-19 lockdown exit strategy, published 11 May 2020
- Lockdown fears moderate
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- Figure 11: People’s level of concerns about how the outbreak might affect their lifestyle, 28 February - 3 June
- A bleak outlook for the economy
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- Figure 12: Consumer views on the impact of the COVID-19 outbreak on the UK economy and their own finances, 28 May – 3 June 2020
- Consumers cut back outgoings, and add to savings
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- Figure 13: How consumers have been affected or changed their behaviour as a result of the outbreak, 21-28 May 2020
- Household finances hold steady for most
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- Figure 14: changes in financial situation since the start of the COVID-19 outbreak, 21-28 May 2020
- COVID-19 is yet to meaningfully affect most households’ well-being…
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- Figure 15: The financial well-being index, January 2015-May 2020
- …but confidence for the year ahead plummets
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- Figure 16: Consumers’ financial confidence for the coming year, May 2020
- Middle age groups feel particularly vulnerable…
- …and self-employed respondents show the importance of the COVID-19 support package
How COVID-19 Has Already Affected Out-of-Home Leisure
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- Closures and cancellations
- Leisure takes a backseat
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- Figure 17: Anticipated expenditure on leisure/entertainment over the next month compared to usual spending habits, 16 April – 3 June 2020
What Behaviours Will Change in the Short-term
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- Bringing the gym home
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- Figure 18: Exercise locations, research conducted 2-13 March 2020
- Armchair attractions
- Betting on esports comes to the fore
What Behaviours Will Change in the Medium-term
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- Private and exclusive experiences will be high in demand
- The rise of the mainstream boutique
What Behaviours Will Change in the Long-term
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- Tiered gym subscriptions
- Superfans present a lucrative opportunity for live entertainment sector
What We Can Learn from Previous Slowdowns
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- Experience-led sectors often remain resilient
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- Figure 25: UK leisure and entertainment market value, 2007-12
- Differentiation beats discounting
Lessons from Other Regions
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- Crowds won’t flock back straight away
- Allocated time slots will come into play
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