Report: October 2014 Released: November 2014 November 2014 GB LEISURE IN OCTOBER 2014 COMMENT Another tough month for leisure spend, falling 10% year-on- On the face of it, it’s hard to reconcile this month's difficult year and for a second consecutive month. With Christmas results for leisure spending with the rhetoric describing the upon us and consumer confidence still fragile the continued UK as the 'fastest growing economy in the developed world'. prioritisation of Eating Out spend over other leisure is a very But a quick glimpse below the top line GDP figures reveals an interesting dynamic, it is clear that this activity is now firmly economy where wages are still 8% below their pre-recession established as our favourite leisure pursuit. Households in peak, with some forecasters predicting that it will be 2019 London and the South East saw spend fall 16% year-on-year vs before they recover to this level. That would mean a fully 'lost a 7% decline elsewhere in GB continuing a trend of decreasing decade' for wages growth in the UK. In this light, the disparity in spend between the two areas. However, performance of the Eating Out sector looks all the more households in London and the South East remain the biggest remarkable, and the performance of Drinking Out and Other spenders with, on average, £214 spent on total leisure in Leisure all the less surprising October, over 21% more than the average for the rest of GB. Steve Jebson Paul Flatters Commercial Director Chief Executive Greene King Trajectory November 2014 HEADLINES TOTAL LEISURE • In October, the average British household spent £188 on out of home leisure, down £21 (10%) on last year and down £19 (9%) on September. Average Household Spend in October £187.99 Spend fell for the second consecutive month as consumer confidence stagnated and anxiety 10% decrease year-on-year about funding Christmas spending grew. 9% decrease vs. Sept. • Eating Out was the only activity to buck the trend of falling spend year-on-year in October, showing modest growth of £2 (2%). Drinking EATING OUT DRINKING OUT OTHER LEISURE Average Household Spend in October Average Household Spend in October Average Household Spend in October 2% increase year-onyear 8% decrease year-onyear 22% decrease yearon-year 12% decrease vs. Sept. 9% decrease vs. Sept. 7% decrease vs. Sept. Out saw a fall in spend of £4 (8%) and Other Leisure activities saw a substantial fall of £19 (22%) over the same period. • A year-on-year fall in spend on Drinking Out reflects a trend towards households increasingly favouring food centred occasions over drink led ones. Hospitality businesses increasing their reliance on food sales over drink continue to benefit from this dynamic. November 2014 TOTAL LEISURE SPEND GB HOUSEHOLD AVERAGE EATING OUT, DRINKING OUT AND OTHER LEISURE SPEND BY MONTH • Industry metrics pointed toward a slowdown in the housing market in October, providing little to boost confidence, particularly in London and the South East where momentum slowed most markedly. • A continuation of unseasonably warm weather in October meant footfall numbers on Britain’s high-streets continued a trend of long term decline (albeit one that appears to be easing gradually), placing pressure on operators with a high level of exposure to these locations. • A game of chicken between consumers and retailers may force retailers into deep discounting pre-Christmas, which, weather permitting, could help drive high-street traffic in the coming months, providing opportunities for leisure operators in these locations to increase trade. DRINKING OUT DRINKING OUT EATING OUT EATING OUT OTHER LEISURE OTHER LEISURE November 2014 GB HOUSEHOLD AVERAGE TOTAL LEISURE SPEND MIX BY MONTH TOTAL LEISURE SPEND MIX • Despite a 1% month-on-month fall in the amount of total leisure spend allocated to Eating Out, a figure of 41% represents a 5% increase year-on-year. It will be interesting to see how long the ascendancy of Eating Out as a leisure pursuit can continue before plateauing. • A year-on-year fall in spend on Drinking Out, similar to that in total leisure, meant its share of leisure spend remained static at 22% in October, highlighting this activity as a staple British leisure pursuit despite signs of a gradual decline in appeal. • Share of spend allocated to Other Leisure activities fell 6% year-on-year, as households looked to cut back on unnecessary spend ahead of Christmas. However, many ring-fenced spend on Eating Out, suggesting households have clear leisure budgeting priorities. DRINKING DRINKING OUT OUT EATING EATING OUT OUT OTHER LEISURE OTHER LEISURE November 2014 TOTAL LEISURE OVER TIME: OCT 14 vs. OCT 13 & OCT 14 vs. SEP 14 TOTAL LEISURE OVER TIME TOTAL LEISURE SPEND OVER TIME: REGIONAL OVERVIEW • All household types saw a decline in average spend on out of home leisure on a month-onmonth basis in October, as growing anxiety about funding Christmas took hold. • Families saw the largest month-on-month fall in leisure spending of any household type at £30 (13%). Interestingly however, they were the only group to see spend increase against last year, largely driven by greater spend on Eating Out. TOTAL LEISURE SPEND OVER TIME: KIDS / NO KIDS OVERVIEW • Year-on-year, households in London and the South East reduced spend on out of home leisure considerably more than those elsewhere in Britain, spend decreasing £39 (16%) and £14 (7%) respectively. Relatively greater deceleration in momentum of the London housing market in October may have dealt a more severe blow to the confidence of households in the capital than elsewhere. OCT 2013 OCT 2014 SEP 2014 November 2014 EATING OUT SPEND OVER TIME: SEP 13 vs. SEP 14 & AUG 14 vs. SEP 14 EATING OUT OVER TIME EATING OUT SPEND OVER TIME: REGIONAL OVERVIEW • Year-on-year, the average British household increased spend on Eating Out by a modest £2 (2%) in October, however, in the context of declines in spend on Drinking Out and Other Leisure, this represents a continuation of the strong performance of this activity. • Despite seeing the largest month-on-month fall, family households and households outside of London and the South East were the driving EATING OUT SPEND OVER TIME: KIDS / NO KIDS OVERVIEW force behind year-on-year growth in spend on Eating Out in October. Year-on-year, average spend among these households increased £4 (5%) and £15 (25%) respectively in October. • Relative stability in spend on Eating Out yearon-year suggests households are making this activity a clear priority over other types of leisure, cutting back spend elsewhere before sacrificing spend on Eating Out. OCT 2013 OCT 2014 SEP 2014 November 2014 DRINKING OUT OVER TIME: SEP 13 vs. SEP 14 & AUG 14 vs. SEP 14 DRINKING OUT OVER TIME DRINKING OUT SPEND OVER TIME: REGIONAL OVERVIEW • Year-on-year, household spend on Drinking Out fell £4 (8%) in October, similar falls were seen among households in London and the South East as elsewhere in Britain over the same period, spend falling by £4 (7%) and £4 (8%) respectively. • Declines in alcohol consumption, particularly among young people, continue to cause a migration away from drink only occasions. Drink is now increasingly consumed as part of occasions centred round food rather than in isolation, something DRINKING OUT SPEND OVER TIME: KIDS / NO KIDS OVERVIEW reflected in continued rises in spend on Eating Out. • With the festive season fast approaching, we may see a resurgence in spend on this activity over the coming months. However, with many claiming that their intentions are to spend less than last year on out of home food and drink during December, spend will likely remain under pressure on a yearon-year basis. OCT 2013 OCT 2014 SEP 2014 November 2014 OTHER LEISURE OVER TIME: SEP 13 vs. SEP 14 & AUG 14 vs. SEP 14 OTHER LEISURE SPEND OVER TIME OTHER LEISURE SPEND OVER TIME: REGIONAL OVERVIEW • The majority of the £21 fall in average household total leisure spend in October was driven a by a £19 fall in spend on Other Leisure activities. • Although family households were the only group to see spend on Other Leisure increase against September, these households saw spend fall by £13 (12%) year-on-year. A considerably warmer half term this year than last meant a wider range of free outdoor leisure activities were a viable OTHER LEISURE SPEND OVER TIME: KIDS / NO KIDS OVERVIEW option for family households looking to occupy the kids during the break. • Worries around Christmas meant households became increasingly prudent with their leisure spending in October to ensure an ability to cover costs during the festive period; all household types made the greatest sacrifice to Other Leisure spend of all leisure categories in attempts to alleviate pressure on their finances. OCT 2013 OCT 2014 SEP 2014 November 2014 OTHER LEISURE SPEND BREAKDOWN GB HOUSEHOLD AVERAGE MONTHLY OTHER LEISURE SPEND: AUGUST, SEPTEMBER AND OCTOBER • The magnitude of the fall in spend on Other Leisure activities in October meant that average monthly household spend fell across all Other Leisure categories in the three months to October compared to the three months to September. • Unseasonably warm weather in October continued to mean that gym membership and indoor activities had limited appeal. THEATRE / CINEMA MUSEUMS, ART GALLERIES & OTHER ATTRACTIONS BOWLING LIVE SPORTS EVENTS GAMBLING AT A CASINO & OTHER GAMING FOR MONEY GYM MEMBERSHIP OTHER LIVE EVENTS November 2014 ALL LEISURE – MIX OVER TIME BY GROUP • For all household types, the mix of leisure spend in October was largely similar to that in September. The largest shift month-onmonth was seen among family households, for whom share of spend on Other Leisure grew 2% at the expense of Eating Out, driven by a need to occupy the kids at half term. • On a year-year basis, all household types saw the share of total leisure spend allocated to Eating Out grow by at least 5%, at the expense of Other Leisure in all cases. A largely consistent share of spend allocated to Drinking Out among all household types year-onyear highlights the robustness of this activity in the context of changing consumer demands and declining alcohol consumption. DRINKING OUT EATING OUT OTHER LEISURE November 2014 Festive Spending Focus November 2014 CONSUMERS PLAN TO REIGN IN FESTIVE SPENDING IN 2014 DO YOU PERSONALLY EXPECT TO SPEND MORE, LESS OR ABOUT THE SAME AMOUNT IN TOTAL ON EACH OF THE FOLLOWING ACTIVITIES THIS DECEMBER COMPARED TO THE SAME TIME LAST YEAR? • A year of continued pressure on household finances has led to greater numbers looking to sacrifice festive spending rather than increase it. Despite this, the majority of British adults intend to spend a similar amount to last year on Christmas gifts, food and drink in the home and food and drink out of the home over the festive period. • 26% of British adults plan to spend less on Christmas gifts this year, compared to 17% who plan to spend more. Projected spend on food and drink saw a similar disparity with 27% intending to spend less against 15% who claim they intend to spend more. Only spend on food and drink in the home saw greater numbers projecting increased spending against last year. THE SAME MORE LESS November 2014 THE NEXT LEISURE SPEND TRACKER WILL BE RELEASED ON Monday 22nd December 2014 November 2014 METHODOLOGY • The Greene King Leisure Spend Tracker is part of an omnibus questionnaire run on behalf of Greene King by research partner YouGov and analysed in conjunction with Trajectory Partnership. • Respondents report on their household’s leisure behaviour over the previous week (e.g. spend, visit frequency etc.), with respect to the leisure activities set out below: Eating Drinking Out Out Gambling Live Sports Other Live Gym Museums, Art Theatre and Events Events Membership Galleries and Cinema Bowling Other Attractions • The Leisure Spend Tracker is run four times in each calendar month, always going into field on a Monday. This data is then used to generate a picture of household leisure activity in Great Britain over a 28 day period in each calendar month. • Each month’s report is based on an online, nationally representative sample of c. 4,000 individuals (GB, 18+), reflecting the leisure behaviour of c. 4,000 households. Data has been collected every month since August 2013. • A wealth of demographic data is held against each respondent ,which allows for more fine-grained analysis of households with particular characteristics. November 2014 CONTACT For media enquiries please contact: Philip Walters RLMFinsbury Tel: +44 (0) 20 72513801 General enquiries: Email: leisuretracker@greeneking.co.uk Website: www.gkleisuretracker.co.uk DISCLAIMER This report was created by Greene King and Trajectory Partnership. Every effort has been made to ensure the accuracy of the material in this report. The authors will not be held liable for any loss or damages incurred through the use of this report. Bury St. Edmunds, November 2014.