The O2 is celebrating a successful first half of 2024, posting a strong set of sales results and significant levels of leasing activity, as the recently reported concept of ‘social spending’ gathers momentum.
Between January and June 2024, the Entertainment District and Outlet Shopping at The O2, both of which are owned and operated by AEG Europe and Crosstree Real Estate, have enjoyed impressive growth on last year’s record results, reaffirming The O2‘s position as a leading retail and leisure destination.
This includes:
• 10% sales increase and 15.5% uplift in footfall across The O2 as a whole compared to the same period in 2023;
• 15% increase in sales for Outlet Shopping at The O2, bolstered by the recent openings of Castore and All Good Things, both of which made their London outlet debuts at the destination, as well as Soletrader which opened its new store at the destination last week. Café Mint, a new independent coffee and cake operator, has also opened its first site within the upper level of the outlet, delivering a new ‘pause point’ for shoppers and elevating the space with a vibrant offer;
• 8% growth in sales within the Entertainment District, which achieved fully let status earlier this year with the arrival of pan-Asian cuisine operator, Chopstix. Clip ‘n Climb will further add to The O2’s appeal as a destination in which to socialise when it opens its new climbing wall later this year in a previously underutilised area of the Entertainment District;
Standout categories included beauty, which achieved a sales growth of 23%, strengthened by brands such as The Cosmetics Company Store, which has added The Ordinary and an extended product range from Jo Malone to its offering, premium skincare clinic Aatma Aesthetics, and Clarins which offers in-store treatments. Sportswear also exceeded year-to-date growth, welcoming an increase of 33% with the recent arrivals of Castore and Under Armour, and anchor brands Nike and adidas.
The results follow a recent report by The O2, working with CACI, on the emergence of ‘social spending’ at the destination, a trend that is here to stay and will likely be seen in other locations as consumers increasingly focus their time and money on places that facilitate social interaction. The O2 has highlighted the importance of delivering a 360-degree offer for visitors, leading to significant cross-category spending. The O2 has outperformed multiple UK benchmarks with this new socialisation behaviour driving incremental spend.
Janine Constantin-Russell, managing director of the Entertainment District and Outlet Shopping at The O2, commented: “2024 has been a fantastic year so far. The destination is firmly established amongst Londoners and visitors to the capital alike, with the unique totality of our offer having huge appeal. This is not only leading to really strong and sustained performance across a range of key performance metrics, but is driving demand among brands too. They are recognising the importance of ‘social spending’ and that The O2 is the perfect place to facilitate it.
“Looking ahead to the next six months, we will continue to evolve our offer, signing exciting new brands, adding even more engaging experiences, and ensuring The O2remains London’s favourite place to bring people together, with all the positive impact on performance that brings.”
The O2’s strong first half of the year also coincides with a series of show-stopping arena events, including hosting the world’s first ‘carbon-removed’ arena events with four nights of The 1975 in February, and performances from the likes of Olivia Rodrigo, Take That, Nicki Minaj, Liam Gallagher, and Girls Aloud, as well as major sporting events such as WWE Live, the 2024 British Basketball Play-Off Finals, and BetMGM Premier League Darts. Over the next six months, The O2 will see performances by The Killers, Justin Timberlake, Noah Kahan and Charli XCX, as well as the continuation of Peter Kay’s sold-out monthly residency.
