Entertainment Social Arena #11 – Retail Embraces Competition – Part 1

AI Constructed Brief

In our first part, this report highlights the rapid growth of retailtainment, with major players like Frasers Group investing in leisure experiences such as VR, social gaming, and active entertainment to revitalize mall spaces and attract Gen Z customers. Abandoned department stores are being repurposed into entertainment hubs like indoor theme parks, arcade centers, and “Mixed Use Leisure Entertainment” (MULE) venues, increasing customer dwell time. International expansions include TimeZone in Australia and India, TOCA Social in Latin America, and Netflix’s flagship experience in the US. The trend underscores a strategic shift for retailers and malls to leverage entertainment for revitalization amid changing consumer behaviors.

Full ESA Report

Retailtainment Growth in Leisure – Part 1

The retail sector looks on leisure entertainment and social experience as the new special addition to profit from the changing customer atmosphere. The industry fixates on Gen Z customers and addresses the needs of a Gamified Retail environment and abandoned department store resource.

Starting our exclusive coverage of the retail entertainment landscape and we look at recent major developments. Frasers Group, retail operator of ‘Sports Direct’, ‘GAME’ and ‘House of Fraser’, acquired an undisclosed minor investment in We Do Play, who operate ‘Flip Out’, ‘Putt Putt Social’, ‘Rumble Rooms’, ‘Laser Quest’, ‘VRXtra’ and ‘Activate’. The investment marks a diversification into the leisure experience sphere for Fraser Group. Supporting plans to open 40 ‘Activate’ centers in the UK in the coming year and marks a period of rapid growth for UK leisure entertainment operations. We will look more into the ‘Activate’ chain incursion into the retail space later.

This news was followed by an announcement from Clearhill, an operator of amusement and leisure products, Master Card backed gift card programs, and massage chairs, in shopping malls and grocery stores, opening their flagship ‘FunHub’ location at the Kingfisher Shopping Centre in Redditch, UK. The fully automated and cashless entertainment zone, comprising over 15 amusement pieces. This is the first in a new concept developed to populate empty retail units in shopping centers with a turnkey entertainment space. Comprising selected amusement, operated via a cashless smartphone app (‘Fun Card’). The space incorporating no staffing, monitored by CCTV. What Clearhill has defined as a “next-generation leisure vending brand”. The Kingfisher shopping center has also seen the recent opening of a Tenpin entertainment center. This new brand is not to be confused with the recently opened ‘Funhub’ in downtown Montreal in Canada – part of an entertainment center chain of two facilities in the region.

This diversity for both Frasers and Clearhill is the latest example of the reaction following the department store sector decimation by the “Retail Apocalypse” of the late 2010’s. For Frasers, they have witnessed the rise of leisure entertainment redefining the mall space, as illustrated with the Debenhams chain, that collapsed in 2021 only to see their abandoned sites utilized for competitive socializing venues. Illustrated by the abandoned Debenhams store at Westfield London mall, recently used to house the Netflix ‘Army of the Dead VR: Viva Las Vengeance’ popup attraction. The corporation would go on to open in Paris and other cities with the popup VR experience. Going on to open as a permanent LBE installation as part of AREA 15 in Las Vegas. All going on to shape Netflix own venue plans, (covered later in the report).

The Westfield mall group looking at leisure entertainment, as seen at the White City mall has been pivotal in establishing social entertainment, the home of the flagship ‘Puttshack’ site (opened in 2012), along with a ‘All Star Lanes’ boutique bowler. A ‘DIVR Lab’ VR entertainment space, as well as the new ‘Moonshot Social’ sportainment venue from Sixes Social. All this and most recently, it was revealed that GENDA Europe chose the site for the opening of their first ‘GiGO’ retailtainment space in Europe and the UK. The mall has proven a hard testing ground, having been the home of the previous ‘Kidzania London’ location that closed (2015-2024).

The Entertainment Social Arena, previously reported on the Westfield mall operation in London, (White City and Stratford), and included mention at the Stratford City site of the Gravity MAX placement. Having gone as far as investing £10m into the venue, in partnership with mall owners Unibail-Rodamco-Westfield. The Gravity Entertainment Group has an affinity with their retail mall locations. As seen with their shopping center placements at the Liverpool One shopping complex, the Southside shopping complex in Wandsworth. And even the opening of their only Gravity Arcade within the Bluewater shopping center location. Shopping malls offering a unique audience catchment to augment the pre-booking clientele – a fact not lost on many developers.

We have reported on numerous department stores in malls and shopping centers being converted into “Retailtainment”. Most recently we saw the announcement of the Malibu Jack’s, indoor entertainment destination, redeveloping a portion of the Towne Square Mall, in Kentucky. Developer TS Entertainment LLC in partnership with the entertainment chain building a 109,000-sq.,ft., site. Which will become one of the largest indoor theme parks in the region. Chain Level99 announced the opening of their third location – with a 40,000-sq.,ft., facility that had previous housed an abandoned Old Navy store in the Tysons Corner Center in Tysons, Virginia. The Active Entertainment chain offering 50 rooms based on interactive mental and physical challenges. Comprising themes such as ‘Axe Run, ‘Ninja Swing’, along with mission rooms, all part of the social gaming playground concept.

Fueling this growth spurt, Level99 revealed that they had secured a $50 million, follow-on growth equity commitment, coming from Act III Holdings. This investment vehicle is led by Panera founder and current CAVA chair, and the sole equity partner in Level99 since its founding.  The investment going towards scaling the business plan – the facility chain expanding into urban and suburban markets with the  30,000-sq.,ft., to 45,000-sq., ft., venues model. Offering a highly visitable active entertainment brand for target 21–39-year-old customers.

The international scene has also been touched by the drive for Retailtainment, with developers such as TimeZone and their vast chain of some 300 Oceanic region entertainment venues. Recently the corporation announced their TimeZone at the Mandurah Mall in Western Australia. The new 1,200-sq.,m., facility comprises four short-bowling lanes, laser tag, interactive floor game and over 70 amusement pieces. This new venue replacing the previous David Jones department store. This is the latest of the TimeZone and Zone Bowling chain operations that have been deployed mainly in mall venues, recently seeing their latest opening in Mumbai, India.

Also, in Mumbai, the Dave & Buster’s international franchise operation has rolled out their latest entrant into the region – developed in partnership with the diverse corporation Malpani Group, with interests in retail and hospitality. Located on the fourth floor of the Infiniti Mall – the 22,000-sq.,ft., “eatertainment” venue comprises high-energy entertainment from their amusement, along with the social bar and food element. Now including competitive socializing features tailored for the local market. Working with Malpani Group the operation has ambitious plans to open several of these entertainment space in mall locations across Australia and Mexico.

Looking at Latin America, and it was announced that TOCA Football, the owners of the TOCA Social “sportainment” chain has signed a partnership agreement with BOCO a diverse corporation based in Guatemala, with interests spanning retail, entertainment and technology. This agreement will see the first Latin American TOCA Social open in 2026 at a Paseo Cayalá shopping mall. BOCO already represents the Sky Zone property in the region and is looking to expand their location-based entertainment presence in the region.

We have already reported on the Netflix investment in the location-based entertainment (“eatertainment”) space, with the launch of their Netflix House concept. It was confirmed that November 2025 would see the opening for their 100,000-sq.,ft., first flagship sight in Philadelphia within a former Lord & Taylor department store at the King of Prussia Mall. Their second venue will be in Texas, opening the following month – situated in a 110,000-sq,.ft., space, previously a Marshall Fields department store in the Galleria Dallas Mall. The corporation has revealed they intend to open a third venue planned for Q3 2026. This will be in Las Vegas – part of a previous retail space that is being redeveloped off the strip. Building on Netflix extensive roll out of popup promotion attractions based on popular series, the concentration of the entertainment into a single facility concept will be closely observed. These movie, television and videogame IP owners looking to leverage their transmedia operation into location-based entertainment has also been seen with the challenging Sony Pictures Entertainment ‘Wonderverse’ concept that opened its single 80,000-sq.,ft., venue in 2023, at the Oak Brook retail center in Illinois – located in a former SEARS department store.

Kicks like a MULE!

It is these new generation “Mixed Use Leisure Entertainment” (MULE) venues that now offer a mall operator a destination entertainment space that can reutilize the abandoned stores littering their portfolio. As well as offering a greater dwell time for customers to hope to revitalize the business in the face of the changing purchasing landscape.

Previously reported on LOL Entertainment, signing a franchise deal to represent Sandbox VR, with four new locations planned for East Coast cities: Baltimore, Boston, Philadelphia, and Washington DC. The first of these saw the Phili sight open its doors in a retail district unit. LOL Entertainment has also signed franchise agreements to their location-based entertainment portfolio to represent Time Mission also opening a Phili based site for later this year.

Likewise, we have also seen Activate Games, and their interactive active gaming experience facility (‘Activate’) sign agreements with operations such as Sounds Fun Entertainment to fast-track some 50 new locations in North America. Regarding the MENA region Activate signed with Majid Al Futtaim Entertainment towards securing new placements. While in 2024 signed an agreement with We Do Play to open some 30 new stores in the UK and Ireland – the first opened in The O2 retail mall in London that year. As we stated previously the company has partnered with the retailer Frasers Group towards growing this roll out.

Speaking of the London retail venue and The O2 site, recent news revealed a record-breaking Easter period, with sales up by 14%. The popularity of competitive socialising experiencing a 27% sales uplift against 2024’s Easter weekend. The O2 entertainment offering, along with the new Activate venue, Hollywood Bowl, Boom Battle Bar and TOCA Social. With other social entertainment chains looking at the space as a possible retail launch pad.