Euro Attractions ShowBerlin – October 2012

Chris Sharman - iKidz

FEC’s in the UK

Chris SharmanCo-Owner of iKidz Activity Clubs and iKidz Training & Consultancy

• Operating since 2010• 2 sites in Oxfordshire

• Oxford – 16,000 sq ft on a Leisure Park• Banbury – 5,000 sq ft in a Town Centre location

• 2 new sites opening this month• circa 120,000 visitors a year

FEC’s in the UK - The Past

• Industry grew from multi-sensory soft play equipment for children’s hospitals and special schools

• Commercial opportunities seen by Pub Chains ie Wacky Warehouse; then early soft play centres opened in the mid eighties

• Offering predominantly “soft play” and centres are known as “indoor play centres” to most

• Geographical exclusivity meant early sites were popular and profitable sites but always subject to the British Weather ie- hot summers

FEC’s in the UK - The Growth Phase

• Steady Market growth in the early nineties• Sites located in Industrial Units due to cheaper rents• “Explosion” and start of the “New Breed” of

operator around 7 years ago • Highly Fragmented Supply Structure• New locations sought e.g. - Leisure, Retail, Town

Centre• 800+ locations• 175 members of PPA

• Sites vary in size from 1,000 sq ft to 30,000 sq ft• Revenue primarily driven from Admissions, Food and

Beverage and Parties• Market now much more saturated due to the

“Mushroom Effect” … sites having to diversify to stay competitive / profitable e.g. - childcare, classes, outside space, larger child age range, and being the community hub.

• “Different is Good”

FEC’s in the UK - Current Market Dynamics

22% - up to 7,500 sq ft31% - 7,500 – 10,000 sq ft22% - 10,000 – 12,000 sq ft14% - 12,500 – 15,000 sq ft8% - 15,000 – 20,000 sq ft

FEC’s in the UK - Current Market Dynamics

Headline Figures 2012Average size of siteAvg total number of children (exc parties)Avg total number of children (inc parties)Avg total number of adultsAverage TOTAL ANNUAL VISITORS% children to adult admissions (avg)% child admissions vs child parties (avg)Average admissions incomeAverage parties incomeAverage catering incomeAverage TOTAL ANNUAL TURNOVER

9,936 sq ft40,28051,41633,14785,984

61/39% - child/adult77/23% - admission/party

£193,446£100,806£147,781£432,929

FEC’s in the UK - A Typical Site

Source…

Type of Buildings

50% - Industrial Premises20% - Retail / Leisure Premises18% - Town Centre / Residential Premises

40% pay £3-£5 per sq ft (industrial)40% pay £5-£10 per sq ft (industrial)5% pay £15-£20+ per sq ft (retail / leisure)

FEC’s in the UK - PPA Market Data

Average Leisure Park Footfall

130,227 (average 15,000 sq ft)

Average Town / Residential Footfall

63,951 (average 8,000 sq ft)

FEC’s in the UK - PPA Market Data

• Entry prices ranges from £2.50 to £10.00• Adult Admissions being charged by increasing

numbers of operators• PPA represents nearly 15 million visits per year

across our 175 member sites so there are 69 million total visits and £346 million total industry revenue.

• Average PPA Member site is just under 10,000 sq ft

There are an estimated 800+ stand alone commercial play centres as well as leisure centres, farm and theme parks, pubs all offering indoor play.

FEC’s in the UK - PPA Market Data

Total Visitor Numbers by Region

Source…

Total Visitor Numbers by Unit

Source…

• Tough economic trading conditions • Increased competition and new sites still opening• Many casualties with sites closing / changing hands• Greater focus on retaining and rewarding existing

customers• Social Media opportunities• Reduction in public funding to local public and third

sector (voluntary) providers is both an opportunity and threat to operators.

FEC’s in the UK - Current Climate

FEC’s in the UK - Average Costs

Source…

• More development in numbers from multi site operators but still a high number of quality local operators filling the void

• Other leisure /retail businesses introducing soft play equipment - Health club sector, restaurants, councils, airports and shops

• Survival of the fittest• Product development and

site diversification – not just an indoor play centre

FEC’s in the UK - The Future

• Lack of accurate market data and information• Lack of innovation• Threat from Public Sector / other leisure or childcare

providers / Health and Fitness Sector• The on-going recession / lack of disposable income• Lack of banks and lease finance companies prepared

to loan to FEC’s • Lack of research to take advantage of opportunities

with the Public Health obesity agenda

FEC’s in the UK - Challenges

The Play Providers Associationwww.playproviders.org.ukwww.twitter.com/theppa

kate@sportsandplay.com 02476 414999

Chris Sharmanwww.iKidzClub.comwww.iKidzBlog.comchris@iKidzClub.com

07734317117

Contact Details