Live Music Exchange Resources

Nightclubs – UK – Mintel (2012)


Author(s): Mintel
Organisation/Affiliation: Mintel
Date: 2012

The UK nightclubs industry has experienced a torrid time during the past five years, having to come to terms with the combined impact of the smoking ban, a recession, high youth unemployment and weak post-recession economic growth, all within a relatively short period of time. In the circumstances, it is no surprise that some operators have struggled to survive, the highest profile of which has been the nation’s largest chain, Luminar, which called in the administrators in late October 2011. However, that is not to say that there are no successful nightclub businesses in the UK – there are several multi-site businesses which have returned impressive growth and profit figures in the past few years, underlining that there is business to be had, providing the offer is right. Luminar has emerged from administration a leaner, fitter business and has shed the burden of its main loss-making sites, so can also be expected to return a stronger performance going forward. Unfortunately, it and other operators are going to face plenty of challenges in the next few years: unemployment among the core clubbing audience of 18-24s is still increasing and the government’s recent Autumn Statement underlined that austerity measures will be in place for at least the length of the current term of Parliament. Added to this, the simmering eurozone crisis has the potential to undermine all European economies including that of the UK, and threatens to send the region into a ‘double-dip’ recession. Mintel last reported on this market in Nightclubs – UK, December 2010. This report aims to assess the impact of the current weak economic recovery as well as impending levies on the industry and how rising overheads are affecting business. It also highlights consumer trends which might enable operators to identify potential opportunities to grow their businesses in the coming years.

Click here to go to the report (walled)

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