Experience franchises take retail space as landlords shift strategy

By Tam Goldsmith

Immersive Gamebox’s UK expansion shows how landlords are replacing retail tenants with operators that can drive consistent footfall.

Immersive Gamebox’s 30-site UK deal shows landlords are no longer waiting for retail to recover. They are replacing it with operators that can deliver footfall on demand

A leasing director at a major UK shopping centre said recently that the problem is no longer vacancy. The problem is what actually brings people through the doors. For years, empty units were treated as a temporary gap. The assumption was that retail would return, that the right tenant would come along, that demand would stabilise. That assumption is now being removed from leasing strategy.

Immersive Gamebox’s agreement to open 30 locations across UK shopping centres and high traffic retail zones reflects a different approach. Space is no longer being held for retail recovery. It is being reassigned to operators that can prove they generate visits. This is not a trend in entertainment. It is a correction in how physical space is valued.

The previous model depended on large retail brands to anchor footfall. Smaller tenants relied on that traffic to sustain their own sales. That model has weakened. Mid market retail has been hit by declining in store conversion, rising operating costs, and sustained pressure from online channels. Store closures have followed, leaving gaps that are difficult to fill with similar tenants. Landlords are responding by changing the mix rather than replacing like for like.

Immersive Gamebox is being placed into that gap because it does not depend on browsing behaviour. It operates on booked sessions. Customers arrive with intent, stay for a fixed period, and often return. That produces a different type of traffic. It is scheduled, measurable, and repeatable.

Retail tenants depend on passing trade. Performance varies with footfall patterns that they do not control. Experience operators are structured differently. Bookings create forward visibility on revenue. Capacity can be managed throughout the day. Utilisation becomes a controllable variable rather than a risk. For landlords, that changes how a unit is assessed. A tenant that can deliver a steady flow of visitors at predictable intervals supports the wider centre more effectively than one relying on walk in trade.

Prime retail locations still carry high rents, service charges, and significant fit out costs. Those economics have not softened to match retail performance. What has changed is what landlords expect in return. A 30 site rollout in these locations requires consistent throughput. Empty sessions translate directly into lost revenue. There is no inventory to discount or carry forward. Each unused time slot is gone. That places pressure on execution. Pricing has to hold. Booking systems have to convert. Local marketing has to drive repeat visits.

The shift is not being announced as a policy change, but it is visible in deal flow. More space is being allocated to operators that can demonstrate their impact on footfall. Lease terms are adjusting to reflect the role these tenants play in supporting the wider scheme. This alters the position of traditional franchise models. If a unit does not bring people into the centre, its value is limited to the rent it pays. That makes it easier to replace when performance drops.

If these sites perform, similar deals will follow. More retail space will be converted to experience led formats. The available footprint for traditional retail will reduce. At the same time, not every concept can operate at this level. High occupancy costs and operational complexity will filter out weaker operators. This will concentrate opportunity among brands that can manage throughput, pricing, and repeat usage at scale.

If your model does not bring people in on purpose, someone else will take your space.

What We Can Learn From This:
Physical retail space is being allocated based on a tenant’s ability to generate footfall, not just pay rent. Franchise operators should evaluate whether their model creates planned visits or depends on passing trade. Investors should prioritise concepts that can operate on booked demand, sustain high utilisation, and perform consistently in prime locations. The shift is already underway, and it is reducing the margin for underperforming formats.