Vol. XXIV, No. 5, September 2024

  1. Editor's corner
  2. Premiumization, the next phase in leisure spending
  3. Attendance patterns for location-based entertainment venues
  4. How the immutable laws of marketing are changing the location-based entertainment industry
  5. Is a backlash against digital culture underway?
  6. Flavor-forward foods
  7. Topgolf's sales decline
  8. Important factors for deciding what experiences to spend money on
  9. Homebound: The long-term rise in Americans' time at home
  10. Sports activities now exceed pre-pandemic levels

[ Index of Previous eNewsletters ]

Topgolf's sales decline

Topgolf has reported that in the 2nd quarter of 2024, same-venue sales fell 8% from a year ago, dropping 7% in the first quarter and declining 3% in the fourth quarter of 2023.

There appears to be a "normalization" occurring after the post-COVID surge in business. When sales started to slow last year, the company tried many things to boost traffic, including more promotions, new games, a loyalty program, club fitting rooms, increased advertising, and new reservation and online booking systems. Unfortunately, none of them seems to have worked.

Customer spending wasn't the problem, as average spending per visit increased. During its latest earnings report, the company said, "It really is mostly a traffic issue" at Topgolf. Price concerns have probably become an issue for Topgolf customers, reflecting broader economic pressures.

Part of the problem is that when a venue opens in a new market, people will visit a few times, but repeat visits become a challenge once the novelty begins to wear off.

Corporate belt-tightening has affected Topgolf's events business, which caters to large corporate clients. The slowing economic conditions have reduced corporate spending on entertainment and events. Topgolf's events business, which involves bookings of three or more bays at a time, has seen a particular decline, down 9% last quarter and 27% on a two-year stack.

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Vol. XXIV, No. 5, September 2024

  1. Editor's corner
  2. Premiumization, the next phase in leisure spending
  3. Attendance patterns for location-based entertainment venues
  4. How the immutable laws of marketing are changing the location-based entertainment industry
  5. Is a backlash against digital culture underway?
  6. Flavor-forward foods
  7. Topgolf's sales decline
  8. Important factors for deciding what experiences to spend money on
  9. Homebound: The long-term rise in Americans' time at home
  10. Sports activities now exceed pre-pandemic levels

[ Index of Previous eNewsletters ]