Luminar aims for 16 Oceanas

By The PMA Team , 18-Oct-2007
Last updated on 13-Jun-2013 at 12:59 GMT

Related topics: General News, Company & City News

Nightclub company Luminar is looking to increase the number of Oceanas from 10 to 16 by early 2009

Luminar aims for 16 Oceanas

Nightclub company Luminar is looking to increase the number of Oceana mega-clubs it runs from 10 to 16 by early 2009, according to KBC Peel Hunt analyst Paul Hickman.


Luminar has just opened its latest Oceana in Brighton at a cost of £5.1m. It has a capacity of 2,600 and seven differently themed rooms.


Hickman said: "It is opening directly opposite an existing, unbranded, Luminar outlet, but last night there appeared to be substantial demand for both."


The target ebitda for the Brighton Oceana is £2.3m per annum.


The ban has not resulted in a major decrease in tradePaul HickmanKBC Peel Hunt


Hickman also noted that Luminar is adopting different strategies for managing smokers at its clubs.


At Redhill, a Liquid & Envy site, there is a smoking area which is basically a back yard without any furniture and with limited capacity.


In contrast, at Crawley, also a Liquid & Envy site, there are two separate smoking areas that are purpose-built covered balconies with tables and chairs, encouraging longer dwell times.


Hickman added: "Use of scent passed through the air-conditioning - topical in the press - is being universally adopted. The ban has not resulted in a major decrease in trade."


The analyst also noted that Luminar had rationalised its product range, reducing lines stocked from 400 to 200 at Oceana, and from 200 to 150 at Liquid.


"These reductions achieved the three-year product cost-saving target in the first year, and made a big contribution to gross margin improvement of 70 basis points announced at interim.


"Rationalisation is being taken further with the definition of 65 core brands and 38 others which may be stocked with permission.


"Further margin benefits should therefore flow."

Find us on Facebook

Spotlight

Legal Q&A: Opening a cinema club and assault charges

Legal Q&A: Opening a cinema club and assault charges

This week's legal Q&A asks what you should do regarding personal licences and being charged with assault,...

Five minute guide to Champagne, Prosecco and Cava

Five minute guide to Champagne, Prosecco and Cava

It may, in the past, have been associated with indulgence and special occasions, but all that is...

Legal Q&A: Nudity, noise and measuring down

Legal Q&A: Nudity, noise and measuring down

This week's legal Q&A features issues to do with 'regulated entertainment' and nudity, noise abatement notices and...

Drinks promotions: top legal tips

Drinks promotions: top legal tips

In this top tips series we continue our analysis of the practical implications of the changes to...

Follow us on