NEWS/INSIGHT: SYDNEY AIRPORT
Speciality stores drive Sydney Airport retail growth in 2017 as terminal developments continue
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After another year of strong retail performance at Sydney Airport, redevelopment has started in Terminal 2 Pier B, where 14 retail outlets will be added. Sydney Airport General Manager Retail Glyn Williams talks to Andrew Pentol about his reflections of last year and plans for 2018.
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ast year, Sydney Airport reported a +12.7% retail revenue increase to A$331m
($247.5m) in its full 2017 results, but it was not all driven by duty free. Growth came from all elements
of the retail business at the airport, with key drivers being speciality stores and passenger growth linked to certain leases. Speciality stores at the airport,
which handled a record 43.3 million passengers in 2017 clearly had a positive impact on total retail revenue last year, but there was a time when attracting brands was far from easy. Sydney Airport General Manager
Retail Glyn Williams tells TRBusiness: “Initially, we struggled to reset
where we were and in the early stages couldn’t convince the key brands we were going to move from where we were to where we are today. “We talked and talked with
Hermès and Tiffany and they eventually understood. Firstly, we had to show them what they were coming into and why they should be here. Then, we had to deliver on it. “Once they were locked in the
The Heinemann Main Street in Sydney Airport International Terminal 1.
among the 13 global designer brands represented in the area. Williams comments: “We had
13 stores there before and have 13 stores now. Turnover in that area is up +171% from where it was three years ago. “This is the consequence of
rest followed. Now, of course, so many significant brands want to be with us.” Ensuring they remain is the
next important step, emphasises Williams. “We can’t just rest on our laurels now we have convinced them to come in. “We must embrace them and
ensure they are thinking about wanting to be with us again in three or four years’ time.” Overall retail performance in 2017
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creating a product that resonates with passengers.” Despite such a significant turnover
increase, Sydney Airport is refusing to rest on its laurels as far as the luxury precinct is concerned. “We must consistently refresh and will do that by swapping a few brands around in the next couple of months.”
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The year ahead Looking ahead to 2018 Williams comments: “I can’t talk revenue as we are a public listed company, but what I can say is that this year we are tracking very nicely. “We are 100% leased and if you
was also boosted by the International Terminal 1 luxury precinct’s first full year of operations. Tiffany, Burberry, Gucci, Rolex and Hermès are
JUNE 2018
look at the health of the business we have no rent outstanding with tenants.” Currently working on a
‘whole series of opportunities’, redevelopment work recently
Glyn Williams, General Manager Retail, Sydney Airport
TRBUSINESS 21
also being considered elsewhere in the airport. “We are looking at what we can do in terms of redeveloping Terminal 2 Pier A which is Virgin and at opportunities moving forward
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“Rather than hearing ongoing debate and criticisms by some operators which state airports must change concession models, maybe retailers need to be more creative in terms of coming up with opportunities to secure additional revenue.”
commenced on Terminal 2 Pier B where the airport is allocating another 14 retail outlets. Williams remarks: “Terminal 2
Pier B is more about low-cost. It is Jetstar and Tiger Airways along with a regional low-cost carrier called Regional Express Airlines which also departs from that area.” Redevelopment opportunities are
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