NEWS ROUND-UP T1 luxury precinct aids +12.7% Sydney growth
Sydney International Airport has reported a retail revenue increase of 12.7% to A$331.m ($260m) in its full-year 2017 results. The strong retail performance reflected
the Terminal One International luxury precinct’s (which offers luxury lifestyle speciality retail concepts) first full year of operations and completion of the new Marketplace
Galeries Lafayette wins 11 watch stores in Paris
Groupe Galeries Lafayette has sealed a tender contract to operate 11 luxury watch stores at Group ADP’s Paris Charles de Gaulle and Orly airports. Galeries Lafayette will also launch a
new brand, Galeries Lafayette-Royal Quartz Paris. According to the French department
store chain, the new fascia “combines the reputation and international influence of the Galeries Lafayette brand […] with the historical expertise of Royal Quartz Paris in watchmaking and travel retail industries”. Daphné de Jenlis, Managing Director
of Galeries Lafayette-Royal Quartz Paris expressed her pleasure at the new contract and the opportunity to make Paris and France ‘the top destination for travellers worldwide’. “The pursuit of our collaboration with
Paris Aéroport gives Galeries Lafayette- Royal Quartz Paris a new impetus to reinvent our commercial offer, optimise client services and develop a new exclusive store concept: Window on Paris.”
Heathrow retail up +7.7% to $916m
London Heathrow Airport has grown its retail revenue by 7.7% to £659m ($915m) in the year ended 31 October 2017. Retail
revenue per passenger
grew by 4.5% to £8.45 ($11.6) in 2017 compared to £8.09 ($11.1) in 2016. Total revenue in the period rose by 2.7% to £2.9bn ($3.9bn). Speaking to TRBusiness in October,
Heathrow Airport Retail & Service Proposition Director Chris Annetts correctly indicated the airport was on target to “deliver or exceed” predicted year-on-year retail income growth of 6.7% to £652m ($896m). The target was based on a revised investor forecast last June. According to the airport, growth in retail income primarily reflected increased passenger traffic in the period to a record 78m (+3.1%) combined with greater airside participation (up two percentage points
versus 2016) and increased retail spend per passenger. Retail concessions grew by 10.5%, with
particularly strong performances in duty and tax free and airside speciality shops. The redevelopment of Terminal Four’s luxury retail offer, which completed in late 2016, also contributed to this growth. In addition, the opening of a new Gucci
store marked the completion of the luxury retail development.
area and Domestic food court. The consistent performance of
the airport’s domestic terminals was also a factor. In 2017, the airport handled 43.3m
passengers, up 3.6% from 2016. This is due to the fact it has has “successfully competed internationally to attract airlines and grown inbound tourism”. Overall revenue increased by 8.7% from
2016 to A$1.5bn ($1.2bn). Retail contributed 23% of total group
revenue with strong duty free growth. The standout core category performers were liquor and perfume and cosmetics. In addition, all three terminals were
fully leased with continued strong retailer demand for space. According to the airport, the retail offer is delivering a superior passenger experience with continued focus on value, range and choice. The airport is focusing on providing
high quality retail space in shopping areas and creating an “exciting and vibrant” retail environment. It is also continuing to develop a product and merchandise mix to meet the retail experiences of passengers and to identify appropriate retailers who can meet the airport’s service, operational and financial objectives. Enhancing its understanding of customer trends and behaviour is also a priority.
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