LEADING AMERICAS OPERATORS: STELLAR PARTNERS
“Susan built an excellent team and together they established a strong foundation for the business.”
Padraig Drennan, Stellar Partners
slumps in travel cycles. However, the grounding of Boeing’s 737 Max aircraft significantly affected capacity and had the strongest impact, emphasises Drennan. He continues: “Additionally, sales
any company’s growth strategy, although Drennan says: “I wouldn’t categorise Stellar as being on an acquisition drive. We are in growth mode and parent company Autogrill sees our retail business as being a primary means to that growth.” As street-side retail continues to
Susan Stackhouse, Founder and CEO, Stellar Partners retired last year.
falter, mainly due to e-commerce, the US travel retail industry remains stronger than ever, believes Drennan. “Unless we experience a global
economic downturn, air traffic is only going to continue its current state of rapid growth,” he says. “Travellers are starting to view
airports as more than just an inconvenience in their efforts to get from one place to another. With new and exciting retail offerings coming to airports of all sizes, passengers are beginning to view them as part of the journey and a destination of sorts. “I think we will continue
experiencing strong growth in the travel retail industry, particularly with the current rate of airport expansions and increasing passenger enplanements.” Following a ‘very good’ sales
performance in 2018, revenue remained strong for Stellar last year, despite more challenging trading conditions. One factor was the fluctuations in the stock market, which resulted in unexpected
slumps have resulted from new requirements in certain airports. One example is San Francisco where sales of beverages in plastic bottles were no longer permitted. “This required some adjustment
on our part in what we could or could not offer the customer.” Of all the company’s airport
locations, Stellar is experiencing ‘unprecedented sales’
at
its Phoenix Sky Harbor stores. Drennan says: “We have achieved
the perfect balance of speciality and travel convenience, coupled with an amazing assortment of local products. “In addition, we are very fortunate
to have excellent brand and operating partners and the Phoenix Airport staff are outstanding when it comes to working with us on promotional opportunities.” Stellar and its ACDBE joint venture
partners LAM Holdings LLC. and Casa Unlimited Enterprises Inc. (trading as Stellar Group PHX LLC) won a 10-year contract to introduce retail, F&B and news & convenience concepts in the modernised John S. McCain III Terminal 3 in February 2018. When the terminal re-opened
at the start of last year (8 January) Stellar began operating Sugarfina, Travel Outfitters, L’Occitane/Sol shades, Best of the Valley/Starbucks and Indigenous/Mosaic outlets in the new South Concourse. It is
understood that renovations at the North Concourse are due to conclude in 2020 and a Stellar News & Market/Starbucks outlet was due to open in early February. The renovation of the North Concourse is one of the final phases of the $590 million Phoenix Airport Terminal 3 renovation project. Other Stellar projects in 2019
included mid-term refurbishments at Orlando, Washington and Dulles International Airports.
Exploring all opportunities Having previously operated core category duty free stores at Tampa International Airport and on a seasonal basis at St. Pete-Clearwater International Airport, is Stellar re- establishing its duty free footprint an area of focus in 2020? “Of course, we will look at all
opportunities to provide all types of travel retail to passengers,” comments Drennan. “In general, duty free historically does not fare well in the US market as travellers here have a different mindset. “Also, duty free operations require
a much greater infrastructure which we currently do not have in place. That being said, I reiterate that will we will look closely at any and all travel retail opportunities in the US.” This year, Stellar has already
opened new stores in Philadelphia, Dallas Fort Worth and Newark International Airports. Further openings are expected during the course of 2020 in Nashville, Seattle-Tacoma and San Francisco International Airports. Several work-in-progress RFPs
and commercial opportunities are also on the horizon with two of the largest in LaGuardia and Nashville. Asked what sets Stellar apart from competitors such as Hudson Group, Drennan concludes: “Hudson Group is a great company
with a long legacy of success across multiple venues. Their primary focus has always been news and travel essentials. “Stellar is more driven by retail.
We even refer to our travel essentials business as ‘convenience retail’. “Also, Stellar brings a fresh
Stellar opened the first permanent WIRED store at Newark Liberty International Airport earlier this year. 34 TRBUSINESS
approach that is more in line with contemporary travel retail.” «
MARCH 2020
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