TOP 10 OPERATORS 10: ARI


“We’re experiencing higher conversion rates and that reflects the range of confidence- building measures in place in our stores – a safe shopping environment, clear signage and the delivery of strong commercial offers and high impact marketing campaigns.”


Anthony Kenny, ARI


virus continue to pose challenges for international economies. Asked for his thoughts on the


revival of international travel, Kenny says: “It is very difficult to predict when traffic will return. We’ve never been through a pandemic like this; how that recovery pans out is really guesswork. “It is catered on effective vaccines


store in 2018. Meanwhile, retail operations in


Canada and Auckland experienced turnover growth of +10% and +7%, respectively, fuelled by increased passenger volumes and improved average spending. Over in Europe, sales at Larnaca


and Paphos Airports were slightly down due to a sizeable refurbishment of the retail area at Larnaca, resulting in a 30% reduction in retail space for a large chunk of the year. Despite this, revenue was down a mere -3%. As reported, ARI opened an


enlarged P&C space in 2019, with a fresh liquor store beginning trading in January 2020. At ARI’s home bases of Dublin


and Cork Airports, total revenue including retail and F&B sales by concessionaires rose by 5% to €348 million in 2019. The Loop Duty Free unveiled a


new 944sq m beauty hall at Dublin Airport following a significant refurbishment of more than 2,000sq m airside retail space. Discussion then shifted to 2020


and the grave state of the travel and tourism sector, as outbreaks of the


and therapies. Without these we need government measures that balance the health risks with the commercial necessities of airlines and airports to continue to operate.”


Product assortment Should efficacious vaccines and therapies emerge, Kenny suggests this could have a sizeable impact on people’s inclinations to make trips. “There is no doubt there will be


a big pent-up demand to travel. If vaccination phase three trials come out positively, I think there will be a big swing in sentiment.” In turn, suppliers are clinging on to


the hope that sales will, in time, fully restore and retail partners restart listings and honour contracts. Kenny confirms that ARI has


not for the moment had to take decisions on discontinuing certain products or categories. “We’ve pulled together a global


cross-functional working team that is assessing our offering in line with customer research and defining what we see as the future of travel retail, assessing customer behaviours, attitudes and needs, how that may change, and providing an unrestricted view of


retail post-Covid-19. “From that will stem decisions on


category and product assortment. We’ve been working hard with brand partners on the comeback campaign and promotional offers and we have been honouring commitments. We have a strong balance sheet with minimal debt and that has helped us.” On the face of it, that appears to be


paying dividends as Kenny confirms recent industry suggestions that higher average spend per passenger is being witnessed despite lower penetration levels. “Across all our stores, we’re seeing


sales recover at a faster rate than passenger levels,” he says. “We’re experiencing higher conversion rates and that reflects the range of confidence-building measures in place in our stores – a safe shopping environment, clear


signage


and the delivery of strong commercial offers and high impact marketing campaigns.” Driving this is providing a secure


environment that fosters confidence in travellers to browse and spend. “That has to be paramount,”


asserts Kenny. “It doesn’t matter what the offers are, if people don’t have confidence they are in a store that they [feel is] secure, they won’t come in.” One important sales piece is


ecommerce. Recently, ARI extended its award-winning platform to Canada, where travellers to The Loop Duty Free store at Montréal- Pierre Elliott Trudeau International Airport can now pre-order from more than 4,000 products using the click-and-collect service prior to departure. “We don’t see physical retailing


as one channel in a silo,” explains Kenny. “We see digital and physical converging for a harmonised retail solution. That will be ever-more important to us. “We have increased our focus


on click and collect, digital communications through social media, digital advertising and aligning that also with several other initiatives such as self-service via smartphones and exploring opportunities


to maximise The new Cyprus Duty Free liquor offer at Larnaca International Airport. 40 TOP 10 OPERATORS conversion from pre-travel data.” « OCTOBER 2020


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