Page 1 Maximizing Airport Retail Revenue April, 2014 Realizing the vision together
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Maximizing Airport Retail Revenue
April, 2014
Realizing the vision together
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Focus retail after the security check; convert the passenger to a customer § Customers do not buy when they feel stressed
or under pressure
§ When they have other priorities
§ When it is difficult to shop as a result of other customers or crowded facilities
§ When they cannot easily find what they want
§ Therefore, selling to customers prior to airline check-in or security procedures generates less revenue due to high stress levels.
§ Following the security check, create a, “re-composure zone,” where passengers can re-pack their lap-top and liquids, and put on their shoes while is sight of the retail offering.
§ At this point, the passenger has completed all of the stressful aspects of travel: arrive at the airport on-time, complete check-in formalities, and clear the security checkpoint, and is now a valuable customer.
§ The view of the retail environment will cue the customer’s brain that it is time to shop.
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Take advantage of natural customer flow tendencies § Most customers are right handed and drive on
the right side of the road. As a result:
§ Customers look to the right far more than the left, and see more things on the right than the left, and
§ Customers push a cart or pull a suitcase with their right hand, which causes them to walk in a counter-clockwise direction due to the imbalance.
§ As a result, more sales are generated if a walkway curves from right to left with more merchandise and space on the right side because passengers are looking right while (perhaps unconsciously) walking left.
§ The primary retail environment should be placed in the normal path a passenger must travel between the security checkpoint and the gates.
§ Customers should be surrounded by retail options on all sides, thus creating the ambiance of a marketplace that allows for a pin-ball effect between shops.
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Make it easy for the customer to find their favorite items easily
§ Airport retail customers’ shopping priorities are
1. Duty-free Goods (international passengers)
2. Food & Beverage
3. News & Gift
4. Specialty Retail
§ Therefore, the primary retail area should appear to the customer in that order
§ Duty-free Shops configured in a serpentine walk-through shop achieve sales as much as 60% higher than other configurations because 100% of customers are exposed.
• Food & Beverage outlets should be configured in a food court following the Duty-free Shops with a range of options: grab-and-go, fast food, and table service.
• News & Gifts and Specialty retail should be visible from the food court, with some shops adjacent to or within the food court, which creates a marketplace environment.
• Secondary retail stores for last minute purchases should be adjacent to the gates.
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Use space and fixtures to promote buying § Customers spend more with space
§ Aisles between fixtures should be wide enough for people and their hand baggage to pass – or they will not shop.
§ Customers will not buy if they are bumped or jostled while shopping
§ Customers need to be able to see merchandise: lighting and proper signage are essential.
§ Fixtures
§ Customers of average height should be able to see over fixtures.
§ Customer vision and arm reach extends between from the shoulders to the knees.
§ Pyramid shaped fixtures enhance the sense of space and the view of merchandise on lower shelves.
§ Should be set diagonally to the main corridor so customers can see more merchandise.
§ End displays should feature popular goods.
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Most customers prefer a quick trip and spend money fast when they arrive § Most retail customers purchase one or two
items, and want a quick trip. Any aspect of the shopping experience that slows them down risks loss of a sale. Airport customers are no exception.
§ Merchandise should be easy to find with popular items displayed prominently.
§ Sufficient sales staff should be available to answer questions; product information should also be available.
§ Merchandise should be displayed within an arm’s reach.
§ Baskets should be available to carry merchandise.
§ Sufficient cashiers should be available to mitigate queues.
§ Shops should be wide, not deep so more merchandise is visible
§ Customers inclined to shop more intensively will proceed deeper into the retail offering.
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Airport customers are high quality; dwell space should be in the retail area § Airport customers have excellent attributes
§ They have disposable income – they can afford to fly.
§ They are a captive audience – they have time and no place else to go.
§ They have just completed the stressful experiences of getting to the airport, checking-in, and passing security, and are now in a self-indulgent mood.
§ Seating and dwelling space should be found in the marketplace environment – this is revenue seating.
§ Seating in gate hold-rooms outside the primary retail environment is non-revenue seating.
§ Flight Information Directories should be plentiful and easy to read so that customer stress level remains low and perceives that they are in control.
§ Longer dwell times do NOT equate to higher spend rates
§ Most customers are on a quick trip, and will spend the most money per minute early
§ After customers have shopped and eaten, they will not have a second meal, or buy significantly more.
§ A one-hour dwell time is plenty.
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Create a local sense of place in a marketplace format § The marketplace should give the customer a
local sense of place
§ Local brands should be prominent to reinforce the sense of place, although global brands should be present to satisfy all tastes.
§ Live music or other performance arts enhance the sense of place, and increase the appeal of the marketplace.
§ People shop with all of their senses, so the ability to touch, smell, and taste goods for sale is important.
§ Services such as spa treatments and business facilities provide other conveniences that add to the customer experience.
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Concepts in practice: Example of a primary retail area
K1 Common Seating
Duty Free
Seating Seating
Common Seating
K2
K3 K
7 K4 K
5 K6
Security
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In Brazil, well-wishers should have access to some retail outlets
Security
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Arriving passengers are duty free customers and meeters and greeters buy refreshments § Inbound duty free should be between the
baggage carousels and the customs hall/exit (not to the side)
§ Should be configured in a walk-through concept to maximize exposure.
§ The cart check service, which is offered today, should accept carts at the entrance, and transfer them to the exit adjacent to the cashiers.
§ A limited retail program focused on food and beverage should be offered in the arrivals hall with seating.
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FOR MORE INFORMATION:
Kenneth Currie [email protected] Luciano Nunes [email protected] Rua Casa do Ator, 1.117 sala 44 – Vila Olimpia – Sao Paulo M: +55 11 98205-7957