Maximizing Airport Retail Revenue April, 2014
Realizing the vision together
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, “recomposure zone,” where passengers can repack 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.
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.
Make it easy for the customer to find their favorite items easily
Airport retail customers’ shopping priorities are 1.
Duty-free Goods (international passengers)
Food & Beverage
News & Gift
§ 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: graband-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.
Therefore, the primary retail area should appear to the customer in that • Secondary retail stores for last minute purchases should be adjacent order to the gates. Page 4
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.
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.
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.
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.
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.
Concepts in practice: Example of a primary retail area K K2
K 7 Seating
1 Common Seating
K 4K 5
In Brazil, well-wishers should have access to some retail outlets
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.
FOR MORE INFORMATION: Kenneth Currie Kenneth.firstname.lastname@example.org Luciano Nunes email@example.com Rua Casa do Ator, 1.117 sala 44 – Vila Olimpia – Sao Paulo M: +55 11 98205-7957
A presentation by Luciano Nuñes and Kenneth Currie.