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Maximizing Airport Retail Revenue April, 2014

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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

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When it is difficult to shop as a result of other customers or crowded facilities

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When they cannot easily find what they want

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Therefore, selling to customers prior to airline check-in or security procedures generates less revenue due to high stress levels.

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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.

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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

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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.

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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.

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The primary retail environment should be placed in the normal path a passenger must travel between the security checkpoint and the gates.

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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

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Airport retail customers’ shopping priorities are 1. 

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Duty-free Goods (international passengers)

2. 

Food & Beverage

3. 

News & Gift

4. 

Specialty Retail

§  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 § 

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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.

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Customers will not buy if they are bumped or jostled while shopping

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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.

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Customer vision and arm reach extends between from the shoulders to the knees.

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Pyramid shaped fixtures enhance the sense of space and the view of merchandise on lower shelves.

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Should be set diagonally to the main corridor so customers can see more merchandise.

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End displays should feature popular goods.

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Most customers prefer a quick trip and spend money fast when they arrive § 

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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.

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Sufficient sales staff should be available to answer questions; product information should also be available.

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Merchandise should be displayed within an arm’s reach.

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Baskets should be available to carry merchandise.

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Sufficient cashiers should be available to mitigate queues.

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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.

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They are a captive audience – they have time and no place else to go.

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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.

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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.

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Flight Information Directories should be plentiful and easy to read so that customer stress level remains low and perceives that they are in control.

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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

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After customers have shopped and eaten, they will not have a second meal, or buy significantly more.

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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.

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Live music or other performance arts enhance the sense of place, and increase the appeal of the marketplace.

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People shop with all of their senses, so the ability to touch, smell, and taste goods for sale is important.

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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 K K2

K 3

K 7 Seating

Seating

1 Common Seating

K 4K 5

K 6

Common Seating

Duty Free

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 § 

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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.

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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 Kenneth.currie@intervistas.com Luciano Nunes luciano.nunes@intervistas.com Rua Casa do Ator, 1.117 sala 44 – Vila Olimpia – Sao Paulo M: +55 11 98205-7957

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Profile for Leah Dupuis

Maximizing Airport Retail Revenue April 2014  

A presentation by Luciano Nuñes and Kenneth Currie.

Maximizing Airport Retail Revenue April 2014  

A presentation by Luciano Nuñes and Kenneth Currie.

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