1. Trends and dynamics in airport retail
PRESENTATION
Trends and dynamics in airport retail
ARN Conference 2017
Neil Saunders
March 2017

2. Retail consumer expenditure growth, 2016-2021
Retail spending growth
Overall US and airport retail
Retail consumer expenditure growth,
Total US retail %
Total US airport retail 28.3%

3. We’re cautious
So we’re careful
How do you expect your finances to change over the next 6 months (index, better – worse)

4. Inspire Tiered offerings Mix needs and wants We’re cautious
What does it mean for airports
Inspire
Tiered offerings
Mix needs and wants

5. We’re jaded
Shopping isn’t as much fun as it used to be
Percentage of American consumers who say shopping has become a bit boring
2006
28.2%
2011
39.4%
2016
50.8%

6. Be unique, a sense of place
We’re jaded
What does it mean for airports
Be unique, a sense of place
Look to services
Change and churn

7. Change in total number of annual visits by US shoppers 2006-2016
We’re shopping differently
Physical retail is losing out
Change in total number of annual visits by US shoppers
Department stores
-53.7%
Shopping malls
-33.9%
Online %

8. Use technology effectively
We’re shopping differently
What does it mean for airports
Use technology effectively
A place to be discovered
Less is more

9. Total value of the US off-price market, $billion
We demand value
Low prices are ubiquitous
Total value of the US off-price market, $billion

10. Duty free is less effective
We demand value
What does it mean for airports
Duty free is less effective
Bargains and deals
Exclusives and brands

11. Airport shopper mindset
Four main variants
DASHER
CAREFREE
FROM A TO B
BIG VACATION

12. Airport shopper mindset
What they want
DASHER
CAREFREE
FROM A TO B
BIG VACATION
SPEED
EASE
SOLUTION FOCUSED
SERVICE ORIENTED
TIME EFFICIENCY
CURIOUS
UNIQUE / DIFFERENT
INDULGENCE
LUXURY
SERVICE ORIENTED
NEEDS, NOT WANTS
VALUE FOR MONEY
HABITUAL
FAMILIARITY
EASE
KILLING TIME
INSPIRATION & FUN
TREAT MENTALITY
COST CONSCIOUS
FAMILY FRIENDLY

13. Airport shopper mindset
Different airports, different mixes
LHR
MHT

14. Conclusion
The final question ?
Would people come to your airport to shop if they weren’t travelling anywhere?

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