The booming years of airport retail

Heathrow Airport London. Image: Heathrow airport

You’ve heard it all before – the lumbering giant that is Amazon.com is forcing brick-and-mortar outlets to close at an alarming rate. Like Godzilla destroying a town with its lumbering feet and swishing tail, Amazon.com has stomped on the little guy and changed the way we shop forever.

At least that’s the story, and it’s mostly true. There really was a period when high street stores were closing at a rate of one per minute, and there’s no question that Amazon.com’s across-the-board success looks to be unstoppable.

And yet there’s one place where the retail industry is booming, and it looks to be almost entirely unaffected by the all-encompassing monster of the internet.

What are we talking about?

Airport retail.

That’s right, the stats all show that the retail sector is flying high in international airports. According to Slate.com, airport retail sales soared by four per cent in 2016, while Micromarket Monitor has reported that ‘revenues from U.S. and Canadian airport retailing should rise from about $4.2 billion in 2015 to nearly $10 billion by 2020’.

These are astonishing figures, especially in a sector which is otherwise ailing. Let’s look at the success of some airport-centric companies to see how they’re remaining profitable.

SkyParkSecure.com

The most guaranteed airport success stories are those that cater especially for a passenger’s immediate needs. SkyParkSecure.com’s parking service, especially at flight hubs like Heathrow Airport, are in rude health thanks to their USP of letting customer’s bypass the arduous hunt for a parking space.

The company has lasted many years. In part this is because of its exceptional meet and greet service, which provides flyers the opportunity to have their car picked up directly outside the terminal by a valet, only to be driven to a secure location awaiting their return.

Here’s a company which understands that convenience is a key selling point in an airport.

Mobile food

The majority of airport eateries are chain outlets, whether that means a Starbuck’s, Domino’s Pizza or Krispy Kreme Doughnuts. And these places are choc-a-bloc with customers, which could easily dissuade nervous flyers from buying.

It’s for this exact reason that many airports are using apps which allow you to order food for delivery to your departure gate. Not only is this creating convenience for customers, it’s increasing the profit margins for the food sector.

Heathrow Boutique

Let’s fly back to Heathrow – because they’re doing their best to provide a first-class shopping experience. The proof of this is the Heathrow Boutique, which allows shoppers to browse retail outlets online, place an order, then pick up their goods before their flight. It’s a convenient way to shop that’s increasing sales for Heathrow outlets.

These are only a few pertinent examples of the ways in which airport retail outlets are keeping pace with tech and watching the coffers roll in. What do you reckon? Can high street stores adopt these approaches to revive themselves? Let us know in the comments below!