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Global Airport Retailing 2013 Product Image

Global Airport Retailing 2013

  • ID: 2372639
  • December 2012
  • Region: Global
  • 155 Pages
  • Verdict Research Limited

FEATURED COMPANIES

  • Autogrill S.p.A.
  • Elior
  • Hearst Corporation
  • Lagardere SCA
  • Publicis Groupe SA
  • Schindler Holding Ltd.
  • MORE

Global airport retailing seemed to be recovering in 2011 with both passenger numbers and spending per passenger increasing, but 2012 has proved patchier with Europe in particular slowing dramatically. Growth in Asia Pacific, however, continues at a breathtaking pace.

Inform your international expansion strategies using forecasts to 2016 of regional sales, passenger volumes, and spend per passenger.Select the most suitable products for your retail operations by using our regional category sales data and our forecasts of product categories to 2016New! Category forecasts by region to 2016.Benchmark your company's performance by accessing profiles of ten key airport retailers including details of their global market share.

We estimate that overall airport retail sales will have increased by 9.8% in 2012 to $32.6bn. Continuing strong growth in Asia Pacific, through rising numbers of passengers and increasing average spend per passenger, will see this region's share of the world total soar – to 46.9% in 2016 from 34.3% in 2011.

Despite continuing economic problems around the world, the outlook for airport retailing is a positive one. There will be growth in developed READ MORE >

Note: Product cover images may vary from those shown

FEATURED COMPANIES

  • Autogrill S.p.A.
  • Elior
  • Hearst Corporation
  • Lagardere SCA
  • Publicis Groupe SA
  • Schindler Holding Ltd.
  • MORE

OVERVIEW
Introduction
Summary
KEY FINDINGS
Asia Pacific continues to outshine other regions …
… as spend per passenger surpasses Europe
Europe will be left behind
Low Cost Carriers (LCCs) continue to expand
Air travel will become more affordable
Airport development is required to service growing demand
Beauty is the largest category while fashion and accessories are growing quickest
Dufry is now the largest airport retail operator
Competition to trade in the busiest airports becomes more intense
Downtown duty free the main competitor to airport retailing …
… could spread from China & South Korea to Africa, Latin America & southern Europe
Embracing digital technology
STRATEGIC ACTION POINTS
Premium & luxury brands should continue expanding in Asia Pacific and Middle East
North American airports need to develop their retail facilities
European airports should improve service to short haul travelers …
… and specifically target long haul visitors
Retailers in Middle East should embrace wide price architecture
African and Latin American airports can highlight distinctive regional merchandise
Airport retailers need to enhance their online capabilities
Shoppers seek innovation like iGate
Frankfurt and Schipol lead on smartphone apps
Passengers can be incentivized to shop longer
Retailers and airports need to provide a greater range of convenience services
MARKET CONTEXT AND OUTLOOK
Market definition
Global airport sales growth slows after a promising 2011
Asia Pacific overtakes Europe in 2012 to become largest airport retail market
Asia Pacific spend per passenger has passed the European level
Regional passenger spend is strongly influenced by short haul trips
Global airport retailing outlook 2012–16
Global airport retail sales to reach $49.7bn by 2016
Asia Pacific will continue to grow rapidly in significance
Europe's relative decline a consequence of weak economic performance
Growth in the Americas will be fuelled by airport expansion in Latin America
The Middle East & Africa will achieve solid growth in airport retail sales
Asia Pacific passenger numbers will overtake the Americas in 2016
Asia Pacific spend per passenger will overtake Middle East in 2016
Airport retailing sales by category
Luxury categories to be the fastest growing
Asia Pacific sales by category 2011–16f
Americas sales by category 2011–16f
Europe sales by category 2011–16f
Middle East & Africa sales by category 2011–16f
STRATEGIC ISSUES
Airport footfall
Global economic crisis remains a threat
Cost of air travel
There are only limited alternatives to air travel
Air travel is not risk free
Passenger spending – barriers
Restricted baggage allowances
Pre-flight time at the airport
Legislative restrictions
Downtown duty free the main competitor to airport retailing
Passenger spending – drivers
Arrivals stores gain in popularity
Collect on arrival another convenient service
Offering a home delivery service could enhance customer service
Online duty free sites add a further layer of convenience
Channeled footfall of walk-through stores to catch the eye
Theming airport retail to the host country
Testing automated kiosks
Smartphone apps add further appeal
Tactical promotions can be effective
Future growth strategies
Acquisitions create powerful retail groups
Bidding for new contracts becomes more intense
Share the risk with a joint venture partner
Shop extensions & refurbishments
Future focus: long term trends
Asia Pacific
North America
Europe
Middle East
Latin America
Africa
COMPANY COMPARISONS
Dufry has made a series of acquisitions to become the largest global airport retailer
AER RIANTA INTERNATIONAL
Makes gains at home but retreats from Russia
Business in Ireland hit by fewer air passengers
ARI favors operating stores as partnerships
Recent key events
Remains in state ownership
Opens first stores in China
Financials
ARI achieves major profit increase
Outlook
Where next for ARI?
For sale – if the price is right
Low profitability will erode bidding potential
Investors seem scarce
Best course could be as takeover target
AUTOGRILL
Consolidates travel retail operations into a single company
Autogrill has grown through acquisition
Autogrill is the world's largest airport retailer if food service activities are included
Europe dominates Autogrill's retail turnover
Autogrill mainly operates its own brand stores
Recent key events
Targets north Americans in Mexico
Upgrading in the UK
Two stores for Belém
10 years in Dusseldorf
Into new countries in 2012
Flexible merchandising during the day
Promotional packs
Financials
Margins strengthen further
Strong sales growth continues over the first half of 2012
Outlook
Achieving profitable organic growth
DUBAI DUTY FREE
Set for a quantum step up in floorspace
Dubai Duty Free inextricably interlinked with Dubai International airport
Sponsorship promotes Dubai and Dubai Duty Free internationally
Dubai Duty Free Leisure
Recent key events
Welcoming Chinese tourists
Dubai International airport exceeds five million passengers a month
A $1.75bn loan facility
Financials
Maintains double digit growth
Year to December 2011
Six months to June 2012
Outlook
Invests in space expansion for future growth
Doubling sales by 2018 be a breeze
No need to enter the real world of tenders
DUFRY
Acquires its way to sector leadership
Dufry has over 60 years of experience in airport retailing
South America dominates Dufry's retail turnover
Locations
Initiatives
Retail segments
Dufry's airport retail operations revolve around four store concepts
Recent key events
Acquires 51% of the travel retail business of Folli Follie Group
Plans to raise €250m equity funding
Adopts new organizational structure
Complements existing operations
Financials
Outlook
A serial acquirer
Hellenic Duty Free particularly attractive
Expect further acquisition growth from reorganisation
Strengthens balance sheet
In good shape for impending bidding war over contract renewals in Brazil
DUTY FREE SHOPPERS GROUP
Strengthens position in South East Asia
DFS is the airport travel retail division of LVMH
Airport locations …
Recent key events
10 more years at Los Angeles international airport
To redesign and reconstruct 13 stores
Introducing iGate
New PoS system
And seven more years at JFK
Wins massively in Hong Kong …
… with sales approaching $500m
Financials
Drives through non-airport duty free shopping centers
Outlook
2012 a good year
Well placed to capitalize on key Asian markets
New leader and backing from LVMH
Focus on largest airports
Guam up for renewal
GEBR HEINEMANN
German-based operator has had a quiet year
Family ownership allows long term strategy
Variety of contractual models
Distributes to 70 countries
Online and delivery services
Stores
Strong European focus
Recent key events
Expands further, mainly in Europe
Keeping hold of Copenhagen
Launches a low price advertising campaign
Financials
Outlook
Staying mainly in Europe
LOTTE DUTY FREE
Embarks on international airport retailing
Dominant in South Korean duty free
Mix of airport and downtown locations
Lotte positions itself as a premium duty free retailer
Propositions vary to reflect an individual store's customer base
Recent key events
Retirement of YS Choi
Lotte opens in Jakarta's Soekarno-Hatta international airport
Lotte debuts in Changi
Extensions in Korea
Financials
Appeals to Chinese shoppers
Outlook
Leads race to service Chinese tourists
Needs a deal on multiple units at a big airport outside South Korea
Paradise not a serious rival
LS TRAVEL RETAIL
Primed for growth
In 2011 major changes were made to Lagardère Services
LS Travel Retail's airport operations are predominantly European
LS Travel Retail's EMEA operations specialize in multi-brand duty free retail
LS Travel Retail ASPAC specializes in entertainment-based travel retail stores
LS Travel Retail North America specializes in entertainment-based stores, too
Recent key events
LS Travel retail buys out ADR Retail in Rome
Acquires stores in Warsaw, Geneva and Prague
Arrival of Aelia Arrival
Biggest duty free in Paris opens at Charles de Gaulle
Develops ASPAC
Its first core duty free in Pacific
Pops up in La Réunion, London, Singapore and Xian
Opens in North America
First automated iStore in a Canadian airport
Financial results – growth slackens but continues in 2011
Growth in France and Singapore in H1 2012
Outlook
Importance of travel retail rises
Aims to change weighting away from Europe
Rasmussen sets targets
Aims to be in Top Five for foodservice
Innovates to differentiate
Invests in transformation
NUANCE GROUP
Strong presence in Asia Pacific and Europe
Half of Nuance is now owned by a private equity group
Joint ventures are integral to the company's retail operations
Nuance operates a wide portfolio of store fascias
Recent key events
Enhances Zürich airport
Stays in Sweden
Opens in Las Vegas
Nuance wins with partners in Orlando
Loss of Hong Kong is a major setback
Small consolation
Strengthens in Turkey
Financials
Soaring Swiss Franc swamps revenue growth
Outlook
Low margin limits firepower in bidding to replace expired concessions in Hong Kong
Needs to come out fighting and win new business in China
SHILLA DUTY FREE
Smallest of Top Nine airport retail operators
Recent key events
Shilla installs Prada in T3 Singapore
Financials
Shilla is fastest growing airport retailer
Outlook
Faces renewed competition in Paradise
Unsuccessful in Hong Kong and Singapore
Like Lotte, should focus on Chinese tourists
APPENDIX
Ask the analyst
Verdict Retail Freeview
Disclaimer
TABLES
Table: Airside and landside definitions 2012
Table: Global airport retailing growth and market size 2002–12e
Table: Global airport retail market size $m and y-o-y change % by region 2009–12e
Table: Millions of passengers and growth rate % by region 2008–12e
Table: Sales per passenger $ and y-o-y change % 2009–12e
Table: Sales per passenger ($) and year-on-year change (%), 2009–12e
Table: Regional airport retailing market size ($m), by region, 2009–16e
Table: Passenger numbers and growth rate, North America and Latin America, 2012e–16f
Table: Millions of passengers by region 2009–16f
Table: Sales $ per passenger 2009–16f
Table: Global airport retailing market size ($m), by category, 2011–16f
Table: Asia Pacific airport retailing market size by category $m 2011–16f
Table: Americas airport retailing market size by category $m 2011–16f
Table: Europe airport retailing market size by category $m 2011–16f
Table: Middle East & Africa airport retailing market size by category $m 2011–16f
Table: Top 10 Low Cost Carrier airlines by revenue 2012
Table: Forecast Chinese RPKs by 2031 and growth in airline passengers by region from 2011
Table: 10 largest airport retailers, 2011
Table: ARI company overview 2012
Table: ARI airport retail estate 2012
Table: ARI airport retail estate (continued) 2012
Table: ARI airport retail trading record on new basis (€) 2010–11
Table: Autogrill company overview 2012
Table: World Duty Free Group retail own brands 2012
Table: Autogrill airport retail sales by market €m 2010 and 2011
Table: Autogrill travel retail and duty free trading record € 2008–11
Table: Autogrill travel retail and duty free trading record $ 2008–11
Table: Dubai Duty Free company overview 2012
Table: Dubai Duty Free trading record 2009–12e
Table: Dufry company overview 2012
Table: Dufry global presence June 30, 2012
Table: Dufry retail store concepts 2012
Table: Turnover by region CHFm 2011
Table: Dufry trading record CHFm 2008–11
Table: Dufry trading record $m 2008–11
Table: Duty Free Shoppers company overview 2012
Table: Airport locations of Duty Free Shoppers 2012
Table: Location of Duty Free Shoppers Galleria stores 2012
Table: LVMH Selective Retailing division trading record € 2008–11
Table: LVMH Selective Retailing division trading record € 2008–11
Table: Gebr Heinemann company overview 2012
Table: Gebr Heinemann main retail store concepts 2012
Table: Gebr Heinemann location of airport stores 2012
Table: Lotte Duty Free company overview 2012
Table: LS Travel Retail company overview 2012
Table: Geographical distribution of LS Travel Retail operations 2012
Table: LS Travel Retail EMEA and Aelia's European retail store concepts 2012
Table: LS Travel Retail ASPAC retail store concepts 2012
Table: LS Travel Retail North America retail store concepts 2012
Table: LS Travel Retail consolidated sales €m and $m 2010 and 2011
Table: Nuance company overview 2012
Table: Nuance airport retail brands 2012
Table: Nuance online retail operations 2012
Table: Nuance trading record CHF and $ 2008–11e
Table: Shilla Duty Free company overview 2012
Table: The Shilla Group trading record 2009–11
FIGURES
Figure: Global airport retailing market size 2009–12e
Figure: Growth rates % in global passenger numbers and passenger spending 2010–12e
Figure: Airport retail expenditure by region 2009 and 2012e
Figure: Share of global airport sales, by region, 2009 and 2011e
Figure: Sales per passenger by region $ 2009–12e
Figure: Passenger growth versus sales growth 2009–12e
Figure: Airport retail expenditure $bn 2009–16f
Figure: Share of airport expenditure, by region, 2009, 2012e, and 2016f
Figure: Asia Pacific airport retailing market size $bn and growth rate % 2009–16f
Figure: European airport retailing market size $bn and growth rate % 2009–16f
Figure: Americas airport retailing market size $bn and growth rate % 2009–16f
Figure: Middle East & Africa airport retailing market size $bn and growth rate % 2009–16f
Figure: Millions of passengers 2009, 2012e, and 2016f
Figure: Sales $ per passenger by region 2009–16f
Figure: Airport retailing sales split by product group $bn 2010–12e
Figure: Global airport retailing by category 2012e
Figure: Airport sales by category, 2012e and 2016f
Figure: Strategic issues that will impact on airport retailing 2013 and beyond
Figure: World real GDP year-on-year quarterly evolution 2006–12
Figure: World real GDP and passenger traffic over the downturn 2007–10
Figure: Slowing world real GDP leads to faltering air passenger traffic growth 2009–13e
Figure: Emerging economies' and mature economies' real GDP growth rates 1982–2015f
Figure: Air travel trends in emerging markets, Western Europe and USA 2009–12
Figure: Air travel 2011 and forecast for 2031
Figure: High cost of fuel is here to stay – Brent oil price 1980–2030
Figure: Airlines are becoming more efficient 1981–2031
Figure: Low Cost Carriers capacity share % of total seats 2001–11
Figure: Low Cost Carriers regional capacity shares % 2001–11
Figure: Liquor tasting counter in walk-through store at London Gatwick South Terminal 2012
Figure: Vienna airport Skylink Viennese Heinemann's waltz themed displays 2012
Figure: Dublin Airport Terminal 2 The Irish Whiskey Collection 2012
Figure: iStore automated store Montreal Airport 2012
Figure: Airline passenger traffic within Asia Pacific and with other regions 2011 and 2031
Figure: Airline passenger traffic within North America and with other regions 2011 and 2031
Figure: Airline passenger traffic within Europe and with other regions 2011 and 2031
Figure: Airline passenger traffic within Middle East and with other regions 2011 and 2031
Figure: Airline passenger traffic within Latin America and with other regions 2011 and 2031
Figure: Airline passenger traffic within Africa and with other regions 2011 and 2031
Figure: Airport retailers' market share, 2011
Figure: Top three largest airport retail operators by revenue by region
Figure: The Loop Kunming airport China 2012
Figure: World Duty Free Group new logo 2011
Figure: Liquor tasting at new walk-though store in Gatwick Airport south terminal 2012
Figure: Newly converted Biza outlet at Terminal 3, Manchester airport 2012
Figure: 24-screen promotional wall at Gatwick Airport south terminal 2012
Figure: Dubai international airport 2012
Figure: Dubai Duty Free cosmetics & perfume, Dubai international airport 2012
Figure: Dufry's sales by region % 2011
Figure: DFS refurbished 15,000sq ft beauty hall, Galleria Singapore 2012
Figure: DFS Duty Free Los Angeles Terminal 7 international airport April 2012
Figure: iGate shopping application at LAX 7 April 2012
Figure: Gebr Heinemann online duty free store 2012
Figure: Duty free store, Vienna airport Skylink terminal extension 2012
Figure: Vienna airport Skylink Viennese waltz themed displays 2012
Figure: Aelia Duty Free on arrival, London Luton airport 2012
Figure: Duty free store Terminal 3, Las Vegas 2012
Figure: Duty free store Ankara, Turkey 2012

Note: Product cover images may vary from those shown

- Airports of Thailand Public Company Limited
- Autogrill S.p.A.
- Aviva Plc
- British Broadcasting Corporation
- Christian Dior S.A.
- Elior
- ERGO Versicherungsgruppe AG
- Folli Follie Group
- Gucci Group
- Hearst Corporation
- Hutchison 3G UK Limited
- Imperial Tobacco Group PLC
- Lagardere SCA
- Lotte Group
- LVMH Moet Hennessy Louis Vuitton SA
- Nestle S.A.
- Publicis Groupe SA
- Random House
- Inc.
- Samsung Group
- Schindler Holding Ltd.
- TDC A/S
- The Emirates Group
- Tommy Hilfiger Group
- V. F. Corporation

Note: Product cover images may vary from those shown
Note: Product cover images may vary from those shown

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