ANARA Retail Optimization White Paper Aliwnf

Retail Optimization for Small
and Medium-Sized Airports

White Paper
2023
Retail Optimization
for Small and Medium-Sized Airports
Airports Council International (ACI) advances the collective interests and acts as the voice
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Retail Optimization for Small and Medium-Sized Airports

2023
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ISBN: 978-1-990290-47-3
©2023 Airports Council International. All rights reserved.
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CONTENTS
INTRODUCTION .......................................................................................................... 4
METHODOLOGY ......................................................................................................... 5
ACKOWLEDGMENTS .................................................................................................. 6
SCOPE ........................................................................................................................ 8
MAIN EVOLUTIONS OF AIRPORT RETAIL PRACTICES ............................................ 9
1. CONSIDER THE BASICS.................................................................................. 10
1.1 FREE UP TIME (DWELL TIME*)................................................................... 10
1.2 PUT RETAIL IN THE RIGHT PLACE ............................................................ 13
1.3 GAIN CUSTOMER KNOWLEDGE ................................................................ 21
1.4 THE RIGHT MIX OF RETAILERS AND BRANDS ......................................... 26
2. ENHANCE THE SHOPPING EXPERIENCE...................................................... 31
2.1 THE CUSTOMER JOURNEY........................................................................ 31
2.2 PREPARING THE TRIP ................................................................................ 32
2.3 BEFORE ENTERING THE RETAIL OUTLET................................................ 33
2.4 IN THE RETAIL OUTLET .............................................................................. 42
2.5 OFFERING ................................................................................................... 47
2.6 PRICES AND DISCOUNTS .......................................................................... 52
2.7 MERCHANDISING........................................................................................ 55
2.8 SALES AMBASSADORS .............................................................................. 58
2.9 AFTER-SALES ............................................................................................. 59
2.10 SERVICES .................................................................................................... 60
2.11 SIGNAGE...................................................................................................... 63
2.12 A COMMUNICATION ECOSYSTEM............................................................. 64
3. INCLUDE DIGITAL ............................................................................................ 65
3.1 DIGITIZATION OF RETAIL OUTLETS .......................................................... 65
3.2 PERSONALIZING AND BROADENING THE SALE ...................................... 68
3.3 INCREASING SALES CHANNELS ............................................................... 70
4. ANTICIPATE TOMORROW ............................................................................... 74
4.1 SOCIOCULTURAL IMPACTS ....................................................................... 74
4.2 KEY AIRPORT TRENDS .............................................................................. 76
CONCLUSION ............................................................................................................ 81
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Retail Optimization
INTRODUCTION
As the aviation industry continues to evolve, small and medium-sized airports are facing
increasing pressure to optimize their retail operations. This is not only to improve the
passenger experience, but also to drive revenue growth. With this in mind, it is important that
airport managers stay informed about the latest retail optimization strategies and best
practices.
This document provides a comprehensive guide to retail optimization for small and medium-
sized airports. It covers a wide range of topics, from understanding the customer journey to
developing effective marketing strategies. The information and insights presented in this
document are valuable for anyone involved in the commercial strategy of small and medium-
sized airports.
One of the main advantages of retail optimization for small and medium-sized airports is that
it can help them to compete more effectively with larger airports. By understanding consumer
needs and providing a range of products and services that meet those needs, airports can
improve their competitiveness and diversify their sources of income.
Another key benefit of retail optimization is the potential for increased revenue. By identifying
areas where revenue can be maximized, such as by optimizing prices, retail mix, and
merchandising, small and medium-sized airports can increase their revenue.
Our acknowledgements and thanks to all the Airports Non-Aeronautical Revenues and
Activities (ANARA) Sub-Committee members that provided their inputs and expertise in
creating this document. This information is fundamental for our industry and our efforts to
promote best practices for airports worldwide.
Hopefully, the valuable insights and practical strategies provided in this document will help
small and medium-sized airports to boost their retail operations. It is an essential guide that
will help you stay ahead of the curve and implement effective retail optimization strategies.
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Retail Optimization
METHODOLOGY
Between 2012 and 2014, the Business, Services and Real Estate Commission, part of the
ALFA-ACI French-language Airports Association [Association des Aéroports de Langue
Française], carried out a fundamental study analyzing the triggering factors in the act of
purchase by airport passengers. Information and input from all stakeholders, airports,
businesses, passengers, and experts were consolidated and analyzed in order to draw up a
document, the scope of which covers all businesses except catering.
Ten years later, ACI World’s Airport Non-Aeronautical Revenues and Activities (ANARA)
Sub-Committee decided to update the document to make it available to all small and
medium-sized airports around the world. Retail practices have of course evolved, and airport
retail made important improvements since. The objective of the ANARA Sub-Committee is
to reflect these evolutions while capitalizing on the aim of the initial document: building up a
vision that is both short-term (best practices to improve the existing) and prospective (some
developments to face the future).
“Dalaman Airport is proud to contribute in the elaboration of this report that will help small
and medium-sized airports to achieve a better passenger experience, with a more
valuable travel retail offer that fosters the commercial revenues. Enhanced passenger
experience will be a multiplier action to boost retail income which, jointly offered with smart
retail plans, will deliver optimum business results. We believe thinking outside the box is
the fastest way to achieve our goals.”
Orçun Songur, Chief Commercial Officer of Dalaman Airport
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ACKOWLEDGMENTS
Contributors of the initial Alfa-ACI document, members of the ALFA ACI Business, Services
and Real Estate Commission and experts:
Bruno Balerdi, Toulouse

Valérie Chuong, Nice
Catherine Courteil, Rennes
Marie-Sophie David, Nantes
Pascale Delaplace, Marseille Provence
Karine Ducos, Toulouse
Célia Folgueral, Toulouse
Virginie Gauthier, Lyon
Christophe Girard, Lyon
Nadine Grimaud, Lyon
Jérôme Le Bris, Brest
Arnaud Lescut, Nice
Emmanuelle Levaray, Montpellier
Christine Mota, Bordeaux
Kévin Orlandi, Marseille Provence
Stanislas Cebron de Lisle, Bérénice / Procos

Maxime Guarrigue, XPrime (Web Agency)
Robbie Gill, The Design Solution
Monique Large, Pollenconsulting
Michel Pérol, Lagardère Services
Sylvain Savoie, A2C
Mike Simons, HMSHOST Schiphol
Franck Rosenthal, BVA Reason Why
ACI World Airport’s Non-Aeronautical Revenue and Activities (ANARA) Sub-Committee:
Andrew Ford, Chair, Paccaya Resources*

Svetlana Simeonova, Vice Chair, Fraport Bulgaria
Andrew Perrier, Almusbah Trading Group
Andrew Thomas, WH Smith
Antonio Vencesla, JTI
Artūrs Saveļjevs, Riga Airport
Carl Rogers, Amadeus
Christophe Girard, VINCI Airports*
Ciara Ryan, Aer Rianta International
Cristina Preda, JT International*
David Freedman, Raleigh-Durham Airport Authority
Dicky Cheung, Shanghai Hongqiao International Airport
Ekelem Kenneth Airhihen, FAAN / Nigeria
Emmanuel Baah, Airports Authority of Trinidad and Tobago*
Fabio Bernardini, 2.0 & Partners
Fernando Carrandi, AGUNSA
Gavin Duncan, InterVistas George Karamanos, KPI AMS
George Karamanos, KPI AMS
Ian Sample, Steer
Inna Ratieva, NACO
Isabel Zarza, Dufry*
Jason Attard, Modalis Infrastructure Partners
Jérôme Lepage, JCDecaux – Transport Division
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Johan Schölvinck, Market Square Consulting

Jonathan Song, Plaza Premium Group
Karine Ducos, Toulouse Blagnac Airport*
Miguel Rodriguez Nieto, Ferrovial Airports*
Nico Reifkogel, Gebr. Heinemann*
Nicola Gualandi, Bologna Airport
Peter Burns, Heathrow
Renzo Radice, Dufry
Sammy Patel, Vantage Airport Group
Stephane Geffroy, Kansai Airports
Stephen Freibrun, ICF
Steve Ogo, Vantage Airport Group
Steven Lim, Plaza Premium Lounge Singapore
Tracy Ross, Aer Rianta International Middle East
Trine Kildevaeld, Kilsa Group (Strateg Consulting)
Vikas Gupta, GrayMatter
*Members of ANARA Working Group on Retail, led by Isabel Zarza
Special thanks to Monique Large from Pollenconsulting for her contributions to this
publication.
Special thanks to our sponsor: Airport of Dalaman, Turkey
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SCOPE
The main objective of this document is to provide airport operators with concrete elements
to foster awareness of their management, inform their potential customers, and help them
optimize current and future retail outlets. The objective is to increase passenger purchases
in airport retail areas.
This document is primarily focused on small or medium-sized airports around the world, with
international flight connections.
The goal is to have a reference work that can be used:
• By airports to carry out short term actions to optimize existing commercial offerings.
• To prepare the future (both short and medium term) with regards to new trends, to
anticipate them, meet clients’ needs, and put forward new business concepts.
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MAIN EVOLUTIONS OF AIRPORT RETAIL PRACTICES
Travel retailers like downtown retailers are facing big issues to keep attracting customers in
a globalized world, competing with online shopping and evolving consumer expectations.
Large airports and smaller but avant-garde airports succeeded in setting up retail practices
that have proven themselves.
How to encourage passengers to shop? First consideration is to review the basics of retail in
airports: freeing passengers time, enabling them to spend some more time in the shopping
area, and placing shops in the right place, at the right moment. Understanding passenger
flow is getting more complex, with new profiles, younger generations, or international
passengers with different spending habits. Knowledge of these passenger profiles will be
key.
What reasons or occasions drive them to airport shopping?
In the last years airports have evolved from a functional to more experiential facilities, where
it is important to be in an efficient but also pleasant and sustainable environment. Standard
settings are replaced by more localized experiences and a sense of place. Airports should
therefore favour local brands, combining them with local food and beverage (F&B) offerings.
This implies achieving a common vision of airport and retailer and to integrate retail in the
airport design.
New technologies are impacting the whole airport. While digital screens or interactions make
a modern and attractive setting for small and medium-sized airports, it represents an
important investment that might be carefully considered in terms of benefits. Digital solutions
therefore should stand to increase sales and provide comfort for the passengers.
Social media is nowadays key in communication. Airports of all sizes should therefore take
the opportunity to encourage awareness among passenger advocates and influencers.
Branding the airport means setting up more storytelling: set up a new culture of the airplane
traveling, tell people, engage them!
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1. CONSIDER THE BASICS
SETTING THE STAGE: WHAT AIRPORTS NEED TO DO TO FACILITATE RETAIL
1.1 FREE UP TIME (DWELL TIME*)
Passengers do not usually come to the airport to shop,

their main reason for visiting is for their flight. The
challenge for airports is to attract these customers and
trigger a purchase.
The basics of airport retailing are presented in this part
in the form of four fundamental elements to be observed:
1. free up time for passenger to shop;
2. consider the geographic positioning of retail outlets,
find the right place;
3. gain best consumer knowledge to leverage sale; and
4. find the right mix of retailers and brands.
*The dwell time refers to the total amount of time that a passenger spends in the airport
prior to boarding his flight.
The circuit taken by the passenger at the airport is punctuated with unavoidable time-
consuming stages. Prompting the act of purchase in airport shops and services therefore
consists in placing this notion of “time” at the heart of our preoccupations, both outside and
inside the retail outlet using a simple idea. Time gained means more time available for
spending.
The stages of departing traveller are numerous and time consuming before arriving at the
retail outlets and buying. The more time a passenger has after the security checkpoint, the
more time he/she has available to shop.
It has been demonstrated by all studies carried out with regards to the notion of time spent
in the airport: the more free time a passenger has in the airport, the more sales in shops and
restaurants increase. Passengers arrive with certain anticipation before boarding their flights,
and it is up to the airport and the retailers to optimize the value of such time in the benefit of
their business. During the late 1990’s, the average passenger dwell time was about 50
minutes. A recent report on passenger behaviour at Amsterdam’s Schiphol Airport reported
an average dwell time of 146 minutes per passenger ─ an increase of nearly 200%. 1
1
Source: https://airtraveldesign.guide/Time
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Spending per passenger in relation to available dwell time 2
According to a report by DKMA 3 (one of the world’s leading airport market research
consultancies) suggests that passengers who spend more than 60 minutes at the airport at
Duty-Free are 33% more likely to buy F&B, 27% more likely to buy retail, and 13% more likely
to purchase duty-free than passengers who spend fewer than 60 minutes at the airport.
Therefore, streamlining the travel experience can help improve the passenger experience,
increase dwell time, and boost revenues at the same time.
Passengers’ travel-related anxiety through time. Highlighted region represents

the time when they are most likely to participate in impulse buying 4
There is, therefore, a major financial stake for airports to optimize management of the
different passenger stages. These should tend to provide even more facilitation and fluidity
in order to quickly free the passenger from security checkpoints and passport controls, and
to transform “endured” time into “chosen” time for buying.
 Flight information – Call to gate
According to the terminal layout, displaying departure gates at the last moment can prove to
be an effective way to increase the time spent in the airport’s retail space and to develop
sales. For example, at Changi and Dubai airports, the gate is announced 20-30 minutes
before take-off in order to keep passengers in the commercial zone as long as possible.
Nevertheless, it is advisable to be particularly vigilant on the way the flow of information given
to the passenger is managed in order to avoid generating unnecessary stress, which would
then have a counterproductive effect.
2
Source: Dolby&Holder Consulting, 2013
3
http://www.dkma.com/blog/?p=232
4
Source https://airtraveldesign.guide/Time and Dodge, Martin, and Rob Kitchin. “Flying through Code/Space: The Real
Virtuality of Air Travel.” Environment and Planning A: Economy and Space, vol. 36, no. 2, Feb. 2004, pp. 195–211.
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Burgas Airport, Bulgaria and Brussels Airports

Information screen suggesting to relax or spend free time for shopping
The proper organization of this "Call to Gate" flow management consists in transmitting to
passengers’ critical information concerning the boarding process for each flight:
• A precise time at which the boarding gate is communicated (and not a simple
message to wait), which avoids passengers keeping their eyes fixed on the flight
information screen even when they still have time to spare.
• The time it takes to walk to the different airport gates.
The challenge for airports is to modify the information on the remote display screen in order
to reassure the passenger, above all, but also to suggest some ideas on how they can
spend the remaining time, e.g., with contextual messages suggesting “have a coffee” or
“relax” displaying alternately with the time and gate. The idea is to give the passenger an
active role to organize their time.
London Luton Airport, map of time to gates after security
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We would recommend displaying this information on screens. Passengers are less willing to
use the airport app, as they prefer to have an end-to-end solution. To keep information
consistent, it should be necessary to negotiate with airline companies that they do not display
on their app or send information that pushes the passengers to the gate too early.
This implies that the passenger can rely on a smooth and efficient security control. A
passenger with a serene state of mind increases the probability of purchase.
 The stress factor for occasional flyers
The airport should encourage impulse buying by activating the levers that are specific to each
profile. However, it is imperative to consider the passenger’s stress curve in order to best
locate the shops. As shown below, the best moment is after having cleared the passport
control and security checkpoints. Most travellers, especially occasional flyers are subject to
stress factors during their journey. There is a so-called “golden hour” in the passenger path,
once all security checks are done and waiting for onboarding. That’s the time dedicated to
shopping. The airport should ensure that the stress level remains low, providing conditions
for passenger to relax─go to gate information and a relaxing environment.
A circuit during which stress zones vary according to the different stages,
where relaxation only sets in at the end of the circuit
(BVA Qualitative Study, ALFA ACI Business, Services and Real Estate Commission)
REMEMBER:
Flight/gate displays are a clever way to encourage

dwell time, i.e., time spent in the retail space.
However, the right message must accompany the
flight information to reassure passengers and
encourage them to visit the stores.
1.2 PUT RETAIL IN THE RIGHT PLACE
A functional and high-performance retail space requires:
• Premium locations benefiting from controlled client flow

• Efficient dedicated logistics
• Retail outlets designed around best airport retail practices
• Scaling retail activities in relation to the airport’s passenger flow
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 The right location: landside and airside retail
Airports are split into landside and airside areas. The landside area is usually accessible to
the public, while entrance to the airside area is strictly limited to traveling passengers. Retail
space can be available in both areas. However, retailers should be over-represented in the
airside area, in the departure hall. Passengers there will be more relaxed and enjoy spending
time shopping.
Landside retail should be oriented for visitors and accompanying persons. Convenience
stores are popular for returning passengers for shopping before heading back home or to
their accommodation. Some airports like Zurich, Changi, Haneda, and Sapporo develop large
landside shopping areas with a transport hub to attract customers from the neighbourhood
as well.
Airside
Landside
Sydney Airport layout
 Airside focus: managing traffic flow, layout
The airport has the opportunity to have a captive passenger flow. Regular and predictable
arrivals and departures of potential consumers, who must be attracted to the retail outlets.
The challenge for the airport is to offer the highest quality and most important passenger flow
to the shops in front of the shopping area.
Circulation optimizing the flow of passengers towards the retail outlets

The Design Solution, Bristol Airport
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When the airport's configuration allows it, the concentration of passenger flows at a single
screening checkpoint is extremely beneficial for commercial activities. It allows the airport
to take advantage of a significant volume effect throughout the day, thus avoiding activity
slumps that are too marked and difficult to manage for retailers.
Having a consolidated single security screening facility shows that it becomes possible to
develop a broader retail offering with more substantial surface areas and product offering
aimed at a de facto, larger clientele. A virtuous circle is established when a retail space gains
credibility and opens new development prospects while reducing the risks inherent to the
installation of new concepts, products, and brands.
Airports must also provide a separate breathing space area between the security screening
facility and the shops. This area will enable passengers to gather the necessary information
and change their state of mind in order to then be able to enjoy the retail space.
Finally, the concentration of passenger flow through a single security screening facility allows
substantial savings in operating costs for retailers, as the pitfall of duplication of certain types
of retail outlets to cover several boarding lounges can be avoided. If a single security
screening facility is not possible, retail areas must be adjusted and adapted according to
passenger type and flight destinations.
Walkthrough Duty-Free at Toulouse Airport
The success of the Duty-Free area laid out as a “walkthrough” space is undeniable. While
some big airports like Istanbul are coming back to classic retail formats, we suggest a
walkthrough shopping format for small and medium-size airports if it is properly placed and
sized. A Duty-Free walkthrough represents a 20-30% revenue increase, with the advantage
of having a concentrated, unique passenger flow.
Several airports organize a minimum breathing space between the security checkpoint and the
walkthrough ─ Diagram showing passenger flow at Dalaman and Paris CDG Airports
At small and medium-sized airports where space and investments may be limited, a flexible
retail space is another layout option travel retail operators pay special attention to. This
consists of creating one flexible all-round concept, offering traditional duty-free
products and F&B in the same commercial space.
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Dialosgram of passenger flow through a flexible, hybrid retail space at Ljubljana Airport
To make this flexible concept right:
• Enable fluid changes of categories over time

• Passengers walk by the shops not through
• Start with low prices and local while going expensive/international in the deeper part
• Daylight and orientation are key
A major benefit of such a concept is the unified POS system that allows the consumer to
purchase retail products and F&B at the same point. It has been proven that F&B outlets
highly increase customer dwelling times. Also, the new concept heavily increases the spent
per passenger for all customers, including the younger generation traveling with low-cost
carriers. Besides those direct positive effects on sales development, a combined concept
helps to receive more customer data, as you receive data of the whole customer journey on
one POS.
Flexible shop concept at Ljubljana Airport with an integrated bar in the shop-area
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 The right dimensions of airport retail
When considering all commercial activities combined (comprising retail, Duty-Free and F&B
spaces), excluding catering, the basic "m2/MPax" ratio for total arrivals and departures can
vary from 500 to 1,200 m2/MPax, depending on the traffic mix (weight of international vs.
domestic passengers) and the airport's traffic. According to ACI 2019 data, the world average
ratio is c. 650 m2/MPax for airports that handle 5MPax or less, whilst it is closer to 800 for
airports bigger than 5MPax.
Figure: Shares in terms of surface (sqm per million passengers)
Today's passenger journey shows that the time spent in the public area (landside) has been
considerably reduced in favour of the airside space (post-security check), which drives that
terminal commercial master planning progressively includes a bigger share of airside retail.
Studies have shown that F&B outlets are both a magnet within the shopping centre and a
key factor in store traffic. Their positioning (and the diversity of the offer) is therefore crucial.
 An appealing commercial area
Waiting areas adjacent to stores also play a key role. They should be designed to create an
atmosphere around the retail outlets and to draw people into these areas rather than
elsewhere. The treatment of light, flooring and seating contribute to the interaction between
passengers and shops.
Elements that reassure passengers about their journey should be included, such as flight
information or the time it takes to walk to the next stage of their journey.
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An appealing retail area at Toulouse Airport Terminal D
Inside the point of sale, the consumer has well established behaviours, which means that a
good part of the space and the offer is not perceived. To optimize sales, it is important to take
advantage of strategic spaces and create points of interest in cold areas (areas that are less
subject to be visited).
By 2025, Gen-Y or Millennials (born between 1984–1996) and Gen-Z (1997–2010) will make
up over 50% of all passengers.5 Thus, a particular attention will be paid to the younger
generations who appreciate an environment packed with strong sensations, favouring digital
interaction, allowing them to experiment, test, taste, and share these experiences with their
friends.
5
https://www.bain.com/insights/airport-retail-brace-for-disruption/
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 A permanent operator-airport dialogue
The airport has real time data that can provide an important framework to businesses,
information on plane occupancy rates, cancelled or delayed flights, etc. that enable them to
forecast and anticipate passenger flow. Operators are thus able to organize team schedules.
This daily information must be completed by key events, such as huge departures over
holiday periods, national holiday weekends, etc. in order to anticipate orders and set up
adequate arrangements. Daily input on flight information is of prime importance. It must lead
to flights with high purchase potential being identified so that they may be monitored, and
specific actions set up.
For example, information about:
• Number of passengers
• Time of departure/arrival
• Destination of the flight
• Nationality of passengers
These items of information need to be reviewed monthly and weekly, in advance, to have the
right products on display, the right number of staff, and the staff with correct language skills.
 A planned approach to logistics
When developing a new commercial space in the airport, the logistical aspect (storage,
supply process of the points of sale, folding space for the personnel, etc.) must occupy a
determining place in the reflection because the success of the project depends on it.
Too often, this aspect is relegated to the background, after having sized and positioned the
commercial surfaces in the terminals. Logistics must then be adapted to the location and
generate the least possible interference with the airport's operational management. This is
not easy, nor is it comfortable for the teams in charge of this issue. Typically, the commercial
Master Plan of a terminal should plan to have an equivalent of 15-20% of the Front of House
commercial space allocated to commercial storage and tenant logistics.
However, if this logistical aspect is anticipated as early as possible and perfectly integrated
into the positioning and sizing of the retail space, it generates an increased operational
quality of the points of sale with a direct impact on the level of sales and satisfaction, both
from customers and retail staff who benefit from a working tool perfectly adapted to their
activity. The following are some key elements that are required to achieve a good logistics
plan to supply the retail shops:
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• Dedicated landside delivery dock with restricted access allowed to authorized staff
only. Such dock should be properly sized in order to facilitate the inbound with the
outbound (waste) deliveries.
• Appropriate security screening for goods, located just after the delivery dock. While
most of the jurisdictions do not require security screening for landside deliveries, all
airside deliveries need to be screened.
• Back of house corridors and freight elevators with the appropriate turn radius should
be provided to allow free and optimum flow of supplies to all units; ramps and
transition slopes should be avoided in the circulation paths for staff. Circulation of
deliveries through public spaces (i.e., mixed with passenger flows) should be
avoided to the extent possible.
• Provide space for ancillary usages such as a breakroom/restroom for staff, one
small administrative office and some space to meet periodically with all the tenant's
employees and provide training.
• Optimize flows for a "ready-to-sell" store. The smooth running of the business
also depends on well-equipped and well-planned logistics. Supply is facilitated by
a short and direct route, reserved parking spaces and a dedicated security
screening facility.
• Facilitate restocking of retail stores via the back of the shop from adjoining
stockrooms.
 Duty-Free arrival stores
Several governments throughout the world allow Duty-Free Shops on Arrivals. As with
Departure Stores, there is a maximum allowance per passenger as the goods are entering
the country. The concept behind the arrival store relies on bringing the travel consumption to
the country where the passenger arrives instead of having them spending abroad; they can
keep hard currency value inside the country. More than that, the Arrival Duty-Free stores
generate incremental employment, concession fees to airport inside the country, indirect
taxes and fees (tax on profit of the travel retail company and private airport authorities) and
fuel savings for airlines, as the goods that could be bought abroad and have to be carried in
airplanes are purchased in Arrival Duty-Free Stores.
Duty-Free at Arrival at Rio de Janeiro Airport
The more efficient location of an Arrival Duty-Free Store is after the Passport Control, and
strategically located in the Baggage Carousel area and before Customs so that the
traveller is less stressed, having completed immigration duties before being exposed to the
store. The most used concept is the walk-through concept in the most updated airport
terminals as it captures 100% of the audience and the passenger has visibility of the full
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assortment of the store. The product portfolio of those stores when compared to Departure
stores shows a higher weight on the categories of Tobacco, Alcohol and Beauty.
The digital and value-added services are very important to the success of the Arrival Duty
Stores. The Reserve and Collect service where the passenger reserves the goods online
before or during the trip or at the Departure stores that work as a showroom and collect at
the arrival stores plays an important role to leverage sales in this model. The loyalty
programs play a very relevant role as well, especially because the frequent flyer of a specific
country can travel to several destinations but usually comes back to the same airport to reach
home.
REMEMBER:
• Ensure a concentrated and consolidated

flow of passengers
• Choose size and location adapted to flow type
• Set up an atmosphere and associate services
• Daily dialogue between operators and
the airport on flight information
• Integrate logistics
1.3 GAIN CUSTOMER KNOWLEDGE
• The number of passengers in airports has increased significantly in recent

years, in particular, thanks to the growth of low-cost airlines and the increase
in numbers of mega-city airports.
• New travellers are flying in and out of airports. Passenger profiles are
diversified and broadened.
• Customer surveys and data analysis are helpful to target the right passengers
with the right offer.
Every airport operator knows the destination of every traveller, and the retailers scan every
customer’s boarding card. Correlating the two means that a unique and valuable insight into
who has bought what and when and where they were flying to or from is available. Most high-
street retailers would love to get their hands on this kind of information; however, even in
travel retail, using this data is still in its infancy.
It has long been established that some destinations are more valuable than others; indeed,
'Destination targeting' was a big thing in travel retail in the first decade of this century.
Likewise, sales data from the past twenty years shows that destination has had a major
impact on average transaction values, with some destinations yielding significantly more
sales value per traveller than others. Of course, the departure point will also influence
average transaction values. For example, people travelling to Istanbul from Hamburg will
have a higher ATV than people travelling to Istanbul from Cologne (probably because there
are more higher spending business travellers).
Taking an average from all departure points and creating a destination value ranking throws
up some interesting results. As expected, travellers to Asia and Russia are spending the
most; an average transaction value for passengers travelling to Kuwait is far greater than
those travelling to Germany:
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Retail Optimization
1. Kuwait …
2. Vietnam 85. USA
3. China …
4. Libya 94. France
5. Nigeria …
6. Saudi Arabia 112. UK
7. Bahrain …
8. Hong Kong 117. Spain
9. Maldives …
10. Russia 154. Germany
Ranking of pax propensity to retail spend by destination; average from several airports, 2022
Knowing the purchasing propensity of travellers going to a particular destination, combined

with historical sales data that highlights the winners (and losers) across categories, brands,
products and even SKUs, means retailers can make timely decisions about product listings,
placement, pricing, promotions, staffing levels, and logistics.
For example, if it is known that the sales of a particular Johnnie Walker are always
significantly higher in the two hours before the flight to Nigeria on a Wednesday night, then
enough stock of the right SKU should at least be available, or that information could be used
to up-sell or cross-sell with digital messaging and promotional staff on hand. Data correlation
is crucial.
Traveller nationality has even more influence than their destination. For example, extensive
research carried out by a select group from within the travel retail sector (Gebr. Heinemann,
JC Decaux and Pernod Ricard) examined the responses of over 22,000 interviews with
travellers worldwide and released a Global Traveller Segmentation study, with a detailed
analysis of travellers in each country and their attitude towards buying in an airport.
Result of the Global Traveller Segmentation study dividing travellers into visitors
and "non visitors" (people who don't enter a shop)
Visitors are subdivided into "non-buyers" (just browsing) and buyers
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Retail Optimization
Across these four main categories, this study identified the reasons why travellers buy or
only browse or disregard airport shopping altogether.
Indexing these purchase/non-purchase drivers against the global average provides an

instant guide to behaviour by nationality. The measurement of these segments across 25
countries against a global average highlights significant differences in buying behaviour from
one country to the next:
Buyers Visitors, non-buyers Non-visitors Complete rejecters
Nationality profiles according to the Global Traveler Segmentation study
"Quality Seekers/Buyers" make up 2.9% of UK travellers, compared with 12.1% of Brazilian

travellers. Likewise, "Passing the Time/Non-Buyers" account for 3.6% of travellers from the
United States but a huge 12.9% of those from Italy.
Like destination targeting, the purchasing characteristics of different nationalities also have
a significant bearing on product listings, placement, pricing, promotions, staffing levels, and
logistics. Cross referencing the likely purchase behaviour by nationality with historical
destination sales data creates a powerful analytical tool that can provide much more than
insight.
An analysis ran by Dufry of fifteen million social media posts using artificial technology
generated new insights with respect to predicting patterns and behavioural shifts of travellers.
These insights go beyond traditional passenger segmentation based on travel needs and
demographics, allowing to better identify trending topics and build relevant customized offers
for customers. This intelligence identified three distinctive new personas with different
behaviours and needs emerging:
• Working wanderers
• Experience seekers
• Young explorers
In addition, future developments need to be observed. These future personas would be

called “Enigma”, as their preferences are not yet known.
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Retail Optimization
Working Wanderers Experience Seekers
Remote schooling and work are freeing Curated travel deals are catching the
families and professionals from homes, attention of consumers who look for
providing opportunity to fulfil travel dreams premium, personalized experiences
and career aspirations.
• Surge in luxury travel coming amid
• Hybrid working is becoming norm, with stabilizing health situation and
more people looking for flexible, loosening border restrictions
productive workplaces • Luxury lovers are increasingly looking
• With remote work here to stay, a lot of for carefully curated travel experiences
focus has turned toward portable, • Appreciation for slow travel is far from
lightweight tech fading away
• Subscription and membership models • Limited editions are thriving, indicating
are coming to travel a continuous interest in exclusive,
• There’s a continual pursuit for effective context-specific offers
brain boosters in F&B • After a long period of restrictions,
sensory retail experiences have surged
in popularity
Young Explorers Enigma
Tech-savvy, disruptive young travellers Continued consumer research will tell us

seek for travel experiences providing about the future evolution
social, meaningful, joyful moments without
neglecting sustainable/ethical values
• Travellers want to get back on the

road, but they are looking for budget
friendly options
• The travel industry is moving on to a
new buzzword, replacing “sustainable”
with “regenerative”
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Retail Optimization
• For Gen Z and Millennials, travelling is

a shared experience by definition
• Popularity of community-based tourism
is spreading (experiences owned, led
and run by local communities)
Example on how to work with customer knowledge data
 Young passengers
We note a growing gap between the younger generations and their elders regarding their
expectations in terms of shopping. These young adults and teenagers are more digitalized,
of course, but also more sensitive to environmental issues. This translates into a demand for
greater transparency on the quality of products, their production ethics, and their carbon
impact. They will prefer to buy a cosmetic brand or a product based on its reputation, relayed
by their network of influencers and friends. Storytelling is therefore key to attract and
convince. They are sensitive to alternative lifestyles, adopting products without packaging,
buying second hand, repairing. An approach not without contradictions, often assumed. It is
not a question of depriving oneself of airplanes, consumption or pleasure, but of limiting the
impact. It is also often the wallet that comes last in the choice, and arbitrations are even more
easily made in favour of economical products. Retailers should encourage them in doing
something good for the planet, recycling or compensating, in order to buy guilt-free.
Another evolution of values observed among the young generation is that which concerns
the relationship to appearance and more generally to gender. A growing number of them are
turning away from aesthetic dictates in favour of a more inclusive approach that celebrates
all types of beauty. This is currently reflected in most advertising campaigns of cosmetic
brands. In fashion, some brands are promoting gender inclusive collections in a fun and joyful
setting, without the traditional gender segmentation.
Airport retailers addressing all targets need to be flexible and adaptable to meet such
different expectations.
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Retail Optimization
 Passenger-shopper expectations
The airport is an exceptional place for retailing. With its environment rich in imagination
(travel, escapism, leisure, duty-free, localism, exoticism, prestige), there are numerous
advantages to attract the most varied consumer typologies, regardless of their expectations.
Nevertheless, the passenger goes to the airport to travel and so the airport’s challenge is to
kindle the desire to buy. One of the keys lies in the pertinence of the offering.
Retail area at Manchester Airport
REMEMBER:
• Continual updating of customer knowledge
• Attract more international passengers
• Broaden and adapt offering to your profiles
• A state of mind to be liberated to trans-form
the pax into a purchaser
1.4 THE RIGHT MIX OF RETAILERS AND BRANDS
Every airport must carefully analyze the expectations of its passengers and their
propensity to spend in order to establish a coherent mix of retailers that will trigger
the impulse to buy.
Small and mid-sized airports that do not have a large international clientele must try to
propose trendy retailers in order to generate volume. Well-known retailers reassure
passengers and encourage them to quickly make their purchases.
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Retail Optimization
Retailer mix at Budapest Airport
It is a question of clearly defining the right balance between the different shop types; it is
imperative that it be adapted to passenger expectations. If buying in airport shops requires a
long period of reflection, either because of the price or because of the complexity of the
offering, the bet for the airport and its retailers is lost.
Every airport must adopt the right mix of retailers and brands with regards to its passenger
typology. There must be a balance between long-standing high-performance retailers, new
concepts, and exclusive retailers adapted to the clientele.
The market level of these shops must be scrupulously studied. The trend is to propose an
ensemble of accessible retailers in order to encourage and trigger both impulse and planned
buying. As for the small airports, they must work on an assortment of products at prices that
are in line with passenger expectations.
Passengers can see attractive window displays with brand products. The objective is to
benefit from the drawing power of retailers that offer quick and affordable purchases to the
clientele type.
Example of Brand Universe
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Retail Optimization
Each airport should consider the right mix in setting up its strategy depending on its
passenger profiles. The mix should be analyzed through different perspectives:
● Its brand awareness in finding the right mix of niche versus more international
brands. Depending on the passengers, some will be more attracted by
internationally renowned brands and others seduced by local ones. The mix will
define the specific identity of the airport retail.
● The product offering through setting up various formats as Duty-Free shops,

specialist retail shops, News & Gifting, convenience shops, kiosks, and pop-up
shops. Some of the formats are essentials. We suggest at least to offer one
convenience store, while other formats are more dependent on your specific traffic
mix and passenger behaviours. Touristic destinations may have for instance a
bigger share of gifts and local pop-up stores. The challenge for the commercial
master planner is to find the right size of these categories in the commercial portfolio
of the airport.
● The value pillars of the concessions master plan. Some of the concessions
typically provide a regular and steady baseline of revenues; these units provide a
good baseline of sales and are less sensitive to economic downturns and changes
in customer behaviours and preferences, such as popular items like alcohol and
tobacco that assures stable income. A second group includes concessions that
shall provide better margins (upscale/luxury units that target a fewer high-spent
passengers). Finally, some brands and concessions deliver image and destination
awareness; these are units that generate quality traffic and improve awareness of
the airport as a destination through fancy and imaginative propositions.
The example below illustrates how the product offering components contribute to the overall
retail revenues in a regional airport such as Glasgow (UK).
Retail revenues at Glasgow Airport (% 2019)

Source: GLA airport, 2019
 International brands versus localness
Well-known brands reassure customers, encouraging them to shop in full confidence.

Nevertheless, engaging with international o upscale brands that provide high margins could
be challenging for small and mid-size airports which have not achieved yet a minimum critical
mass to make them attractive to such brands. Some ideas to “jump the fence” are to set up
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Retail Optimization
smaller shops, to offer some “image elements” such as a trendy environment and enhanced
visibility among the airport community through specific communication campaigns.
Especially for regional airports, a local positioning of its retail is mandatory. This assures a
recognizable and more authentic identity of each airport in comparison to global standards
duplicated all over the world. In addition, most of the airports are owned by local instances
so the objective is also to promote the region.
Local retail examples from Kristiansand (Norway) and Tenerife Airports
Local retail examples from Tenerife and Dalaman Airports
Some regional airports with a large share of inbound traffic (such as Dalaman in Turkey),
have been able to work collaboratively with international retail operators in order to bring local
firms under their umbrella without undermining sales of the main product categories.
 The right sizing of the mix
Shops have different typical sizes depending on their category, and the commercial master
plan needs to accommodate these different needs accordingly. While specialist inline shops
usually take up circa 80-100m2, Duty-Free areas usually occupy much wider spaces. Small
concession spaces that remain available as a result of the terminal architecture typically are
suitable for pop-up stores and kiosks.
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Retail Optimization
Layout of retail spaces (Source: Design Solution)
The chart below shows the typical number of retail outlets in airports of less than 5Mpax,
according to the ACI data. Some conclusions can be extracted:
• The right benchmark of retail surface for small and mid-size airports should sit
between 300-500 m2 of retail space per million passengers (low and high ranges
respectively).
• Even the smallest airports have to provide a minimum of 3-4 retail units (News &
Gifts, Convenience store, etc.).
• The average number of retail units per million passengers is 3.4; meaning that a
3 Mpax airport should have at least 10 retail units.
REMEMBER:
• Don’t feature luxury boutiques if you don’t have the PAX typology adapted to the offering.
• Feature known brands that reassure.
• Attract new mid-range retailers.
• Adapt retailer offering to passenger expectations.
• Keep part of the dream open to luxury.
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Retail Optimization
2. ENHANCE THE SHOPPING EXPERIENCE
TRIGGERING PURCHASE ALL ALONG THE PASSENGER JOURNEY
Along the passenger journey – before, during and after flying – there are many opportunities
for contact
contactandand
action that call
action thatupon
callallupon
marketing
all mix levers: e-mailing,
marketing online
mix levers: communication,
e-mailing, on-line
targeted, varied and
communication, creative
targeted, offerings,
varied attractive
and creative promotions,
offerings, uncomplicated
attractive promotions,merchandising,
uncomplicated
welcoming, and welcoming
merchandising, proficient customer service.
and proficient customer service.
More particularly within the airport, it consists of creating points of attraction for the passenger
that have an impact on the senses, and particularly sight (design and staging of retail outlets,
shop window
window displays
displaysandandproduct
product offering,
offering, ergonomics,
ergonomics and and
fluid fluid
traffictraffic flow within
flow within the
the shop-
shopping areas).
ping areas).
While maintaining the right balance between two underlying aspects of the customer
experience: surprise and reassurance.
2.1 THE CUSTOMER JOURNEY
Airport stores must trigger impulse buying and respect the fundamentals described
in the first chapter. Once these principles have been respected, there are still many
opportunities and occasions along the passenger's journey to plan and encourage a
purchase.
Throughout the passenger’s journey, even before and after, retail outlets have numerous
occasions to enter into contact with customers.
How can the impact of this moment be optimized? What can be done to attract passengers
and transform them into shoppers? Let’s explore the passenger circuit in order to reveal the
opportunities.
THE MAIN POINTS OF PASSENGER CONTACT DURING THE TRIP BROKEN DOWN IN
FOUR PHASES:
1. PREPARING THE TRIP 3. IN THE RETAIL OUTLET

• Booking transport • Atmosphere
• Digital platform of airport • Brands
• Pre-ordering from concessionaire • Offering
• Around the airport • Promotions
• Sales staff
• Merchandising
• Experience
2. BEFORE ENTERING THE SHOP 4. AFTER-SALES

• Airport info, wayfinding • Services
• Airport advertising • Building loyalty
• Seating and& dwell areas • Post-ordering from concessionaire
• The shopping area
• Shop windows and displays
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Retail Optimization
2.2 PREPARING THE TRIP
For airport retail, it is a question of taking advantage of the time dedicated to the
preparation of the trip to recruit and qualify customers, which allows a targeted
approach and a connection afterwards. Passengers usually are more open to spend
time in sharing their personal data when planning and booking their trip than when
they are at the airport.
The airport should grasp opportunities of service sales and contact with the passenger that
arise during preparation of the trip. Very often the airport can record the passenger’s contact
details during a visit to the Internet site or app. Then, a few days before the trip, the passenger
can be sent information about the airport shops and all the opportunities available.
Therefore, setting up the direct sale of “services” on the Internet site or app starts up a
relationship with the passenger. By using a CRM (Customer Relation Management) system,
the airport will then be able to maintain an upstream relationship with the passenger to
provide information about the shops and special offers. This cross-selling is an incentive that
encourages buying in the shops.
Several airports (e.g., Glasgow and Dalaman) set up a Digital Engagement Platform where
passengers can check information and also book services ahead of their arrival, such as
Digital Engagement Platform example from Glasgow Airport
priority lanes, VIP lounges or parking. A Digital Engagement Platform is an omnichannel

digital platform (app, website, chatbots...) where the airport facilitates the interaction with all
of its customers; it allows the retailer to offer one-stop-shop services through different
channels and complement the physical offering with digital purchase experiences.
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Retail Optimization
Booking for a manicure or massage at Toulouse Blagnac Airport

Passengers should not only find information about the retail area on the platform such as the
brands and their location but also enable engagement. At Heathrow, passengers can shop
online and pick up their items at a dedicated space with an employee in the retail area. At
Toulouse or Lima Airports, passengers can also book a massage or manicure even if they
are not business travellers. F&B tenants are already proposing customers to order through
apps and to pick up at the counter. These services are very appreciated by young
passengers, who are more used to these services downtown.
At this “preparing the trip” stage, airports have the opportunity to increase their passenger
sales penetration. For example, car park booking typically is a good opportunity to gather
information about passengers in order to push personalized promotions, particularly if the
airport has a big car parking business revenue stream (e.g., Lyon Saint-Exupéry Airport).
REMEMBER:
Passengers visiting the website to

prepare for a trip allows the airport to
get in touch with them. The opportunity
consists of giving, a few days before
departure, information on the flight but
also to promote the shops and to give good
deals via the development of a
digital engagement tool.
2.3 BEFORE ENTERING THE RETAIL OUTLET
Particular care should be given to the distance between the security check and the
entrance of the retail area. A space designed as a distinct “break” with a visual change
of scenery helps the passenger to relax, orientate, and prepare to enjoy the shopping
experience.
Entering the retail area at Copenhagen and Istanbul Airports
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 Creating a sense of place
Airports are one of the most complex and challenging environments in which to develop and
operate retail activities, due to the diversity of nationalities, client profiles, and demand
dynamics to be managed under one single roof.
Left, Greece Airport – Right, Toulouse Blagnac Airport

Below, Piarco International Airport, Trinidad and Tobago
Passengers are no longer making their decision to buy at airports based on the price
difference vs downtown as in the past. Exclusive products that they cannot find at their
country of origin or destination are key to attracting passengers to the shop.
Having a strong and relevant "Sense of Place" strategy is one of the main levers to increase
penetration in stores, increase the average ticket and, ultimately, increase sales. Customers
favour shopping experiences that are local, unique and authentic and that are distinguished
not only from other airports, but also from other retail channels that compete with travel retail.
 Awaken the senses so that passengers feel relaxed
A commercial environment must immerse the passenger in a unique and sensorial

experience, from the exit of the controls to the entrance to the store. These elements have
their place in particular in transitional spaces (corridors, waiting areas) where they amaze
passengers, who are more willing to make purchases.
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Retail Optimization
Duty-Free entrance at Vancouver Airport
As an example, the Vancouver Airport designed its terminal to illustrate the richness of the
country’s nature and culture. There are settings reminiscent of Vancouver’s mountains,
valleys, and rivers. All through this exposure, passengers can experience a particular “Sense
of Place. Passengers enjoy a pleasant moment while being exposed to various store
concepts.
Interactive experience at Helsinki Airport
 Creating an ambiance around the shops
The transitional spaces are a metaphor for the outdoors. Plants, natural light, open spaces,
and generous ceiling heights allow passengers to breathe before facing the confinement of
the aircraft cabin. A relaxing and biophilic atmosphere that encourages shopping. The work
on lighting and the pleasant sound atmosphere contribute to a positive experience for
passengers as they pass through the shopping area.
Copenhagen Airport
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Complementary services should also be anticipated around the shops, such as kid's
playground areas (see further on in this chapter).
Open the stores to make the offer directly approachable.

Manage airy spaces that allow for moments of breathing.
 Creating the “WOW” effect at the entrance
We should differentiate between the Core Duty-Free shop and the Specialty Retail. For the
core duty-free (which generally includes liquor, tobacco, beauty, and confectionery),
passengers should enter the area directly once they go through security. The ideal is a walk-
through shop and, in this case, at the entrance of the shop, it is important to give passengers
the space to breathe. This is an ideal area to place a 'time to gate display', a small garden,
coffee bar, etc.
For the Specialty Retail entrances must create an impact to attract passengers and draw
them into the retail outlet.
Examples from Mexico and Copenhagen Airports
 No barriers to enter the shop
For the Duty-Free shop, we have already mentioned that it is best to have a walkthrough
format. In those cases where you are not able to have a walk-though shop or where you
need additional retail space at the end of the terminals, it is important to have an open
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entrance with no barriers or windows. A free entrance will make passengers less afraid to
wander around and be attracted to the products.
When possible, shops shouldn’t hesitate to place products outside the shop, in dedicated
activation zones or pop-ups, in order to facilitate buying by bringing them closer to the
customers.
Pop-up concepts can also be considered to try new brands or new categories of products
with a lower risk in terms of capital expenditures to be afforded by tenants.
Hainan Airport activation zone
 Think modular and sustainable
Be it new technologies or collections of fashion brands, the trend is towards increasingly

rapid renewal. Consumer appetite is stimulated by an offering that evolves and surprises, if
not with regard to the products themselves at least by the staging of these products.
Airports shall design retail locations and area amenities so that they can grow in size or
function without too much additional cost. Airports need to work on modularity and flexibility.
Brands invest in places for ephemeral events and invent mobile, transportable solutions that
are quick to set up and dismantle (pop-up).
Zurich Airport pop-up store
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Retail Optimization
Encourage brands to use modular fittings for activations, which can be repurposed. For
example, the shop design of an A|X Armani Exchange pop-up at Copenhagen Airport carries
sustainable recyclable elements. Furniture is modular to be combined in different ways and
used over again.
Pop-up at Copenhagen Airport
 Split up shopping opportunities
Provide commercial areas all along the path, including the finish line. Consider the time slots
for departures and arrivals.
If a retail store is to be located by the end of a terminal pier, ensure that such store delivers
what is required by the end of the pier. Is there any F&B unit nearby? If not, some sort of
convenience stores should be provided. Is there a call-to-gate strategy in place? If so, the
airport should size such store to not overprovide commercial space in that area.
Airport retail zone with information screens. Last minute shopping at Gold Coast Airport
(Australia)
 The role of colour
Colour is the first element perceived by the customer, before shape and movement. The
colour of objects varies in relation to the source of light.
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Retail Optimization
Bright colours heighten the visual impact and thus the shoppers’ interest. Warm colours have
a stimulating effect, encouraging the purchase of lower priced products and they accelerate
the pace. Cold colours have a soothing effect, encouraging the purchase of higher priced
articles. They emphasize the aspect of quality.
Hudson store concept in Marrakech with colour code walls to identify product categories
Spirit of Cambodia shop concept with warm coloured floor
Colour blocking concept at Sheremetyevo Airport
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Retail Optimization
 The role of nature
Greening the spaces is a growing trend everywhere, be it indoor or outdoor. This responds
to human need to keep a connection with nature, called biophilia. It is proven to act as an
essential wellbeing factor, even if you use artificial plants! Most new retail concepts around
the world integrate green elements in order to make these spaces more comfortable and to
keep shoppers in and around the retail area. This can be a spectacular nature setting or
expressed in details as a bunch of flowers integrated into the display.
Oslo, Copenhagen, and Mauritius Airports
 Branding
Passengers are generally looking for recognized, international brands. Local products and
concepts are also appreciated as they distract and add some “sense of place” flair.
There is no specific need to have these international or local products in branded shops. The
tendency in the industry is to use the name of the airport or location to also identify the retail
space.
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Retail Optimization
Branded Duty-Free at Frankfurt, Agadir, and Sevilla Airports
REMEMBER:
• Find an identity that creates an original ambience (Sense of Place)

• Play on the element of surprise and the senses
• Lay out some quiet corners and others that are livelier
• Open up the shops widely- no windows
• Bring products closer to the passengers by taking them out of the shops
• Work on the colours
• Use the Sense of Place also on the brand
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Retail Optimization
2.4 IN THE RETAIL OUTLET
The retail outlet is the preferred staging area, not only to enhance the brand but also
to express its universe.
Retail outlet at Oslo Airport
 Setting the stage
Emphasis should be given to creating a consistent theme or storytelling that preferably draws
on local, cultural or technological imagination. Distinctive features are dotted around retail
outlets as a reminder of the brand’s universe or the geographic location.
Marrakech Airport Duty-Free concept
Examples of bringing sponsorship to the retail: Celtic Rangers shop at Glasgow Airport and
FIFA shop at Doha’s Hamad International Airport
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Retail Optimization
Setting the stage, examples from Hamburg and Moscow Sheremetyevo Airports
 Consistent concept
The passenger has very little time to understand the offering. To boost clarity, it is necessary
to define a strong concept based on a theme and to roll it out in a consistent way to stand
apart from neighbouring areas and to create variety.
Example of a theme-oriented shop around wellness (Courtesy of Hamad International Airport)
 Customer experience
The customer experience in the retail space doesn’t stop at the decoration; it is still necessary
to plan regular sales events: these interactions, whether with event assistants or digital
screens, target customer engagement. They leave a memorable impact while at the same
time allowing otherwise invisible products to be discovered.
Example of customer retail experiences at Barcelona Airport T1 and Malta Airport
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Retail Optimization
Promotion area at the airport in Copenhagen: photo station where customers can take photos
and share/print directly and stand to draw attention to the photo box
It is the experience that creates

the bond! Emotion and feelings
remain, whereas the ordinary act
of purchase is quickly forgotten.
 Eco-friendly space
In order to contribute to reducing the carbon footprint, energy consumption as saving

resources, some simple actions should be considered in the retail space.
• Minimize energy consumption

• Use of LED light fittings and Energy Smart LED screens
• Purchase furniture that is recyclable
• Encourage brands to use modular fittings for activations, which can be repurposed
• Promote paperless
• Minimize waste
• Maximize recycling/reuse of waste
• Offer bio-degradable bags
• Promote local brands, local supply chain
Friendly retail concept at Vienna Airport
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Retail Optimization
For example, at Geneva international airport, Aelia Duty-Free opened the world’s first eco-
responsible store equipped with furniture that is recyclable.6
Eco-responsible store at Geneva International Airport
 Excellent segmentation
In the retail outlet and for each product category, it is important to maintain a high degree of
clarity in order to encourage quick purchases.
Certain, particularly rich, product categories require major segmentation and merchandising
in order to reach this objective.
Whiskey segmentation at Manchester Airport
For example, let’s take the Whisky category, which often proposes many items from different
regions and with varying tastes likely to attract a new clientele and strengthen the section’s
drawing power. The idea is to achieve an ideal product listing and shop layout that enables
all customers (including those who have no knowledge of whiskies) to move around a user-
friendly section that encourages the discovery of new tastes and naturally leads to buying
the product.
6
Source:https://www.lagardere-tr.com/en/world-s-first-aelia-duty-free-eco-responsible-store-opens-at-geneva-
international-airport
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Retail Optimization
Whiskey segmentation at Budapest Airport

Segmentation concepts: La Casa Del Vino, The Gin Lounge, La Tequileria
Macau Airport – Specialized retail space dedicated to beauty products (P&C)
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Retail Optimization
 Make the customer's path more fluid
Customers do not all move at the same pace or have the same amount of time to dedicate
to shopping. More freely flowing spaces should be designed with multiple speeds.
Moreover, many passengers travel with a carry-on bag. It is important to design sufficiently
wide walkways to allow passengers to stop in front of the shops without obstructing others.
Alicante Airport
Provide shopping carts that are of right size (a lady's standard sized handbag should be able
to fit.)
REMEMBER:
The offer is the key element in the purchasing act:

It must therefore be perfectly adapted to the
expectations of the targeted clientele while being
"sublimated" by a theatrical display of the point of
sale - a reflection of the brand's DNA - and
impeccable merchandising facilitating the
readability and understanding of the offer.
2.5 OFFERING
Customers, tired of standardized offerings that are less and less attractive, are no
longer tempted to buy. It is important to develop a new and original offering, specific
to each airport.
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Retail Optimization
 Local products
Showcasing local producers and products presents an opportunity of creating a bond and
promoting craft industries─an almost exclusive offering seen by customers as an extension
to their holidays or as gifts from their region.
From the airport’s point of view, these are smaller stakeholders for whom the methods of
listing need to be reviewed.
Incoming passengers are especially looking for a locally produced premium gift to take home.
Each airport can develop this “local touch” within the framework of quality staging. This also
enables a different offering to be promoted that breaks away from this vision of soulless
airports.
Discover Glasgow, an example of how to bring the local products to the airport
Local products display at Copenhagen, Santo Domingo, and Sydney Airports
Copenhagen Airport proposes a mix of local and international retail brands. Promoting local
brands and local supply chains seems to be more appealing to younger and environmentally
conscious travellers.
 Cutting-edge products
Cutting-edge products are exclusive, innovative offers that stage the airport as a distribution
channel, offering the new sneaker, headphone, beauty product, etc. at the right time.
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Retail Optimization
The airport is a privileged distribution channel for new product launches and new designers.
Previews should be exploited in terms of communication for maximum impact. Exclusive to
the airport is a key selling line for brands.
Exclusive tobacco offering display at Hamburg, highlighting new products in a beauty store
 Fun products
Passengers must find in airport stores offers related to their trip and the pleasure of leaving
or returning with a gift.
The offer must allow these purchases that prolong the trip and arouse the impulse and
pleasure with surprising offers. Offers with packaging adapted to the impulse and to
transportation, with affordable, soft prices. The offer must be well worked out to allow gift
purchases for children, sweets to bring back, originality.
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Retail Optimization
 Affordable products
Position 'luxury' brands to the airport’s clientele. Make luxury goods more accessible with
visibility and promotions.
Different studies carried out have shown that not all airports should have luxury boutiques.
Airports that mainly have outbound traffic must adapt their offer to their clientele who often
expect to find mid-range products that are easy to buy. The objective is to create volume in
order to have attractive margins. Conversely, having upmarket boutiques allows certain
passengers to gain access to luxury products thanks to a feeling of privilege fostered by the
fact they are travelling. These customers would never usually go into this type of retail outlet.
A balance needs to be found.
Exclusive shopping at Berlin Airport (BRE) – Kering Eyewear brand boutique
Examples of specialized brand boutiques located in airports
 Fresh and creative products
Striking up partnerships with design centres in order to take advantage of the frequent
renewal of collections is an approach to be developed.
To provoke an interest in shopping among frequent flyers, the dynamic of the offering must
be perceptible. Here, more so than elsewhere, shops must make the effort to order products
that are continually different to maintain awareness and trigger the desire to once again go
into their retail space, e.g., local art being promoted in an airport works well to create newness
and interest.
There must be an ongoing movement and renewal of products.
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Retail Optimization
 Matching
The offering must be able to evolve over the course of the day according to the different flows
of passengers going past the shops.
For instance, the ideal would be to present cigarettes and perfumes that are popular with the
North African clientele as they go past the shop at midday, and then, at 2pm, display specific
products on the aisle-end shelving for passengers on afternoon flights.
 Cross-selling
Cross-selling has become increasingly frequent in order to encourage flows towards and
between retail spaces. Improved alliances between retailers are necessary to be able to take
this aspect even further.
Like concept stores, the shop can mix several activities. This approach aims at responding
to lifestyle choices: a global offering for a precise target.
 Sustainable products and packaging
With rising concern about the impact of consumerism on health, environmental and social
issues, customers are expecting sustainable choices in retail. Consumers are increasingly
scrutinizing products, asking for clean ingredients, animal welfare, local production, recycling
and more. Shop assistants, digital or human, should be prepared to answer in a transparent
manner. Conscious consumerism concerns all ages, high- or lower-income countries, all over
the world.
Second-hand and vintage products are popular especially among the younger generation.
This concerns mainly fashion and accessories.
Sustainable offering in Spain - shopping bag in paper
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Retail Optimization
Sustainable shopping bag options by Heinemann:

paper bag or reusable plastic shopping bag. Product assortment with low packaging
Wherever possible, Lotte Duty-Free rolls out eco-friendly shopping bags and packaging
across the network and introducing biodegradable materials. In some jurisdictions,
regulations may impose restrictions in the type of shopping bag materials to be used for Duty-
Free products.
REMEMBER:
The right recipe for every passenger to be happy:
• A pinch of modernity, unusual and trendy products

• A local touch
• Products that match the clientele in terms of range (mid-range / upmarket)
• Products that are always different from one month to another
• A mix of several activities in the same retail outlet
• All embellished with an offering that focuses 100% on the fun of buying and giving!
AIRPORTS MUST DIFFERENTIATE THEIR OFFERINGS.
2.6 PRICES AND DISCOUNTS
All airport customers have heard about Duty-Free, and they therefore expect to also
get some good deals on products. Impulse buying is often triggered by an attractive
price. However, airport retail should avoid being perceived just as a bargain
destination and will be more profitable in offering an exclusive retail experience with
fair prices.
Airports need a clear vision about their retail positioning. Most airports communicate about
their unique offer and fairness of price versus other airport and downtown offers. Often,
in-store promotions focus on 'savings' versus downtown pricing.
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Retail Optimization
Pricing at Hamburg Airport
 Pricing that makes sense
Pressure on prices is accelerating in all retail outlets. Customers use price comparison
websites and find out information before arriving at the airport and while shopping at an
airport.
Airport shopping, even Duty-Free, can be perceived by customers as being expensive. This
may send out an image of luxury (with the prices to match) that should be eliminated through
a strategy of proactive promotion. However, we caution against excessive use of promotion.
Just reducing the price does not make sense and confuses the client. Use promotion as a
lever to increase penetration to the shop, make volume or create brand awareness!
Example of promotional display at Busan Airport and Oslo Airport
For example:
• Offer promotion for clients who buy items in a batch (for example “buy 2, get 3”)
• Put a promotion in the centre or just at the right side of the entrance. This will tempt
the customer to enter
• Place one promoted item to drive attention to a whole range of products, or a
specific brand
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Retail Optimization
Discount vouchers given by airports to passengers are a good way in which to encourage
them to visit the shops. For example, over 10% of customers went back to the shops following
coupon campaigns at Marseille-Provence Airport.
 Package offering
Make special offers directly to customers on different product families. For example, combine
the sale of a book with a packet of biscuits to enjoy two moments in one.
 Understanding Duty-Free and Duty-Paid
Excised categories, like tobacco and alcohol, may be available in a shop with two different
tax regimes – duty-free (completely exempt of duties and taxes for international travellers,
within certain quantity limitations) and duty-paid (duties and taxes of the departure country
apply). The European Union (EU) provides for such a model, whereby duty-free regime is
not available for travellers between Member States within the EU, but in some of these
countries, travellers can purchase the respective domestic product in the airport duty-free
shop, referred to as domestic duty-paid. In the EU, a duty-free regime is available to travellers
outside the EU, based on their boarding card.
In order to facilitate the navigation of the category in a duty-free and duty-paid setup, the
recommendation is to split the category in two sections if the assortment is different. Clear
signalling of the sections, colour coded: green for duty-free, in line with the nothing to declare
exit option, and blue for duty-paid is a common practice within the EU. Signalling can include
headers, price tags, educational leaflets (on the duty-free/duty-paid applicability, lists of
regions, countries) in the fixtures.
If the assortment is the same and the duty-free or duty-paid price is applied at the cash
register depending on the boarding card destination, double price tags on the shelves (colour
coded, indicating regions, countries) will help consumers understand which price is
applicable.
Left, example of double price tag

Right, example of separate display for the duty-free and duty-paid assortment
Indeed, all the key factors to success might very well be in place within or upstream from the
retail outlet. However, if the single duty-free price offered by certain retail operators on
products such as perfumes and cosmetics is not clearly explained (by the sales team) and
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through effective communication, shops miss out on a large part of duty-paid turnover, which
can prove to be a significant lever for growth for the retail operators.
Duty-Free stores should be a retail destination as easy to visit as any other point of sale. The
challenge is to emphasize customer advantage and not remain stuck on technical terms
(duty-free and duty-paid).
Be careful not to overload price labels with too much information and be consistent with all
the products.
Above all, it is a question of working on communication to highlight reference prices known

by the customers on some products and show the real price reduction that the customer can
have. In Asia, for example in Hong-Kong where there is no tax on beauty products, airports
apply the similar prices as downtown, but differentiate the offer by having exclusive travel
retail sets, exclusives to the airport retail location, etc.
REMEMBER:
• Enable customers to have immediate understanding of the prices.
• Work on permanent special offers to create the reflex of getting some form of
special offer at the airport.
• Propose package offerings with entirely different products (e.g., food/non-food items).
• Be factual when it comes to the customer advantages on prices, without talking

of Duty-Paid or Duty-Free, but rather display the price discounts:
it’s better to communicate in concrete terms.
2.7 MERCHANDISING
Merchandising at first is about helping customers find the right products. Shopping habits
changed during the COVID-19 pandemic. Clients are now more interested in new product
categories, lab brands, new brands, and brand experiences. Generally speaking, airport
shopping will be driven more by experience, with the travel retail location as a cultural
destination.
The Six Rights of merchandising according to Keppner
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 Organization of shelf display
In order to be easily understood and attractive, shelf displays must segment the assortment
(by sphere, section, and product family) according to the target’s key to understanding. Not
every location has the same potential. Generally speaking, the best sales are made from
mid-shelf facings at eye-height. Selling units should be at the appropriate height for everyone;
think to adapt displays and gondolas for shorter people (e.g., gondolas in travel retail Asia
are generally shorter).
Each sphere and product must be strategically allocated to a specific part and location on
the shelving display.
There are key brands that are popular for each nationality. They should be well displayed
and promoted. For example, in Dubai brands like “Crème de la Mer” drive attention. Country
duty-free exclusive must be highlighted, these are key, especially when these are not
available in the domestic market.
Using performance analysis tools is essential in order to fine-tune shelving organizations.
To avoid monotony and to grab the customer’s attention, adjust presentation methods:
• Horizontal or vertical
• Unit (prestige), grouped (impulse), linear (choice), mass (new products), bulk
(special offers), etc.
• Make use of selective advertising to promote the offer (e.g., side of gondolas)
 Communication on point-of-sale
Point-of-sale (POS) advertising, signage, information on the retail outlet, special offers, etc.
is crucial. Give priority to information regarding quality, at the right place and at the right time,
rather than quantity of information: it is about reassurance, above all. By the time customers
read the third advertising message, they will have forgotten the first message!
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Special promotion at Vilnius Airport
Use the sides of the gondola to promote what is exclusive for the airport.
POS advertising at Hainan Airport
 Check-out
All shoppers need to pass through the checkout space: optimize its accessibility (location)
and, promote impulsive shopping towards and around the checkout area.
Some operators tend to clutter the checkout like a supermarket. What is the strategy? Think
about cross-merchandising, products that are complements to the shopping, small or
selected travel essentials. Don’t try to put a bit of everything, cookies, chewing-gum, perfume.
Be selective!
In order to be more sustainable, some airport retailers like Lagardère Travel Retail United
Kingdom and Ireland stores promote paperless receipts.
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Paperless receipt with the Lagardère app and check-out area at Frankfurt Duty-Free
REMEMBER:
• Create clear and quickly identifiable spheres
• Develop spaces dedicated to highlighted products adapted to targeted customers

and/or events… they must have a high visual impact!
• Provide quality information rather than copious information
• Optimize layout of operational elements: checkout, circulation spaces
2.8 SALES AMBASSADORS
Staff are not only there to welcome but also to encourage customers to discover,
appreciate and purchase the offer.
Their objective is to provide customers with a meticulous and friendly welcome,

consideration, and suitable bespoke recommendations. Sales ambassadors play an
essential interaction role by accompanying customers, especially those who are hesitant to
buy.
This starts by understanding the profile of the passengers. Depending on the culture,
passengers are more or less sensitive to the greeting of the sales staff. For example, Asian
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customers appreciate attention as they walk around the shop, unlike westerners who prefer
to be left alone somewhat. Addressing customers in their own language is an undeniable
plus to encourage purchases. Basic grooming and language training should be available for
sales staff.
In a context where we are looking to provide a sales experience, the aim is to develop a
relationship with customers. The sales ambassador should be able to tell the story of the
products and explain the pricing mechanisms, promotions, and services offered. This
happens through appropriate training for sales staff with regards not only to the brand’s
products and environments, but also to new, connected retail technologies and additional
services. This is especially strategic for VIP lounge customers.
In a time of staff shortage, there is a need to consider the lack of consideration and complexity
of the sales ambassador’s job. With growing security measures and longer distances, they
face stressful situations. They have to juggle between several brands. Fashion retailers
trained and equipped their vendors with digital assistants in order to help them in their daily
talks and facilitate client care.
Staff at Copenhagen and Moscow Sheremetyevo Airports
REMEMBER:
The role of the sales assistant must evolve

within the shop; speaking to customers has
become a priority in order to create a connection
and conclude the purchase.
The sales assistant is the brand’s ambassador

conveying its philosophy and values.
2.9 AFTER-SALES
The relationship with the customer does not end at the act of purchase; it goes well
beyond in order to retain loyalty, encourage further purchases, and transform the
customer into the brand’s ambassador.
 Gathering feedback
Customer feedback can be given at all stages and through any media.
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Airport businesses enter a relationship with the passengers and collecting live feedback is
critical to ensure they can respond to their demands accordingly. Social media plays a key
role.
 Exchanges and returns
Retailing in airports will be much more effective if the passenger is reassured about the
possibility of exchanging the product. Therefore, strengthening exchange or proposing a
service of product return management, even if the shop is in the reserved area, is a strong
lever in triggering a purchase.
Likewise, offering advantages and reductions to certain passengers can prove to be an

effective lever in triggering a purchase.
A loyalty program and the possibility of proposing special offers is an asset that can attract
frequent flyers. It should, nevertheless, be reviewed in relation to the typology of each airport,
as the number of frequent flyer passengers must be sufficient to make this approach
profitable.
REMEMBER:
It is important to reassure the

passenger: allowing subsequent
exchanges by using the brand’s and/or
retailer's network or having a way to
directly contact the shop are strong
levers in encouraging a purchase in an
airport.
2.10 SERVICES
The primary function of the services provided must be to facilitate the shopping
experience for passengers by offering simple solutions adapted to different types of
customers. They must also ease the passage through the airport to free up useful time
that can be transformed into a purchase.
Beauty lounge with nail bar at Glasgow Airport
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 Shop & Collect
The Shop & Collect system provides departing passengers with an opportunity to buy and
not be bothered by carrying the product with them while on their business or leisure trip. They
can collect their purchases from the arrival hall when returning.
The prerequisite for this is a retailer omnichannel approach (full assortment available online
on the retailer’s website and a dedicated app, integrated into the airport’s website).
 Pre-Order, Click and Collect
This possibility allows passengers to reserve their desired product online before reaching the
airport and then collecting and paying for it in the retail shop. For example, Lagardère offers
pre-order, click and collect service, whereby travellers select the product(s) online 12 hours
prior to departure, obtain a 10% discount as well, and pick up in the store at the airport. This
service is also available for multiple Aelia Duty-Free locations.
Click & collect counter at Copenhagen Airport – Reserve & collect counter
 Childcare centres
Keeping children entertained while the parents go shopping requires space and
entertainment especially dedicated to children near to the retail outlets.
 Leisure amenities
Airports across the world have recognized the importance of improving passenger
satisfaction and comfort levels. A 2019 study of airports by Catherine Prentice and Miriam
Kadan found that there is a significant relationship between airport service quality and airport
reuse and destination revisit. 7 This suggests that if an airport can improve its service quality
delivery levels, there is an increased likelihood that passengers would choose to use that
airport again and possibly revisit the destination. This is especially true for airports that
position themselves as hubs. Airports leisure activities provide avenues for rest or recreation
for transit passengers with extended amounts of time between flights.
Small and medium-sized airports can also offer leisure amenities. The Punta Cana
International Airport in the Dominican Republic, for example, has a VIP lounge with a rooftop
swimming pool. The Sangster International Airport (MBJ) in Montego Bay, Jamaica and the
7
Catherine Prentice and Mariam Kadan, “The role of airport service quality in airport and destination choice,” Journal of Retailing and
Consumer Services, Volume 47, 2019, Pages 40, ISSN 0969-6989,
https://doi.org/10.1016/j.jretconser.2018.10.006.(https://www.sciencedirect.com/science/article/pii/S0969698918306143)
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Piarco International Airport (POS) in Trinidad and Tobago have art exhibitions that highlight
the cultural heritage and contribute to a sense of place. POS also has a children’s play area
in the Caribbean Airlines Lounge and a central atrium area with screens where airport users
can sit comfortably and use their laptops, watch videos or sporting events, and relax.
The following table presents a non-exhaustive list of airports with leisure facilities.
Airport (s) Examples of leisure amenities

Chubu Central International Airport, Japan Observation deck where passengers
can get fresh air and see aircraft
landing and taking off
San José International Airport, USA Airport therapy pets. Passengers can
Denver International Airport, USA hug pets and take pictures of
Los Angeles International Airport, USA animals.
Paris Charles de Gaulle Airport, Paris, France Children’s play area
Taoyuan International Airport, Taiwan
Piarco International Airport, Trinidad and Tobago
Minneapolis-St. Paul Airport, USA Movie theatre
Portland International Airport, USA
Changi International Airport, Singapore
Hong Kong International Airport
Munich Airport, Germany Swimming pool, medical facilities,
salons, barber shops, steam bath,
fitness centre
Hamad International Airport, Qatar Fitness centre, spa, swimming pool,
squash, art exhibition
Heathrow International Airport, UK Yoga rooms
San Francisco International Airport, USA
Dallas Fort Worth International Airport, USA
Helsinki Airport, Finland
Frankfurt Airport, Germany
Changi International Airport, Singapore Gardens
Vancouver International Airport, Canada
Ben Gurion International Airport, Israel
Honolulu Airport, USA
Ben Gurion International Airport, Israel Art exhibitions
Sangster’s International Airport, Jamaica
Piarco International Airport, Trinidad and Tobago
Athens International Airport, Greece
Philadelphia International Airport, USA
Amsterdam Schiphol Airport, The Netherlands
Children’s play area, Caribbean Airlines Lounge and
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the Atrium at Piarco International Airport (POS) in Trinidad and Tobago
The Guitar Bar at Sangster’s International Airport (MBJ), Jamaica
 Customization
Service for engraving or printing on products can be provided to customers, upon request.
This enables to personalize their gifts.
REMEMBER:
Services = Facilitator
Give time to passengers and transform

them into shoppers.
Services create positive moments that

can change the state of mind of
passengers and enable them to relax.
2.11 SIGNAGE
Signage is critical to drive passengers with reassurance towards the shops.
Specific signage dedicated to shops must be created that matches the airport theme, value
proposition, and wayfinding.
This signage must be developed to encourage passengers to visit the shopping areas. It
must tend towards more dynamic and digital methods. A simple logo or floor plan is not
sufficient to drive passengers. The signage system must be evocative and relate to the time
available, include in the signage an idea of the time required to walk between the areas and
then to the gate.
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Area signage at Istanbul and Moscow Airports
REMEMBER:
Independent, identity-type signage of the

information system is necessary to highlight the
shops. Using digital signage enables the spotlight
to be placed on certain shops in relation to
specific periods.
2.12 A COMMUNICATION ECOSYSTEM
To be able to see from afar the shopping areas where “something special might be
happening”.
The challenge for airports is to set up the most appropriate system to publicize the offer and
promote purchases in airport shops. It is necessary to give meaning and visibility to the
purchase in order to create legitimacy and exclusivity of the purchase in airports.
It is therefore necessary to create the exclusive character of the purchase, including the
products, for an omnichannel promotion, on billboards and on bags to mark the airport
purchase. It doesn't matter if you have a brand name, the main thing is to create a global
synergy on all the physical or virtual media to create desire, exclusivity and to incite the
purchase.
REMEMBER:
Successful communication is achieved by a

balanced and suggested presence of retailing in
airports on various media ranging from Internet
sites to remote displays and retail outlet staging.
The communication ecosystem must reinforce the
act of purchase.
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3. INCLUDE DIGITAL
SMART DIGITAL SOLUTIONS FOR CONVENIENCE AND SHOPPING EXPERIENCE
With digitalization, we are experiencing rapid social change that affects all facets of
our daily lives. People can inform themselves, act and interact in real time, whenever
and wherever they are. Forged in the pandemic, online shopping became a vital
solution and accelerated the growth of digital shopping as an accepted and even
favoured retail channel.
The development of connected digital technology has now profoundly changed daily life and
with it the consumer buying behaviour. Today, products are equally accessible in a retail
outlet as on an internet site. As consumers, we are now familiar with finding the best offers
on the internet, comparing products and being informed of the latest special offers; we expect
perfect flexibility whether buying physically or digitally.
Faced with these new types of behaviour, you would think airports would have to join in this
technological race to keep up. But offering a stand-alone travel retail version of ‘instant-
everything-everywhere’ shopping, especially for mid-size and smaller airports with limited
resources is probably unachievable. So, what should be done?
It is all about using digital technology to capitalize on convenience and the physical shopping
experience.
3.1 DIGITIZATION OF RETAIL OUTLETS
‘Always-on’ digital retail has led to the repositioning of the function of the physical
shopping environment. Unlike both the high-street and the internet, travel retail has a
captive audience. Airports should therefore concentrate the unique shopping
experience and use digitization to make airport shopping more convenient and
valuable.
First, we have to define what we mean by digitalization of retail.
Digitalization is not just about screens. It covers offering multiple payment options (e.g.,
Alipay, WeChat, ApplePay) along with offering multiple payment methods (e.g.,
self-checkouts, mobile tills, smart baskets).
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Digitalization can facilitate added value service options such as click & collect, locker stations
and even home delivery.
Add in technology, such as electronic shelf price ticketing, geo-fencing, near-field

communications, beacons, QR codes, and you realize that there is still some way to go for
travel retail.
Self-scan at Copenhagen Airport
 Discovery and information ─ digital technology to the rescue of choice
Digital tools can be an interface between the customer and the seller. When used well, they
enable peer-to-peer support to be given to increasingly jaded shoppers who are more
informed about the products than the sales assistants.
Online shopping and loyalty program application
One thing is for sure, installing interactive devices such as iPads has not been the answer.
Consumers prefer to be literally 'left to their own devices' and use their own mobiles. That
said, it’s the information, not the device, that can build a relationship between the sales
assistant and the customer, providing that the sales teams are prepared and well trained.
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REMEMBER:
It's about customers referring to
their mobile devices, which is key.
 Fun environment, immersion, contextualization ─ an interactive ambiance

thanks to digital technology
Filling stores with ever-increasing amounts of digital signage and multimedia technology in
the vain attempt to 'be more digital' can be a fool's game.
Digital screens are only as good as their content. And for small to medium-sized airports, it
can be a false economy. Besides overburdening the organization with multiple layers of
operational complexity and cost, most shoppers do not even notice it is there. Digital screens
can quickly become moving wallpaper, a white noise that is, to all intents and purposes, an
expensive lava lamp.
The aim is to make the shopping experience more convenient and valuable by personalizing
each customer experience. It is about capitalizing on the time spent in the shop, the sweet
spot in the entire customer journey.
Whiskey discovery table
From Beauty Tech Lipstick Bars and mirrors to readily available online product information
and from Augmented Reality activations to shared social media experiences, digitalization
can add value to the shopping experience, but mid-sized and smaller Airports will need to
engage with retailers and brands that already use digital as part of their customer
engagement and retail theatre.
Magic Mirror Lipstick Bar at Copenhagen Airport
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REMEMBER:
It's not about installing interactive displays
everywhere. People prefer their own personal
digital devices. It's more about creating a captive
experience that is different to both the high street
and the Internet.
3.2 PERSONALIZING AND BROADENING THE SALE
The continued development of new technologies and smartphone apps opens a whole range
of possibilities to form new relations. Real-time sales data combined with customer
geolocation data means retailers can directly send timely offers to passengers (provided the
user grants permission).
 Geofencing
Despite the promise of great things, a decade ago, Geofencing and Beacon/NFC
technologies are still to be utilized heavily within high-street retail and have yet to be deployed
within travel retail. The back-office systems and processes to keep offers relevant and timely
are considerable, making the technology comparatively expensive.
New technologies require an effective CRM system, and there are obvious economies of
scale benefits if digital technology is combined with an existing loyalty program. Personalized
recommendations and offers to VIP customers can make a difference to spend per
passenger (SPP). Airports will need to work with retailers and brands already investing in the
technology to get economies of scale.
Customer retention program
REMEMBER:
Digitalization can be successful in personalizing

the offer and increasing SPP (spend per
passenger) especially if combined with data from
loyalty programs.
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 Social media
Social media is a hungry beast. Running social media demands investment in continually
uploading topical and appropriate content (usually via an external agency) to become and
stay relevant for the target group. Fulfilling this demand might not be commercially effective
based on a smaller target group of small and mid-size airports.
Airports should focus on allowing the target group to create digital content based on the
airport and the shopping experience.
Photobooth at Hamburg and Piarco International Airports

Instagrammable moments from Malaysia and Australia
These "Instagrammable" moments not only tap into the desire for people to share and even
boast about their experiences but also add authenticity to the airport's story. A word of
caution, however, is that experiences have to be positive, valuable and worthwhile;
otherwise, the wrong message will be shared.
REMEMBER:
The focus should be on creating positive

"Instagrammable" moments for people to share on
their own preferred social media platforms.
 Broadening the offering
Web opportunities enable shops to broaden the range of products they offer to their
customers. Whether offering a product in another colour or increasing the range of available
products, retailers can present passengers with a more substantial assortment. The principle
is to make the sale in the shop thanks to the brand's e-shopping site and have the purchase
delivered. The customer is at the heart of a multi-channel system.
The advantage for the airport is to make the sale in situ while offering more choice to the
passengers. This should give some ideas for implementing new concepts in airport shops.
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REMEMBER:
Propose other brand products to customers in

the shop. The products can then be chosen
online and delivered to the customer's home.
The purchase is made in the airport shop and
contributes to shop turnover.
3.3 INCREASING SALES CHANNELS
 From single channel to a multi-channel commercial strategy
Single channel commerce refers to an approach in which a business, such as an airport retail
or duty-free operator, relies solely on one distribution channel, e.g., its own physical store or
its online presence. For decades, this has been the approach used by many businesses in
the airport environment. This approach yielded good levels of success prior to the rise of
e-commerce and smartphones. These technological advances allow customers to compare
prices, research options, and access products and services from online retailers without
having to travel. Therefore, a retailer relying simply on its physical store for distribution of its
products could be at a disadvantage when facing competitors with multiple channels such as
both an online presence and physical locations.
Prior to the rise of e-commerce, businesses operating in airports would seek to attract
customers to their physical stores in airports through promotions, signage, advertising and
appealing store layout and design. Airport retail operators using a single channel approach
of their airport locations are still able to experience increased revenue in airports where;
1) passengers enjoy adequate levels of “dwell time” (free time not spent on passenger
processing), and 2) passengers have a propensity towards impulse purchasing. However,
consumer behaviour at airports is changing.
Chart showing the shift from single channels to multiple channels to an omnichannel strategy
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There appears to be a gradual shift from impulse shopping towards planned purchases.
According to Roberto Grazini, Executive Vice Chairman of the retail group 3Sixty Duty-Free,
51% of passengers now make decisions to purchase prior to arrival at the airport. 8 Research
by the Duty Free World Council shows that in Q4 2022, 31% of passengers could be
classified as Specific Planners, i.e., passengers who planned to purchase a specific product
or brand prior to travel. 9 This surpassed the 26% of passengers who were identified as
impulse buyers in the same survey.
Worldwide consumers are both:
• Spending more time on their smartphones

• Purchasing more via those devices
Considering these trends, duty-free operators and airport retailers should consider
developing additional channels in order to have more touch points with passengers along
their journey, drive sales growth and compete on multiple fronts.
 Advantages and critical factors for success with a multi-channel strategy
ADVANTAGES OF A CHALLENGES CRITICAL SUCCESS

MULTICHANNEL APPROACH FACTORS
24-hour access to customers Consistent customer

experience across all
channels
The ability to gather more Sometimes relevant Sharing data across all
information on the customer, information gathered on channels and points of
deliver personalized service and consumers in one channel contact so customers can
increase brand loyalty is not available at other avoid being asked to
points leading to consumer enter information they
dissatisfaction, inefficiency, previously entered
or loss of opportunities to
cross sell
Securing customers data
The ability to fulfil customers’ Sometimes customers’ Analyzing consumer data

expectations beyond the experience can vary from to be able to tailor make
limitations of a physical airport one channel to another responses and maintain
retail space satisfactory inventory
levels
Summary of the advantages, challenges and critical success factors associated

with a multi-channel commerce strategy
8 Ryan Ghee, “The Future of Airport Retail Is Defined by Data, Omnichannel and Personalization,” Future Travel
Experience, May 16, 2019, https://www.futuretravelexperience.com/2019/05/future-airport-retail-data-omnichannel-
personalisation/.
9 Duty Free World Council (DFWC), “DFWC Quarterly Global Shopping Monitor Q4 2022,
https://dfworldcouncil.com/wp-content/uploads/2023/02/DFWC-KPIs-Q4-2022.pdf
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Retail Optimization
 From multiple channels to an omni-channel strategy
As shown in the summary above, there are challenges posed by having multiple channels. If
the challenges are not addressed satisfactorily, the customer experience from channel to
channel could be disjointed. Moreover, airport businesses may not be able to harness the
full range of commercial opportunities if there are not seamless connections between
channels and a centralized database. Having multiple channels should not be seen as an
end in itself. Some experts advocate that the ideal should be an omni-channel approach.
An omni-channel commerce approach is defined as a multi-channel approach in which all

existing channels become completely integrated to offer customers a seamless shopping
experience. 10
The following are critical success factors for an omni-channel commercial strategy:
• Seamless experience across all channels

• Effective partnerships between airports, airlines, retail concessions
• Centralized data management
• Consistent customer experience across all channels
• Sharing data across all channels and points of contact so customers can avoid
being asked to enter information they have previously entered
• Securing customers data to retain trust
• Effectiveness in analyzing consumer data to be able to tailor make responses and
maintain satisfactory inventory levels
 Examples of best practices
ASIA PACIFIC
KrisShop is a joint venture partnership between Singapore Airlines, 3Sixty and ground
handler, SATS. Based at the Changi International Airport in Singapore, KrisShop is
recognized as a leader in omni-channel marketing. In fact, in 2022 KrisShop was awarded
the Retail Asia Award for Omni Channel Strategy of the Year-Singapore.
Purchases can be made in flight (on board Singapore Airlines flights), online from their homes
or destinations, on the way to the airport on mobile devices, and physically at the KrisShop
store at the Changi International Airport.
KrisShop leverages technology to allow Singapore Airlines passengers to pre-order products

up to 60 minutes prior to their flight. While on flights, Singapore Airlines passengers can
complete purchases through the airline’s in-flight entertainment system. Passengers can also
obtain live updates on the availability of their order and on the status of credit card
authorizations.
EUROPE
Frankfurt International Airport has an omni-channel airport marketplace solution in place.

Purchases can be done at the airport or online. Through the airport’s Click & Collect service,
passengers can place their orders as much as 28 days before travelling and pay for them at
the airport and continue along their journey.
10What is Omnichannel Retail? basics explained. World's #1 POS for Magento. (2022, July 19). Retrieved March 13,
2023, from https://www.magestore.com/omnichannel-retail-guide/what-is-omnichannel-retail/
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Retail Optimization
Other worthy mentions: Copenhagen International Airport, Denmark; Dublin Airport, Ireland
and Heathrow International Airport, London, United Kingdom.
LATIN AMERICA AND THE CARIBBEAN
Omni-channel retail is available at Tocumen International Airport in Panama and at the

Caribbean Airlines Duty-Free Store (Piarco International Airport (POS), Trinidad and
Tobago). This last store is owned by Caribbean Airlines. Shoppers have the option to
purchase in flight, online at the airline’s website, and at the store. Soon they will also be able
to purchase goods at POS through kiosks.
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Retail Optimization
4. ANTICIPATE TOMORROW
Will the airport become a destination in its own right? Will passengers still have time to stroll
around the shops? Will there still be products on the shelves to buy in airport shops if
shopping is only done in the Metaverse? Do passengers have access to automated stores
and services 24/7? Which additional financial income streams will airports create?
There are many topics for which airports must gear themselves up in order to keep retail
relevant and profitable.
In the years to come, airports will be confronted with major changes, both from the
point of view of the law (regulations and legislative acts) and developments in
economic models that will have an impact on retail revenue as well as the new
organization of airport space due to automation. The airport will certainly have to
become a place of destination in order to enlarge the catchment area of its businesses
and not lose non-aeronautical income. Some of the emerging trends are presented
here. They will have an impact over the years on airports of all sizes.
4.1 SOCIOCULTURAL IMPACTS
 More Long-Distance Passengers?
New aircraft are currently being developed by the companies. Although they have a smaller
capacity, they are suitable for long distances and have lower fuel consumption. Leisure air
traffic has mainly recovered since the Covid-19 pandemic; international flights still operate
with a lower capacity. These new airplanes could open new perspectives in long-distance
developments.
According to Airbus, 95% of long-haul flights (over three hours) are currently operated by
only 300 airports in the world. Smaller capacity engines could be an opportunity for regional
airports to open new routes and welcome passengers from direct destinations around the
world.
What does this mean for airport retail in the future?
Multicultural training
The challenge is to provide a warm welcome to these new travellers while considering their
cultural characteristics and even their language, in order to facilitate access to the retail
offering. This not only implies better passenger segmentation but also the multicultural
training of the sales force.
Dedicated digital display
Beside language, usage and type of digital, social-media or mobile devices are sometimes
very different from one region to another. Be prepared to offer the device, support, and
information these passengers are used to in their country.
This includes:
• Digital billboards that display information about products, promotions, and pricing in
their language
• Payment methods
• Social media to make appointments, pre-orders, confirmations, and chats
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Retail Optimization
 The generational gap
Over the next decades, we will observe a generational handover, with a population growth in
Asia and Africa, while in Western countries population will be maturing.
Gen-Z currently represents 30% of the world's population. It is the first generation that is truly
digitally native. They are said to prioritize ordinariness over individualism and ambition, with
community ties and enduring relationships paramount.
By 2025, Gen-Y or Millennials (born between 1984–1996) and Gen-Z will make up over 50
per cent of all passengers. 11
According to figures provided by the United Nations, our world is getting older. For the first
time in 2018, older persons (aged 65 and above) outnumbered children under the age of five,
and by 2050, older persons will outnumber adolescents and youth (ages 15 to 24). 12 The
demographic of aged is impacting particularly European and East Asian countries.
The elderly who enjoy good health and are affluent certainly appreciate travelling. They are
hedonistic, enthusiastic about technology and anxious to spend like the younger generation.
What does this mean for airport retail in the future?
Inclusive retail spaces
Not considering the pace and specific needs of senior citizens may drive them away from the
retail areas. However, proposing products and services that are specifically intended for
senior citizens and those who still feel young at heart discourages and would push back
younger folks. Retailers have to find the right balance to accommodate all.
Senior citizens want, above all, to stay young and be able to easily gain access to the offering
proposed to the younger customers but not at the expense of the specific requirements linked
to their age. It is appropriate to rethink spaces, access, signage, lighting, and service in the
interest of all.
Find the right balance: installing quiet zones or gamification interactions means that you need
good knowledge of your customers’ profiles so as to clearly identify their specific needs.
Install seating options near the retail for senior passengers and opt for treasure hunting
situated farer away for younger folks. In retaining passengers within the main central retail
area, F&B can be very useful for this purpose.
 More automation for comfort
Comfort is not just about cosy seating options, it’s also to develop services that make
shopping easier. Smart digital devices can therefore ease the use of the retail infrastructure.
Remote order and delivery services
Especially in F&B, customers are now accustomed to ordering via an app. This avoids
queuing and perusing all available dining options while seated comfortably. As soon as the
order is ready, it can be picked up or delivered at your place.
11
https:\\www.bain.com\insights\airport-retail-brace-for-disruption\
12
https:\\www.un.org/en/un75/shifting-demographics
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Retail Optimization
What is now popular in F&B could soon be a habit for shopping. At Heathrow Reserve &
Collect you can pre-order products from most shops at Heathrow, even if you do not see
them online. The pick-up is done at a dedicated counter.
Delivery, reserve & collect service displays
Automated retail
Open 24/7 and fully automated, unmanned stores are an interesting solution for travel retail.
Currently, few spaces have opened around the world, including one at Dallas Fort Worth
Airport. The Hudson non-stop store is powered by Amazon’s Just Walk Out technology,
offering customers a checkout-free shopping experience. In order to enter clients, the option
exists to scan their credit cards or their palm using Amazon One.
While the technology based on a complex system of cameras and sensors has still to
improve, development is expected to grow. It is less expensive than a staffed point of sale
with extensive opening hours.
Hudson non-stop automatic shop at Chicago Midway International Airport and

Dallas Love Field Airport
4.2 KEY AIRPORT TRENDS
Airports are gradually moving towards more automation of airport processes like self-
boarding. This trend will make travellers more self-sufficient along their circuit and increase
flow fluidity leading to modifications in space layout. Eventually, filtering systems could be
envisaged to limit controls of passengers at risk and anticipate risks based on the use of
data.
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Retail Optimization
 More fluidity, less waiting
Total fluidity of the flow of passengers will eventually enable better control of the travelling
circuit and time necessary. Less stressed by security checks, passengers will be more
disposed to go shopping. On the other hand, if procedures are reduced, passengers might
anticipate a shorter time margin. Time that is currently propitious for strolling around the
shops is likely to be shortened.
 Reorganizing spaces: less at check in, more at drop off; means new diversified
passenger circuits
New boarding procedures are going to change the circuits taken by passengers and free up
space; therefore, retail areas will have to be reconfigured in order to optimize shopping trigger
mechanisms. Creating a communication ecosystem (more space to make places more
obvious, simplification of signage) is a priority.
 Security
The security measures concerning liquids and gels are likely to evolve soon. With the new
machines capable of detecting explosives in liquid form, the controls are lighter and faster.
Shops in public areas will be able to offer passengers the possibility to buy liquid products
and develop their business. The Covid-19 crisis has taught us the importance of developing
a dynamic commercial activity in public areas, turned towards the city with a local clientele
area.
 Pre-boarding area
In order to improve their turnaround time, some airlines group passengers together in
pre-boarding zones. This has serious repercussions not only on the frequency with which
passengers visit the shops but also on their comfort. Airlines’ interests can be very different
from those of the airports, including the services that the latter wish to offer its customers.
The best compromise has to be found with the airlines in order to allow passengers the time
to visit the shops.
In this case, new technology may constitute an adapted answer with the development of
e-gates, as installed at Heathrow or Frankfurt airports.
 Changes in regulation: what does the future hold for tobacco and alcohol?
Changes in regulations governing the sell of tobacco, alcohol, and confectionery are likely to
reduce, even cancel out, the advantages for passengers to buy the duty/tax-free products.
Airports and concessionaires will have to find substitute products to sell in order to replace
this core business. At the same time, there is a need to lobby together against the banning
of legal products from retail in airports.
 Make going through the air terminal easier and ensure people enjoy a positive
experience
This approach contributes to enhance passengers' positive state of mind which will create
the right conditions to transform them into shoppers.
The objective is to give time to passengers by reducing the period spent waiting in queues,
looking for where they need to go next, or for a place to park: simplifying the essential
processes frees up time for shopping in a relaxed state of mind.
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Retail Optimization
 Renewed innovative offering
In a world where everything is moving faster, brands are going to have to adapt their offering
to the world of travel retail. Passengers come to the airport mostly to catch a flight and not to
shop. The act of purchasing will only be triggered if the product offering is sufficiently different,
innovative, and frequently renewed. Differentiation and trendsetting will be assets for airport
shops.
 Flexible and hybrid spaces
Flexibility is key to having the right product at the right moment ready for passengers. The
average lifespan of a point of sale is 6–8 years, depending on the categories. Contracts
should be adapted to fit the demand for change, be it in time or in the category corpus. This
leads to the general necessity to implement flexibility in the shop design.
Hudson non-stop with wine bar,

a hybrid concept at Dallas Fort Worth International Airport
To offer more flexibility, F&B and traditional travel retail products more often merge with each
other into combined concepts. It is for example possible that in a retail space one can find a
F&B offering, at least a coffee machine or a dedicated corner is presented. On the other
hand, restaurants could host a selection of accessories or fashion items. Eating and shopping
in the same space is becoming more and more common.
This trend is followed by the creation of one flexible all-round concept, offering traditional
duty-free products and F&B in the same commercial space. At small and medium-sized
airports where space and investments may be limited, a flexible retail space is even more
relevant, which is why travel retail operators pay special attention to them.
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Retail Optimization
Ljubljana Airport with an integrated bar in the shop-area

The shop offers 30% local products
It has been proven that F&B outlets greatly increase customer dwell times. Flexible all-
encompassing concepts for small and medium-sized airports are being developed by several
travel retailers like Smartseller (joint venture company formed by Gebr. Heinemann and
Casualfood), Dufry, or Lagardère. Duty-free products, F&B, and convenience products are
offered in a joint area. For example, some of these concepts are being rolled out at Ljubljana
and Münster Osnabrück airports on 1,000 and 400 m2, respectively. The offer is composed
of the classic duty-free assortment, with 35% local products, a large share of F&B, and a
small share of books and press. This shop composition aims to create a fluid passenger
journey with different customer experiences in one place.
Likewise, the new concept heavily increases the spend per passenger for all customers,
including the younger generation travelling with low-cost carriers. Besides those direct
positive effects on sales development, a combined concept helps to encourage the reception
of more customer data, as you receive data from the whole customer journey at an airport.
 Collect data
In order to better understand the passengers and prepare their shopping journey at the
airport departure or arrival point, sharing the data with companies would be the ideal solution.
Unfortunately, this remains difficult. Nevertheless, airports should continue to build up and
enrich their database through commercial partners (e.g., brands and tenants), exploit data
from Internet and applications, set up flow detectors in the retail area, and follow-up
customers with a CRM (Customer Relationship Management) system.
The aim is to gain a better understanding of your customer segmentation in order to push
adequate offerings.
 Make the airport a destination in its own right
No longer count just on passengers to boost turnover, also include potential visitors in the
equation. Can airports benefit from becoming something more than simply a transit hub?
Airports should take the opportunity to get closer to the city and its environment by developing
landside activities. Airports like Changi and Zurich have become airport cities, expanding an
economic environment around the facilities. Popular in Germany and Switzerland,
transportation hubs combine local railway stations with the regional airport, increasing the
passenger and visitor flow. Airports usually have a lot of land that can be used not only for
business centres and hotels that address travellers, but also dedicated to services like sports
and leisure facilities, something that appeals to locals. Airports can offer entertainment,
swimming pools, cinemas, and museums.
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Retail Optimization
What if retailing and associated services contributed to developing life hubs that go beyond
simply traveling?
REMEMBER:
• Technological innovation = time gained to go shopping.
• Be aware of legislative changes that may upset the current economic balance =>
lobbying by airports to safeguard their interests.
• Changes in passengers’ circuits: spaces must be rethought by integrating shops.
• Make the airport a hub of life.
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Retail Optimization
CONCLUSION
Airports must be able to imagine the shops of the future in order to guarantee and preserve
their revenues.
Developing concepts more often and anticipating the retail outlets of tomorrow while ensuring
the basics are observed must make airports of all sizes realize that there is not just one
ready-made solution. The key to guaranteed success lies in taking on board customer
expectations, identifying the specific type of flows in each airport, and selecting the most
innovative concessionaires who are willing to listen to what the airport wants while providing
their particular expertise.
This publication, through diverse perspectives and its overview of the subject, raises the
question of how to deal comprehensively with the customer journey.
The challenge is to offer passengers a free-flowing and pleasant circuit through the airport,
so that they have the necessary time and appropriate state of mind to shop. In order to reach
this objective, all airport stakeholders must be involved and fully aware of the basics to be
observed, especially with regards to optimum flow management, to ensure retailer
profitability.
Retail environments provide an opportunity to create an ambience and specific airport identity
if they are clearly integrated into spaces and flows. The challenge for airports consists of
imagining new concepts with new brands generating extra revenue. All this with the aim of
creating a “wow” effect that triggers buying for fun, for the good deals, for sustainable options,
for the “must-have”, for the “can’t find this at home”, and for the “how cool is that”.
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Retail Optimization
 BONUS
The following is a Design Solution list of 21 steps to take and consolidate in order to create
businesses that drive the act of buying and the associated revenue in airports.
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Retail Optimization
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Please visit store.aci.aero
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Retail Optimization for Small

and Medium-Sized Airports

No part of this publication may be reproduced, recast, translated, reformatted, or transmitted

Retail Optimization for Small and Medium-Sized Airports

Copies of this publication are available from:

Orçun Songur, Chief Commercial Officer of Dalaman Airport

Bruno Balerdi, Toulouse

Stanislas Cebron de Lisle, Bérénice / Procos

ACI World Airport’s Non-Aeronautical Revenue and Activities (ANARA) Sub-Committee:

Andrew Ford, Chair, Paccaya Resources*

Johan Schölvinck, Market Square Consulting

*Members of ANARA Working Group on Retail, led by Isabel Zarza

Special thanks to our sponsor: Airport of Dalaman, Turkey

The goal is to have a reference work that can be used:

MAIN EVOLUTIONS OF AIRPORT RETAIL PRACTICES

What reasons or occasions drive them to airport shopping?

1. CONSIDER THE BASICS

SETTING THE STAGE: WHAT AIRPORTS NEED TO DO TO FACILITATE RETAIL

1.1 FREE UP TIME (DWELL TIME*)

Passengers do not usually come to the airport to shop,

Spending per passenger in relation to available dwell time 2

Passengers’ travel-related anxiety through time. Highlighted region represents

 Flight information – Call to gate

Burgas Airport, Bulgaria and Brussels Airports

• The time it takes to walk to the different airport gates.

London Luton Airport, map of time to gates after security

 The stress factor for occasional flyers

Flight/gate displays are a clever way to encourage

1.2 PUT RETAIL IN THE RIGHT PLACE

A functional and high-performance retail space requires:

• Premium locations benefiting from controlled client flow

 The right location: landside and airside retail

Sydney Airport layout

 Airside focus: managing traffic flow, layout

Circulation optimizing the flow of passengers towards the retail outlets

Walkthrough Duty-Free at Toulouse Airport

To make this flexible concept right:

• Enable fluid changes of categories over time

 The right dimensions of airport retail

Figure: Shares in terms of surface (sqm per million passengers)

 An appealing commercial area

An appealing retail area at Toulouse Airport Terminal D

 A permanent operator-airport dialogue

For example, information about:

 A planned approach to logistics

 Duty-Free arrival stores

Duty-Free at Arrival at Rio de Janeiro Airport

• Ensure a concentrated and consolidated

1.3 GAIN CUSTOMER KNOWLEDGE

• The number of passengers in airports has increased significantly in recent

Knowing the purchasing propensity of travellers going to a particular destination, combined

Indexing these purchase/non-purchase drivers against the global average provides an

Buyers Visitors, non-buyers Non-visitors Complete rejecters

Nationality profiles according to the Global Traveler Segmentation study

"Quality Seekers/Buyers" make up 2.9% of UK travellers, compared with 12.1% of Brazilian

In addition, future developments need to be observed. These future personas would be

Working Wanderers Experience Seekers

Young Explorers Enigma

Tech-savvy, disruptive young travellers Continued consumer research will tell us