Brands clock in best sales at airport

Thursday, 02 February 2012

Airport retail business in India topped $1 billion in revenues during 2011, on the back of robust growth in passenger traffic and more people shopping on the go, according to a boutique retail consultancy. The business is growing at 17-18 per cent annually, emerging as a viable platform for retailers and operators of the new airports, says Bangalore-based consulting firm Asipac Projects. For instance, Swarovski, Marks & Spencer, Samsonite, Hidesign and Kimaya stores at the Delhi Airport registered their best sales figure last year in the capital with sales of 5,000 per sq. ft. per month, almost four times higher than the second-best location in the country.

Beauty, personal care, alcohol and tobacco emerged as the top three categories in the duty-free section, while food & beverage, books, periodicals and stationery took the top spot within the duty-paid segment. Globally, airports registered approximately $43 billion in sales, with the likes of London Heathrow and Seoul’s Incheon being the most lucrative ones.

The Delhi domestic-cum-international terminal (T3) has a retail area of around two lakh sq. ft. and built to tap the potential of retail revenues. No wonder airport operators like GMR and GVK, who started off with exorbitant rental rates, are now moving towards a revenue-sharing model, whereas malls still work on a per sq. ft. rental model.

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