UK. On 13 May Birmingham Airport unveiled the latest phase in the airport’s £100 million redevelopment with the official inauguration of its new unified and renovated terminal. The centrepiece of the new facility is a 1,750sq m walk-through duty free store operated by World Duty Free, through which all of the airport’s 4.5 million departing passengers now pass.
The £13 million “˜One Terminal’ development was designed to unify Birmingham’s security checkpoints, creating a single passenger flow and considerably simplifying operations. The new WDF store is positioned immediately after security and features a numbers of travel retail firsts, including the first deployment of Chanel’s new Espace boutique concept in a European airport.
The new terminal was officially opened by UK Secretary of State for Transport Philip Hammond at a ceremony attended by 300 guests from the local business community and from the airport’s supplier and retail partners. Guests were welcomed by Birmingham Airport CEO Paul Kehoe, who unveiled the airport’s new branding and paid tribute to the efforts of the its business partners in helping to shape “˜Britain’s newest global gateway’.
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UK Secretary of State for Transport Philip Hammond and Paul Kehoe officially open the new terminal |
Aldeasa/World Duty Free CEO José Maria Palencia followed Kehoe’s address by paying tribute to Birmingham Airport’s efforts to support the local business community, and said that the new One Terminal would help the airport recapture lost traffic. “When I met Paul and the senior directors at Birmingham, I was very impressed by their clear explanation of their different missions,” he said. “The first was to serve business in the West Midlands by enabling it to grow. The second was to break a paradox. Birmingham had long been served mostly by airports outside the West Midlands. Today is a big step in changing that and in breaking the paradox.
“At Aldeasa/World Duty Free we are very proud of our new store. All our employees have a clear and simple mission: to deliver every day a first-in-class experience to our passengers. And we know we are part of a bigger task; to serve our community.”
Birmingham Airport Head of Market Development Commercial Richard Gill said: “We are delighted with the new World Duty Free store, which has really transformed the airport’s retail offer. We have made a £13 million investment to merge the former two terminals into one facility to improve the passenger journey and our overall operational efficiency, and the new WDF store has been key to this. The team at WDF have created a luxury shopping facility to exceed that found at other leading European airports and we look forward to welcoming passengers to this stunning new store.”
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Birmingham Airport CEO Paul Kehoe welcomes guests to the opening of the new, unified terminal |
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Aldeasa/World Duty Free CEO Jose Maria Palencia pledged to deliver a “first-in-class experience” for travellers |
Opened to the travelling public in early April, the new WDF store is +50% larger than the previous unit and features about 800sq m of floor space for fragrances and cosmetics, a significantly larger share of space than previously. Some of the world’s leading beauty brands have invested in high-impact branded shop-in-shops in the store, including Chanel, Lancôme, Dior, Esteé Lauder, Yves Saint Laurent, MAC, Clinique, Givenchy, Guerlain and Clarins, while fast-growing cosmetics brand Benefit also has its own branded corner.
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Aldeasa and World Duty Free CEO José Maria Palencia welcomes the retailer’s newest flagship in the UK |
The World Duty Free fascia is complemented by the retailer’s new “More than you imagined”¦” tagline, visible at both ends of the store.
WDF Retail Operations Director Fred Creighton said that sales at Birmingham were up by nearly +20% year-on-year since the opening of the store. “The airport had the opportunity to create a single security checkpoint, which led to our being able to discuss introducing a large walk-through store,” he explained. “This was part of the negotiations which led to our 10-year extension at Birmingham.
“We worked closely with the airport on design, with the key challenges being the low ceiling and the number of pillars to work with. We managed to make a virtue out of that by creating highly branded visuals and showcases, and we’re very happy with the result.
“We also tried to create clear vistas and easy way-finding for customers, including those who don’t want to shop. There are flight information screens at the entrance to the store, adjacent to a WH Smith unit for customers looking for essential purchases.”
Within fragrances & cosmetics, Chanel has introduced its new Espace concept at Birmingham, which becomes the first UK airport to welcome the initiative. Rare fragrances such as Cuir de Russe are on offer at the 60sq m boutique, which features a fragrance profile bar giving customers the opportunity to select from Chanel’s Les Exclusifs range of 12 hard-to-find fragrances.
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The store layout was designed to allow clear vistas and easy way-finding, according to WDF |
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Givenchy and Chanel are two of the beauty brands to benefit from boutique space in Birmingham’s new store |
The branded Clinique shop-in-shop, meanwhile, is the first execution of the brand’s new concept in an airport, the only other example so far having been introduced at Selfridges in London.
WDF has also introduced its Cocoon niche skincare concept at Birmingham, its second deployment after London Heathrow Terminal 1. Brands available include Molton Brown, Sisley, La Prairie, Dr Sebagh, Décleor, Shiseido and REN, plus UK fragrance house Miller Harris, Australian skincare and make-up brand Hissyfit and spa brands Emma Hardie, Rodial and Dr Lewins.
“In UK regional airports there was always a dependency on liquor and tobacco,” said Creighton. “But while those categories remain crucial to us, we’ve learned that in perfumes and cosmetics, the more you put in, the more you get out. We’ve therefore worked hard on creating more space for beauty and also for luxury.”
Other beauty brands making their debut at Birmingham are Tom Ford and The Body Shop, both available in prominent branded fixtures. New fragrance brands to be introduced include Floris, Lalique, Orla Kiely, Swarovski and Alberta Ferretti.
WDF said the retailer had welcomed the opportunity to devote more space to a number of fast-growing fragrance brands, including Gucci, D&G, Hermès, Marc Jacobs, Bvlgari, Givenchy and Guerlain.
The new store features a central area for special initatives and events, currently occupied by a special interactive promotion for Lacoste fragrances. Also prominent is a 24-screen “Contentainment” video wall, employing digital marketing to showcase special offers and brand initiatives.
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Aldeasa/World Duty Free Commercial Director Eugenio Andrades paid tribute to the support of the retailer’s brand partners in revolutionising the product offer at Birmingham. “We are finding that the store environment is the important thing. If we are able to create the right type of store, it makes our life easier in many different ways. It’s not just about sales, but about quality of environment. All the major brands are now here in Birmingham and they’ve had the chance to do a great job.
“One of the advantages of being a global company is our ability to build synergies with brands,” Andrades continued. “Brands know that making an investment with us in Birmingham will help create stronger partnerships with is elsewhere in our store network, such as in London Heathrow or Madrid.”
Birmingham is the first airport to welcome WDF’s new Tobacco Display Area (TDA), in accordance with the regulations recently agreed with the UK government. An enclosed zone for duty free cigarettes has been introduced close to the store entrance, satisfying the authorities’ requirements for tobacco to be offered within a clearly defined area separate from categories such as confectionery.
“We began planning our approach to TDAs about a year ago,” said Creighton. “The deadline for full implementation has thankfully moved out to 2015, but we have a commitment with the UK government to introduce TDAs progressively between now and then. It’s early days at Birmingham but so far we’re pleased with the performance.”
The new TDA is clearly visible from the store entrance and from other parts of the store, and features a full range of cigarettes, cigarillos and rolling tobacco, with brands prominently merchandised.
Among highlights of the liquor offer are a Whiskyfest 2011 promotion, offering a 40% saving on 22 selected whiskies including The Balvenie, Ardbeg, Glenfiddich, Glenmorangie and Auchentoshan. plus tasting initiatives on premium tequila Patrón and locally made vodka Chase.
“Our aim is to work with suppliers in a very positive way to drive brand awareness,” explained Creighton. “You can do that in a way that offers value while supporting the brand, and Whiskyfest is an example of that.” Liquor sales in the new store are showing double-digit growth compared with previous performance at Birmingham, he added.
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The till area at the store exit features a “snake” or “corral” queue management system |
The liquor zone features branded backwall units for Hennessy and Courvoisier in Cognac, plus leading Scotch whiskies Johnnie Walker, Chivas Regal and Dewar’s.
In confectionery, Birmingham brand Cadbury features prominently, with its own customised area. There are also personalised backwall units from UK brand Thorntons and leading premium chocolatier Godiva. Creighton said that WDF would introduce greater brand customisation within the sector over the months ahead.
Creighton described the accessories zone in the new store as “probably the best execution of mid-market fashion that we have ever done”. Sales of sunglasses have doubled since the opening of the store, while accessories and leathergoods brands such as Radley, Guess, Fiorelli and Marc B continue to perform well. In watches, Swatch enjoys a strong presence in the new store, alongside popular brands such as DKNY, Casio and Sekonda.
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Making their debuts at Birmingham are jewellery brand Orelia and watchmaker Ice, while sunglasses from Ted Baker, Juicy Couture, Lacoste and Vogue are also new to the airport.
“In sunglasses, we have a very strong relationship with Luxottica and that has helped us a lot in Birmingham,” said Andrades. “And in watches, Sekonda is a good example of how World Duty Free and Aldeasa have been able to share learnings. WDF introduced the brand in the UK and had success with it, and recommended it to us for Spain, where it has been a great success too.”
The till area at the store exit adopts a managed “snake” or “corral” queuing system such as those employed in many downtown department stores, presenting WDF with an opportunity to promote impulse purchases such as beauty box sets and snacking confectionery.
Adjacent to the walk-through store in Birmingham’s departure lounge is specialist concept Collection, a mid- to high-end accessories unit also operated by WDF. The store features sunglasses, watches and costume jewellery from brands such as Pandora. “It’s a different customer spending in Collection, so we’re happy that the store doesn’t cannibalise the main outlet,” said Creighton.
Also prominent within the Departures area is a temporary “pop-up” unit currently dedicated to Estée Lauder, also extremely visible via advertising along all points of the traveller’s path through Birmingham Airport. With the prominent tagline “Every woman can be beautiful”, the ornate and striking Lauder execution aims to capitalise on interest in the UK’s recent royal wedding, and Creighton and Andrades hailed its impact since opening.
“[Pop-up stores] are a way for airports, retailers and brands to provide innovation and give something extra to the customer,” said Andrades. “BAA and WDF have always been very active in this way and we are happy to continue that.”
“With the Lauder advertising throughout the airport, the whole passenger journey is involved; the passenger is engaged and hopefully turned into a purchaser,” added Creighton. “It’s about creating an experience in which even if the traveller doesn’t buy anything, they will remember that there were interesting things happening at the airport. And, of course, it is great exposure for the brand.”
Upcoming additions to the Departures retail mix in Birmingham’s new unified terminal include fashion brands Superdry and Next, and sports and leisure retailer JD Sports. All are scheduled to open in July.
ABOUT BIRMINGHAM AIRPORT
Birmingham Airport (BHX) is the UK’s second largest airport outside London, and the UK’s sixth largest overall. Last year 8,577,822 passengers used the airport.
BHX currently serves 143 direct scheduled and charter routes and offers an additional 279 possible connections worldwide.
The Airport is a public/private partnership. The current shareholders include the 7 district councils of the West Midlands (49%), Airport Group Investments Ltd (48.25%) (a limited company owned by the Ontario Teachers’ Pension Plan and Australia’s Victorian Funds Management Corp), and the Employee Share Trust (2.75%).
ABOUT WORLD DUTY FREE
World Duty Free (WDF) operates 82 stores in 21 airports in the UK and the Channel Islands. Its retail brands include World Duty Free, Biza Tax & Duty Free and Alpha Airport Shopping.
Specialist store concepts run by WDF include Cocoon, Beauty Studio, Collection, Sunglasses, World of Whiskies, Wine Collection – Rare & Vintage, Simply Chocolate and Glorious Britain.
World Duty Free and sister company Aldeasa are part of the Autogrill Group.
