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“Travel retailing is all about delivering the right shopping experience to passengers,” said Auckland International Airport Limited (AIAL) General Manager – Retail, Nick Forbes |
NEW ZEALAND. Auckland International Airport says it will offer the travelling public a fresh experience in duty- and tax-free shopping this week with Friday’s opening of its new airside international retail precinct.
Auckland International Airport Limited (AIAL) General Manager – Retail, Nick Forbes told The Moodie Report: “The new Pier is looking absolutely stunning”¦expectations are very high at this end.”
Forbes hailed a renewed focus on delivering strategic value to retailers and the travelling passenger. “Travel retailing is all about delivering the right shopping experience to passengers,” he said.
With that in mind, the airport is set to open a new international airside retail precinct. It is part of a NZ$45 million security upgrade which will see a second level added to the international terminal pier to fully separate arriving and departing passengers. It will add around 600sq m to existing retail space and has been conceived and designed with a renewed focus on the shopping experience.
As revealed by The Moodie Report, the airport has announced that duty free retailers Regency (The Nuance Group) and DFS Group as well as bookseller Whitcoulls, foreign exchange provider Bank of New Zealand and food & beverage supplier HMSC-AIAL (a joint venture between the airport company and US-based HMSHost) will be operating in the expanded retail area.
A bar, café and Burger King restaurant will be part of the new level of the international terminal pier. A destination products precinct incorporating a New Zealand fashion store (Merino Discovery) and expanded high-end souvenir offerings (Kiwi Discovery and the Great New Zealand Shop) has also been created as a result of the changes.
Forbes commented: “The past couple of years have been demanding in the airport retailing sector. While there has certainly been growth in retail revenue at Auckland Airport, it has not quite matched the growth in passenger numbers. This can be attributed to a number of factors – security checks, a certain amount of congestion, and over-trading in some stores.
“Late last year we completed an expansion of the Customs and Aviation Security screening areas to reduce congestion and, with the introduction of 100% hold stow baggage screening in October, the obstructions of security screening will be more or less gone.
“The pier segregation programme will separate arriving and departing passengers. It will ensure that those passengers who are departing can get the greatest benefit of the duty free experience. Arriving passengers will also have a refreshed duty free offering.”
Once stage one of the pier segregation project is opened this week, work will commence on the existing airside retail area – again with an emphasis on designing the space to appeal to shoppers.
“We will be introducing a much brighter and lighter area,” said Forbes. “The aim is that we create space for the passengers to feel comfortable and relaxed. Passengers will have a feeling of arriving at a space where they can find some of those essential airport retail products and services and there’s plenty of seating, so it’s a good staging point before they move to their gate lounge.
“We are moving away from carpeted retail areas towards brighter tiles which create life and atmosphere. The lighting levels are going to be increased and the more open area and higher ceilings mean that passengers feel less enclosed than in the current space.
“Signage has been well thought out and any point that passengers stand in the retail area, they will be able to see the whole range of services on offer.”
The retail area will open on Friday, 16 September, with work underway to complete the other parts of the pier until the end of the year, when the project will be complete.
These projects, which enhance the retail experience at Auckland Airport, are just the beginning, Forbes said. Planning is in the advanced stages for a new pier on the international terminal as well as expansion of the terminal itself. With expansion comes expanded opportunities for retail. “We will see significant opportunities for retail at Auckland Airport in the coming years and planning for how we are going to be using the new retail space is going to start soon.”
COMMERCIAL BACKGROUND ON AUCKLAND INTERNATIONAL AIRPORT
– Retail revenue accounts for around 30% of revenue at Auckland International Airport Limited, a publicly-listed company appearing on the New Zealand and Australian share markets. In FY2005, that amounted to NZ$84.7 million.
– Non-aeronautical revenue (retail, car parking, property investments) makes up more than 50% of the income for AIAL.
– In FY2005, international passenger movements grew by +5.2%. Retail income increased by +3%.
MORE STORIES ON AUCKLAND INTERNATIONAL AIRPORT
Auckland International Airport retail revenue edges ahead though per-pax figures are soft – 26/08/05
Auckland Airport roars ahead thanks to Lions and Japanese visitor bounce-back in June – 05/08/05
Auckland Airport tries to cheer up Lions supporters with ‘win a VW Golf GTi’ promotion – 27/06/05
