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NEW ZEALAND. Auckland Airport has reported a +21.3% lift in its retail revenues in the six months to 31 December 2015.
Income from retail for the period was NZ$78.6 million (US$52 million), up from NZ$64.8 million (US$42.9 million) for the previous comparable period.
Car park income increased by +11.1% to NZ$26 million (US$17.2 million).
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A breakdown of Auckland Airport’s half-yearly revenues |
The improved retail performance comes on the back of a two-year programme of increasing footprint, re-leasing, product mix changes and the duty free tender.
Among a strong performance across the primary retail categories, specialty retail was a standout, with sales up +27% compared to the second half of 2014.
In its Company Report 2016, Auckland Airport said it has delivered greater choice for passengers by introducing a number of speciality stores in the international Departures area.
These include New Zealand’s first Victoria’s Secret lingerie and cosmetics store, Kiwi fashion store Ruby, and the international skincare, hair and beauty product brand Kiehl’s.
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ACE, the pre-purchase collection robot installed in Aelia Duty Free’s Arrivals store in December, is a hit with passengers |
The airport also noted that its duty free retailers have completed bedding-in operations, immediate store refurbishment and product mix changes, leading to growth in core category performance.
Cosmetics and skincare sales, for example, were up +18% against the previous comparable period.
“Since the arrival in July 2015 of our two new anchor duty free operators, The Loop Duty Free and Aelia Duty Free, both outlets have been enhancing their in-store infrastructure and introducing new brands and products,” the report stated.
“The arrival of these two new duty free operators, renowned for their innovation, has seen a number of new initiatives at Auckland Airport in the six months to 31 December 2015.
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Innovation from Aelia Duty Free: the Top Shelf Bar |
“These included Australasia’s first Johnnie Walker Whisky Boutique and the introduction of ‘ACE’ in Aelia Duty Free’s international arrivals store – an in-store robot used by passengers to collect their prepurchased ‘click and collect’ duty free items.”
Announcing the interim results today, Auckland Airport Chair Sir Henry van der Heyden commented: “We have continued to see growth right across our business, which has been underpinned by new routes, new airlines and increasing passenger numbers.”
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Auckland Airport passenger movements, 1 July to 31 December 2015 |
Auckland Airport’s total passenger movements were up +6.7% over the previous comparable period to 8.4 million, with international passengers (excluding transits) up +7.2% to 4.3 million and domestic passengers up +6.2% to 3.9 million.
Overall revenue was up +11.6% to NZ$280.6 million (US$185.7 million), with earnings before interest expense, taxation, depreciation, fair value adjustments and investments in associates (EBITDAFI) up +13% to NZ$213.5 million (US$141.3 million).
Total profit after tax grew +24.8% to NZ$115.8 million (US$76.6 million) while underlying profit after tax increased 18.6% to $104.1 million (US$68.9 million).
