SINGAPORE. Changi Airport Group (CAG) has delivered a positive update on retail activity at Singapore Changi Airport, as air travel recovers strongly with passenger traffic surpassing 50% of pre-COVID levels in June.
The airport operator noted a steady recovery in retail sales buoyed by the relaxation of border restrictions in the Asia Pacific region. In particular, sales from passengers hailing from Cambodia, Indonesia, Malaysia, Thailand, the Philippines and Vietnam have outpaced traffic recovery.
Passengers from these countries are also spending more on average compared to pre-COVID, CAG revealed.
CAG reports that nine out of ten airside shops are are now open, with over 40 stores operating 24/7, in Terminals 1 and 3. New-to-Changi brand Steffano Ricci and Changi’s first standalone Balenciaga boutique are new additions in Terminal 1.
With the strong trajectory of passenger traffic recovery, Terminal 4 and the southern wing of Terminal 2 Departures will reopen in September 2022 and October 2022 respectively, enhancing Changi’s overall capacity and to support airlines’ growth plans.
New concessions
Some 27 new concessions will open in Terminal 2, made up of 20 F&B outlets, four luxury stores and three specialty shops. “Travellers can look forward to a refreshed shopping and dining experience when these tenancies commence as T2 opens progressively,” a note from CAG said.
As Terminal 2 prepares to further reopen in phases after October 2022, CAG revealed that more leasing opportunities are available “to inject buzz” into the newly-revamped terminal, which will see an increase in commercial spaces within the Departure Transit Hall. Concurrently, proposals are also being sought for various categories in Terminals 1, 3 and 4.
As retail sales accelerate, CAG reports that most popular current product categories are liquor, perfumes & cosmetics and luxury products. Encouragingly, the airport operator said even without Chinese tourists – the biggest spenders during pre-COVID days – some brands are seeing sales surging past pre-pandemic levels.
CAG noted that the increase in passenger traffic is bringing manpower challenges. Therefore, it is supporting airport partners and operators in their hiring efforts, including working with government agencies to organise recruitment drives.
Changi Airport Group Managing Director of Airside Concessions Teo Chew Hoon said: “Many of our partners were eager to continue their leases, with several even signing new leases with us during the crisis, as they were confident of Changi’s strong foundation as one of the leading air hubs in the region.
“We are delighted to see that this has resulted in encouraging sales with traffic recovery. Changi Airport will continue to partner with operators and brands to bring more variety and excitement to our passengers and delight them with innovative and immersive retail experiences.”
Changi 1st delivers
CAG noted that it has been working continuously with operators and partners to bring in novel and immersive retail experiences to excite shoppers at Changi Airport. One key initiative is Changi 1st, where exclusive product and concept launches around the world are first made available to travellers at Changi Airport.
As reported, last month CAG partnered with Lotte Duty Free and Diageo Global Travel to launch an exclusive omnichannel experiential pop-up for Johnnie Walker Blue Label in Terminal 3’s transit area. It is the first Johnnie Walker Blue Label experiential pop-up in Asia Pacific and will be in place until 11 August 2022.
In May, The Macallan and Lotte Duty Free were the first globally to launch the Harmony Collection Fine Cacao in Changi Airport Terminal 3. The immersive retail space shone a spotlight on The Macallan’s sustainability journey and featured an interactive virtual experience to introduce shoppers to the collection.
The Macallan pop-up also included a comprehensive range of single malts from the brand’s travel retail exclusive range and selected limited release expressions. At the end of its run in June, all bottles were sold, amounting to over SGD$1 million (US$724,800) in revenues.
Teo Chew Hoon said: “Our Changi 1st launches and travel exclusives do very well. Even after the pop-ups have ended their run, we still get enquiries from passengers on when new stocks will arrive.”
CAG is also collaborating with The Shilla Duty Free and leading fragrance brand partners to bring in limited-edition and new fragrances at the inaugural Shilla Fragrance Festival, which runs at Changi Airport until 18 August.
With more than 1,000 fragrances in-store, travellers can choose from a curated selection of fragrances across eight luxury brands and receive special gifts with their purchases.
*Changi Airport Group will host this year’s Trinity Forum, which takes place on 1-2 November in Singapore. The event is co-organised by The Moodie Davitt Report, ACI World and ACI Asia Pacific.
Registration is open for the conference at this link: https://trinityforum.events.
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