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SINGAPORE. Changi Airport Group (CAG) posted record retail revenues and passenger traffic for the financial year ended 31 March 2012, it announced today.
CAG said it turned in a “sterling” retail performance during the financial year, raising concession sales at Changi by +19% to a record S$1.75 billion (US$1.43 billion) – easily outstripping the +12% growth in passenger traffic for the year.
“This places Changi firmly among the top four airports in the world in terms of annual retail sales turnover,” CAG said.
“Beyond being driven by strong traffic numbers, Changi Airport’s robust retail performance in FY11/12 was attributable to several key strategic retail initiatives, including the expansion of the retail footprint, a strong and relevant retail mix, effective promotions to stimulate sales, and close collaboration with concessionaires to achieve joint growth.”
Airport concessions and rental income, representing 46.8% of total revenue, increased by +12.7% to S$833 million (US$682 million).
The higher concession revenue was boosted by increased traffic, strong sales and the expansion of Changi’s retail offer.
The group’s third post-corporatisation year was marked by a strong set of operating results, against the backdrop of an uncertain global economic outlook and a challenging operating environment.
The latter was underlined by high fuel prices, political uncertainties in the Middle East, and the earthquake which hit Japan in March 2011.
CAG Chief Executive Officer Lee Seow Hiang said: “During the financial year, CAG achieved breakthrough on both the aeronautical and non-aeronautical fronts, registering all-time highs for passenger traffic and retail sales at Changi Airport.
“Together with our partners and the airport community, we strengthened our core capabilities and built on our fundamentals to develop a strong air hub, achieve robust commercial operations and deliver an award-winning airport experience.”
In FY11/12, Changi Airport scaled a significant milestone with its handling of a record 48 million passenger movements, as mentioned an increase of +12%.
Despite a slowing global economy, passenger traffic growth remained healthy across all regions, in particular Asia Pacific, led by double-digit growth in Southeast Asia and Northeast Asia.
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Note the critical importance of commercial revenues to CAG; Source: Changi Airport Group |
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Source: Changi Airport Group |
With the completion of the upgrading works at Terminal 1 and the revamp of T3’s public areas, CAG expanded the retail footprint at Changi Airport by 5,700sq m to over 74,000sq m.
As a result of these expansion works, the number of outlets at T1 increased by about +25%, while those in T3’s public areas went up by about +60%. Post-upgrading of T1, there are over 70 retail shops and more than 30 F&B outlets in the terminal.
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Retail growth easily outpaced the increase in passengers thanks partly to a vibrant mix of stores and concepts |
At T 3, the revamp of the retail space in the public areas was
completed during the year, increasing the total concession space by +20%. With the revamp, more than 20 new shops have been added to Basement 2.
More expansion is imminent. The last phase of T3’s revamp at Level 3 will be completed in the second half of 2012 with the introduction of two retail anchors spanning over 10,000sq ft each.
CAG leases over 1,500 rentable premises, as well as manages and administers over 60 long-term land leases at Changi Airport.
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Changi boasts around 130 food & beverage outlets |
