CANADA. Nuance this week unveiled one of the most striking new airport retail environments in North America, at Toronto Pearson International Airport Terminal 1. The company now operates more than 20,000sq ft of space (compared to 15,000sq ft previously) following a major renovation, with a strong luxury boutique offer complementing the well-executed core category Duty Free Store, the highlight of which is a superb Tastefully Canadian zone featuring local producers and artisans.
Since the store was fully completed last week, sales have surged by strong double digits, the retailer told The Moodie Report at the official opening on Tuesday. The company is benefiting from high spends among the fast-growing number of Asian, and in particular, Chinese travellers through Toronto, who are already responding well to the high-end luxury offer, which includes many firsts for the airport (see below).
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Nuance President & CEO Roberto Graziani and Greater Toronto Airports Authority President & CEO Howard Eng officially open the striking new retail environment |
The core category store features wide access points, good sightlines and visibility. With its use of digital signage, tasting bars and high-profile promotional zones, it also cleverly provides stop points to engage and interact with passengers. The retail design leans on Nuance’s signature Duty Free Store concept, including the ‘Boutique’ offer, but this is also blended with local flavour in the design and ranges.
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The stunning Tastefully Canadian zone is a classy store highlight |
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The overall environment from luxury fashion to core categories is akin to a department store, with well-segmented categories throughout, plus many new brands. It also neatly complements the new-look F&B (much of the newness delivered by recent OTG concepts) that Greater Toronto Airport Authority has put in place through the rest of the terminal.
Nuance President & CEO Roberto Graziani said: “We have worked very closely with the airport in order to develop an upgraded retail offer, setting a new benchmark for North American travel retail, and I am confident that our new stores will provide passengers with an enjoyable shopping experience. I would like to take this opportunity to thank the airport management for their trust and support over the past 30 years in which we have operated in Toronto.”
Nuance CEO North America Richard Rendek added: “Toronto is our home base in North America, and we are delighted to bring forward our developed retail offer to the millions of passengers who pass through Toronto Pearson International Airport every year. Our new stores provide an excellent foundation for us to drive customer satisfaction and grow our sales.”
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The passenger view as they approach the retail arena in T1 |
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The new environment neatly complements the Richard Serra sculpture (left) around which Toronto Pearson Terminal 1 was originally built |
Howard Eng, President and CEO of the Greater Toronto Airports Authority, noted: “We’re so pleased to have this new retail experience to offer our international passengers. Travellers have been asking to see the luxury brands that they know and love available at the airport and it’s great to be able to deliver on that through a great partnership with Nuance. These stores are a great addition to the landscape of Terminal 1.”
Eng later told The Moodie Report: “Everybody arrives a little earlier to the airport these days and our passengers like to have something to do once they are through the processes, which we try to make as fast as possible. This gives them the chance to experience a little differently what an airport can be. Retail is part of that experience.
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Howard Eng: The “global traveller” requires an upscale and tailored offer |
“The world is changing. When you see the impact of the BRIC nationalities when they travel, no wonder every airport CEO says ‘I need more space’. These people buy when they fly. We are talking about a global traveller. But you have to have the right environment and that is what Nuance has delivered. This offer helps attract people and improves the reputation of Toronto, Ontario and Canada. It won’t end there either: we are just at the start of developing our commercial potential, with upgrades of retail in the domestic sector and at our international T3 planned.” [More on Toronto Airport’s plans will appear shortly in an interview with Greater Toronto Airports Authority (GTAA) Commercial Development Director Mike Ross.]
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To create a “world class” shopping environment, Nuance collaborated with the Greater Toronto Airports Authority and The Design Solution to develop space that enhanced the architecture of Toronto Pearson International Airport. The design aimed to respect the architectural integrity of the Departures Lounge and the famed Richard Serra sculpture at its heart to creating a Sense of Place within the store.
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The Greater Toronto Airport Authority and Nuance North America teams hail the opening of the new stores; (from left) GTAA Manager, Retail Programs Joe Daiello, GTAA Commercial Development Director Mike Ross, Nuance North America CEO Richard Rendek, GTAA Associate Director Retail and Food Janine Gervais, Nuance North America COO Gary Cavanagh, GTAA Manager Retail Marketing Erin Kennedy, Nuance North America Vice President Buying & Merchandising Andrew Rattner and Nuance North America Senior Vice President Business Development John Menchella |
The Design Solution Director Nick Taylor said: “Our primary objectives for this project were to create a space that both respects the design of the terminal and deliver an unparalleled retail experience for passengers. We wanted to ensure the new retail space complemented the building’s interior volume, responded to its structures and the Richard Serra installation. We used a pared back design and palette of finishes to showcase the brands, allowing them to express their signatures through personalised furniture and generous space allocation.”
Luxury fashion firsts
Among the major highlights is the 7,600sq ft luxury fashion and watches & jewellery zone, housing a number of brands in their own stand-alone boutiques. Since opening, fashion & accessories has overtaken beauty as the number one category across the Nuance business at Toronto, driven by high spends and transaction values among predominantly Asian passengers.
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Many leading luxury brands have brought their A-game to this new environment |
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The category, which passengers will encounter as they emerge into the shopping zone, features the largest Burberry airport travel retail boutique in Canada, as well as many firsts from the likes of Michael Kors and Coach in Canadian travel retail.
There is also the first stand-alone Longchamp store in North American travel retail, while the Salvatore Ferragamo boutique is the first of its kind in Canada. Also situated in the fashion area are Tumi and Victoria’s Secret boutiques.
The dedicated watches and jewellery area features boutiques from Bulgari, Omega, Montblanc, Longines, Tissot, Rado and Swarovski. Customers will also find a Gucci boutique, which is the first location in duty free in Canada to carry both watches and jewellery.
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The watches & jewellery offer adds a new dimension to the store offer in Toronto T1, with a strong Swatch Group branded range, Gucci and Bulgari boutiques, plus Swarovski’s latest designs among the stand-out features |
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Building the beauty base
The beauty and skincare segment features in 4,600sq ft of space (around the same as in the previous store) and carries a broader range to cater to the changing passenger base.
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Beauty carries through the boutique approach of other categories, and features a number of new brands to the Toronto business, including SK-II and Tom Ford Beauty |
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La Prairie, SK-II – which is the currently the first SK-II store in Canada’s domestic and travel retail portfolio – Kiehl’s, and a nail and lip care Tom Ford Beauty offer are all new to the airport. Nuance’s fragrance offer at Toronto has also been extended to include further new brands such as Tom Ford Private Blend, Salvatore Ferragamo, Cartier, Oscar de la Renta, Valentina and Ermenegildo Zegna.
Leading on liquor
With 3,100sq ft of space, liquor is now situated at the front of the store (it as previously towards the rear) and is led by a Canadian whisky offer that aims to appeal to the departing passenger seeking local gifts. Other key zones include Nuance’s ‘Boutique’ concept tailored to Cognac, whisky, vodka and liqueurs.
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Canadian whiskies lead the offer at the front of the store |
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The Whisky Boutique (above) and Vodka Boutique (below) mirror Nuance’s Duty Free Store concept in other regions but also carry a big emphasis on personalised fixturing for key brands |
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Making its debut into Toronto is a tasting bar at the focal point of the spirits category, with interactive and informative tablets accompanying the luxury Scotch section. The tasting bar features high profile promotions, which set the tone for the segment. As at other Nuance locations, digital tablets featuring educational content have been incorporated in the store to drive interaction and interest.
Tastefully Canadian
A major anchor (and highlight) of the store is the newly designed Tastefully Canadian space. This concept developed by Nuance, aims to highlight a strong Sense of Place for customers to experience Canada.
Also included within this area of the store, is the Nuance branded Tastefully Canadian chocolates, cookies and maple syrup, among others. Recently redeveloped and re-packaged to complement and highlight the country’s finest products and landscapes, these products are a highlight within the space, ranging from mid-priced to luxury end items. Nuance has also added collections from Toronto’s local food artisans to the Tastefully Canadian concept. These include lines from popular local chocolate expert The Chocolateria, handmade fair trade organic chocolate brand Delight, Killer Condiments, a showcase for local farmers and Sweet & Sticky ice syrups. Notably, the destination offer also includes ranges from the Art Gallery of Ontario, which is showcasing its museum pieces through a collaboration with the retailer.
At the heart of this destination area is the ice wine category, with attractive ice wine bottle designs and crystal light fixtures drawing customers in. The Peller Estates range is particularly strong here, featuring not only the company’s ice wines but other niche ranges from its portfolio. The tasting bar includes interactive and informative digital tablets.
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Nuance North America senior management at the official opening on Tuesday; CEO Richard Rendek (front), (from rear, l-r) COO Gary Cavanagh, Senior Vice President Business Development John Menchella and Vice President Buying & Merchandising Andrew Rattner |
Nuance North America Vice President Buying & Merchandising Andrew Rattner said: “We’ve had plans to re-imagine and recreate the Tastefully Canadian concept for years, and this was our opportunity. We added new imagery to the packaging on many products and also created a more premium feel. The artisans we work with also lend authenticity and a great sense of Toronto to the area. It has broad appeal now. We have a large Chinese passenger demographic that buys multiple boxes. In maple syrup it’s hard to keep the stock replenished at busy times, such is the demand.
“Then there’s the ice wine zone, which is stunning. We believe we are the biggest ice wine seller in Canada, which makes us probably the world’s biggest too. Peller has proved to be a great partner here.”
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The ice wine bar blends digital technology, excellent product display and tasting |
The Moodie Report met some of Nuance’s local partners at the grand opening, many of which are appearing at an airport for the first time. “The airport is a nice extension of our gallery downtown, where we cater in the summer months to many tourists,” said Kirstin Mearns of the Art Gallery of Ontario (who was joined by colleagues Joanne Russell and Kathrina Sharifi). “We’re testing a new environment through which we can support our artists, most of which are Toronto-based. All of the items are handcrafted and the price points mean there is something for everyone.”
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The Art Gallery of Ontario lends an upscale feel and museum piece offer to destination merchandise within the Tastefully Canadian area |
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A number of local artisans were on hand at the opening on Tuesday; Steve Murdza of Sweet & Sticky produces ice syrup in the Niagara region of the province |
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Tim English of The Chocolateria displays his own range of chocolate gifts using ingredients such as candied orange, sea salt and almond bark |
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Andrea Nicholson of Killer Condiments provides a showcase for regional farmers; items on the menu of condiments include locally made maple caramelised onions, sweet pepper relish, cranberry compote and smoked chutney |
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Jeff Brown and Jennifer Rashleigh of Delight with their handmade fair trade organic chocolate |
A walk through the new Nuance store environment at Toronto T1 |
Towards the exit and tills are a strong sunglasses offer and a personalised Godiva space that lends further to the boutique feel of the environment, and which also includes digital technology and a ‘discovery table’ for passengers. Just before the tills are tobacco and confectionery, the latter in a more muted display that contrasts to the sharp and highly personalised executions in much of the rest of the store.
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A striking sunglasses wall appears in the heart of the main store |
Among the core categories, the biggest beneficiaries of additional space have been liquor, fashion & accessories (which featured only in very limited space before) and destination goods, noted Rattner. “It’s not only the space that makes the difference, it’s the exposure created by the design. P&C for example has much the same space as before but the focus is now very different and it’s a superb boutique arena.”
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The execution carries many cues from Nuance’s global store concept but with a high level of personalisation and an unprecedented level of luxury |
Nuance North America Senior Vice President Business Development John Menchella added: “One of our goals was to increase the level of luxury here, which we’ve achieved. But we also wanted to raise the level of excitement and surprise with new lighting, design, tasting bars, digital screens and tablets. All of these elements combined have helped created a buzz around the space.”
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Elegance, surprise and newness: Nuance’s new retail arena in Toronto |
| At the official opening of Nuance’s new store environment at Toronto Pearson T1 on Tuesday, you could sense the surge of pride among the group’s staff. |
Roberto Graziani told The Moodie Report: “This is the best Nuance environment by far in North America yet – and even in the industry there are few that are better. It is a special store. Here we have a monobrand environment that in the past would not have been possible, but the changes in the passenger mix have made it so. This kind of high-end offer fits these [mainly Asian] nationalities well.”
He added: “GTAA can be very proud of this new benchmark for the North American airport retail business. But that can only be achieved with an airport that acts like a real partner. When we started out on this journey it was clear that our contract was not long enough to realise a return on the heavy investment we planned. But GTAA shared our view from the beginning and provided the conditions that supported us in making this investment. GTAA considers the value in having financially stable partners, which should be normal practice in every business but unfortunately is not in our industry.
“A lot of airports talk about Trinity, talk about partnership, but few of them walk the talk when it comes to financial decisions. We value a partner that does embrace that partnership and rest assured that we will do our best to deliver on all our promises. Early results are promising and we are confident that we’ll over-achieve in a very short period of time.”
[Note: Nuance management is not currently commenting on the group’s imminent acquisition by Dufry – Ed]
*We’ll bring you further comment on the new Toronto store from Nuance, the airport company and partners in coming days.
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The Nuance team (above as a group and below with Art Gallery of Ontario representatives) toasts the opening (photos here and selected images above courtesy of Nich Musco) |
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