AUSTRALIA. The Mercurius Group has launched a study into Human Resources (HR) and employment issues in the Australian airport retail sector.
The study (currently in the field) aims to explore the important issue of the cost of hiring and managing people in airport retail, based on a comprehensive survey of Australian travel retailers. The results will be used to prepare a White Paper which will be presented at the 2026 Australian Airport Association Retail & Commercial Forum in Cairns (21-23 July), followed by a discussion panel of industry experts.
The study, entitled ‘Workforce Pressures and Regulatory Change in Airport Retail’ is a response to consultations and discussions between Mercurius and airport retailers and airports on the people challenges they are currently facing.
The Mercurius Group noted in a statement, “Working at an airport has its attractions for many people, however it also comes with a degree of grit (such as early starts and late finishes, security passes, distant/limited staff parking) that can make recruiting and retaining staff difficult. Indeed, most travel retailers report that compared to the domestic market, travel retail entails high cost, high staff turnover and material absenteeism.
“And while workforce issues have always been a key topic in travel retail—a sector where labour costs can represent up to 25% of turnover (sometimes more, depending on the retail category)—changing legislation is adding new layers of complexity.”
The Australian Federal Government’s Closing Loopholes legislation and related regulations and interpretation changes (including wage theft, right to disconnect and labour hire) has exacerbated the workforce issues operators face, added Mercurius. Airport retailers have been forced to act quickly, conducting self-audits to ensure both current and historical compliance with the new requirements, increasing regulatory burden and cost.
These impacts can only be recovered through higher prices to consumers, lower retailer profitability or lower rents offered to airports (or some combination of these factors), Mercurius highlighted.
The Mercurius Group Managing Director Ivo Favotto said: “Feedback from the airport commercial sector highlights a strong need for industry-wide attention to collectively improve airports as workplaces for retail staff, and to reduce the grit and costs incurred. This Study is a reaction to that feedback.
“We anticipate that the majority of airport retailers in Australia will participate in the Study, providing us with a rich database of benchmarks on key people issues including wages and costs, employee turnover, absenteeism and the impact of the new legislation.”
For further details, or to participate in the survey, please contact Ivo Favotto on ifavotto@themercuriusgroup.com or on +61 423 564 057. ✈
