Fake News: Travel Retail is Dead
There is no denying that online shopping has had a significant impact within the retail industry, causing uncertainty regarding the perceived lifespan of traditional ‘bricks and mortar’ stores. ‘Retail Apocalypse’ is a favoured headline being bandied about by scaremonger tabloids. If you believe everything you read, Amazon will very soon be taking over the world of shopping and the rest of us may well pack up and go home.
So where does that leave Travel Retail? Do we just roll over and succumb to global takeover by the online giants?
The problem is that airports simply can’t afford to lose this source of revenue. While there may be options for add-ons, there is really only so much you can charge for car parking – although a couple of airports have made a concerted effort to push those boundaries. Non-aeronautical revenue still accounts for a substantial slice of the airport pie and retail plays a dominant role in that revenue.
Instead of giving in to external challenges to their retail operations, airports should push the envelope when it comes to customer service and driving experiences associated with each purchase. Airports remain the perfect environment to showcase the latest products and innovations. They can stage the ultimate range of experiential concepts, allowing the customer the chance to experience and interact with a product first – in a way that cannot be replicated online. However, when these experiences are coupled seamlessly with technology, allowing customers greater control of the whole process. a single transaction can be turned into an ongoing one – leading to increased spend on associated products and services and generally giving each consumer the flexibility to dictate their retail journey. The outcome can be retail nirvana.
