Travel retail experiencing significant growth
If you ask anyone where the growth in global retail is, they will inevitably mention e-commerce first. But, there is another huge growth area – travel retail. More than 1 billion people travel each year and the retail opportunity has been recognised as very lucrative, firstly by the owners of the space and also by retailers themselves.
If we think about airports then the main area of focus is luxury and gifting. Retail concepts with high margins are able to afford a higher cost of space and are generally queuing up to be represented in most new airport developments. Sales have grown by 12% per annum since 2009 according to “The Economist” magazine and many retailers are referring to this format as their 6th continent.
Tourists account for half of some Europeans luxury trade and airports are an obvious place to catch them.
However, it is not just airports that this phenomenon is acting out! Major bus and train stations are also experiencing significant growth. Vienna’s key Westbahnhof train terminus is a case in point. The retail space has expanded 20 fold since the reopening and the stores even enjoy more liberal opening hour opportunities prohibited by Austrian law in classic shopping locations.
Foley Retail Consulting has studied this growth area and compiled a database of locations and opportunities that could aid retailers who have previously not considered travel retail as their target market.
Contact us for more information on how Foley Retail Consulting can help you with travel retail solutions.