Airport retailing has become a popular concept in the last few years. Often called travel retail (which takes place mostly but not entirely in an airport), it has become one of the important strategies of companies planning to promote and create awareness about their brand. Airports where airfares are low are not able to generate high revenue from aeronautical business. Therefore, they shift to non-aeronautical businesses such as retail shops, restaurant, bars, and cafeterias. Airport retailing can also include services such as hotels, nursing homes, car rental outlets, banks, exchange offices, drugstores, and other stores such as jewelry, books and magazines, gifts and crafts, clothing & accessories, convenience stores, optics, perfumes, and souvenirs.
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Airport retailing requires several characteristics for better functioning. For instance, a store needs to be at a convenient location for efficient accessibility. Furthermore, wide range of products and prolonged customer service might attract customer attention at airports. However, the quality and quantity of products in stores located in an airport strongly depend on the number of passengers travelling through the airport, and whether the airport is international or domestic. Retail stores can avail various benefits by establishing an outlet at an airport. Brand recognition and awareness are the most important ones. These provide immense scope for retail outlets to showcase their brand and broaden their customer base.
Key players operating in the airport retailing market are Dufry AG, Tata Inc., Shoppers Stop Ltd, William Penn Ltd., Pavers England Limited, WH Smith PLC, Hidesign Accessories Ltd., and World Duty Free Group.
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