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Airports Upscale Retail Boutiques as Passenger Traffic Returns – WWD

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PARIS — As passengers return to travel, airport retail is flying high again.

At Paris airports Charles de Gaulle and the smaller Orly, December passenger numbers were back up to 93 percent of 2019 levels, said Aeroports de Paris. London’s Heathrow reported a similar uptick, hitting roughly 89 percent of their pre-pandemic numbers in the holiday travel period, the airport operator revealed.

The steady climb comes just as travel retail is experiencing an upscaling boom. Inside CDG’s revamped Terminal One, Chanel unveiled new boutiques on Dec. 8: one dedicated to fashion, watches and jewelry, and another for fragrance, makeup and skin care. The boutiques were designed by longtime Chanel collaborator Peter Marino in classic black-and-cream monochrome, with plush carpets and mirrored accents that echo the interior of Coco Chanel’s legendary Paris apartment.

Aside from its most famous bags, the 550-square-foot fashion boutique offers its jewelry and ready-to-wear collections, while the 124-square-foot beauty spot can create customized in-flight treatment product packages that passengers can take on the go.

The Chanel outgoing flight outpost follows retail offerings from Louis Vuitton, Celine, Dior and Saint Laurent throughout CDG that were opened in 2020. LVMH-owned Cognac brand Hennessy has also opened it’s first dedicated store within Terminal One’s luxury lane.

The shopping areas of the airport were envisioned as a department store with dedicated, unique spaces, and the 250 million euro Terminal One makeover was done with a Parisian atmosphere, including brass accents and café style seating.

“You see a lot of activity with lots of buttons being pressed again in the aviation world,” said Alex Avery, chief executive officer at travel and retail specialist firm Pragma Consulting. As travel scales once again, retail operators are making moves to attract the air passengers with time to shop — and deep pockets. “It’s been great to see airport retailing get back into the game again. Operators are getting excited about future expansion plans as well.”

At Heathrow “luxury fashion is a key proposition in our retail offering,” said an airport spokesperson. Burberry, Dior and Rolex are among the brands across its four terminals, and the airport integrated omnichannel “reserve and collect” services last year in response to changing demographics and more tech savvy, digital-native passengers. They can hold an item online and pick up within 30 minutes as they’re heading to their gate.

“Despite the devasting impact of the pandemic on travel and retail, we have been able to continually improve the retail proposition at Heathrow through offering unique physical and digital experiences and an ever-changing retail offering,” the spokesperson said.

Chanel has also experimented here, with an immersive installation, treasure hunt and digital makeovers to celebrate the 100th anniversary of the brand’s iconic Chanel No.5 fragrance in early 2022.

“With luxury brands focusing more than ever on building relationships with their passengers, we have collaborated with our luxury retailers to create engaging physical shopping experiences to drive participation and spend,” the spokesperson added.

Avery cited Bangalore, India, as one airport that has upscaled its interior design. Its Terminal Two, which opened for its first flights on Sunday, underwent a $612 million makeover and will handle 25 million flyers annually. “It’s really taking the airport terminal experience to the next level, and creating a very calming environment, but also one that is great for retailers and brands to take space in to grant access to the high-growth market in India,” he said. While luxury brands are not yet present in its halls, operators have said the airport is specifically looking to increase its offering in “luxury fashion, beauty and confectionery.”

In the U.S., airports have experimented with allowing nonflying guests access inside the terminals to take advantage of retail and restaurants, said Avery, noting that the Pittsburgh airport has a pass for local residents. Since guests are still required to go through a security check, they can take advantage of the 24-hour security for their shopping and dining. Aside from retail, he said there is potential to attract meetings and remote working hubs as “many corporations are operating more of a hub-and-spoke strategy” in the current remote work climate. “Often airports can fit the bill. This is happening all over the world.”

It’s all part of airports’ plans to diversify beyond aviation, which roiled revenue during pandemic shutdowns. “It became very apparent that when there are no passengers that your business model is very limited, but the asset that they sit in [and] the strategic location often means that there’s a lot more to develop, and as a result, the ambitions are becoming more substantial,” said Avery. “There’s a larger play for real estate opportunities.”



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