Airport Experience® News - Retail Innovation Issue 2024

THE LUXURY Despite Declining Demand, High-End Retail Has Its Place In Airport Concessions

BY SALLY KRAL

Consumer shopping habits have changed drastically in recent years, and this is particularly clear in airports. “People can get anything they want, likely cheaper, at the press of a button now,” points out Alan Gluck, principal consultant for the global airports’ commercial service line at ICF. Because of this, he argues, airport retail outside of travel essentials has taken a substantial hit. “Specialty retail has cratered,” he says. “And luxury brands, if non-duty free, are along for the ride. The market for duty free luxury brands is much smaller now.”

Above: LAX’s luxury brand lineup includes the Larchmont Junction store, which offers brands like Louis Vuitton, Chanel, Dior and Gucci. Photo Credit: URW Airports Right: The landscape for luxury brands at Los Angeles International Airport has remained consistent over the past decade, though demand is mostly within the airport’s duty free stores. The airport offers standalone duty paid luxury stores as well, including Hugo Boss, Tumi, and Allsaints.

18

AX NEWS SEPTEMBER 2024