Airport Experience® News - Retail Innovation Issue 2024

for ORD, the airport began a construction project in 2019 that directly affected luxury brands. “O’Hare’s Terminal 5 – traditionally its international terminal – began a significant terminal expansion and improvement project, displacing some of the existing concessions, including Ferragamo, Mont Blanc and Armani.” These locations did not reopen after the project was completed. ORD is currently home to two standalone luxury retail locations – Brooks Brothers in Terminal 3 and Coach in Terminal 2 – though luxury brands have strong placement in the airports’ duty free shops as well as the duty paid concept Gallery ORD, operated by Hudson . Even as these struggles in the luxury retail market persist, certain airports remain committed to offering travelers diverse shopping options, and that includes luxury stores. “In airports with large amounts of international traffic, not including Canada, Mexico or the Caribbean, there still may be a market for luxury brands, especially with heavy Asian traffic; however, everywhere else, not so much,” Gluck says. “The market exists only where you have enough flights, usually on non-U.S. carriers, bringing non-U.S. citizens to the U.S. for business or pleasure.”

renovated Hermès boutique in Vancouver International Airport (YVR), Tory Burch in John F. Kennedy International Airport (JFK)’s Terminal 1, Longchamp in Dallas Fort Worth International Airport (DFW) and Hugo Boss in Los Angeles International Airport (LAX)’s Tom Bradley International Terminal. Parmelee adds that there is “absolutely” demand for luxury brands among today’s travelers. “One of the recent changes in consumer behavior is that people are more willing to treat themselves,” she says. “There is oftentimes a reward mentality in travel, so consumers are inclined to indulge or purchase a gift. Offering luxury brands outside of duty free stores only increases their access to those brands.” Dave Jones, deputy executive director of commercial development for Los Angeles World Airports (LAWA), says that the landscape for luxury brands at LAX has remained consistent over the past decade, with duty free serving the majority of luxury retail demand, particularly in the Tom Bradley International Terminal. “In addition to duty free and duty free affiliated spaces for Hermès and Burberry, LAX also houses retail spaces with standalone luxury brand concessions,” he adds. “These include standalone locations from Hugo Boss and Tumi in the Bradley

Still In The Mix Rachel Parmelee, North American vice president of category management for luxury for Avolta , notes that the evolution of luxury retail in recent years varies market by market and depends on the specific airport and its traveler demographic. “Generally, we’re seeing more multi-brand stores that offer travelers the opportunity to browse numerous luxury brands in a single unit instead of in separate, standalone stores,” she says. “The shift occurred with changes in consumer behavior; travelers want to make better use of their time.” Avolta offers a vast portfolio of luxury brands in both its Hudson-operated duty paid and Dufry duty free stores across numerous categories, including perfumes and cosmetics, apparel and accessories, watches and jewelry, wine and liquor, and private label goods. “Having said that,” Parmelee adds, “there will always be certain high luxury brands that are more selective and will only consider certain mono-branded commercial environments that allow them to underline their luxury image and positioning among their perceived peers.” Some examples of standalone luxury retail locations that Hudson operates throughout North America include a newly

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AX NEWS SEPTEMBER 2024