Airport Experience® News - Retail Innovation Issue 2024

productive specialty brands like iStore and Spanx. “We don’t anticipate any significant changes in airport demand for duty paid luxury,” he adds. ICF’s Gluck has a grim outlook on the future of luxury retail. “I see very little and limited markets for luxury retail, and most of it will be brought in by the duty free operators who have the contacts with the luxury brands,” he says. “Can this change? Absolutely. Markets adjust and adapt. But there will have to be something that spurs demand. I cannot think of what it might be.” Gluck adds that he’s currently recommending that his airport clients replace standalone specialty retail with hybrid stores that feature both travel essentials and specialty retail products. “If done right, I think those stores can highlight the best of a city or region by curating a collection of a variety of goods from local makers and manufacturers,” he says. LAWA’s Jones notes that LAX will continue to focus on offering retail options at a variety of price points. “As one of the busiest airports in the world, it is imperative that we provide retail experiences that are welcoming, diverse, exciting and captivating for our guests, with luxury options continuing to be part of that effort,” he says.

YVR is also taking a multi-pronged approach. “We see exciting growth ahead for both local and luxury retail – upporting both is integral to our long-term strategy, catering to the diverse preferences of our passengers and enhancing their overall airport experience,” Ma says. Avolta’s Parmelee notes that the future of luxury retail is exciting to her, adding that the luxury experience will remain a significant focus of Avolta’s strategy in North America. “We serve customers across generations every day who want to engage with luxury retail because of the craftsmanship and esteemed heritage of these brands and the stories they have to tell,” she says. “Luxury retail not only meets the needs of travelers who are in more of a reward mode along their journey, it also adds an extra thrill to the overall travel journey.” Various reports and analysts point to consumer demand for luxury retail as still vibrant, with the U.S. market being one of the strongest for sales of these items, Buckner points out. “However, the types of luxury retail shopping experiences passengers seek are evolving, and that is the challenge for airports and operators: How to change the in-store proposition to meet this new demand,” he says. For the reason Buckner details, CDA’s Ritter is cautious about the luxury retail landscape, pointing out that remaining nimble will be key. “Looking ahead, the future of luxury retail at O’Hare will involve strategic adaptations to align with evolving traveler demographics and behaviors. This diversification will likely include integrating more experiential and personalized shopping options to enhance the traveler experience, such as digital and e-commerce solutions and online pre-ordering to meet the changing shopping habits of travelers,” she explains. “As the luxury retail landscape evolves, airports will need to adjust their strategies to appeal to emerging markets and younger demographics, ensuring they remain relevant and attractive to a diverse audience.”

Fickle Future Ken Buckner, director of retail concessions practice for Unison Consulting , believes that today’s young travelers are still looking for luxury travel retail but their expectations are different than those of previous generations. “Today’s luxury consumer traveling through airports is getting younger, more aspirational, and wants to engage with luxury brands in a more personalized and experiential way,” he says. “Unfortunately, what most airports still have to offer are the same legacy mass luxury brand standalone stores that can feel very static to these aspirational travelers, and this dynamic is reflected in the sales performance for many of these locations. Unless brands and operators can develop standalone luxury retail units that capture some of the flagship store level experiences that travelers are interacting with outside of airports and online, I think the future for luxury retail remains cloudy.” For Paradies Lagardère, Bisset notes that luxury retail will remain a strong focus of the company’s duty free offerings, but its standalone duty paid retail offerings will continue to emphasize more accessible fashion brands like Faherty and Kendra Scott, plus highly

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AX NEWS SEPTEMBER 2024