The Design Solution


Travel retail landmarks

40 years of innovation – eight significant events that have reshaped the industry (continued).

In association with

1984-1988

A catalyst to commercialisation

The privatisation of BAA by the market-focused Thatcher government was the ignition point for airports to evolve a radical approach to non-aeronautical revenue. Required by the UK’s privatisation legislation to reduce landing fees by -5% per annum for ten years, the new private operator had a huge revenue gap to fill – and retail was the answer.

Over the subsequent decade, the UK airside experience was transformed by a business model that blended the smartest tactics of the thriving and highly competitive UK off-airport retailers with the opportunities of the airport environment. Driven by a highly experienced team recruited mainly from UK off-airport retailers, out went the formulaic, poorly stocked, generic duty free shop, newsagent and dull, canteen-style F&B – in came trusted brands to form a hugely expanded offer built on quality, consistency and value, and all presented in a new quality of retail environment.

BAA was the first major airport operator to be privatised, and its scale – and subsequent commercial success – quickly provoked a chain of privatisations across the world, including in Australia, Italy, Mexico, Argentina and India. The privatisation model continues to grow today with over 20% of airports now privatised, though it is significant that the US continues to resist the trend.

A travel retail world in evolution: Glasgow Airport above

London Stansted Airport, UK

London Heathrow Airport, UK

1989-1993

Commercial expansion of terminals

The acceleration in airport retailing in the 1990s created a major challenge – where would the space for the shops come from? Airports had always been designed through the lens of aeronautical functions, not for commercial operations and in-terminal experiences for the passenger.

For innovative BAA, the answer lay in a new approach to the planning of its space, including a repositioning of non-key operational functions away from passenger areas and the changing of landside/airside boundaries.

As leisure traffic growth continued, so too did airports’ appetite for commercial revenue – and with it the pressure on terminal space. BAA’s expansion of the Gatwick North Terminal in 1989 was a landmark project focused on commercial development, rather than aeronautical needs. This pioneering project attracted a flood of retailers and brands wanting to fill the new space, setting a strategy that airports worldwide would follow to this day, including Nice Côte d’Azur, Sydney and Budapest airports.

Nice Côte d'Azure Airport, France

Budapest Airport, Hungary

London Stansted Airport

1994-1998

Walkthrough duty free shops

In its first decade as a privatised operator, BAA pioneered another industry first when in 1995 it introduced the world’s first truly walkthrough duty free shop in Heathrow’s long-haul terminal (T3).

Deeply involved in the project, TDS Founder and Managing Director Robbie Gill explains how the walkthrough concept initially encountered turbulence: “The walkthrough plan certainly met with a mixed reception. For a number of years there was considerable resistance, especially from the operational side of airport management. Specifically, there were concerns about passengers getting ‘lost’ in the shops, missing planes, and the perceived additional walking distances.

“However, as more duty free shops across the world adopted similar formats, passengers readily adjusted to the new pathways and the commercial benefits became clear. Walkthroughs deliver 100% shoppers to the retail offer, giving brands a greater exposure.

“We’ve since planned dozens of walkthroughs at airports globally and it’s a concept that can be adapted to almost any airport, though some terminal layouts do require careful planning and re-siting of operational areas to make it fully effective. The blend of increasingly sophisticated targeting of shoppers and more expressive design has made the walkthrough route the backbone of the passenger/shopper experience with a myriad of experiential encounters presented along the passenger route.”

Manchester Airport, UK

London Heathrow Airport, UK

Rio de Janeiro Airport, Brazil

Bangalore Airport, India (©AVOLTA)

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The Moodie Davitt eZine Issue 332 | 8 March 2024

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