Retailing in airports will emerge as a bright spot for retailers amid tough market conditions, according to a report by GlobalData.
Titled ‘Global Airport Retailing 2016-2021’, the report forecasts retail spending in airports to increase from $38bn last year to $49bn by 2021.
Growth in number of air travellers and increased security measures have resulted in a captive audience looking for ways to pass the time and shop. This audience reportedly accounts for 83% of all spending in airports.
The spending increase has subsequently led to the development of retail space at airports, which are willing to spend on creating a relaxing retail experience for travellers, states Maureen Hinton, Group Research Director at GlobalData Retail. The Changi Airport in Singapore, for example, includes a spa and entertainment avenues similar to a shopping centre.
Airports in Asia-Pacific recorded the highest retail spending of $14.8bn last year, while Europe ranks second with $10.7bn. The Brexit decision by the UK played a major role in attracting tourists, who took advantage of the low value of the pound.
The airport retailing trend is also gaining popularity in the US, which offered a poor shopping experience in the past. The country’s airports are investing in developing new retail spaces and providing offers.
President Trump’s decision to impose curbs on immigration, however, is affecting the market with regular travellers thinking twice before visiting the country, the report adds.