How airports are changing the retail store placement game

Strategic store placement in airports is key to maximising visibility, capturing impulse purchases, and enhancing the traveller’s shopping experience in a high-footfall environment

Over the years, airports have evolved drastically from just being a transportation hub to a retail shopping destination. The high footfall, increasing at an unprecedented pace has made airports one of the most sought-after and aspiring destinations for retail brands. Airports act as dynamic ecosystems that millions of travellers pass through daily. This creates unique opportunities for retailers to capture a diverse customer base and offer them a delightful shopping experience.

However, in such a high-energy environment, identifying and securing the right space for store placement along passenger walkways is daunting. Notably, the majority of airport passengers are “gate huggers” who tend to seek the Critical Short Path (CSP) to their gates, hence it is critical to locate the store on this CSP. On the other hand, a recent survey states that space optimisation at airports is emerging as a primary concern. Nearly 20% of the airports cite space optimization as a major challenge when developing retail masterplans. Hence, it becomes imperative to adopt a strategic approach in ensuring visibility, attracting customers, and maximizing sales. 

Understanding the Upsurge in Store Placement at Airports

There is no denial of the fact that airports are dominated by high foot traffic. In the FY24 alone, the total air passenger traffic in India reached more than 220 million passengers. Hence, this high foot traffic combined with extended dwell times showcase a unique opportunity for travellers to leisurely browse and indulge in shopping sprees. 

Over the years, the shopping experience at airports has moved beyond convenience and last-minute purchases. It caters to the needs of travellers, offering everything from luxury goods to essentials, all in one place. Subsequently, the variety and diversity of demographics make airport retail a compelling destination. Most commonly, air passengers have higher disposable incomes which increases the likelihood to purchase premium products such as high-end bags, electronics, cosmetics and exclusive duty-free items. This makes airports an ideal destination for retail brands for a myriad of reasons. 

Ensuring Maximum Visibility

When it comes to retail business, visibility is the key in a fast-paced setting like an airport. Visibility enhances brand awareness and recall, which is essential for the long-term success of the brand. Retail stores positioned along main passenger walkways or near key areas like boarding gates, lounges, and food courts naturally capture more attention. Moreover, these brands are more likely to be remembered by travellers, contributing to higher sales. In that case, strategic placement ensures that the store is not just seen but becomes a part of the traveller’s journey.

Capturing Impulse Purchases

Travellers often wait for their flights which poses an opportunity for airports to capture impulse shopping. With limited time before boarding, retail stores at airport sell products that are hard to find or highly desirable by shoppers. Subsequently, stores situated in high-traffic zones—like, departure lounges, seating areas, service areas such as washrooms, smoking rooms etc.are perfectly positioned to turn idle time into revenue for retailers. Whether it’s a last-minute souvenir, a quick snack, or a travel essential, being in the traveller’s direct path makes all the difference.

Enhancing Customer Convenience

Great store locations also enhance customer experience. Travelers value convenience, especially when navigating through a bustling terminal. A store that’s easy to find and access becomes a welcome part of their journey, reinforcing positive associations with your brand. Another key parameter would be “Shopping Time”, which is defined as the  time taken by customers to purchase a product. For instance, sweets as a category is quicker to purchase as compared to apparel.

Driving Sales and Brand Loyalty

Airports act as a global stage for brands, especially if the stores are strategically placed. Travellers at the airport come from all over the world. Ultimately, strategic store placement offers exposure and drives consistent exposure to a diverse and ever-changing traveller demographic. This results in higher sales and increased brand recognition. A well-placed store can become a landmark within the terminal, building loyalty from repeat travellers.

Final Thoughts

In airport retail, location is not just important—it’s essential. The right spot ensures visibility, convenience and the ability to capitalize on impulse purchases, all of which on Critical Short Path (CSP) contribute to higher revenue and a better customer experience. So, to position the store rightly, rethink the retail strategy and make the most of the bustling airport environment time. 

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