Are Airports the new frontier in retailing?
When a retailer is looking at expanding their network of stores, one avenue for expansion that is often overlooked is the potential of airport locations.
Many travelers have time on their hands, while waiting for flights or while waiting for domestic or international arrivals. Therefore for some brands it makes sense to consider airport locations – that is providing the numbers stack up.Based on the latest release of Precinct Scout Mastercard merchant data, airports continue to top the lists in terms of both transaction and average sales activity. Sydney Airport ranks 6th highest in terms of both transaction activity and average sales out of over 1,400 retail precincts across the state.
Melbourne Airport also rates highly, ranked 10th highest in transaction activity, and 5th highest in average sales, out of over 1,200 retail precincts across the state.
This ranks both the Sydney and Melbourne Airports as having amongst the highest levels of activity across each state. However, it should be noted that not all brands are suited to airport locations, and not all brands can justify the potentially high rentals airport locations may require. This would need to be assessed on a brand by brand basis.
In addition, Geotech has found that where a brand locates within an airport can make a massive difference to the sales potential offered for any given brand. As an example, brands that are more “premium” or oriented towards professional working populations tend to fare better when located closer to more premium airline carriers that have a higher concentration of business travelers, than when located closer to more budget airline carriers, and vica versa.
The same can be said when considering international vs domestic terminal locations, as this can make a massive difference to the sales potential for an airport location for any given brand, as it will depend on the brands offering and who their key target market is.
Precinct Scout visually displays the strength of the precinct on each of these measures. Clicking into a precinct displays all of the transactional and centre data relevant to that precinct, along with information on how that precinct ranks against others in the state.