Shopping - The Key to a Profitable Airport

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A career in airport retailing can take you around the world. Every major airport relies heavily on airport shops for its revenue, and when duty free privileges were abolished between EU states, many airports talked of increasing landing fees to make up the shortfall in revenue.

History

It all started 50 years ago, when Ireland's Shannon Airport wanted to increase income. To do this, it needed to encourage more planes to land. In those days, a ero planes couldn't fly the Atlantic in one hop from major European airports, but had to refuel on their way to the United States. Shannon was ideally placed, but so were other airports. So the Shannon authorities came up with their USP (unique selling point) and opened the world's first duty free airport shop. Soon passengers were booking on the airlines that refuelled at Shannon, so they could buy Irish crystal, spirits and other items duty free.



It wasn't long before other airports copied Shannon. When airport operators such as the British Airports Authority (BAA) realized they could earn as much or more from the retail side as from landing and take off fees, retailing became big business. Major airport retailers are massive global companies, and the BAA has one of the best records in this field, leading Aer Rianta (Eire), Gebr Heinemann (Germany), Nuance, etc. The BAA's company, World Duty Free, is so efficient that in the United States its airport retail operations earn more per US traveler than rival American companies.

The only blip came with the abolition of intra Europe duty free in 1999. The European Union wants harmonization of laws across Europe   and regarded duty free as an anomaly disturbing this. After years of deliberation, and even though studies proved that abolition of duty free would actually cost jobs and money, one country   Denmark   voted to abolish duty free. Fourteen countries (including Britain) voted to keep the privilege, but because one country had voted for abolition, Brussels said it had to be abolished.

In the aftermath, retail operators did everything they could to make up for the loss; margins were squeezed to give passengers prices lower than their high street price, bulk purchases kept prices low, and in the final analysis, when an airport like Heathrow has 50 per cent leisure (holiday) traffic, people going on holiday want to spend   currently an average of £3.81 for every passenger. Passengers traveling to destinations outside the EU can still buy duty free. Even though recently there was a downturn in traffic due to terrorism and foot and mouth disease, the BAA has made airport shopping so popular that it announced retail income was up 9 per cent, probably due in part to 'arrivals' stores   where passengers order goods on their way out, and pick them up on their return.

Once the duty free shop was hidden away in a dark corner and today when designing airports architects produce glitzy shopping malls. Some cynics say that aircraft delays happen so passengers have time to spend more. Whatever   delays keep the tills ringing merrily.

Employers

Retail

Retail shops operate land side (newsagents, chemists, etc.) and air side in the duty free area. Operators such as the BAA and its company World Duty Free are mega employers, as is Nuance. These companies need thousands of staff to operate shifts around the clock, at airports around the world.

However, it's not just a case of serving behind a counter  currently Nuance is looking for staff in finance, business development, product management, marketing, logistics, IT, and of course sales. With outlets from Australia to Canada, and operating the Olympic concession at Athens Airport ready for the Games in 2004, Nuance is snapping at BAA s heels.

Most staff will start on sales, but if you are ambitious you will soon become a consultant   an advisor rather than sales staff. You have to be able to understand trends and marketing strategies. Clients are often 'time poor, cash rich' businesspeople, who will buy six month's supply of their favorite products in one go, or airline staff buying products to protect their skins.

Most cosmetic houses at airports are from the upper, luxury end. It doesn't make sense to pay massive franchise and rental charges to sell cheap skincare. Customers tend to go for more luxurious products if they think they are saving tax or duty. A company such as La Prairie will launch a cream costing £200 for a small jar, knowing there is a market for this at an airport. As Carole at Geneva says, 'You see them walking past taking a good look at our products, then coming up to us with a long shopping list headed by Skin Caviar Lux Cream   sometimes three or four jars for friends who have heard how good it is, and want to save money buying this at the airport.' Impulse buying takes place amongst the fragrances, but skincare staffs really have to know their products as customers ask detailed, in depth questions.

Tip!

If you work in the main sales areas of duty free, you may have to sell alcohol, unless you are working in a country that forbids its sale. If you don't want to do this, then you need to work for one of the cosmetic or clothing franchises.

Skincare and cosmetics

There are small individual outlets such as Funky Fingers at Gatwick that need manicurists not only to provide traditional manicures, but also to apply temporary tattoos and nail art. The concession is operated by United Beauty, telephone 01773 536934. At the other end of the scale, large franchises such as Clarions need a big rots of staff not only for their retail side with numerous outlets, but also to provide massages, beauty treatments, tanning and facials at their airport studios. In between there are individual concessions such as Dior, Lancôme, Helena Rubinstein, MAC. La Prairie and many others.

Chanel must have one of the oldest and best known logos, and its skincare brands make full use of the striking black and white colors first chosen by Madame Chanel. Building on today's rush rush, Chanel cleverly offers 'express treatments', in black and white plastic tubes with a toning and firming mask being marketed as Masque Lift Express, aimed at women whose skin is suffering from the effects of jet lag and stress.
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