Airport retail sales tipped to soar - if coronavirus doesn't worsen

Health & Leisure
Thursday, 30 January 2020
Global airport retail sales are forecast to reach US$48.2 billion in 2020, up 6.1 per cent on 2019, according to analytical company GlobalData.  
However, the escalation of the severity of coronavirus could now have a detrimental impact on airport passenger numbers – causing concern for airport operators and retailers.

Honor Strachan, principal analyst at GlobalData said: “The prevention of travel for Chinese consumers will impact the performance of airport retail world wide. 
 
"Over the past few years airport retailers, especially those in Europe, have tailored their propositions, integrated Chinese payment solutions and invested in Mandarin-speaking staff to target Chinese passengers and maximise sales growth opportunities.
 
"If outbound tourism from China suffers as a result of coronavirus, airport operators and retailers must adapt their strategies to target other passengers.”

In 2003, SARS caused tourism spend in China to collapse while visitor numbers to Thailand, Malaysia, Singapore and Hong Kong significantly dropped off, causing airlines to ground planes and reduce flight schedules. 
 
Coronavirus has already dented retail and leisure spending across the Chinese New Year holiday due to consumers being encouraged, and in some cases forced, to stay in and avoid travel.

In response to the crisis, retailers are considering closing stores, with the China Duty Free Group closing its mall in Haitang Bay – impacting the APAC duty free market in 2020.  
British Airways has suspended all direct flights to mainland China until January 31, although the BA web site shows no direct flights to mainland China through January and February, while the likes of United Airlines and Cathay Pacific Airways also have cancelled selected flights to China.

Strachan added: “Asia Pacific is forecast to be the fastest performing region for airport retail spend in 2020, with sales rising 8.4 per cent to US$21.7 billion – 45.1 per cent of the global channel. While this recent coronavirus outbreak cannot yet be compared to the impact of SARS, if the coronavirus continues to spread globally over the course of 2020 its impact on tourism and economies, particularly across APAC, could be severe.”

Airport retail sales tipped to soar - if coronavirus doesn't worsen

Health & Leisure
Thursday, 30 January 2020
Global airport retail sales are forecast to reach US$48.2 billion in 2020, up 6.1 per cent on 2019, according to analytical company GlobalData.  
However, the escalation of the severity of coronavirus could now have a detrimental impact on airport passenger numbers – causing concern for airport operators and retailers.

Honor Strachan, principal analyst at GlobalData said: “The prevention of travel for Chinese consumers will impact the performance of airport retail world wide. 
 
"Over the past few years airport retailers, especially those in Europe, have tailored their propositions, integrated Chinese payment solutions and invested in Mandarin-speaking staff to target Chinese passengers and maximise sales growth opportunities.
 
"If outbound tourism from China suffers as a result of coronavirus, airport operators and retailers must adapt their strategies to target other passengers.”

In 2003, SARS caused tourism spend in China to collapse while visitor numbers to Thailand, Malaysia, Singapore and Hong Kong significantly dropped off, causing airlines to ground planes and reduce flight schedules. 
 
Coronavirus has already dented retail and leisure spending across the Chinese New Year holiday due to consumers being encouraged, and in some cases forced, to stay in and avoid travel.

In response to the crisis, retailers are considering closing stores, with the China Duty Free Group closing its mall in Haitang Bay – impacting the APAC duty free market in 2020.  
British Airways has suspended all direct flights to mainland China until January 31, although the BA web site shows no direct flights to mainland China through January and February, while the likes of United Airlines and Cathay Pacific Airways also have cancelled selected flights to China.

Strachan added: “Asia Pacific is forecast to be the fastest performing region for airport retail spend in 2020, with sales rising 8.4 per cent to US$21.7 billion – 45.1 per cent of the global channel. While this recent coronavirus outbreak cannot yet be compared to the impact of SARS, if the coronavirus continues to spread globally over the course of 2020 its impact on tourism and economies, particularly across APAC, could be severe.”