Luxury brands aim to open more retail stores in airports

Gone are the days when airport shopping was limited to convenience stores, newsstands, and souvenir shops. Today, major airports like San Francisco International Airport (SFO), Los Angeles International Airport (LAX), and New York's John F. Kennedy International Airport (JFK) have transformed into hubs for luxury shopping, with high-end brands like Burberry, Gucci, Hermès, Saint Laurent, AllSaints, Porsche Design, Coach, BVLGARI, Cartier, and Kate Spade setting up shop to cater to affluent travelers.

The global airport retailing market size was valued at USD 31,815 million in 2022 and is valued at USD 34,657 million in 2023. It is projected to reach USD 91,235 million by 2031, registering a CAGR of 12.8% during the forecast period (2022-2030). This robust growth reflects the increasing trend of retailers establishing a presence in airports. Over the next decade from 2023 to 2033, the airport retailing market is expected to experience a substantial CAGR of 11.7%, indicating continued expansion and the opening of more retail outlets in airports worldwide.

 

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Asia Pacific has been dominating the Airport Retailing Market, accounting for the largest share of the market. The Europe market was the second-highest contributor to the airport retailing market. The Europe airport is projected to reach USD 15,985 million by 2031 growing at a CAGR of 12% during the forecast period. The North American airport retailing market is the third-largest. This is attributed to the rise in international air traffic from/to the US, which increases footfall at airports.

“This market’s growth is propelled by technological advancements, with interactive kiosks and digital platforms enhancing the shopping process. As airports transform into comprehensive retail hubs, the Airport Retailing Market continues to play a pivotal role in shaping the intersection of travel, commerce, and consumer engagement,” said Mr. Karan Chechi, Research Director with TechSci Research.

The presence of these luxury brands in airports serves multiple purposes. Firstly, it allows airports to offer a premium shopping experience to their passengers, elevating the overall travel experience. Travelers with discerning tastes can now indulge in some retail therapy while waiting for their flights, browsing through the latest collections from their favorite designer labels. This not only helps to pass the time but also adds a touch of excitement and glamour to the journey.

"We are seeing customers buying less at shopping malls less often, and less shopping malls are being built as customers continue to shop online. So, luxury brands are looking to airports to reach their target market and for their high foot traffic," said Jeanel Alvarado, Retail Expert, Founder & CEO of RetailBoss. "For travellers who may also be coming from other places in the world, they may not be able to shop the luxury retailers in their own country, so they look forward to shopping in the airport."

Moreover, luxury brands are strategically placing their stores in airports to capitalize on the captive audience of wealthy travelers. Airports provide a unique opportunity for these brands to showcase their products to a global clientele, many of whom may not have the time to visit their standalone boutiques in the city. By bringing their stores to the airport, luxury brands can tap into a new market of potential customers and boost their sales.

The allure of airport luxury shopping also lies in the convenience factor. Travelers can shop for high-end products without having to leave the airport, saving them time and effort. Additionally, many airports offer duty-free shopping, which allows passengers to purchase luxury goods at lower prices than they would find in regular stores. This adds an extra incentive for travelers to indulge in some retail therapy before boarding their flights.

SFO, LAX, and JFK airports, in particular, have become known for their impressive lineup of luxury brands. At SFO, travelers can find stores like Burberry, Gucci, Hermès, and Saint Laurent, while LAX boasts brands such as AllSaints, Porsche Design, and Coach. JFK, meanwhile, is home to BVLGARI, Cartier, and Kate Spade, among others. These airports have successfully created a luxurious shopping environment that rivals the best shopping destinations in the world.

Luxury brand stores with the most international airport locations

1. Louis Vuitton - Louis Vuitton was noted as one of the top luxury brands that shoppers at Heathrow airport make big purchases from. It was also mentioned as one of the luxury brands opening a store at Schiphol Airport in Amsterdam as part of the airport's efforts to enhance its luxury retail offerings.
2. Chanel - Along with Louis Vuitton, Chanel was listed as one of the top brands that Arab and Chinese shoppers at Heathrow airport make large purchases from.
3. Cartier - Cartier was grouped with Louis Vuitton and Chanel as the luxury brands seeing the most high-value sales from travelers at Heathrow airport. Cartier was also noted as one of the designer brands available at New York's JFK airport.
4. Gucci - Gucci was included in a list of 13 international luxury brands that have signed leases for retail space at the new Istanbul airport.
5. Hermès - Like Gucci, Hermès was also named as one of the 13 major luxury brands opening stores at Istanbul's new airport.
6. Prada - Prada rounded out the list of luxury retailers mentioned as setting up shop at the recently built Istanbul airport.
7. Bulgari - The LVMH-owned Bulgari brand was called out for opening a boutique at Schiphol Airport in Amsterdam as part of the airport's luxury retail upgrade.

Louis Vuitton, Chanel, Cartier, Gucci, Hermès, Prada and Bulgari were the luxury brands cited most frequently as having a robust airport retail presence across various major international airports.

Luxury brand stores with US airport locations

1. Burberry - Burberry has stores located at San Francisco International Airport (SFO).
2. Gucci - Gucci operates retail stores in US airports like San Francisco International Airport (SFO).
3. Hermes - Luxury fashion house Hermes has airport retail locations, including at San Francisco International Airport (SFO).
4. Saint Laurent - High-end fashion brand Saint Laurent has stores in airports such as San Francisco International Airport (SFO).
5. AllSaints - British fashion retailer AllSaints has a presence at Los Angeles International Airport (LAX).
6. Porsche Design - The luxury goods brand Porsche Design operates stores at airports including Los Angeles International Airport (LAX).
7. Coach - Iconic American luxury brand Coach has retail locations in airports such as Los Angeles International Airport (LAX).
8. BVLGARI - Italian luxury brand BVLGARI has stores at major US airports, including at New York's JFK Airport.
9. Cartier - French luxury jewelry and watch brand Cartier operates airport retail locations such as at New York's JFK Airport.
10. Kate Spade - Fashion brand Kate Spade New York has airport stores, including at New York's JFK Airport.

These upscale brands are redefining the airport shopping experience, offering travelers a touch of luxury and convenience while also expanding their own reach to a global audience. As airports continue to innovate and improve their offerings, we can expect to see even more exciting developments in the world of airport retail in the years to come.