How Airport Retail Is Changing for Good
For the owners of Gatwick Airport, the U.K.’s second biggest airport, April 2022 was a significant moment: for the first time since the emergence of the COVID-19 pandemic, the Express train route from central London to the terminal reopened. It’s a sign, Gatwick hopes, that some normalcy is returning to the travel sector. Still, that word “some” is doing a great deal of heavy lifting, airport bosses concede—they fear their industry will never be the same again.
For the retailers that inhabit the world’s airports—and particularly the luxury marques selling more expensive goods—such concerns raise some difficult questions. Will they again ever be able to rely on passengers passing through airports buying goods in segments such as fashion, beauty, consumer electronics, and food and drink?
Prior to COVID-19, airports represented a rare bright spot in the battle between physical retail and e-commerce; passengers passing through airports may have deserted high street stores, but they were still spending large sums when on their travels. The pandemic saw airports close and passenger numbers plummet as travel restrictions limited demand for flights, but retailers had hoped to see a resurgence as the world reopened.
Air travel is bouncing back
The good …