How well do chain stores in airports do?
Aug 5, 2018, 5:49 am
#1
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How well do chain stores in airports do?
I read recently that Brooks Brothers airport stores were apparently helpful in revitalizing the brand among businesspeople in the 1990s, and Brookstone is closing its mall stores but keeping its airport stores.
I find that odd because I never see people in either store at the airport. I shop at Brooks Brothers, but I do so at the local branch when I’m on a mission to buy clothes, not when I’m racing to catch a flight.
So: how well (in sales per square foot) do chain retailers do in airports? Wouldn’t their costs be high due to the logistics of delivering merchandise inside airports?
Thanks.
I find that odd because I never see people in either store at the airport. I shop at Brooks Brothers, but I do so at the local branch when I’m on a mission to buy clothes, not when I’m racing to catch a flight.
So: how well (in sales per square foot) do chain retailers do in airports? Wouldn’t their costs be high due to the logistics of delivering merchandise inside airports?
Thanks.
Aug 5, 2018, 6:01 am
#2
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I read recently that Brooks Brothers airport stores were apparently helpful in revitalizing the brand among businesspeople in the 1990s, and Brookstone is closing its mall stores but keeping its airport stores.
I find that odd because I never see people in either store at the airport. I shop at Brooks Brothers, but I do so at the local branch when I’m on a mission to buy clothes, not when I’m racing to catch a flight.
So: how well (in sales per square foot) do chain retailers do in airports? Wouldn’t their costs be high due to the logistics of delivering merchandise inside airports?
Thanks.
I find that odd because I never see people in either store at the airport. I shop at Brooks Brothers, but I do so at the local branch when I’m on a mission to buy clothes, not when I’m racing to catch a flight.
So: how well (in sales per square foot) do chain retailers do in airports? Wouldn’t their costs be high due to the logistics of delivering merchandise inside airports?
Thanks.
The PGA Tour store is the one that gets me. I guess people love buying golf shirts.
Aug 5, 2018, 6:05 am
#3
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Also - the corporation holding the brand does not usually expose to business risks, as many airport stores are in fact franchises.
The costs are usually shared by customers (which explains the higher price tag).
Aug 5, 2018, 7:37 am
#5
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Airport stores are often the most profitable stores in a chain, despite incredible rent and paying the royalty to the airport. Look at WH Smith as an example - its recent results showed that its airport division was far more profitable than any other.
Aug 5, 2018, 10:05 am
#6
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I shop at the Brooks Brothers in PHL fairly regularly. The sale prices are the same as they are near my home and there isn't sales tax charged on clothing in Pennsylvania. I can't recall buying anything at any other chain store though.
Aug 5, 2018, 12:51 pm
#8
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One thing about the shops at PIT; they aren’t allowed to charge more for their goods than their stores outside of the airport. No price gouging allowed. Large variety of shops to pass the time away. Plus, no sales tax on clothing or shoes.
Aug 5, 2018, 2:03 pm
#9
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Likewise at PDX. Same prices at stores and restaurants as outside the airport. Also Oregon doesn't have a sales tax.
Aug 5, 2018, 2:41 pm
#10
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I do wonder how much of that emergency-replacement market will be taken over by vending machines like the ones Uniqlo has installed in some airports. Lower rent, no retail staff, grab-and-go.
Aug 5, 2018, 4:45 pm
#12
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Costs of retailing at the airport are very high, sure. But you got lots of high-net worth individuals there. Some of them need a quick present or distraction. And many will looks for brands they recognize and value. Brooks Brothers is a retailer for which (IMO) this logic applies to.
Aug 6, 2018, 2:59 am
#13
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When at the airport I make different decisions about the shopping I do. I seem to open the purse strings a bit more there and have less concern about what I am spending because I'm on holidays. Maybe others just buy stuff they don't really want but think it is a bargain.
Aug 6, 2018, 6:00 am
#14
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For a branded shop I think it's about exposure. Most people don't think about their luggage until they have to use it. So it's only during the travel process that they're reminded about the displeasure with their wheels, handles, capacity, whatever....
Aug 6, 2018, 9:35 am
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