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-   -   How well do chain stores in airports do? (https://www.flyertalk.com/forum/travelbuzz/1923563-how-well-do-chain-stores-airports-do.html)

ibrandsguest Aug 5, 2018 5:49 am

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.

Uncle Nonny Aug 5, 2018 6:01 am


Originally Posted by NYCommuter (Post 30049318)
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.


The PGA Tour store is the one that gets me. I guess people love buying golf shirts.

garykung Aug 5, 2018 6:05 am


Originally Posted by NYCommuter (Post 30049318)
So: how well (in sales per square foot) do chain retailers do in airports?

Like regular B&Ms, how well an airport store can do depends on the traffic. However, given the exclusivity, airport stores usually do okay.

Also - the corporation holding the brand does not usually expose to business risks, as many airport stores are in fact franchises.


Originally Posted by NYCommuter (Post 30049318)
Wouldn’t their costs be high due to the logistics of delivering merchandise inside airports?


The costs are usually shared by customers (which explains the higher price tag).

tentseller Aug 5, 2018 7:18 am

I had to patronize two airside BB for white shirt and a tie.

lhrsfo Aug 5, 2018 7:37 am

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.

MEABFlyer Aug 5, 2018 10:05 am

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.

abmj-jr Aug 5, 2018 12:29 pm

I wonder about the luggage stores in airports. Don't most people airside in an airport already have luggage? :confused:

CosmosHuman Aug 5, 2018 12:51 pm

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.

rbwpi Aug 5, 2018 2:03 pm


Originally Posted by CosmosHuman (Post 30050419)
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.

Likewise at PDX. Same prices at stores and restaurants as outside the airport. Also Oregon doesn't have a sales tax.

txflyer77 Aug 5, 2018 2:41 pm


Originally Posted by abmj-jr (Post 30050351)
I wonder about the luggage stores in airports. Don't most people airside in an airport already have luggage? :confused:

Suitcases break and they need a new one? Or they bought too many souvenirs and need something to stash them in for the return flight?

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.

trooper Aug 5, 2018 4:27 pm


Originally Posted by abmj-jr (Post 30050351)
I wonder about the luggage stores in airports. Don't most people airside in an airport already have luggage? :confused:

That has always mystified me too!

1flyer Aug 5, 2018 4:45 pm


Originally Posted by NYCommuter (Post 30049318)
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?

Without knowing the data, I would hypothesize they do quite well. Most people don't like to make complicated decisions all the time. For most travellers, an airport is not a place they see every weekday. So, many unknowns, many decisions to make. People will like to simplify. And I imagine this doesn't just affect McD, BK, illy coffee, and Starbucks but more upscale and luxury brands as well. Rimowa, Caviar House & Prune, Hermes, etc.

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.

Annalisa12 Aug 6, 2018 2:59 am

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.

deniah Aug 6, 2018 6:00 am


Originally Posted by abmj-jr (Post 30050351)
I wonder about the luggage stores in airports. Don't most people airside in an airport already have luggage? :confused:

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....

tmiw Aug 6, 2018 9:35 am


Originally Posted by Uncle Nonny (Post 30049341)
The PGA Tour store is the one that gets me. I guess people love buying golf shirts.

There's a PGA Tour restaurant in SAN, actually. Food in an airport is different than a regular store though.


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