Airport Specialty Stores Essay

1708 WordsNov 21, 20137 Pages
SH&E / CENTER FOR AIRPORT MANAGEMENT’S ACADEMY OF CONCESSIONS Ron Baltruzak President BVR, inc. A R N 2 0 0 8 R E V E N U E C O N F E R E N C E & E X H I B I T I O N Specialty Retailing: Losing Ground Yes or No? 1 Assumptions Dwell Time continues to increase 93 minutes Business to leisure traveler 54/46% Male/Female 57/43% Average Age 40 years old Average Income $80,130 2 2 Total Airport Concessions Passenger Spending 2004 2006 % Inc. spend 2004 spend 2006 + Spend Total Enplanements F&B Spending Specialty Spending N&G Spending 534,189,830 550,647,208 3.0% 24.1% 22.5% 25.9% $ 3.90 $1.32 $ 1.29 $ 4.70 $ 1.57 $ 1.58 $ 0.80 $ 0.25 $ 0.29 $2,083,340,337 $2,585,739,568 $705,130,576 $ 863,938,271 $ 689,104,881 $ 868,269,775 3 3 Specialty Retailing Definition 4 4 Specialty Retailing Definition Specialty Stores - are small stores, which specialize in a specific range of merchandise and related items. Most stores have an extensive width and depth of stock in the item that they specify in and provide high levels of service and expertise. The pricing policy is generally in the medium to high range, depending on factors like the type and exclusivity of merchandise and ownership, that is, whether they are owner operated or a chain operation which has the advantage of bulk purchasing and centralized warehousing system. 5 5 Specialty Retailing Definition National Brands - are those brands that have quality, selection, occasional strong promotional pricing, and trust from years of experience outside the airport environment. They are located in most major malls throughout the US. Examples: Brookstone, Brooks Brothers, Body Shop and Johnston & Murphy. 6 6 Specialty Retailing Definition Airport Brands - with the rise of awareness in

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