Shopping Center Business

MAY 2017

Shopping Center Business is the leading monthly business magazine for the retail real estate industry.

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AIRPORT RETAIL 304 • SHOPPING CENTER BUSINESS • May 2017 ports based on customer satisfaction. The Indianapolis airport earned the J.D. Power award because it embodies the traveler preference, which includes the design of wide open concourses so that passengers can move easily from shops and restaurants, including local eating establishments such as Café Patachou, Harry & Izzy's and Shapiro's Deli, accord- ing to Marsha Stone, senior director of commercial enterprise at the Indianapolis Airport Authority (IAA). The IAA is currently in the process of launching a concession makeover at the airport. Thirty-six existing concessionaire and retailer leases will expire in 2018, ac- cording to Stone, which she says presents an opportunity for the IAA to take food, beverage and retail in a fresh direction, one that shouts, "We are Indianapolis." The goal of the concession refresh plan is to showcase local foods, beverages and brands that represent the Indianapolis culture and community. IAA also aims to continue propel the local economy. The airport's concessionaires and retailers currently generate more than $40 million in sales revenue each year. The concession refresh plan is also part of IAA's larger Terminal and Campus Op- timization strategy, which was launched in 2015. This strategic effort was put in place to ensure the airport remains relevant and locally connected as it approaches its 10- year anniversary in 2018. "The IAA is working to instill a 'sense of place' that represents the culture of the city via the use of textures, colors and iconic elements representative of Hoosier history and contemporary lifestyle," says Stone. "Hoosier" is the colloquial term for people from the state of Indiana, as well as the name for Indiana University's sports teams. Kevin Kelly, president of Delaware North's travel business, echoes this sen- timent, citing the "sense of place" theme as a current trend in airport retailing. Delaware North manages food service and retail at more than 30 airports in the United States, Great Britain and Australia. "While [the amount of] traditional sou- venirs are declining, consumers are look- ing for travel and convenience stores to connect them to the area or airport. This can occur within the overall branding of the store, local food offerings and the remaining traditional apparel and souve- nirs," he says. According to Kelly, airport retailing sales volume per square foot can vary from $450 to $3,500 per square foot. The variances depend on the retail type, airport and concourse placement. OUTDOOR LOUNGES IN DEMAND Paradies Lagardère, a travel retail com- pany, operates more than 850 stores and restaurants in 98 airports across North America. The company works with ma- jor Midwest airports such as Chicago Midway, Detroit Metropolitan Airport, Des Moines International Airport, India- napolis International Airport and Kansas City International Airport to deliver casu- al and quick-serve restaurants and bars, including local brands. "Airports determine the types of stores and dining options they want to offer passengers based on demographic stud- ies and other research, and include this in request for proposals (RFPs) for new retail and dining," says Nicole Linton, marketing manager. "We work with our airport partners to meet those needs with both national and international brands, as well as local concepts adapted to an air- port setting." Paradies Lagardère manages the full dining program at Long Beach Airport in California, which is known for its unique- ness of implementing restaurant space with outdoor lounges. HOK recently completed a modernization project at the airport, and now says that passengers will deboard, collect their bags and opt to stay for a drink or dinner because of the upscale offerings. A move toward outdoor lounges is a trend that other airports, such as Tampa International Airport, are implementing. "An outdoor terrace can greatly en- hance space utilization at minimal cost, and it provides that variety of service that customers are looking for," says Coller. FUTURE FLIGHTS HOK's work on the East Terminal at St. Louis Lambert International Airport occurred before the terrorist attacks on Sept. 11, 2001, that led to the collapse of the twin towers of the World Trade Cen- ter in New York City. The attack, which used planes as weapons, has greatly af- fected airport design, according to Coller. Now that passengers linger in airports longer due to security wait times, conces- sion spaces need to be larger and more convenient for passengers. In short, more concession space means more potential revenue for the airport. Coller also suggests airports consider A renovation of the concessions at Chicago Midway International Airport will bring more local Chicago restaurants to the airport.

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