North American airports invest in retail, see growth to $9.9 billion USD by 2020

By

Dani Greene

Published
Jan 15, 2016

According to MicroMarket Monitor report "North America Airport Retailing Market By Category (Liquor & Tobacco, Perfumes & Cosmetics, Fashion, Food & Confectionery), By Type (Direct Retailer, Department Store, Specialty Retailer, Supermarkets), By Airport Size, By Geography - Forecast to 2020," the retail industry at North American airports is expected to grow from $4.15 billion in 2015 to $9.9 billion by 2020 at a CAGR of 19%. The report examines retail market by category (liquor and tobacco, perfumes and cosmetics, fashion, food and confectionary), by type (direct retailer, department store, specialty retailer and supermarkets, by airport size and by geography to determine 2020 forecasts.

 
After increasing fuel costs and the recession in 2009, airports needed additional sources of revenue and many invested in establishing or growing their retail footprint. Airports saw the retail market as a way to maintain sustainability and rebound from the recession. And, international air travel has increased by about 5% in 2015, with Canada seeing a 7% increase, spurring growth in retail at airports.
 
In addition to welcoming retailers, airports have invested in events and advertising to boost profits in areas other than airliners. As a result, the report found that duty-free retailers accounted for approximately 25% of the market in 2015. The report provides more specifics on the types of duty free shops, including tobacco, luxury, food and alcohol, and their role in the overall growth of retail success at airports.

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