HKIA retail ‘outperforms’ downtown in 2015
By Charlotte Turner |
Hong Kong International Airport tells TRBusiness that its Midfield Concourse (MFC) has been ‘operating smoothly’ since its first flight departed on 28 December 2015 and now handles about 230 flights per day, which accounts for around 20% of HKIA’s daily passenger flights.
The new HK$10bn/$1.2bn Midfield Concourse, which is expected to increase HKIA’s handling capacity by at least 10m passengers per year, welcomes over 20 new retail and F&B units which have opened in phases since the end of last year. [TRBusiness reported about nine new units which had opened by February this year.]
“The year of 2015 has been fruitful for Hong Kong International Airport (HKIA) with its strong passenger growth, which saw the airport register a record-breaking 68.5m passengers and over 406,000 flight movements,” a spokesperson for the airport authority (AAHK) told TRBusiness.
“Together with continuous marketing promotion effort, HKIA retail sales outperformed Hong Kong overall retail sales during the year of 2015 and in the first quarter of 2016.”
As previously reported by TRBusiness.com, Mainland Chinese visitor numbers and spending continue to fall in the city of Hong Kong, with the HKSAR Government reporting a double-digit drop in value (-12.5%) and volume (-11.3%) in the first quarter ending March 2016.
The airport believes that its retail outlets fared better in 2015; and hopes the positive performance will continue and even improve with the opening of MFC. There are over 20 retail and F&B units in the new 105,000sq m Midfield Concourse, split between liquor & tobacco, beauty products, fashion & accessories, audio-visual & electronics, packaged food, gifts, souvenirs & toys along with pharmaceutical & personal care items.
In addition to the opening of MFC, the Hong Kong Airport Authority (AAHK) has introduced an ‘I Love Hong Kong’ zone on Level 7 of the airport’s Terminal 1 East Hall, which is meant to reflect Hong Kong’s ‘East meets West culture’.
Comprising 14 well-known local brands, the zone offers a variety of Hong Kong products, including food, fashion and traditional Chinese medicines. All of the brands are said to carry a strong ‘I Love Hong Kong’ element from shop design to merchandises and packaging.
New brands inside the new zone include Shanghai Tang, The Peninsula Boutique, Hong Kong Disneyland, Giordano, LensCrafters, Fook Ming Tong, Kee Wah Bakery, and more. The zone also features pop-up stores from emerging Hong Kong designers and entrepreneurs.
Along with the retail developments in the East Hall, the Hong Kong Airport Authority (AAHK) has refreshed retail in the West Hall (T1) too.
“Retail offerings will be enriched with 29 shops offering new products and services when the revamp is completed this year,” the HKIA spokesperson told TRBusiness.
The food court in the West Hall has been rebranded as the ‘East to West Food Market’ with the first phase already launched earlier this year.
“On the luxury front, we are proud to introduce two new additions to the zone with opening of MCM store in April and Hermès commencing business by middle of this year,” adds the spokesperson.
For HKIA’s two fashion tenders – which closed in February for Terminal 1 – Salad was awarded the licence at East Hall while Sunglass Hut was awarded at West Hall.
A number of tenders on different retail and catering concessions located in various areas inside the terminal will be issued in the coming months. The AAHK prompts interested parties to visit the HKIA website for the latest tender notice.
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