Amsterdam Airport Schiphol (AMS), last year, saw average retail spending per departing passenger in its post-security shops fall substantially by -8.9%, resulting in the total revenue from concessions at Dutch airports operator Schiphol Group declining by -0.7% relative to 2013.

AMS airside spending/pax decreased from €15.89 in 2013 to €14.48 last year, while concessions revenue for the group slipped to €136m ($155m) and group retail sales were flat (-0.2%) at €85m ($97m).

“Spending is under pressure in almost all retail categories as a result of construction work and the extremely busy peak periods,” says Schiphol Group, whose airports include AMS, Eindhoven and Rotterdam-The Hague. “This is exerting downward pressure on concession income and retail sales.” On the plus side, parking revenue increased by +5.4% in 2014 (see table).

The 70% government-owned airport operator also blames external factors such as unfavourable exchange rate effects and “increased price sensitivity arising from the wider range of products offered online, as well as online price comparison” for the spending decline.

TRAFFIC RISE DISGUISES POOR SPENDING

The overall retail result is only marginally down thanks to a rise in traffic. Passenger numbers at AMS increased by +4.6% to 55m, mostly attributable to KLM and its partners.

Schiphol Group as a whole, including its regional airports of Eindhoven and Rotterdam-The Hague, broke the 60m barrier to reach 60.6m passengers (+5.3% compared with 2013).

This year, construction work for the installation of central security in the non-Schengen area is due to be completed which should result in better passenger flows, less congestion and improved store spending.

TOP-LINE GROWTH

Overall in 2014, Schiphol saw a revenue increase of +8.1% to €1,474m ($1,676m) to produce a net result of €272m in 2014 against €227m in 2013, a big hike of +19.5%.

Schiphol Group President and CEO, Jos Nijhuis, says of the group performance: “These are healthy results which enable us to continue to invest in the Mainport [ie AMS]. Increasing competition forces us to remain alert and to make further investments in the quality and capacity of Schiphol.

Examples include the completion of the non-Schengen central security area in 2015 and the A area development of a new terminal and pier. We will also reduce the airport charges and keep them at a very competitive level.”