LAX and Westfield expect sales of $98m from new TBIT retail offer

By Kevin Rozario |

Los Angeles International Airport’s operator, Los Angeles World Airports, and shopping centre specialist, Westfield, yesterday presented an ambitious retail vision for the new Tom Bradley International Terminal that is expected to generate $98m in annual sales.

 

TBIT – built in 1984 and where passenger numbers last year were 8,564,341 (down -0.8%) – will have around 60 dining units and luxury stores, 42 of which will be new to LAX and 28 will be “new to any airport, anywhere”. Some 22 local brands will be part of the overall retail mix in which Westfield and its tenant partners – which include Areas, Branded Works, CMS Hospitality, HMS Host, Hudson Group and LS Travel Retail – are investing $80m. (The line-up of key brands and F&B operations is listed in the final table.)

 

 

The duty free operation, run by DFS Group, covers 25,000sq ft (2,323sq m) plus three standalone luxury boutiques: Burberry, Gucci and Hermès. DFS is investing $32m in TBIT and is projecting first full-year sales for its airport-wide duty free concession of over $300m. Duty free sales revenue to LAWA in fiscal 2011 (ending June) was $36.7m (see table, below).

 

DFS will also introduce its Platinum Services Club at LAX – a personalised shopping and concierge service for global travellers visiting Los Angeles.

 

Other fashion brands the retailer will offer include Balenciaga, Bottega Veneta, Chloé and Salvatore Ferragamo plus high-end watch brands such as IWC, Longines, Montblanc, Omega and Rado. The beauty category will carry more than 20 brands while the liquor section will go from popular product like Johnnie Walker whisky to ‘prestige’ spirits – and an in-store LA-themed tasting bar. Fine wines will include assortments from LA’s own San Antonio, Malibu Family, Rosenthal Estate and Moraga Estate wineries.

 

FROM TRANSIT POINT TO DESTINATION

LAWA wants the TBIT offer to change LAX from a transit point to a destination in its own right. The airport operator, which is a department of the City of Los Angeles, confidently predicts that “the new TBIT will revolutionise the passenger experience in North America”.

 

LA Mayor, Antonio Villaraigosa (right in main image above), comments: “Westfield’s development in the new Tom Bradley International Terminal will showcase LA’s distinct style and spirit, keep LAX competitive in the global market, increase international tourism, and put Angelenos to work now and for years to come.” Locally, job creation is a key issue and TBIT will – it is claimed – support nearly 4,000 construction-related jobs and a further 1,700 permanent concession jobs.

 

Peter Lowy (left in main image above), Co-Chief Executive of the Westfield Group, whose US headquarters are in Los Angeles, adds: “We are deploying global resources and development expertise to deliver an iconic, world-class airport experience at LAX.” Westfield Concession Management operates in 10 major US airports. As well as TBIT, the company is currently redeveloping concessions at LAX’s Theme Building and Terminals 1, 2, 3 and 6.

 

Westfield’s F&B and retail line up at the new Tom Bradley International Terminal

Food and beverage

Retail

ink.sack

Bulgari

Border Grill

Michael Kors

Umami Burger

Emporio Armani

LAMill Coffee

Fred Segal

Larder at Tavern

Kitson

800 Degrees Pizzeria

Coach

III Forks

Porsche Design

Chaya by Sushi

Tumi

Lucky Fish by Sushi Roku

Victoria’s Secret

Petrossian Caviar & Champagne Bar

Hugo Boss

Vino Volo

iStore Boutique

Short Cake

Bliss (spa services)

Vanilla Bake Shop

See’s Candies

Starbucks Evenings

XpresSpa

Cantina Laredo

Hudson

Marmalade Café

The Bead Factory

Pinkberry

Bienvenida Flowers & Gifts

Starbucks Coffee

Angeleno News

Drink.LA

Relay

The Coffee Bean & Tea Leaf

Malibu Shades

Scoreboard LA

Virgin Mobile/Boost Mobile

Panda Express

Travel & Leisure

 

CNN Newsstand Los Angeles

 

USA Today Travel Zone

 

The Economist

 

Sanrio Surprises

 

Hollywood Reporter

 

7-Eleven

Source: LAWA, Westfield

 

PHASED OPENING

The first phase of new TBIT, which includes a Great Hall and boarding gates on the west side of the terminal, is scheduled for spring 2013 while the second phase – which includes new gates on the east side of the terminal, new security screening, and an upgraded customs arrivals area – is expected to be completed  by 2014.

 

The terminal will feature state-of-the-art baggage-handling systems and 18 roomier boarding gates, nine for new-generation aircraft such as the Airbus A380, Boeing 747-8 and Boeing 787 Dreamliner. TBIT will also have secured corridors so that connecting passengers can travel between it and Terminals 3 and 4.

 

The new TBIT is the largest public works project in Los Angeles’ history and one part of a vast $4.1bn LAX modernisation programme – funded without taxpayer dollars – and comprising nearly 25 individual projects.

 

LAX is the sixth busiest airport in the world and third busiest in the US, In 2011, LAX served more than 61.8m passengers (up+4.7%) travelling to 91 domestic cities and a further 58 cities in 32 countries on nearly 75 carriers.

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