The retail passenger spend rate decreased by -3.1% in first six months of fiscal 2014 at New Zealand’s busiest gateway, Auckland International Airport, despite passenger traffic rising by +4.8% to 7.6m in the period.

 

While retail income rose by +2.3% to NZ$63.8m ($53.1m) in the half year to December 2013 (see table below), AIA says that there was a -3.1% fall in spend per pax which it blames on restrictions in Australian outbound tobacco sales together with changes in Chinese travel laws and “a material change in Australian currency”.

 

The drop in per head spending is all the more surprising given the high route growth the airport is still seeing from China, suggesting perhaps that its retail offer is not adapted enough to this passenger profile. In 2H 2013, capacity to the PRC increased by +13.1% and passenger numbers by +19%. Overall international passenger numbers have been strong: +5% in the six months to December and growth of +8.7% to 16 February this year.

 

 

To improve the fading retail performance the airport says it has a range of initiatives in place to bolster future sales. These include: new space/capacity, the reconfiguration of the international terminal’s airside food court and eastern wing (Pier A retail expansion); new F&B, speciality and destination concepts; and promotional activities and online development.