*Lagardère Travel Retail will occupy an expansive fashion space at the newly refurbished Terminal 2 plaza.

Vienna International Airport has awarded Lagardère Travel Retail a multi-brand fashion contract at the Terminal 2 plaza, which is undergoing a substantial renovation.

The agreement is understood to cover a variety of ‘big brand’ fashion outlets housed in a department store-style layout, TRBusiness has learned in exclusive interviews with senior management from both parties [further detail on this to follow].

An anticipated spread will include a take on the travel retailer’s acclaimed Fashion Gallery concept adapted to Vienna Airport that has proven successful at the likes of Singapore Changi Airport and Amsterdam Airport.

This is expected to cover approximately 800sq m, including a mix of approximately six or seven shop-in-shop units merchandising sunglasses, watches & jewellery and accessories.

Up to five additional, separate monobrand units each measuring around 50sq m will also feature at the plaza, which will transform many of the terminal’s existing, single brand stores into the Fashion Gallery space.

Work on the new area is expected to begin in November ahead of an anticipated opening in Q2 2019.

CENTRALISED RETAIL ZONE

Speaking to TRBusiness, Ambroise Fondeur, Chief Business Officer, Lagardère Travel Retail said: “It is a concrete example of the importance that we put in this category and the need to adapt our organisation to the specific activity of fashion.”

Upon completion, a new centralised retail zone will greet passengers, enabling a more seamless journey through the commercial areas, which includes the core Heinemann Duty Free and Travel Value store.

This is set to remain unchanged, but some speciality retail fixtures such as leather goods and sunglasses will be scaled back to place a greater focus on the core assortment.

*Passenger numbers at Vienna International Airport grew by 5.5% in the first half of 2018 to total 11,840,245.

Commenting on the new environment, Björn Olsson, Senior Vice President, Center Management, Vienna Airport said: “It is really a department store with leather goods, fashion, sunglasses and watches. There was always a problem in the old terminal building when you walked through the Heinemann Duty Free store before we built Terminal 3 – you ended up with three different walkways.

“What we are working on is to transform and combine all those (pax) flows into one. We are tearing down all the retail in duty free and combining it all into one walkway instead of three.”

Aside the redevelopment at Terminal 2, the airport is focusing on expanding its footprint at the Terminal 3 Satellite (south extension), which expects to add 12,000sq m of new commercial space by the end of 2022/2023.

SATELLITE PLANS SHAPE UP

While it is too early to discuss the commercial set-up at the new satellite, TRBusiness understands that an anticipated tender could take place in the first quarter of 2020.

Lagardère Travel Retail’s victory follows the creation of a new fashion entity separate from its core business activities in July.

Nathalie Santonja was named Executive Vice President Fashion and Bruno Gouisset as Executive Vice President Merchant Core Business.

The renovation of the Terminal 2 commercial area will mean refinements and improvements to the core Heinemann Duty Free and Travel Value store as part of a new-look centralised retail plaza employing a single walkway.

Lagardère Travel Retail/Duty Free Global says the newly formed fashion entity establishes a specific and dedicated unit to strengthen operational efficiencies and better structure relationships between central and local teams to quicken speed of implementation and performance monitoring of the commercial offer.

“It will help accelerate products entering the store and accelerate growth in fashion as well – it’s a strong sign of the potential we see in the category,” commented Fondeur.

For comprehensive analysis and further insight on Lagardère Travel Retail and Vienna International Airport, watch out for the October print edition and Top 10 Operators Report, available from the press racks at the forthcoming TFWA World Exhibition & Conference. Click here to subscribe.

*Photos courtesy of Flughafen Wien AG.