Passenger numbers grew by +0.7% last year.

London Heathrow (LHR), the busiest gateway in Europe – which expects to give up that crown to Istanbul Airport as soon as this year – saw a -2.3% drop in retail concession revenue year-over-year, despite traffic growing by +0.7% to a record 84.5 million passengers.

While London Heathrow Airport (LHR), the UK’s only hub, delivered an overall increase in its retail division of +2.5% to £791m/$1,070m*, retail concession revenue fell by -2.3% to £293m/$394m. Avolta is the core duty-free operator at the gateway.

Retail concessions make up one of five components of the retail stream – and the biggest (see chart below). The others are: non-retail concessions (up +2.8%), catering (up +7.9%), car parking (up +6.5%), and travel services (up +4.5%). These gains, especially on the food side, helped offset the retail concessions contraction.

Heathrow’s full revenue and profit breakdown in FY25.

‘Notable improvements’ in F&B

Commenting on the retail division as a whole, LHR’s operator, Heathrow (SP) Limited, said in a statement: “Higher traffic numbers boosted retail revenue with notable improvements in food and beverage (F&B) sales due to extended opening hours. Car parking income increased, and premium services also benefited from the skew in long-haul travel.”

In 2025, Heathrow remained OAG’s most connected airport for the third year and expanded its network with new routes. The passenger experience continued to improve with new retail and dining options in Terminal 5, along with upgrades such as the refurbished Windsor Suite and new lounges. The airport also improved digital services through initiatives such as paying in advance for Reserve and Collect retail.

The airport did not state the reasons for the retail concession revenue slide last year. It contrasts with 2024, when the same component grew by +6.6% year-on-year, helping the overall retail division to hit a double-digit rise of +10.6%. In 2024, LHR significantly expanded its retail and food offerings with 15 new openings.

LHR will release its Q1 26 trading statement on 29 April.

* FX conversions at today’s rate.

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