Schiphol plan to diversify and upgrade concourse retail

By Luke Barras-hill |

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A view of the Lounge 3 zone. Source: Schiphol Group.

Amsterdam Airport Schiphol will introduce a series of new clustered shopping areas around its terminal piers in the coming year in a move to diversify the retail offer, TRBusiness can reveal.

In May, the airport introduced five semi-permanent pop-up shopping units at its Pier B close to departure lounge 1 (serving European flights) featuring sunglasses, news & convenience, F&B and a selection of top performing products from its core duty free categories.

The units will be there until the area will be connected to the new Pier A, which is set to open in 2019. Thereafter, the pier will have its own commercial area.

Schiphol introduced a centralised security area a few years ago that removed all its gate security zones, in turn offering the airport the chance to refurbish its piers and create new commercial spaces alongside better quality seating and refreshed boarding facilities.

“The goal is to have more of these mini shopping areas on the concourses,” revealed Anne-Marie Zuidweg, Head of Commercial Services & Media, Schiphol Airport.

“Everything that will happen next year is the result of the upgrading of our concourses and piers. The results of this will be in early 2018 then we will go through the terminal and update G, E, F and D concourses.”

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Anne-Marie Zuidweg, Head of Commercial Services & Media, Schiphol Airport.

NEW TERMINAL’S ‘FLEXIBLE RETAIL’

Last month, Schiphol Group released concept visuals of its €313m ($369m) expanded terminal, which is expected to open in 2023.

Catering for an additional 14m passengers and connecting Departure Hall 1 and Arrival Hall 1, it will feature new opportunities for retailers as the operator seeks to leverage its competitive position in European aviation (click here to see the images).

“We are going to open a totally new pier in 2019 and then the new terminal [in 2023],” said Tanja Dik, Director Consumer Products & Services, Schiphol Airport.

While it is too early to talk about the expected retail set-up at the new terminal, Dik says it would assume a flexible retail concept similar to that implemented in the pier.

“There will be a good balance between commercial and flow areas in the new terminal and the new pier,” she added.

HOLLAND BOULEVARD

Another notable development in the past few months has been the opening of the refurbished Holland Boulevard.

Situated in a transfer area between Lounge Two and Three that draws heavy volumes of international passengers, the new-look Holland Boulevard features a scaled down version of the country’s famous Rijksmuseum.

Passengers are able to immerse themselves in Dutch art and culture supported by interactive digital screens, with separate ‘living rooms’ decorated in different colours offering travellers, their family and friends the chance to rest or work away from the busy terminal areas.

“Our proudest thing in the last year has been the Lounge Two opening and the increasing commercial income with Holland Boulevard, which is unique,” commented Zuidweg.

“We would like our passengers to get a flavour of Holland In an environment that is catered towards their needs. It is not just for shopping and F&B, but a nice environment to stay in.”

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The new terminal will increase capacity by 14 million when it opens in 2023, following the launch of the new Pier A. Source: Schiphol Group.

SPP DROPS; F&B GROWS

A mixed performance across its retail categories last year has been countenanced by stronger gains in F&B, Schiphol says.

“The biggest increase is coming from F&B – retail is the biggest possession part so it has a much bigger influence on our general figures,” commented Dik. “In Europe, there is still a general decline – like in the high streets.”

Average retail spend per passenger (SPP) declined from €14.45 ($15.39) to €13.65 ($14.53) last year, as overall retail sales plummeted by 90% to €3m ($3.2m).

However, this is reportedly attributed to the 60% sale of Schiphol Airport Retail (SAR) to Gebr. Heinemann in 2015 (Schiphol Group retains a 40% share in the business).

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Source: Schiphol Group.

Total passenger numbers reached 63.6m (+9.2%) in 2016, with the airport acknowledging the aforementioned pier and terminal developments as necessary to cope with the extra capacity.

In its most recent half-year results, passenger numbers rose by 8.6% to reach 32.2m, which would break last year’s annual passenger mark should growth continue at the same level.

However, average spend per passenger post-security fell by 2.4% from €13.70 ($16.2) to €13.37 ($15.8).

“We still have a lot of extra growth in our income on retail, but if you divide it by the number of pax, you have another figure,” explained Dik.

“On the other hand, F&B is growing, we have a lot of extra services that are helping us and of course in the end it is also about the general figure down the line, not only the SPP.”

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