This article dives into a conversation with Fraser Brown, Retail Director at London Heathrow Airport, about the airport’s retail journey through challenging times like COVID-19. We’ll explore how Heathrow has adapted to new trends and how the airport’s vision for a world-class retail experience is evolving.
Get ready to hear from the expert!
Adapting to Challenges: COVID-19 and the Retail Industry
Fraser Brown, the Retail Director at Heathrow Airport, reveals how the airport’s retail sector navigated the turbulent waters of the COVID-19 pandemic and the subsequent cost-of-living crisis. He explains that his team is responsible for overseeing a wide range of retail offerings, from duty-free stores to luxury brands, ensuring a smooth and enjoyable experience for travelers.
What is their approach?
The team works with partners to deliver high-quality food and beverage options while striving to deliver the best retail experience in the world.
But reaching these goals during the pandemic posed its own unique challenges. Reduced passenger numbers and a limited workforce significantly impacted the airport’s finances.
Brown highlights a key observation: while high street retailers faced difficulties with the rise of e-commerce giants like Amazon and eBay, travel retail, pre-COVID-19, thrived. This was due to the global growth in aviation, bringing more passengers to airports.
The airport’s passenger demographic was seen as “rich” compared to the average customer in a high street shopping mall, making travel retail a lucrative market for retailers.
However, this success led to complacency: retailers became complacent in their offerings, neglecting to innovate and adapt to the changing digital landscape.
Embracing the Digital Future: Heathrow’s Retail Vision
Fraser Brown stresses the importance of integrating digital tools into the physical airport experience, highlighting how digitalization can enhance the passenger journey.
While Heathrow excels in utilizing digital tools for basic passenger information, like flight schedules, terminal maps, and parking, it hasn’t fully embraced digitalization in the retail sector.
This represents a missed opportunity!
Brown believes that digital platforms can improve the retail experience, allowing passengers to browse duty-free catalogs online, reserve items, and collect them at the airport.
This type of online service, known as Heathrow Boutique, exists but lacks the comprehensive range of brands that passengers seek.
He emphasizes the need to curate these digital platforms to meet the needs of the diverse retail partners and brands operating at Heathrow.
Decoding Passenger Behavior Post COVID-19
Fraser Brown shares fascinating insights into passenger behavior post-COVID-19, revealing the complexities of navigating a world transformed by the pandemic.
Heathrow is keenly observing how passengers interact with retail services, particularly in areas like food, beverage, and shopping.
One key observation is the continued tendency of passengers to arrive early at the airport, possibly due to ongoing anxieties about travel disruptions.
However, despite these anxieties, the airport is now successfully managing passenger flow through security, returning to pre-COVID-19 levels.
This has opened up opportunities for commercial activities.
Passengers, spending more time in the departure lounge, are more likely to engage in food and beverage offerings, fueled by uncertainty about on-board meals and a desire for a quick snack.
However, the removal of the VAT-free purchasing scheme in the UK has negatively impacted sales of luxury goods and cosmetics.
Heathrow is actively lobbying the UK Government to create a more competitive environment for travel retail, advocating for the removal of this “tourism tax”.
The Future of Heathrow Retail
Fraser Brown’s insights provide a clear picture of the challenges and opportunities facing Heathrow’s retail sector. By adapting to the changing needs of passengers and embracing digitalization, Heathrow aims to deliver a world-class retail experience that meets the diverse needs of its global traveler base.
