Luxury Shopping on the rise as the future of travel retail to be $85 Billion by 2020

By C'EST DU LUXE

Turn Your Attention To The Terminal

Regardless of your reason for being on the road, life on the go means purchases on the go. The truth is, we are all traveling more. Rising international travel and culturally fluid shoppers find themselves in a similar position to my own, dining on Giordano's deep dish pizza in Chicago, vintage shopping for tulle skirts in Helsinki and souvenir shopping for a nice bottle of white vinegar outside of Zurich. 

Airports Are the New Luxury Shopping Malls

Highly educated, affluent and active travelers influence major purchasing decisions at home, for their businesses, and social circles. Major international hubs have an advantage here. A study by the Ronald Reagan Airport in Washington D.C. found that its travelers were three times more likely to shop at Saks Fifth Avenue in New York than the average adult in the area. 

Airports in London, Bangkok, and Dubai attract shoppers seeking both convenient connections and exclusive luxury goods. Are retailers ready to meet their customers at the same level of cultural and geographic fluidity of the shoppers they wish to cater to?

The future of travel retail? How does $85 billion sound?

Let's take a look at the numbers: Travel retail is projected to be an $85 billion industry come 2020 (Coresight Research). In 2016, approximately six percent of all luxury shopping took place in airports, with Asia leading the highest growth. With airports receiving a cut of duty-free revenue, terminals have a vested interest in the growth and development of their services and shopping offerings. 

Major Airports in the US investing in shopping

In the United States, major airport hubs are coming on board. In October, New York Governor, Andrew M. Cuomo announced plans to direct a historic $13 billion in redevelopment funds to John F. Kennedy Airport alone.

Highly educated, affluent and active travelers influence major purchasing decisions at home, for their businesses, and social circles. Major international hubs have an advantage here. A study by the Ronald Reagan Airport in Washington D.C. found that its travelers were three times more likely to shop at Saks Fifth Avenue in New York than the average adult in the area.