UK. Dufry-owned World Duty Free today officially opened its new walk-through store at Gatwick Airport’s North Terminal. The store anchors an ongoing transformation of the terminal’s retail journey.
The near 2,000sq m store is designed to deliver a heightened core category experience and elevated brand offer. It features extensive digital technology to deliver greater personalisation, the retailer said.
The store replaces the former main shop and transfer store. It was inaugurated today by Dufry CEO Julián Díaz; Dufry CEO Division UK, Central and Eastern Europe Eugenio Andrades; and London Gatwick Airport Chief Commercial Officer Guy Stephenson at a tour and ribbon- cutting ceremony attended by The Moodie Davitt Report.
They were joined by Dufry General Manager UK & Germany Fred Creighton; Gatwick Airport Head of Retail Rachel Bulford; Dufry Commercial Director UK & Germany Davene Stirling; World Duty Free Regional Manager Barry Wheeler; and Gatwick North Store Manager World Duty Free Graham White.
“Walk-through stores are performing better. They deliver higher spend per head and people can travel through the core experience.” – Dufry CEO Division UK, Central and Eastern Europe Eugenio Andrades
The store, which has been relocated just beyond security screening, is adapted to the North Terminal’s evolving passenger profile. In January, easyJet and Virgin Atlantic moved to the terminal and British Airways moved to the South, changing the passenger mix. Gatwick North is now the busier of the two, serving 23 million passengers a year; just over half of Gatwick’s total 45 million annual passengers.
“It’s a very dynamic time for retail here at Gatwick. We are seeing growth in passenger numbers and the need to adapt to a changing passenger mix.” – London Gatwick Airport Chief Commercial Officer Guy Stephenson.
Dufry CEO Division UK, Central and Eastern Europe Eugenio Andrades hailed the flowing walk-through design. This, he said, together with accommodating the new passenger profile and the addition of more exclusive and local products, are the key pillars of the revamped offer.
“Walk-through stores are performing better,” he told The Moodie Davitt Report. “They deliver higher spend per head and people can travel through the core experience.
“Passengers visiting our store in the UK’s second-largest airport expect the highest standards of customer service, the latest innovations and an extensive product range. This impressive new retail space provides customers with a world-class and more personal shopping experience, along with a much wider range of sought-after brands. Our thanks go to the London Gatwick team for their support during the store redevelopment period,” said Andrades.
The opening is part of a wider development of the North Terminal. Gatwick Airport contributed a £27 million (US$36 million) investment to the new store. “This store is the first phase of that investment and is part of the biggest multi-category bid process that Gatwick has ever run,” said Gatwick Airport Chief Commercial Officer Guy Stephenson. “There will be many more openings down the road, including new food and beverage and retail.
“It’s a very dynamic time for retail here at Gatwick. We are seeing growth in passenger numbers and the need to adapt to a changing passenger mix with the swapping of the terminals.”
The walk-through layout facilitates the different ways passengers shop – from browsing to quick purchases, said Stephenson. “Our commercial developments are based on three axes: capacity, passenger experience and the commercial outcome,” he told The Moodie Davitt Report. “The store is a terrific modern environment, giving a great impression to our increasing passenger numbers. We are happy with the commercial outcome; the walk-through layout has shown improvement. It has allowed us to increase the number of brands and is easily navigated.”
Customer journey
Dufry General Manager UK & Germany Fred Creighton led a tour of the new store, remarking how it has incorporated digital elements is a significant change from the retailer’s other walk-through stores in the UK. Creighton said that the store’s relocation has prompted the introduction of +40-50 new brands across all categories.
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The entrance to the store introduces the traveller to the liquor area, which showcases collections of spirits, including locally sourced brands such as the Surrey-based Silent Pool gin. The 225sq m space is split 50:50 between spirits and the retailer’s specialist whisky concept, World of Whiskies.
Key products for Gatwick Airport’s passengers are Champagne twin-packs, Johnnie Walker and Baileys Irish Cream, which are positioned prominently at the entrance. A Gin Collection display features key brands, with Bombay Sapphire and Tanqueray enjoying personalised space.
“We are finding a growing number of people looking for different products from craft to small-batch and so we have more than doubled the number of gins we had before the store development,” said World Duty Free Buying Manager Liquor Nigel Sandals. “Growth in the category is around +40-45% year-on-year.”
New to Gatwick is the Destination Tasting Bar, which features a digital display comprising three 65-inch ultra-high-definition screens. These enable content to be instantly tailored to passenger profile and time of day. Featured brands change constantly according to different flights/passenger profiles. For example, Beluga vodka, which is popular with customers travelling to Madrid and Germany, is displayed to time with morning flights to those destinations. Such flexibility increases communication impact and drives sales, the retailer said.
The World of Whiskies concept has been incorporated into the walk-through store from its previous standalone position. A space at the front of the store highlights new products; currently a single cask of Highland Park of which only 550 bottles were drawn. The promotion’s success is evident in the 400 bottles sold, retailing at £105 (US$140), within four weeks of launch, said Sandals.
Digital screens relay generic promotional messages and information about specific brands. The liquor zone also features a centrepiece sample bar, displaying around 20 high-value whiskies priced at £500 (US$665) and above.
A contentainment space follows the liquor section, creating a ‘stop-off point’ for customer engagement and highlighting new introductions. It aims to deliver a strong visual impact using the latest technology, including the UK’s first curved LG OLED video wall comprising nine screens ‘floating’ in front of LED tiles.
Beauty showpiece
The retailer hailed the 627sq m beauty hall as the store’s showpiece. It introduces several new brands to Gatwick North. A generic space at the entrance to the area showcases key campaigns such as ‘40% Off’, ‘Seasonal’ and ‘New’ promotions to lure customers.
Chanel, Dior, Lancôme, Clarins, Clinique, YSL and Esteé Lauder feature in a series of international brand boutiques. The retailer has added 15 hot new make-up brands, including Urban Decay, NARS, Smashbox, Armani and Tom Ford. Smaller, niche brands that have gained an online following, such as Lipstick Queen and By Terry, also feature.
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Colour cosmetics remain a growth driver for the category, generating an +11% sales increase year-on-year. Key fragrance brands such as Paco Rabanne are strategically placed near the colour cosmetics zone to drive new customers into the area. Features such as a new Brow Bar for Benefit Cosmetics and the world’s first Dior Lip bar represent new opportunities for the retailer.
The beauty hall incorporates digital shelf-edge labelling, which displays a combination of generic promotions, price and brand-specific images. Brands featured in the digital shelf-edge labelling have seen an uplift of +40-50% compared to others in the same promotion, said a World Duty Free spokesperson.
A Skincare Zone introduces customers to premium brands such as La Mer, Elemis, Sisley, REN and Eve Lom. Consultations and complimentary pre-flight services with specialist staff are on offer. Additional space has been allocated to perfumes to maximise the potential for growth brands such as Paco Rabanne, Hermès and Tom Ford and to showcase new names such as Tiffany. Molton Brown, Rituals, L’Occitane and Kiehl’s, which is a new addition to the store, form the lifestyle brands section.
Digital engagement and localisation
The 135sq m luxury area houses sunglasses, jewellery and watches. Over 1,438 facings showcase 40 different sunglasses brands, including new additions such as Celine, Versace, Tiffany, Chloe and Burberry. Sunglasses sales at Gatwick North rank number one across all World Duty Free’s UK stores, said Creighton.
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A ‘Magic Mirror’ boosts customer engagement – the digital screen allows customers to try on a variety of styles, compare images and share content on social media or via e-mail. Other new additions to the luxury area include Michael Kors watches and larger personalised spaces for Pandora and Swarovski.
The customer journey through the store concludes with the confectionery area. This showcases British brands including Fortnum and Mason – one of the best-selling food ranges at Gatwick. Key brands such as Toblerone, Cadbury, Godiva and Lindt are highlighted with personalised displays.
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Facing confectionery, the souvenirs and toys category continues the focus on local products. A range of gifts highlights nearby landmarks such as Brighton and Arundel Castle. The souvenir graphics incorporate the Gatwick name and aeroplanes into the design. Premium gifts and souvenirs include the Harry Potter collection, which has proven popular with tourists – Harry Potter’s wand is a best-selling line.
Further emphasising a strong Sense of Place, the wall behind the main till points features a series of landscape ‘windows’ displaying digital images of famous London landmarks.
The next phase
With the walk-through layout and an expansive digital and contentainment aspect in place, the next focus for the retailer and the airport is customer engagement.
“Digital provides speed of reaction and the possibility of change” – Dufry CEO Division UK, Central and Eastern Europe Eugenio Andrades
“Flexibility, targeting and interaction” are the key focus areas, according to Dufry’s Andrades. The retailer has the infrastructure in place to be flexible and target consumers. It now needs to focus on interaction, he said.
“This is just the start,” Andrades noted. “Digital provides speed of reaction and the possibility of change. In order to move to the next stage we need the right infrastructure, and we have that now. We now have to work together to make it to the next level. The next step in our collaboration is communicating with the passenger in advance.”
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Gatwick’s Stephenson added: “Our collaboration will continue to evolve as we adapt to the modern shopper.”
NOTE: Look out for a more detailed report on this important store opening in The Moodie Davitt Report e-Zine this week.
