Retail strategy right on track says Sydney Airport CEO Kerrie Mather

AUSTRALIA. Sydney Airport’s largest development programme since the lead-up to the Sydney Olympic Games in 2000 is paying off strongly for retail, according to CEO Kerrie Mather.

As reported, retail was the star turn in the airport’s first-half results, up +14.3% on passenger growth of +3.6% (+7.7% international) to A$162.6 million (US$129.1 million), representing a 23% share of total revenue

Speaking to The Moodie Davitt Report as part of a comprehensive ‘On Location’ supplement to our October Print & Interactive Edition, Ms Mather noted: “Every aspect of that programme is focused on the customer – whether it’s in the form of working with our airport partners to implement technology and infrastructure to become more efficient, or by offering greater value and choice across all our services and offerings to make the airport experience a great one.”

“For our investors, this work creates value, choice and a unique experience for our customers, which in turn is driving strong performance of our retailers and retail revenues.”

Ms Mather said that the ambitious makeover of the airport’s retail offer, led by General Manager Retail Glyn Williams, had helped create a “seamless experience” for Sydney Airport’s customers. “Our retail transformation has provided additional benefits by presenting a wide range of dining options and shopping experiences, making it well worth giving yourself plenty of time at the airport before your flight,” she commented.

Asked how critical retail is to the customer experience and customer perception of an airport, Ms Mather replied. “Retail has always been an important part of the airport experience. Customers are looking for diverse and unique experiences when they’re at the airport. Providing a great range of choice in your retail offering is one essential part of that, as is providing airport ‘firsts’ or ‘only at airport’ type offerings.

“Our focus is to ensure that we deliver a seamless and easy experience throughout the airport, which gives passengers time to enjoy our dining and shopping while passengers wait for their flight.

“Our half-year results confirmed that our retail strategy is meeting the needs of our very diverse passenger mix. With much of our T1 transformation complete, we’re now starting to see the benefits of an improved customer offering.”

Ms Mather praised Heinemann Tax & Duty Free’s contribution, notably the six-store footprint in Terminal 1. “Duty free delivered a standout performance in the first half of 2017, particularly in the core categories of liquor, perfume and cosmetics. Heinemann brings a highly contemporary duty free offering to Sydney Airport, with an emphasis on exclusive and limited-edition products that create a unique value proposition for passengers.”

Asked how confident she was of the future for airport retail in the face of a growing e-commerce challenge, Ms Mather said: “I think there’ll always be a place for airport retail, but we’ll need to remain focused on meeting changing customer needs. The rise of online shopping has really highlighted the importance of delivering a great customer experience in-store, and our retailers are delivering that now.”

Look out for the full interview in The Moodie Davitt Report Print & Interactive Edition, out on 30 September.