Stansted Airport airside in numbers.

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Mitchell Conley
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Exclusive: tansted rises after major retail revamp In the last two years London s fastest growing airport, tansted (T) has invested 80m ($115m) in the redevelopment of its one-terminal building,

As tansted posted a double-digit increase in traffic for 2015, the airport s owner Manchester Airports Group (MAG) is driving forward in its ambition to attract a greater mix of airlines, including

1 Exclusive: tansted rises after major retail revamp In the last two years London s fastest growing airport, tansted (T) has invested 80m ($115m) in the redevelopment of its one-terminal building, growing its retail space by 60% by relocating security and reducing check-in space. As tansted posted a double-digit increase in traffic for 2015, the airport s owner Manchester Airports Group (MAG) is driving forward in its ambition to attract a greater mix of airlines, including long-haul connections to serve its region and the London, tansted, Cambridge economic growth corridor. E The airport s three-phase project was finally completed at the end of last year and last month usiness enjoyed an exclusive tour of the 18 new retail units at London tansted Airport led by MAG s Head of Retail, teve Foster. I During the first phase of the major project, the check-in area and security areas were transformed completely with swathes of space for check-in minimised and replaced with small cul-de-sacs, in response to the changing face of travel, which means that the majority of passengers now check-in online. Click to enlarge tables and images. tansted Airport airside in numbers. One of the biggest retail changes for T was the opening of a mammoth new WDFG walkthrough store which replaced two smaller ones nearly 25,000sq ft (or 3,000sq m) in size; at the time of opening it was the largest WDFG walkthrough store. In the second phase of the development tansted opened/reopened 13 new F& outlets, last spring, including five airport firsts such as a restaurant by popular ritish chef, James Martin. And in part three T unveiled 18 retail units, which opened in phases last year, for which 80 brands showed interest during a competitive tender process launched in July 2014.

2015 was London tansted Airport s busiest calendar year since 2007, as 22.57m passengers travelled through the terminal, an increase of 2.6m passengers (13%) on 2014.

2 I E Exclusive: tansted rises after major retail revamp The Chanel shop-in-shop is a big draw for customers within the large WDFG store at T. Perhaps this is no surprise, considering the airport s commitment to retail/f& prowess and its rapidly growing passenger base was London tansted Airport s busiest calendar year since 2007, as 22.57m passengers travelled through the terminal, an increase of 2.6m passengers (13%) on Although Manchester remains the busiest airport in the Manchester Airports Group (MAG) estate recording 23.12m in 2015 tansted s total pax number is closing in on its sister airport. [It is important to note that non-e passengers make up 45% of the total traffic at MA, including many Chinese, giving it the most diverse passenger base of all MAG airports]. What s really intriguing about tansted is the catchment area that we cover, says Foster. I think within two hours we ve got 25m passengers that we could capture. We ve got passengers that travel from central London and from Cambridge, so it s a very different passenger base really here who use the airport more often. o when creating the retail mix here, we ve tried to focus on having something different all the time, including product ranges, pricing and promotions. We work very closely with retailers to make sure there s something new happening all the time; that MAG s Head of Retail, teve Foster. the merchandising is changed regularly; that the shop windows

Exclusive: tansted rises after major retail revamp are changed regularly as well, because tansted s got a large frequent traveller base. I E Click to enlarge diagram.

3 Exclusive: tansted rises after major retail revamp are changed regularly as well, because tansted s got a large frequent traveller base. I E Click to enlarge diagram. The airport believes its newly refurbished one-terminal layout presents its retail partners with a unique proposition, as all travellers are forced to snake through over 10,000sq m of shops, cafés, bars and restaurants, via a navigable walkway. Importantly tansted has the capacity to continue growing and attracting more passengers especially as new commercial developments in east London gather momentum and that includes those on new longhaul routes too. Although T currently serves all passenger through one terminal building it did announce, back in February 2015, a 8m ($11.5m) upgrade of its atellite One departure gate area, which the Airport s Managing Director, Andrew Harrison said was being driven by the airport s ambition to attract more passengers, airlines and long-haul services. Having successfully returned tansted to growth, making it once again London s fastest growing airport, we re driving forward our ambition to attract a greater mix of airlines, including long-haul connections to serve our region and the London tansted Cambridge economic growth corridor, said Harrison last year. oth passengers and airlines will surely be attracted to the 80m transformation of the main terminal building s retail and F& offer too. In eptember 2015, tansted Airport unveiled the brands moving into the remaining 18 outlets.

I E Exclusive: tansted rises after major retail revamp As previously reported, the new retail line-up at T includes, fashion clothing brands, popular on the K High-treet, such as Ted aker, Lacoste,

4 I E Exclusive: tansted rises after major retail revamp As previously reported, the new retail line-up at T includes, fashion clothing brands, popular on the K High-treet, such as Ted aker, Lacoste, Joules, East, Oasis and uperdry. As reported, 80 brands, from high street and global airport retailers, showed interest in the outlets at T which MAG bought from Heathrow Airport Holdings (HAH) in The airport believes its newly refurbished one-terminal layout presents its retail partners with a unique proposition, as all travellers are forced to snake through over 10,000sq m of shops, cafés, bars and restaurants, via a navigable walkway. When we launched the food and beverage we opened five airport firsts with the likes of Harris + Hoole and the James Martin Kitchen, says Foster. That was really important to us for the final phase of the programme as well. It s really exciting when a passenger comes who sees a brand they ve never seen before, because you know we ve got a lot of regular travellers. What we do realise is when it s the first time in an airport for a retail/f& partner, you have to work a little bit harder with them from a relationship point of view.

I E Exclusive: tansted rises after major retail revamp Daily essentials retailer Dutch retailer HEMA opened its fifth outlet in the K at tansted Airport recently, offering last-minute products and

5 I E Exclusive: tansted rises after major retail revamp Daily essentials retailer Dutch retailer HEMA opened its fifth outlet in the K at tansted Airport recently, offering last-minute products and more for passengers as they travel and beyond. You have to share the trading patterns of the airport and help them where you can because they re new to everything. ut actually the response you get back from these guys who do things slightly different to what our current airport operators do, that s when you get a real reward and you see the delight on the customers face. The way the airside space is designed, leads passengers into an orientation area immediately following security. The snake walkway through the terminal means that passengers can t actually see their final destination immediately. You don t actually know where you re going, so the snake walkway we ve created is very different to Gatwick and other airports where you can actually see the end of it.

6 E Exclusive: tansted rises after major retail revamp uperdry is a strong ritish fashion brand inspired by an Americana style and Japanese/language culture. I In this respect Foster says it was of paramount importance to make navigation clear at all times, through large and effective signage, and to make flight/gate information available within every store via flight information displays (FIDs). It wasn t so easy making all of these changes whilst the airport was still functional and Foster admits that operating during months of construction was testing. However, building over 10,000sq m of new retail and F& space during opening hours was not the only challenge tansted had to contend with last year. ack in August last year, well-known K High-treet retailers and global DF& retailer World Duty Free, came under attack from the K press for allegedly ripping off customers at K airports and banking millions in the process. At the time usiness obtained statements from WDF and oots in defence of their positions.

WHmith came under attack from the K press.

7 I E Exclusive: tansted rises after major retail revamp Well heeled: An airport first, Dune has an enviable shop floor at tansted. oon after these revelations surfaced, social media forums began to bristle with criticism for oots, Dixons and WH mith, creating ill-feeling towards airport retailers from customers. WHmith came under attack from the K press. We asked Foster how tansted reacted to the scandal and how its retail partners interacted with difficult customers: I think it s fair to say that when this story first broke there was some challenges in the units, he says. I think the media was balanced in different ways; clearly the trade press was very accurate. We know that the majority of stores here operate at airport price, where there s a genuine saving to the passenger, and that kind of got missed in reports. And we know that the duty free stores are working hard to demonstrate that they offer 20% cheaper than high street prices. There s some real, genuine, strong savings here. nfortunately some of the coverage picked up on the negative points and obviously we ll wait to hear what comes from the Chancellor s review. We need to have a conversation with our retail partners to understand their view on it and we ll wait to see what comes from that.

8 I E Exclusive: tansted rises after major retail revamp Hugo oss is one of MAG s established partners. The much-publicised K HM Treasury review into airside VAT-free shopping at K airports is now well underway, with airport retailers already meeting with the Treasury s review team as part of this process. This review is expected to be ready by K budget day 16 March although most of the actual interviews taking place now looked set to be complete by the end of January. Foster says that the most important lesson to learn from this episode and consequential review is that the retailers communication with passengers has to be very clear; whatever the outcome. Passengers snake round the retail offer at tansted Airport.

Exclusive: tansted rises after major retail revamp There are different options on the table, he says. I think the Chancellor is talking about dual-pricing.

9 Exclusive: tansted rises after major retail revamp There are different options on the table, he says. I think the Chancellor is talking about dual-pricing. ut what s important is how it s implemented and that it s very clear, if that s the case, or whatever other option it happens to be. We need to make sure the customer isn t confused. Price is really important for airport retailers. Whether you use the high street or do your shopping online, or on a tablet, there are many avenues now for passengers to purchase items. o I think having a strong price message is really important for an airport, of course to have differentiation as well, to give people an incentive to shop at airports and make a fair purchase. I E However, as Foster proudly points out, every one of the airport s 18 retail units is already offering airport prices or tax free pricing, which represents a saving of between 15-20%, on average. The airport and its retail partners aren t shy about communicating this to customers either. Price is really important for airport retailers, says teve Foster. WDFG are clear in their saving signage at London tansted. We ve got the constant reinforcement of the savings here up on various screens; you can see that throughout the terminal, adds Foster. As previously reported, the new retail line-up at T includes, fashion clothing brands, popular on the K High-treet, such as Lacoste, Joules, East, Oasis and uperdry. Footwear and accessories have been enhanced by the arrival of popular affordable luxury brand Dune London; a new specialist shop, unglasses outique run by World Duty Free Group; as well as Parfois a Portuguese brand offering a host of fashion accessories, handbags and jewellery. Hugo oss, Ted aker plus accessory specialists Mulberry, warovski and Accessorize also made a return to the departure lounge following the major 80m terminal development.

I E Exclusive: tansted rises after major retail revamp usiness attended the F& phase two opening in 2015.

10 I E Exclusive: tansted rises after major retail revamp usiness attended the F& phase two opening in ew arrivals to the K retail travel market include Joe and the Juice, a Danish coffee and juice concept; Hema, a Dutch retailer offering own brand products in stationery, children s games, toys, homeware and a host of other novelty items. ecuring the prime island locations in the new development will be Cloud pa, supposedly the first ever beauty salon at tansted; Red 5 a one stop gadget shop and finally, est of the est (OT), offering passengers the chance to win amazing cars with its weekly Dream Car Competition. MAG says it works with groups like G, P, HMHost for around 80% of its F& portfolio. Partnering with a four-airport group is obviously a big deal for any of these new brands entering T, says Foster. o with all these airport firsts, if it works and it s successful then clearly we want to grow that brand. It also gives these guys a chance to understand airport retail and see if it works for them, and then obviously we can look to expand that out further. Although tansted Airport has a long-established partnership with World Duty Free, Foster reveals that 80% of the brands it works with, it does so directly. This ratio is turned on its head for food and beverage for which MAG says it works with groups like G, P, HMHost for around 80% of its portfolio. Foster also says that the big retail income driver is obviously through duty free, but by bringing more high street brands to the airport, the balance is tipping.

TRBUSINESS. It was also driven by an increase of long-haul destinations, and expanded short haul networks.

TRBUSINESS. It was also driven by an increase of long-haul destinations, and expanded short haul networks. Manchester Airports Group (MAG) which owns Manchester, London Stansted, and East Midlands airports and manages Escape Lounges in the US under its MAG USA arm, says that passenger growth drove an 11.2%