"MSP airport acts to improve retail sales"

Monday, October 18, 2004

MSP airport acts to improve retail sales 
By John Reinan
The Minneapolis (MN) Star Tribune 
   
 
Hoping to shed the aura of mystery-meat sandwiches and overpriced
merchandise, Minneapolis-St. Paul International Airport is launching a
series of marketing initiatives aimed at improving its retail operations.

New vendor contracts taking effect in the coming 18 months will turn over up
to half the 106 shops in Northstar Crossing, the concourse shopping area.
Virtually all vendors that remain will undergo renovation, said Tim
Anderson, deputy executive director for operations for the Metropolitan
Airports Commission, which owns and administers the airport.

"Street pricing," already in place for retail shops, will be extended to
food and drink vendors. Street pricing means that airport shops can't charge
more than the area's prevailing rate. In the case of the airport, that means
vendors must match the average price for similar goods at the Mall of
America and Southdale.

"It makes sense," Anderson said. "Price it right and people will buy more.
We're trying to lose that stigma of coming out to the airport and paying $8
for a sandwich."

The goal is to more than double MAC's annual concession revenue, from about
$9 million to $20 million. That would provide a significant piece of the
commission's budget, which now is about $175 million a year.

"Concessions revenue is an important part of how we make money and keep from
having to use our taxing authority," Anderson said. "The hassle factor of
air travel has increased since 9/11. Anything we can do to mitigate that
will work to our benefit."

An important piece of the marketing strategy is a customer-service program,
"It's Your Turn to Travel." The program rewards service excellence with a
$500 travel voucher from Carlson Wagonlit Travel for any Northstar Crossing
employee who gets a perfect score on a 15-point checklist from a mystery
shopper. 

Funded by the MAC's marketing budget, the vouchers can be used for airfare,
hotels or rental cars. One hundred $500 awards were given out in 2003, and
the total for this year is expected to be nearly double that.

Since the program began, the average mystery-shopping score has risen from
83 percent to 93 percent, Anderson said. Host Marriott Services, one of the
largest airport vendors, reported that its employee turnover dropped from
300 percent annually to 75 percent.

Northstar Crossing retail managers said the program also has been a big help
in motivating employees.

"It gives my people something to look forward to every day, and it gives us
a standard that supports our own training," said Tamara Griffin, manager of
the Minnesota! gift shop.

"The airport is like a family community -- we see each other every day," she
said. "So when someone wins, it's very exciting."


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