"Pressed for time, some frequent fliers become buyers in airport shops"

Wednesday, December 22, 2004

Pressed for time, some frequent fliers become buyers in airport shops
The Dallas (TX) Morning News


Cathy Duffie can count on one hand the times she's been to the mall this
year. The cardiac equipment trainer from St. Louis does most of her shopping
in the nation's airport terminals.

"I'm flying every week," Ms. Duffie said during a recent afternoon layover
at Dallas/Fort Worth International Airport. "I don't have time to go to the
mall."

Ms. Duffie's travel schedule has made her a regular at several airport
shops, including La Bodega Winery in D/FW's Terminal A.

"They've got great stuff, and my son loves wine," she said, fingering a
stack of wine-themed silk ties. Earlier in the day, she picked up a colorful
bag for her mother and a scarf for her sister at Bush Intercontinental
Airport in Houston.

Eager to avoid gridlock in mall parking lots, some time-crunched consumers
are planning their holiday shopping around their flight arrival and
departure times.

And just as mall cash register lines snake with harried shoppers, airport
retailers are gearing up for some of their busiest days of the year.

At the Paradies Shops' 300 retail operations in 61 North American airports,
sales per passenger jump as much as 20 percent this time of year, chief
executive Gregg Paradies said.

The Atlanta-based company, which drew sales of $239 million in 2003, said
airport retail has shifted dramatically in recent years as concessionaires
brought in brands more familiar to shoppers. Paradies operates PGA Tour,
Brooks Brothers and Brighton accessories shops at D/FW, as well as several
gift shops.

Customers buy when they see that their favorite items are priced the same at
the airport as they are at a traditional store, Mr. Paradies said.

D/FW mandates that prices can't be more than 10 percent over what someone
would pay at an off-airport mall. Mr. Paradies said his prices are the same
as off-airport prices.

Unlike meandering mall shoppers, airport shoppers tend to "have more money
than time," said Mark Knight, regional director for airport retail
developers BAA USA. Mr. Knight's organization operates the concessions at
Pittsburgh International Airport, which attracts more than $10 per
passenger, the highest spending rate in North America, according to Airport
Revenue News' 2004 factbook.

Travelers through D/FW's terminals spend an average of $5.43 each. Airport
officials hope to significantly boost that figure by offering more high-end
retail options in the international terminal slated to open in July.

Retail sales have become increasingly important for airports, which are
working to boost nonaviation revenues to ease the burden on cash-crunched
airlines.

Like most of the nation's major airports, D/FW's airline tenants are
responsible for covering the facility's expenses. Revenue from parking,
rental cars, restaurants and gift shops offset those costs.

December is typically a slow month for airport traffic, as many business
travelers stay home. But in the days before Christmas, terminal stores teem
with last-minute shoppers en route to their holiday destinations.

This time of year, revenue per passenger jumps as travelers spend more on
gifts such as watches and jewelry than on souvenir T-shirts and forgotten
essentials, said Pat Gleason, D/FW's vice president of revenue management. 

Retailers hone their inventories carefully for the holiday season, stocking
more gift items and easy-to-grab gift sets for last-minute shoppers.

At La Bodega Winery, gifts grow from around 30 percent of sales to 60
percent this time of year, owner Gina Puente-Brancato said.

Travelers constitute the bulk of those shoppers, but the tiny store also
gets business from airline and airport employees.

"We do a lot of special orders for them because they're too busy to get to
the malls," Ms. Puente-Brancato said.

David Allen, who manages the Dallas Cowboys Pro Shop and Fossil store for
Star Concessions Ltd., said business the week before Christmas is always
brisk.

"People are just trying to get something at that point," Mr. Allen said.

Among the top sellers this time of year are dressy ladies' watches.

"Men tend to not want to deal with the traffic at the mall, so they buy here
if they have a 30-minute layover," Mr. Allen said.

Dave and Diane Watson of Santa Clarita, Calif., made certain to find a
Dallas Cowboys shop at D/FW airport on their way to a football game in
Miami.

"My uncle is a huge Cowboys fan, so we had to stop in," Ms. Watson said
after purchasing a blue and silver beer holder.


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