The airport retail sector is gaining momentum throughout the world, propelled by the increasingly affordable nature of travel.

The sector is being referred to as the ‘sixth continent’ by The Economist, and provides an attractive option for retailers and investors.

Richard Barker, Auckland Airport GM retail and commerical, says that as a channel airport retail is benefiting from the growing number of people travelling, with the industry expected to double in the next 10 years.

“There is this massive growth where a large percentage of the world’s middle class will be just one plane flight from New Zealand. There is a huge investment in airports all around the world as travel picks up, and by definition, if people have enough money to travel, they are a relatively attractive market segment for retail,” Barker said.

It’s the emerging economies of China, South East Asia, India and South America that are going to lead to a lot of growth in airport retail, says Barker, with the Auckland Airport’s Airport of the Future report estimating that 66 per cent of the populations of China and India will take one international trip a year by 2032.

Chinese visitors to NZ are expected to double by to 400,000 by 2020.

Barker says that the type of stores that are in the airport retail sector is changing, as the opportunity to attract discerning travellers is realised by local and international brands.

He says that internationally airport retailing is now providing a channel for luxury and premium brands to showcase their products, ranging from super premium stores such as Cartier and Louis Vutton, to brands such as Zara and Victoria’s Secret that have less of a high street presence.

“Luxury and quality retail is doing really well, and there are a lot more fashion retailers moving into airports. I expect that with Auckland Airport the mix of stores will change as we develop the airport retail, away from the traditional souvenirs and into products that research shows core Kiwi travellers want to buy.

Airport retail is changing fast, and Barker says that in essence the trends that he observes are consistent with those of bricks and mortar stores everywhere, with people looking for quality unique products and a great shopping experience.

The challenges that exist are also consistent with the airport’s landside counterparts.

As the airport brands increase their online retail presence, Barker admits that the competition in the space is fierce.

“The ability for people to buy products and have them shipped free and quickly from the UK or the US is impacting retail globally, and the airport is no different. We need to provide convenient shopping for our passengers, for example the ability to make a duty free purchases on your phone, and then have it sitting and waiting for you when you arrive at Auckland.”

The launch of the duty free online shopping goes some way to address the competition, and Barkers says that option to do airport shopping at home and pick it up at the airport will become routine.

“Retailers are looking for opportunities to get in front of their target demographic, and the Airport is facilitating that by helping smaller brands that otherwise wouldn’t have the scale to open up their own store at the airport,” Barker said.

“We opened a popup store with Saben bags and accessories in November, which is linked with their website, enabling passengers to purchase online and pick up instore, or browse and buy instore at the airport. It’s about providing a turnkey solution for smaller designers who want to showcase their products at the airport.”

In 2016-2107 the airport will start undergoing major development that will increase its net lettable area in the international terminal by 80 per cent says Barker.

“The development is going to open up opportunities for us to add new retailers to the airport mix that we have known there is a demand for, but just physically haven’t had the space.

“There will be interesting opportunities for NZ retailers to be involved, and we’ll be looking for quality NZ retailers who want to help us to improve the experience at Auckland Airport.

“As we work through the design and work out the space available, we’ll be approaching the market to bring some brands out to Auckland Airport for the very first time.”