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Amsterdam Schiphol No of passengers 2013: 52, 569, 200 (+3% vs 2012)* Terminals: T1 (Schengen): 2 shops; T2: 1 main shop; T3: 2 shops (beauty and a drugstore); T4: 2 shops (branded store with Philosophy, OPI, Rituals combined with fashion and watches, and See, Buy, Fly store including beauty), gate shops with small fragrance and cosmetic assortments. Passenger profle: The main buying nationalities after the price-conscious Dutch spenders, are from China, the UK, Russia, Norway, France and Germany. Retail analysis: Kappé International is the airport’s main beauty concessionaire, although it does not operate the gate outlets. Schiphol will shift to central security by mid-2015, which has prompted a number of renovations that have impacted the retail offer. After renovations in T1, the main store was moved because the airport needed the old location for a security entrance, reducing Kappé’s store portfolio from three to two in December. While the space and assortment remain almost the same, the store has a more contemporary feel. A further revamp will take place in T2 as the security area changes, with a new shopping center. Renovations in fragrances and cosmetics will start in October, when Kappé shifts to a temporary location in the hope of opening a new store in December (dates have yet to be confrmed). In the new space, the retailer will operate a main store that incorporates beauty, a drugstore and a MAC boutique. Beauty’s performance: Beauty has faced a diffcult year at Schiphol, due to the above- mentioned refurbishments. The T1 revamp (the fnal stages were set to be fnished in June), for example, has changed the type of shopper it attracts. Beauty buyer Roel Verhoeven remarks: “The third shop we had in the Schengen terminal had a different look and feel, and attracted a different kind of customer. With a smaller assortment and more accessible price point, we had a different passenger profle there. Now we have two luxury stores, but we don’t get all the customers we had before.” In the last quarter of the year, sales will come under further pressure 2) 2 2 2 in T2 as Kappé shifts from a 500m (5,382ft ) store to a 100m -200m (1,076ft -2,152ft 2 2 temporary outlet to accommodate the security changes, so it is anticipating a downturn in sales. Madrid Barajas No of passengers 2013: 39,717,850 (-12.1% vs 2012)* Terminals: Spanish travelers are the main nationality, especially in T4 NAT and T1 Schengen, followed by other European nationalities—French, German, Italian—in T2 and T3. In T4, SAT and T1 non-Schengen, there is a high proportion of Latin American passengers, as well as Russian and Chinese travelers. Passenger profle: Russian and Chinese passenger numbers have increased and T3 is seeing more Japanese. Madrid has been challenging for passenger numbers in the past few years, due to the effect of Spain’s economic situation on traveler spending and a reduced number of Iberia fights, but passenger numbers are stabilizing and spending patterns are improving. Retail analysis: The product range in each of World Duty Free Group’s stores is tailored to suit specifc passenger profles. Its Madrid T4 SAT shop focuses more on premium brands, while T4 NAT is skewed towards Spanish passengers, with a higher presence of Spanish brands. A company spokesman remarks: “The promotional plan is always adapted to passenger profles. We operate Guerlain promotions in T4 SAT, as it is a popular brand with Russian passengers, and focus on L’Occitane in T4 NAT, for Spanish passengers. New formats, such as different product sizes, are well received by passengers looking for a more value-oriented offer.” Beauty’s performance: As the biggest category, beauty represents close to half of total business. “Although recent years have been challenging, we have seen real improvements in recent months,” explains a WDFG spokesperson. “In fragrance, Armani, YSL and Boss are performing well. In skincare, most brands are growing, especially in the new and refurbished stores, where we wanted to improve the cosmetics business.” Standout skincare brands include Clarins, Lancôme and Sisley; for make-up, Lancôme, Chanel and Estée Lauder performed well. n * Figures are based on preliminary rankings from the Airports Council International’s “World’s Busiest Airports“ report September-October 2014 - N°19 - BW Confidential 77