Contrary to some early reports of falling sales, many airport retailers weathered last week’s period of uncertainty and are dealing with the new restrictions just fine. Some may have even profited–at least in the short term. Though many items, like perfume, toothpaste and lotion, were taken off the shelves, they’ve been replaced by others. Retailers and restaurants have opened early and closed late to accommodate passengers who want to grab a snack after a tedious commute or fill up on liquids before they board the plane. Many travelers buy books or magazines to occupy them while they wait in security lines for hours. Still others who get to the airport hours early end up shopping or spending extra bucks in the airport bar just to kill the time.
Some retailers are reporting increased sales–though no one’s quite sure the trend will last. Laura Samuels, spokeswoman for the Hudson Group, which operates more than 500 retail shops in 63 airports in North America, including the Hudson News chain, says the company “definitely saw an uptick in sales this week and last.” Another large retailer, Delaware North, which operates 350 stores and restaurants at 25 airports, said that despite initial business loss, restaurant sales last week went up “probably 7 or 8 percent,” according to Nick Biello, president of the travel and hospitality division. “The first days [of the new security implementations] everybody wanted to look at this as doom and gloom,” says Beillo. “And while it isn’t great if you have a body-lotion shop or something like that, most of the shops are still open. It didn’t effect our electronic stores, our pet [accessories] store, our retail stores, because people were still shopping … When you’re forced to make a profit, you’ve got to be creative.”
Ellen Davis, spokeswoman for the National Retailer Federation, says that while it’s too soon to assess the overall impact of the liquid ban, that uptick in sales is no surprise. “Granted customers can’t take food or beverages on the plane with them, but most will want to eat or have a drink before they get on the plane,” she says. Still, she points out, not every retailer was spared. The Body Shop, a skin and haircare store, initially shut down almost half of its 14 U.S. airport shops last week.
And duty-free shops were forced to stop selling alcohol and perfume through the weekend–products that account for nearly 50 percent of sales in the $27 billion global business. These sales resumed Tuesday in the United States after federal officials amended the liquid ban, allowing for passengers to purchase duty-free items if they are delivered directly onto the aircraft by store workers. Though officials say it’s too early to quantify the overall impact of those losses, sales have already begun “returning to some normalcy,” says Michael Payne, executive director of the International Association of Airport Duty-Free Stores.
For pharmacies and retail stores not located at airports, it’s too early to gauge whether restrictions will have any significant impact. Some have speculated that they might see a boost in sales as arriving passengers rebuy toiletries every time they land in a new city, though Wal-Mart and Rite Aid pharmacies say they haven’t seen any noticeable trends. Some travelers may get lucky, though, as hotels stock additional toiletries, and even companies like Avis Rent A Car have begun handing out complementary toiletry packs. Proctor & Gamble donated the Avis “smile packs,” which include toothpaste, mouthwash and floss and will be left on the front seats of cars at 25 U.S. airports.
As for the long-term affect, Samuels says, “it’s too soon to tell,” but noted that her retailers are responding to fluctuations in business in every way possible. When news of the terror scare hit last week, Hudson stores stayed open late to accommodate travelers who’d missed their flights or been delayed. “It’s not something we were celebrating, but we sold a few extra things,” she says. “People would get off the planes hungry and thirsty and come to our stores. They pretty much cleaned us out every time a plane landed.”
Though the latest regulations are likely to pose some bumps along the way, they come after several years of thriving sales across the nation’s airports. Retail representatives agree that regulations since the 9/11 attacks have already revolutionized the industry as airport construction has centered around retail shops, food courts and restaurants to accommodate longer wait times and extensive security checks. It’s also provided travelers with something to pass the time between security checkpoints, check-in and boarding. As Samuels explains it: “Longer dwell times mean more people in the terminal for longer periods of time, which means more purchasing.”
With that in mind, Davis says she’s confident the industry will adapt–no matter whether the regulations stay or go. She expects some retailers who sell cosmetics or other liquid items to begin offering shipping, while others may alter their products–from, say, lip gloss to lipstick–to comply with restrictions. “I think many retailers are trying to determine if these guidelines will change, and if they’re not going to, how to best work around them,” says Davis. “The good news is that with such a huge market, merchandisers have a good chance of finding replacements for some liquid merchandises.”
