Heathrow retail revenue in 2015 around 20-21% of total, at £568 million (£7.58 per passenger)

Heathrow Airport reported a retail revenue increase for the year ending 31st December 2016 of  +8.4% in 2015 to £568 million.  The revenue per passenger rose by  +6.2%  above the level in 2014, to reach £7.58.  (The Moodie report said the figure was about £7.14 in 2014, £6.21 in 2012, £5.95 in 2011, and £5.64 in 2010).  Over the year, Heathrow had an overall growth in revenue of +2.7% to £2,765 million in 2015.  EBITDA was £1,605 million, up +3.0%.  Heathrow also announced a +2.2% increase in passenger traffic in 2015 to 75 million.  For the figures for the first 6 months of 2016 Heathrow said its retail revenue had risen by 7.7% year-on-year, to £280 million – and retail revenue per passenger rose +7.1% to £7.84. Of this, duty and tax free shops contributed £62 million, a +3.3% increase.  Heathrow said that for the first 6 months of 2016, it made £62 million from duty and tax-free; £51 million from airside specialist shops; £24 million from bureaux de change; £22 million from catering; £55 million from car parking – with total retail revenue at £280 million.   i.e. of total retail revenue 19 – 20% was car parking.  Income from parking was £99 million in 2014 and £107 million in 2015. For the first half of 2016 the retail (including car parking) income was about 21% of total revenue.
.

 

 

Heathrow Airport retail revenue up +7.7% in first six months of 2016

Source: ©The Moodie Davitt Report

London Heathrow Airport has reported a +7.7% year-on-year increase in retail revenue in the first six months of 2016 to £280 million. Retail revenue per passenger rose +7.1% to £7.84.

Of this, duty and tax free shops contributed £62 million, a +3.3% increase.

Total revenue at the airport increased by +1.0% to £1,320 million while adjusted EBITDA was up +4.4% to £781 million, which the airport said reflected “lower costs and better value”.

Heathrow 1

Heathrow reported a +0.6% growth in passengers to 35.7 million in the first six months of the year. Underlying traffic increased in the early part of the year but softened in the second quarter reflecting a more uncertain macro-economic environment, the airport said.

Long haul traffic increased +1.4%, largely from routes serving the Middle East and Asia Pacific.

The airport also provided an update on the retail refreshment programme in Terminal 4. The Drake & Morgan group will open ‘The Commission’, its first airport unit, “shortly”. Terminal 4’s luxury stores, such as Harrods, Burberry and Cartier, are also being re-developed. Five new luxury brands will be introduced, two of which will be new to Heathrow, it said.

Grimshaw Architects has been selected by Heathrow as the concept designer for the airport’s proposed £16 billion expansion
….. and there is more spin from Heathrow about runway etc.
.

Heathrow Airport has reported a retail revenue increase of +8.4% in 2015 to £568 million.

On a revenue per passenger basis, +6.2% increase over 2014 was recorded to reach £7.58.

The airport saw an overall growth in revenue of +2.7% to £2,765 million in 2015. EBITDA was £1,605 million, up +3.0%. However, a downward trend in operating costs in the second half of 2015 was noted.

Heathrow also announced a +2.2% increase in passenger traffic in 2015 to 75 million.

Heathrow Airport Chief Executive Officer John Holland-Kaye said: “It’s been an excellent year for Heathrow. As we approach our 70th anniversary, our colleagues are delivering the best service we’ve ever achieved to a record number of passengers.

….. and there is more airport spin ….

http://www.moodiedavittreport.com/heathrow-airport-retail-revenue-up-8-4-to-reach-568-million-in-2015/
.

.

See earlier:

Heathrow award for top airport for shopping for 3rd year. Net Retail Income per passenger £6.21 in 2012 (£5.64 in 2010)

For the third year, Heathrow got the award (within the airports industry) for the top airport for shopping. Heathrow has over 52,000 square metres of retail space and more than 340 retail and catering outlets. Heathrow overtook Dubai International to win the title of “World’s Best Airport for Shopping” for 2012. Heathrow has the highest retail sales of any airport in the world ahead of Incheon airport in South Korea.  Figures from the Moodie Report in February 2013 said that Net Retail Income per passenger at Heathrow was £6.21 (up 4.4% on 2011, partly due to the Olympics) in 2012 and £5.95 in 2011, while it was £5.64 in 2010. (By comparison the Net Retail Income at Stansted in 2012 was £4.27 per passenger).  At Heathrow in 2012 the gross retail income increased +5.7% to £460.1 million.  

http://www.airportwatch.org.uk/2013/04/heathrow-retail/

.


How much profit do airports make from their retail activities, rather than flying?

13.2.2013
.
Heathrow got 21.3% of its income from retail in 2010, compared to 53% from aeronautical. On average each Heathrow passenger spent about £5.70 (maybe £5.90) at the airport, with women spending more than men (!). BAA data say frequent fliers spend more than infrequent fliers. In the year 2010/2011 Gatwick airport made £115.6m from retail, and another £51.7m  from car parking, with an average of £5.80 spent on retail per passenger. Stansted retail spending per passenger is about £4.00 to £4.20.  In the year 2010/2011 Heathrow made about £380 million per year on retail, Gatwick about £115, and Stansted net retail income fell from £79.8m in 2010 to £73.9m.  Manchester made about £70 million on retail, with about £3 per passenger.   

 

.

The Moodie Report on 2012 is at 

http://www.moodiereport.com/document.php?c_id=6&doc_id=34203

and

the Moodie Report on 2011 is at  

http://www.moodiereport.com/document.php?c_id=36&doc_id=30085

.

.