Gatwick’s retail income still about 22% of total – around net £3.72 on retail sales + £1.35 on parking per passenger
The Moodie Report has published figures for the retail income of Gatwick airport in the year to 31st March 2014. Gatwick’s retail income rose 9.7% on the level in 2013, from £123.2 million to £135.1 million. By contrast their aeronautical income (aircraft landing charges etc) rose by 11.1% from £285.8 million to £317.4 million. There was a 4.8% increase in passengers, to about 36 million. Gatwick’s car parking income rose by 12.9%, from £58.1 million to £65.6 million. In the year to March 2014, Gatwick made on average £1.35 per passenger on parking. It made, on average, £3.72 per passenger from retail sales. This was up by 4.2% from the level in 2013, but only up 2.7% on 2011. There is now even more retail space, with even more food and beverage facilities. In the year to March 2011 their retail income was £115.6 million and the net retail income was £3.62 per passenger. ie. barely changed over 3 years, (up 2.7%). And that’s a new World Duty Free store opened, and 33 other new stores opened in the past year. Net retail income per passenger at Heathrow was £5.98 in 2011, and about £6.21 in 2012. For both Heathrow and Gatwick, retail income is about 22% or so of income.
Gatwick Airport posts +9.7% growth in retail income amid record traffic
Source: ©The Moodie Report
By Martin Moodie (The Moodie Report)
London Gatwick Airport’s retail income rose by +9.7% in the year ended 31 March 2014, easily outstripping passenger growth of +4.8% to 35.9 million.
Net retail income per passenger increased by +4.2% to £3.72, boosted by sustained investment in shopping and food & beverage facilities, the benefit of a full-year’s trading by the World Duty Free Group flagship store, and 33 new retail units opened during the period.
Total turnover rose +10.2% to £593.7 million with EBITDA (pre-exceptionals) up +14.2% to £259.4 million (see table below). This resulted in a profit of £57.5 million compared to a loss in the financial year ending 31 March 2013 of £29.1 million.
London Gatwick CEO Stewart Wingate said: “Gatwick’s record performance and growth to around 36 million passengers this year demonstrates how we are successfully competing in the London market and why we are best-placed to deliver the UK’s next new runway.”
….. and he carried on with more spin about Gatwick ……
Gatwick’s retail income as a percentage of its total income (£123.2 cf. £538.9 million ) was 22.86% in 2013.
It was 22.76% in 2014.
Above and below: Heavy investment in food & beverage and retail has paid off with strong growth in spend per passenger and overall net retail income
Source: London Gatwick Airport
Source: London Gatwick Airport
Some earlier data about Gatwick’s retail income:
Gatwick retail spending
31.6 million passengers in year to March 2011 (35.9 million in year to March 2014)
Total retail revenue to March 2011 – £115.6 million (£135.1 million to March 2014)
Total income from parking £51.7 million in year to March 2011 (£65.6 million in 2014)
Net retail income per passenger £3.62 in year to March 2011 (£3.72 in 2014)
Retail revenue increases at London Gatwick airport
Gatwick Airport Limited records total retail revenue of £115.6m in the year ended March 31 2011
Gatwick Airport Limited has revealed total retail revenue of £115.6m ($185.3m) for the financial year ended March 31 2011 compared to the £115m ($184.4m) for the same period last year.
According to Gatwick Airport Limited’s annual report, 31.6m passengers travelled through the airport, representing a 2.3% decrease year-on-year. The decrease in passenger numbers was driven by a number of factors, the most significant being the closure of aerospace in the three months to June 30 2010 following the eruption of mount Eyjafjallajokull in Iceland.
Despite the fall in passengers, duty-free, tax-free and specialist shops sales increased from £58.0m ($93m) in the year ended March 31 2010 to £58.9m ($94.4m) in the year ended March 31 2011.
Revenue from other in-store retail reached £36.5m ($48.5m) while net retail income per passenger rose £0.09 ($0.14) to £3.62 ($5.80) compared to the previous year.
Car parking income also increased £1.3m to £51.7m.
Gatwick Airport Limited is run by US investor Global Infrastructure partners following the acquisition of the airport from BAA.
Gatwick airport chief executive officer Stewart Wingate said: “We delivered strong performance in our first full year of new ownership despite the challenging environment and extraordinary events that affected major airports across Europe. Resilient passenger traffic combined with our relentless focus on cost efficiency helped us achieve solid financial results. We also successfully reinforced the business, enhancing our capital structure and establishing a strong liquidity position.
“We worked in partnership with the airlines to re-scope our new £1bn ($1.6bn) capital investment programme, which is now being delivered with greater efficiency and pace. Passengers and airlines are already benefitting from new, modern facilities and we are currently investing around £20bn ($32bn) per month. Operational performance and service standards have also improved significantly which is helping Gatwick compete to grow and become London’s airport of choice.”
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