Gatwick’s retail income still about 22% of total – around net £3.72 on retail sales + £1.35 on parking per passenger

Date added: 30 June, 2014

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.
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Gatwick Airport posts +9.7% growth in retail income amid record traffic

26.6.2014

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 ……

http://www.moodiereport.com/document.php?c_id=6&doc_id=39940
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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.

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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

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

Andrew Pentol

28-Jun-2011

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.”

http://www.dfnionline.com/article/Retail-revenue-increases-at-London-Gatwick-airport-1861236.html

Earlier:

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

13.2.2013

Heathrow got around 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.

https://www.airportwatch.org.uk/?p=1045..

European airports, like those in UK, make large part of their income as shopping centres

21.10.2012

Investors in airports are being drawn to the profit being made by the real estate and retail income they generate. Among European airports, Aeroports de Paris derived 39% of its revenue from real estate and retail in 2011; Zurich took in 50.3%; and Danish airport operator Koebenhavns Lufthavne A/S collected 33.6%. At TAV (Turkey), the share was 33%, and at Vienna it was 19%. Airports generally get the majority of their retail revenue after passengers check in and go through security. Goldman Sachs lists retail revenue as a major factor in recommending European airports to invest in. Two weeks ago, Fraport opened Pier-A-Plus, a terminal extension at Frankfurt, allowing Germany’s biggest hub to serve up to 6 million passengers a year and adding 50% to the airport’s retail space. According to ACI, air passenger numbers in Europe are up 2.3% this year compared to 2011, but Eurocontrol forecast that annual traffic growth will average 1.9% over the next 7 years in Europe, due to high oil prices and a weaker economic outlook.

https://www.airportwatch.org.uk/?p=3133

Airport retail: rise and rise of the shopping centre, with an airport attached

14.3.2012

A huge, and growing, proportion of the money made by airports is from retail. It seems that the industry expects significant increases in this spending over the coming years, and airports do all they can to get passengers to spend as much time as possible in retail, put retail outlets in arrivals, etc etc and devise means for them to buy goods for collection on their return, to avoid baggage problems. The industry expects most growth in the Far East, where women tend to spend a lot of designer brands. The airport retail industry finds passengers buy less when they are stressed by airport security waits and queues, and they buy more when calm and happy. Airports need a ticket as proof of identity, so they can monitor the types of travellers, and the routes, which generate the most cash. Seems the Chinese, the Russians and the Nigerians tend to spend the most. At Heathrow, the average passenger spends £4.35. But for fashion, the average BRIC passenger spends £45.50. No wonder BAA wants more.

Details at: https://www.airportwatch.org.uk/?p=1723

Airports and airlines eyeing up passengers to increase their retail spend

24.4.2013

If the airlines can’t make enough profit from flying their passengers from A to B, then they want to extract every bit of cash they can from them, in the airport shops. An anna-aero article discusses how airports and airlines might work more effectively together, to get passengers to buy more stuff. The airlines have more personal data about the passengers, and the airports want this data in order to maximise the retail earnings in their shops. But the airlines don’t want to share the chance of profit with the airports. The Chief Commercial Officer at Manchester Airports Group said – “airport retail is vital precisely because airport charges paid by airlines are already well below the cost of the infrastructure they use.” The airports and airlines don’t see eye to eye on this. There is a problem for retailers, with the low cost airlines that limit baggage, and the ‘one-bag rule’, which is a disincentive to buy a lot at the airport. An ACI conference next spring will look at actual practical solutions to enhance “Airline-Airport Cooperation to Increase Passenger Spend.”

https://www.airportwatch.org.uk/?p=2514