Gatwick income still around 22% from retail, 11.6% from parking, and 52% from aeronautical
Date added: 30 August, 2016
Gatwick continues to get around 22 – 23% of its income from retail, as it has in previous years. Moodies’ data shows that in the year that ended 31st March 2016 the airport reported a +2.3% increase in retail income to £152.5 million. But the net income per passenger decreased -3.7% to £3.67. Income per passenger from retail has stayed around the same figure as in 2011. Gatwick has added a great many retail shops in previous years (it now has 36 shops and 27 restaurants) and offers “collect on return.” Gatwick has done less well than it hoped on sales which it described as “challenging trading” due to “changes in passenger mix and adverse currency movements against Sterling.” Income from food and drink and catering grew by around 2%. Car parking revenue for the year to 31st March 2016 was up +7.6% to £77.9 million and net income per passenger from parking increased by +7.3% to £1.47. So retail + parking is about £5.14 per passenger. Aeronautical revenue rose +5.4% to £350.8 million (so that is around £8.50 approx per passenger) and other income was up +9.7% to £91.9 million. Turnover increased +5.5% to £673.1 million while EBITDA was up +9.7% to £331.0 million. The airport made a profit before tax of £141.0 million. . Tweet
Gatwick reports +2.3% increase in retail and single runway records
Gatwick Airport has reported a +2.3% increase in retail income to £152.5 million for the 12 months ended March 31 2016. The airport had a record year for retail in terms of sales.
However, net income per passenger decreased -3.7% to £3.67. The airport attributed this to “challenging trading” conditions in the tax free category including changes in passenger mix and adverse currency movements against Sterling.
It said this decline was partly offset by strong growth in catering.
Relevant and engaging shopping: Gatwick said it would continue to invest in retail growth
“The Gatwick retail strategy is based on a sound understanding of our customers and a relentless approach to ensuring our retail mix is highly relevant to our growing passenger numbers,” the airport stated. “It is therefore pleasing for us to see that customer satisfaction remains at an all-time high; in Q1 2016 87% of customers rated our selection of food & beverage outlets as Excellent or Good with 84% of customers giving this score to our choice of retail stores.”
Car parking revenue was up +7.6% to £77.9 million and net income per passenger increased by +7.3% to £1.47. Aeronautical revenue rose +5.4% to £350.8 million and other income was up +9.7% to £91.9 million.
Gatwick said it set new world records for aircraft movements and passenger numbers for a single runway airport in the 12 months ended 31 March.
Passenger numbers were up +5.5% to 40.8 million. The airport handled 265,970 air traffic movements, a +4% year-on-year increase.
Turnover increased +5.5% to £673.1 million while EBITDA was up +9.7% to £331.0 million. The airport made a profit before tax of £141.0 million.
…. and it continues with Wingate talking about a runway …..
“On opening, it will join Gatwick’s line-up of 35 shops and 27 restaurants, enhancing an already extensive range including Harrods, SuperDry, Jo Malone, Ted Baker and Dixons.”
Gatwick Airport Chief Commercial Officer Guy Stephenson said: “Next is the latest quality addition to Gatwick’s extensive retail offering.
“The store’s arrival is in response to passenger requests in our regular surveys and joins a stellar line up of recent new openings at Gatwick, including the world’s first airport gin distillery, The Nicholas Culpeper and renowned chef Bruno Loubet’s Grain Store.
“Coupled with the convenience offered by our airport wide ‘carry on-board’ and ‘collect on return’ services, the 41.7 million passengers travelling through the airport every year will experience the best of the high street at tax free prices.”
Next Gatwick Store Manager John Rowland said: “Launching the new Gatwick store is a great privilege. We will be able to show off our fantastic range and serve customers travelling to 80 countries in five continents.”
Buoyed by the busiest six months in the airport’s history with a record 23.5 million passengers (+4.7% year-on-year), Gatwick Airport posted a +5.2% rise in revenues to £411.8 million (US$626 million) for the half year ended 30 September 2015.
Combined with careful cost management, this resulted in a +6.8% rise in EBITDA to £241.0 million (US$367 million) and a pre-tax profit of £135.2 million (US$205.7 million) on a consolidated basis
Retail income rose +1.4% to £85.5 million (US$130.6 million) but, importantly, net income per passenger decreased by -3.0% to £3.60 (US$5.48) due to “challenging trading” in the duty free and tax free category. Income from duty free and tax free declined by -2.5% period-on-period.
The specialist shop category continued to perform well with per-passenger income broadly in line with traffic growth despite some impact from landside closures as a result of the North Terminal Development programme. Summer 2015 saw several new openings amid an ongoing revamp of the retail offer, including a new Boots store in the South Terminal while Simply Food was also updated in both terminals (a new store in North Terminal arrivals and an extended and modernised unit in the South Terminal).
“Where we have opened new or modernised stores, performance has been strong and we have delivered strong growth compared to last year,” the airport company said.
FOOD & DRINKS AND CAR PARKING FLOURISH
Food & drinks performed well. “Catering remains a particular highlight, where we have grown per passenger income by +2% compared to last year,” said the company. Summer 2015 saw several new openings, including Wondertree restaurant in the South Terminal departure lounge along with Wagamama in the North Terminal departure lounge. Landside the company opened a new Costa Coffee in both terminals.
“Passengers can look forward to some further development in this area as we open new restaurants in both terminals in the second half of the year,” Gatwick Airport said.
Car parking income rose +7.4% and net income per passenger increased +11.9% to £1.60 (US$2.43) due to improved yield management, valet capacity increases and cost savings.
Gatwick Airport said that the mid-year results were “in line with expectations” as it continues to compete to attract new airlines and routes, invest in new facilities, and deliver an excellent service to passengers.
Specialist retail and food & drinks both performed strongly
Car parking revenue was buoyant but retail income per passenger was hit by challenges in the core duty free and tax free sectors
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Passenger traffic hit record heights in the six-month period
Gatwick’s passenger traffic growth is a combination of more planes, bigger planes and fuller planes – load factors have increased to 87.2%
Gatwick’s retail income still about 22% of total – around net £3.72 on retail sales + £1.35 on parking per passenger
June 30, 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.
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..
