Just like everyone else, airports are being squeezed in this economy, and to make up for shrinking airline rent and landing fees, they are investing in retail. Roger Yu at USA Today details the new approach that airports are taking to encourage spending from passing travelers.

“Their goal is not only to reflect a unique local feel, but to distinguish themselves amid intense competition for air service and a need for more revenue. And, some say, it’s paying off.”

Yu describes an interest in positioning the airport as a postcard for its host city that includes adding local restaurants and retail shops throughout.

“There is more of an approach to make (airports) a visitor center,” says Bill Hooper of Gensler, an airport architecture firm. “If you can make terminals feel more comfortable and interesting, people do (account for that) in making decisions on what airport they want to fly to.”

Spot on.  MSNBC recently ran a list of top airports for shopping.  Their list reviews airports all over the world and goes well beyond newsstands.  Amsterdam airport houses an H&M outlet.  Dubai airport’s duty free shop has your standard fare, cologne and cognac, plus 30 superstores in their award-winning contemporary retail space.  Heathrow has a Gordon Ramsey restaurant and a spa in addition to expansive retail offerings.

It seems the airport is a ripe retail frontier.

What does the economy have to do with it?  It turns out that although consumers are making many changes in their consumption behavior, health and wellness products are not getting left on the shelf.  In fact, many health and wellness products are viewed as alternatives when trading-down, for example fresh food as opposed to eating out, body care as an alternative to the spa, and hair care versus the salon visit. 

 Nevertheless, consumers are still exhibiting the trend we’ve seen away from CPG’s.  Private label health and wellness products have seen accelerated growth from 5% in soaps and body care to 17% in vitamins and upwards of 24% in the big winner of the year – OTC medicines.

 This has major implications for consumer-centric retailing and in-store marketing programs.

 By providing the information consumers need to make an informed choice in this sector, retailers can re-position their store to become the consumers’ health and wellness destination. Research reveals that some of the factors which contribute to incremental sales increases include:

• In-store visibility that allows for products to be easily found and compared side-by-side with their alternatives,
• Placement in-store
• Informative messaging at the shelf that speaks to their purchase decision criteria (by category)
• Retail atmosphere/environment.

According to the Hartman report, “the overall retail atmosphere makes a huge difference in consumer openness to trying new health and wellness products – quality perception and health and wellness perceptions are inexorably linked.”

It goes on to say that consumers hesitate less to try new products in a more elegant retail space, assuming “the quality is there” and that the retailer has been diligent in seeking out and presenting appropriate products.

 If retailers stay ahead of this trend and make this a priority in store design programs and in-store communications, then all signs point to healthy growth!

Here are a couple of articles that appeared recently hightlighting MZ’s expertise in retail design. Check it out!

Retail as Theater, The Hub Magazine, September/October 2008

John Wilkins, Vice President of Client and Retail Strategy, discusses how to use the retail space to create captivating displays that reinvent the brand for shoppers.

Relaying the Message, Grocery Headquarters, September 2008

Rick Barrick, Vice President of Digital Media, was tapped to comment on the influence of in store digital media.

70-80% of buying decisions are made right there in the aisle and that’s where CPG’s need to focus marketing efforts. Sure people come in the store with a list and brand preferences. But when they take a look at the price difference and compare that to the weekly budget, CPG’s may lose out, unless they can convey a compelling message right at that moment when the decision is made. And a new media takes the stage…the grocery aisle. 

While graphics and creative aisle displays are not new, creating innovative systems, increasing the rate of installation and professional execution makes a huge difference on the impact of an in store selling message. Industry insiders report that some 30-40% of in store media is installed improperly, if it is installed at all! How much does that cost in wasted materials and missed opportunities?

In today’s climate, it can cost millions.