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Mum airport tops in avg retail spend by flyers: Report

February 27, 2020 05:13 AM


Mum airport tops in avg retail spend by flyers: Report

New Delhi:

Travellers from Mumbai airport are India’s highest spending flyers, with the average retail revenue per passenger at $7, followed by $6 by flyers from Delhi Airport.

While this is the average for domestic-cum-international travellers, Delhi airport tops the list of duty-free revenue per passenger (meaning international passengers) at $10-11, followed by Mumbai airport at $9-10 and Bengaluru airport at $5-6, according to a report on transit retail released by international property consultancy Knight Frank India on Tuesday.

The report, titled “Catch Them Moving”, says retail opportunity for airports will grow from $1.4 billion in 2019 to $9.3 billion by 2030. Duty-free retail, which is about 50% of the total retail opportunity, currently at $0.7 billion, is expected to grow to $2 billion by 2030. The upside in this area is clear from per passenger duty-free spend of $34 for Paris and $20 for Dubai airport.

As a percentage of sale, food and beverage tops the list, accounting for 47% of total retail sales at Delhi and Mumbai airports and 66% at Bengaluru. Apparel, jewellery-accessories and books-gifts-toys are the other hot-selling categories. To be sure, this is the overall list of items sold across domestic and international terminals. Frank Knight India said Delhi, Mumbai and Bengaluru airports in FY 2019 saw non-aeronautical revenue account for 70%, 54% and 49%, respectively, of their total revenue. For airports managed by Airports Authority of India, the figure was 13%.

The report estimates current size of transit retail in India at $2.2 billion. This overall transit retail opportunity is estimated to grow to $21.6 billion by 2030.

Revenue from retail concessions at Delhi airport in 2019 was $109 million, followed by Mumbai airport at $84 million and Bengaluru airport with $26 million. “In the case of key markets of Mumbai and Delhi, airport retail developments garner revenue of 2.4 times and 2 times that of successful malls in these markets. In case of Bengaluru, the airport retail revenue stands at 0.9 times that of successful malls in this market. While these are the present-day dynamics of some of the transit-oriented and city-centric developments, with the right focus and retail infrastructure development these benchmarks have a very strong upside potential,” the report says.

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