Retail / news
Auckland Airport retail income falls 4% as refurbishment and duty-free changes bite
Auckland Airport's retail income declined 4% year on year to NZ$181 million for the fiscal year ended 30 June, despite a higher passenger spend rate, as refurbishment, new concession terms and a category mix shift weighed on results.
The decline reflects the combined impact of a staged commercial refurbishment programme, revised duty-free concession rates and a move toward lower-margin product categories, the airport company said.
Passenger volumes rose 2% to 19.04 million during the period, with international traffic up 2% to 10.47 million and domestic traffic up 2% to 8.57 million. Retail performance nonetheless lagged that growth.
Consumer technology and cosmetics both recorded year-on-year gains in the period. Those increases were partly offset by a 6% decline in alcohol income per passenger, as lower average duty-free concession rates improved the customer value proposition.
The reduced concession rates helped lift conversion rates and the passenger spend rate, which rose 2%, or 5% excluding foreign exchange effects. Core categories performed strongly by this measure, according to the company.
Retail income per passenger, calculated as total retail income divided by total passengers including half of transit traffic, fell 6% to NZ$9.67 (US$5.76).