Mix, Mix, Mix.
If you a long standing reader of this blog, you will know that I have often talked about the impact of passenger mix on retailer performance. This could be in terms of Full Service vs Low Cost, Nationality Mix or even Carrier Mix. All of these factors make an airport unique and therefore the sales dynamics in a travel retail store unique. No two locations are alike.
These mix elements have an impact on how well a store in a given location will perform. This knowledge should drive Assortment and Space decisions at a store by store level. This to some might seem to be too granular however, when volume are as high as they are in an airport and space is a premium, this is certainly the right course of action. It is also simple to do with our Voyager software (Travel Retail’s only bespoke assortment planning software). Contact me for a free trial.
I found an interesting article that is worth reading… see the link below…
Within this article, it highlights the increasing isolation of Russia in the impact this has had. Airlines such as Easyjet, Delta, Cathay Pacific amongst others have all reduced their flights into Russia. With the Rouble under pressure, Russians are less inclined to travel abroad and of course spend!
For any location that handles Russian passengers, they will start to see their location dynamics change. The passenger mix will change which will mean a potential shift in strategy and focus will be required.
Well… I believe the shrinking Russian passenger base is not a bad thing for Travel Retail in the long run. I see it as a another stepping stone towards an advanced marketing led industry. Understanding passengers goes beyond the current limitations of Shopper Research conducted in our channel at present.
There are huge opportunities out there, they are just untapped. Want to know where to find them? Or how to find them? Meet me in Singapore at the TFWA conference and I will tell you how.
As ever, thank you for reading.