Airport shops suffer ‘crisis’ as coronavirus upends travel

Airport retail outlets have been a rare success story in the slumping bricks-and-mortar world. Now, duty-free and other airport shops are under siege from the coronavirus. Travellers from Asia in particular have made duty-free shopping sprees an essential part of their itinerary. But these stores are being pummeled since the coronavirus outbreak began, as foot traffic drops at airports popular with international tourists. Airport retail at some of the major Asian hubs has tumbled 60% to 70%, according to the Moodie Davitt Report. A wave of disruptions to air travel amid the coronavirus epidemic has led to an 80% drop in traffic at China’s busiest airports. “This is the greatest crisis the travel retail sector has faced, worse than [severe acute respiratory syndrome], the two Gulf wars or various financial crises,” said Martin Moodie, chairman of the report. “That’s largely driven by the fact that the Chinese traveler has become the epicenter of the sector over recent years and many retailers are worryingly reliant on them.” In a February survey of more than 1,000 international travellers from the US, UK, Australia and Asia who are regular duty-free shoppers, more than one-third said they would spend less time in a store, not make a purchase if they need to wait in line, and would be less likely to touch or pick up items, according to UK-based travel-research specialist Pi Insight. “There’s a high portion of travellers who want to go straight to the departure gate,” said Stephen Hillam, managing director at Pi Insight. Story has more.<br/>