Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: https://sct.epubxp.com/i/62026
1,000 and 2,000 square feet, says Cecci. The big sales numbers are the main reason airports are welcoming retailers. "We're mandated by the FAA to pursue nonairline revenue streams, and conces- sions are a great way to do that," said Bryan Touchstone, director of conces- sions at Denver International Airport. Denver International currently has about 165,000 square feet of retail space that generates some $240 million in sales annually. Roughly 65 percent of that space is devoted to food-and-bever- age tenants. The majority of the other tenants are specialty gift shops run by lo- cals, but the likes of The Body Shop and Brooks Brothers are present too. Denver International expanded its retail mix last September through a specialty leasing program that added 34 retail kiosks for such vendors as Ham- mond's Candies. "So far we have seen (PPE GPS UIF FOWJSPONFOU 1SPHSFTT TIPVME OFWFS HFU JO UIF XBZ PG QSPmU 5IF (SFFO 8BMM CBSSJDBEF TZTUFN LFFQT USBGmD BOE CVTJOFTT JO ZPVS TIPQQJOH NBMM nPXJOH TNPPUIMZ TBGFMZ BOE FGmDJFOUMZ 3BUIFS UIBO XBJU GPS UIF OFYU OFX CBSSJDBEF TZTUFN UP DPNF BMPOH 4.4 TUFQQFE VQ BOE EFTJHOFE B TZTUFN UIBU T TJNQMF BOE RVJDL UP JOTUBMM NVDI NPSF BGGPSEBCMF BOE FWFO FOWJSPONFOUBMMZ GSJFOEMZ #FDBVTF USBEJUJPOBM CBSSJDBEFT BSF DPOTUSVDUFE GSPN TIFFU NFUBM GSBNFT BOE TIFFUSPDL UIFZ JOFWJUBCMZ FOE VQ JO MBOEmMMT XIFO EBNBHFE PS OP MPOHFS OFFEFE (SFFO 8BMM IPXFWFS JT NBEF PG NBUFSJBMT UIBU DBO CF SFVTFE BOE FBTJMZ SFQBJSFE JODMVEJOH t 3FDZDMBCMF WJOZM QBOFMT t "EKVTUBCMF BOE SFVTBCMF CSBDFT t 3FVTBCMF EPPST BOE DPSOFST t 3FVTBCMF TIFFU NFUBM i6w DIBOOFMT (PPE GPS CVTJOFTT (SFFO 8BMM PGGFST B OVNCFS PG CFOFmUT GPS ZPVS CVTJOFTT JODMVEJOH t 4RVBSF GPPU GPS TRVBSF GPPU (SFFO 8BMM JT NVDI NPSF BGGPSEBCMF UIBO USBEJUJPOBM CBSSJDBEF TZTUFNT t 5IF UPOHVF HSPPWF TZTUFN JT TFBNMFTT BOE FBTZ UP JOTUBMM *O GBDU B UXP QFSTPO UFBN DBO BTTFNCMF B GPPU XBMM JO KVTU IPVST t 5IF TZTUFN T SFWFSTJCMF QBOFMT BOE SPVOEFE DPSOFST BSF JEFBM GPS QBJOUJOH PS HSBQIJDT t (SFFO 8BMM DBO CF VTFE JOEPPS PS PVUEPPS NBLJOH JU JEFBM GPS MJGFTUZMF DFOUFST *G JOUFSFTUFE JO QVSDIBTJOH UIF CBSSJDBEF NBUFSJBMT QMFBTF DPOUBDU %BO )JDLFZ CZ FNBJM BU EIJDLFZ!TNTDMFBO DPN PS DBMM encouraging results," said Touchstone. The airport expects some $13 million in sales from this specialty leasing program. Retail space is playing an increasingly important role in airports. "Today air- ports are reviewing space allotment to come up with the right balance of pas- senger waiting space and concessions space," said Cecci. Los Angeles Inter- national is undergoing a $1.5 billion renovation of its Terminal 2 building, the Tom Bradley International Termi- nal. Westfield Concession Management was awarded a 17-year contract in Febru- ary to develop and manage concession space at Terminal 2 and other sections. Los Angeles International is the third-busiest airport in the country, but its retail mix has been criticized for lagging its counterparts. As part of the agreement, Westfield and its conces- sionaires are required to invest at least $81.9 million for initial improvements and an additional $16.4 million midway through the life of the agreement. "Our overall design and merchandise mix aims to capture the essence and char- acter of Los Angeles while instilling a global sense of style," Cecci said. New retail opportunities are emerg- ing as airports increasingly transform layouts to provide more post-security space. The security checkpoint in Ter- minal 5 at Chicago O'Hare is being re- located. Before this, 98 percent of the retail space was in the pre-security area, and now 96 percent will be located post- security, according to Cecci. That is an important distinction that is expected to boost sales going forward. Post-security-area sales are typically much higher than those in the pre-secu- rity sections. Sales for pre-security food- and-beverage operators at Denver Inter- national average $810 per square foot, less than half the $1,820 per square foot realized on the post-security side. Pre-security sales of stores are $443 per square foot, and post-security store sales are $1,400 per square foot. SCT 160 SCT / MAY 2012