Paul Weber

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Paul Weber
Building a better partnership model

• International Retail Director, BAA plc

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Partnership
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Partnership the specialist retailer
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Building a betterpartnership model
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Building a better partnership model
Why?
What's wrong?
I'm OK
Show me the money Thanks, now get on with it
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Building a betterpartnership model
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Building a better partnership model
The USA - a land of retail firsts

• Department store 1846 The Marble Dry Goods
  Palace in New York
• Grocery store chain 1860 A P groceries
• Mail order catalogue 1872 The Grange became
  Montgomery Ward
• Self service 1916 Piggly Wiggly store, Memphis
  
• Mall 1916 Market Square, Lake Front,
  Illinois
• Supermarket 1930 King Cullen,
  Jamaica, New York
• Shopping trolley 1936 Goldmans store
  in Oklahoma City
• Out of town shopping centres 1931 Highland
  Park Shopping Village, Dallas
• 1956 Southdale Centre, Edina, Minneapolis

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Building a betterpartnership model
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Building a better partnership model
USA Airport Retail
Where are the pioneers?
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Building a better partnership model
Airport Retail

• Landlord
• Tenant
• Supplier
• Customer

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Building a better partnership model
What's missing in US airport retail?
Specialist retailers
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Building a better partnership model
Airport retail

• A dream opportunity for specialist retailers
• Affluent customer base
• Contained in a defined 'catchment'
• Nowhere else to go
• Not much else to do

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UK's 10 largest shopping venues market spend
2004
1. London Oxford Street 2. Glasgow Centre 3.
Bluewater 4. London Knightsbridge 5.
Heathrow Airport 6. Sheffield Meadowhall 7.
Nottingham Centre 8. Birmingham Centre 9.
Lakeside 10. Manchester Centre
Source MHE 2005
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Building a better partnership model
Airport Specialty retail

• So why pass it up?
• Lack of awareness

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Building a better partnership model
Airport Specialty retail

• So why pass it up?
• Lack of awareness
• No competitive peer pressure

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Building a better partnership model
Airport Specialty retail

• So why pass it up?
• Lack of awareness
• No competitive peer pressure
• Not impressed by the reality

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Building a better partnership model
Airport Specialty retail

• So why pass it up?
• Lack of awareness
• No competitive peer pressure
• Not impressed by the reality
• No sensible commercial proposition

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Building a better partnership model
Airport Specialty retail

• So why pass it up?
• Lack of awareness
• No competitive peer pressure
• Not impressed by the reality
• No sensible commercial proposition
• Operational difficulties

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Building a betterpartnership model
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Building a better partnership model
BAA Supporting our retailers

• On-airport Retail Directors
• Category management analysis
• Product development
• Logistic resources
• Marketing merchandising
• Performance analysis
• Recruitment training

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Building a better partnership model
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Building a betterpartnership model
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Building a better partnership model
Top 50 NA Airports
Sales by 'category'
Source ARN 2005 Fact Book
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Building a better partnership model
Specialty Retail US airports
Spend per e/p
Pittsburgh performance was double the average
Source ARN 2005 Fact Book
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Building a better partnership model
Some North American airport retailers

• Erwin Pearl
• Johnston Murphy
• Sunglass Hut
• Wilson's Leather
• Body Shop
• Tie Rack

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Building a better partnership model
Harvey Olshin Johnston Murphy Let the debate
begin