866-997-4948(US-Canada Toll Free)

Travel Retail - UK - June 2017

Published By :

Mintel

Published Date : Jul 2017

Category :

Travel Services

No. of Pages : N/A

The ongoing investment into some of the UK’s largest travel hubs is changing the face of travel retail and presenting retailers with new opportunities to enter the market. Whilst food remains the primary reason to shop in a travel hub, the ongoing development of the sector will only help to convince consumers that travel hubs can be retail destinations in their own right which could in turn encourage more purchases in other categories. However, a significant challenge remains in pricing as this continues to be a major factor in why people avoid shopping in travel hubs.

Table of Content

OVERVIEW
What you need to know
Products covered in this Report

EXECUTIVE SUMMARY
The market
UK consumers facing difficult times ahead
Figure 1: Real wages growth – Wages growth vs inflation, April 2014-March 2017
Number of people travelling continues to rise
Figure 2: Holiday review: estimated and forecast overseas and domestic holiday market volumes, 2011-21
Rise in vehicles boosts the number of trips taken by car
Figure 3: Average number of trips taken per person per year, by car/van and surface rail, England, 1995-2015
Ongoing growth in airport passenger numbers
Figure 4: Total passenger numbers at reporting UK airports, 2012-16
The consumer
More people visiting travel hubs
Figure 5: Travel hub visitation, 2016 and 2017
Train stations most frequently visited
Figure 6: Frequency of travel hub visitation, April 2017
Retail purchasing highest in airports
Figure 7: Percentage of consumers shopping in travel hubs, April 2017
Food for the journey primary reason to shop
Figure 8: Reasons for buying in travel hubs, April 2017
Consumers tend to shop out of necessity
Figure 9: Reasons for not buying in travel hubs, April 2017
Chain stores could be key to capture more shoppers
Figure 10: Factors that would encourage consumers to shop in a travel hub, April 2017
Travel hub operators must prioritise cleanliness
Figure 11: Attitudes towards shopping in travel hubs, April 2017
What we think

ISSUES AND INSIGHTS
Airport terminals – Restoring trust in duty-free
The facts
The implications
MSAs – Consumers want value for money
The facts
The implications
Railway stations – A need to better capture travellers
The facts
The implications

THE MARKET – WHAT YOU NEED TO KNOW
Rising inflation and the squeeze on real incomes
UK holiday market growing despite Brexit vote
Car journeys remain key in UK travel sector
Biggest railway stations benefit from high footfall
Growth in airport passengers sustained

MARKET DRIVERS
Real incomes fall below inflation
Figure 12: Real wages growth – Wages growth vs inflation, April 2014-March 2017
Disposable income – Travel remains a major priority
Figure 13: Top 10 activities people spend their extra money on, April 2017
Volume of travellers continues to rise
Figure 14: Holiday review: estimated and forecast overseas and domestic holiday market volumes, 2011-21
Spike in inbound tourism post-referendum
Figure 15: Annual percentage change in overseas residents' visits to the UK and UK residents' visits abroad, January 2016-February 2017
Average distance travelled
Figure 16: National Travel Survey: average distance travelled, England, 2011-15
Figure 17: Average distance travelled, by purpose and main mode, England, 2015
Rail usage dipped in 2015
Figure 18: Average number of trips taken per person per year, by car/van and surface rail, England, 1995-2015
More vehicles on the road
Figure 19: Number of licensed vehicles in the UK, 2014-16
Figure 20: Number of licensed vehicles in the UK, by vehicle type, 2014-16
Increasing motorway traffic
Figure 21: Average daily motor vehicle flow for major sections of the motorway network, 2013-15
Figure 22: Percentage change in average daily motor vehicle flow for major sections of the motorway network, 2013-15
Railway footfall
Figure 23: Footfall breakdown for selected Network Rail stations, 2016
Rise in airport passenger numbers
Figure 24: Total passenger numbers at reporting UK airports, 2012-16
Figure 25: Air passengers at selected leading UK airports, 2012-16

COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
MSAs
Moto revenues return to growth
Leading MSA operators invest in foodservice
Railway stations
Fragmented sector with stations managed by large network of TOCs
Network Rail retail growth remains strong
Airport terminals
Retail sales rising at leading airport operators
Ongoing investment in departure lounges

LAUNCH ACTIVITY AND INNOVATION
Train stations look to artisanal markets to boost food offer
Figure 26: King’s Cross Real Food Market, 2017
Marionnaud’s beauty on board promotes new travel range
Social shopping at Heathrow Airport
Figure 27: Heathrow’s Connected Mirror, 2017
Clothing rental services to move into airports
Old Street Station continues to experiment with pop-up stores
Figure 28: HelloFresh Old Street Pop-Up Store, 2017
Burberry pops up at Heathrow
Figure 29: The Burberry Balloon at Heathrow, 2017
Vending machines offer freebies in return for social interactions
St Pancras and Waterloo set to expand retail offer
Tasting experiences
Drive-thru coffee shops
Pret a Manger moves into motorway service stations
Airports capture families with new retail stores
Figure 30: Harry Potter Store at Heathrow, 2017
Gatwick using beacons to improve passenger journey through airport

TRAVEL POINT OPERATORS – MSAS
Concentrated motorway service network
Figure 31: Summary of the leading UK MSA operators, 2017
Financial performance of leading MSA operators
Figure 32: Revenues of the leading MSA operators, 2012-16
Figure 33: Operating profits of the leading MSA operators, 2012-16
Moto Group – Food steals greater share of non-fuel
Figure 34: Moto: breakdown of non-fuel revenues, 2016
Welcome Break – Moving towards a fully branded operation
Westmorland – Strong revenue growth sustained

TRAVEL POINT OPERATORS – RAILWAY STATIONS
Leading train operating companies
Figure 35: Stations operated by train operating companies in the UK, 2015/16
Network Rail income flat in 2016
Figure 36: Network Rail financial performance, 2012-16
Retail sales growth remains strong at Network Rail
Figure 37: Like-for-like retail sales performance at Network Rail-managed stations vs British Retail Consortium high street figures, 2012/13-2015/16

TRAVEL POINT OPERATORS – AIRPORT TERMINALS
The UK’s top five airports account for 65% of passengers
Figure 38: The UK’s five largest airports, by passenger numbers, 2016
Financial performance of leading airport operators
Figure 39: Leading airport operators’ revenues, 2012-16
Figure 40: Leading airport groups’ operating profits, 2012-16
Breakdown of revenues
Figure 41: Leading airport groups’ breakdown of revenues, 2015/16
Heathrow – Ongoing investment in luxury
Figure 42: Breakdown of Heathrow’s retail revenues, 2016
Gatwick – Catering outperforming retail
Figure 43: Breakdown of Gatwick’s retail revenues, 2015
Manchester Airports Group – Redevelopment boosts revenues
Edinburgh Airport – Completes retail expansion

THE CONSUMER – WHAT YOU NEED TO KNOW
Railways most visited travel hubs…
…but consumers least likely to shop in train stations
Non-food purchasing highest in airport terminals
MSAs suffer from perceptions of being over-priced
Railway retailers could benefit from extended opening hours
Trust in duty-free pricing is low

TRAVEL HUB USAGE AND FREQUENCY
Rising travel hub visitation
Figure 44: Travel hub visitation, 2016 and 2017
Usage driven by 16-24s
Figure 45: Travel hub visitation, by age, April 2017
Almost half visit a train station monthly
Figure 46: Frequency of travel hub visitation, April 2017

WHAT CONSUMERS BUY IN TRAVEL HUBS
Airport visitors most active buyers
Figure 47: Percentage of consumers shopping in travel hubs, April 2017
Food and drink drives purchasing
Figure 48: What consumers buy in travel hubs, April 2017
Young people most likely to shop
Figure 49: Percentage of consumers shopping in travel hubs, by age, April 2017
Consumers most likely to buy multiple products in airports
Figure 50: Repertoire analysis of what consumers buy in travel hubs, April 2017

REASONS FOR BUYING AND NOT BUYING IN TRAVEL HUBS
Three quarters buy food for the journey
Figure 51: Reasons for buying in travel hubs, April 2017
Impulse purchasing peaks amongst 25-34s
Figure 52: Reasons for buying in travel hubs, by age, April 2017
Special offers encourage fashion purchases
Figure 53: Reasons for buying in travel hubs, by product purchased, April 2017
Consumers still shop in airports to take advantage of duty-free
Figure 54: Reasons for buying in travel hubs, by travel hub visited, April 2017
Price a major reason for not purchasing
Figure 55: Reasons for not buying in travel hubs, April 2017
Motorway services perceived as over-priced
Figure 56: Reasons for not buying in travel hubs, April 2017

ENCOURAGING PEOPLE TO SHOP IN TRAVEL HUBS
Consumers want more chain stores
Figure 57: Factors that would encourage consumers to shop in a travel hub, April 2017
Better gift ranges attract young shoppers
Figure 58: Factors that would encourage consumers to shop in a travel hub, by age, April 2017
Extended opening hours appeal to railway users
Figure 59: Factors that would encourage consumers to shop in a travel hub, by travel hub visited, April 2017

ATTITUDES TOWARDS SHOPPING IN TRAVEL HUBS
Almost half don’t trust duty-free pricing
Figure 60: Attitudes towards shopping in travel hubs, April 2017
Seasonal pop-ups appeal to young
Figure 61: Percentage of consumers in agreement with attitudes towards shopping in travel hubs, by age, April 2017
Opportunity for motorway services to improve food offer
Figure 62: Percentage of consumers in agreement with attitudes towards shopping in travel hubs, by travel hub visited, April 2017

APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Data sources
Financial definitions
Abbreviations
Consumer research methodology

List of Table

NA

Make an enquiry before buying this Report

Please fill the enquiry form below.

  • Full Name *
  • Your Email *
  • Job Title
  • Company
  • Phone No. * (Pls. Affix Country Code)
  • Message
  • Security Code *