Asia Pacific’s airport retail market is projected to grow to US$33.8 billion by 2026, driving the global market to $63.4 billion thanks to a compound annual growth rate of 7.8 per cent.
According to GlobalData, the growth will be driven by the increase in retail space and passenger numbers as cross-border travel resumes and the relaxation of lockdown and duty-free regulations. GlobalData’s latest report found the number of passengers in Apac will surge by 33.9 per cent this year, resulting in a boost in retail sales. However, it does not expect pre-pandemic levels to return until 2024.
Retail analyst at GlobalData, Koyel Ray, said Apac’s airport retail sales fell by $10 billion in 2020 before rebounding slightly last year to $11.8 billion. Ray added digitalisation measures have helped provide normalcy after the pandemic, such as contactless payment systems, and antimicrobial coatings on self-service devices to keep shops clean.
“Airport retailers are welcoming data technological innovation to improve customer engagement,” Ray said.
“Retailers are employing rolling robots, facial biometric scanners for security check process to avoid physical contact, and 24/7 grab-and-go stores to revive airport sales and protect consumers from further outbreaks.”
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