Airport retail changes course: Auckland Airport launches offer for domestic travelers

Auckland Airport is expanding its online click-and-charge offering to domestic travelers as a way to serve retailers from the international terminal feeling pressure from closed borders.

Starting today, domestic travelers will be able to shop at the airport’s online marketplace, The Mall, and pick up their orders prior to their domestic flight. Previously, The Mall, which was established in June 2018, was only accessible to international travelers.

While duties and taxes will remain applicable, the platform promises to have discounts of up to 75 percent on products such as confectionery and special offers on fragrances and spirits.

Jayne Wear, director of omnichannel retail at Auckland Airport, said work on The Mall’s expansion to the domestic terminal had been going on since early July, and was in response to a survey conducted with frequent travelers.

“This is a mechanism to help our retailers sell the passengers we have,” said Jonathan Good, general manager of technology and marketing for Auckland Airport.

“Bring the international terminal buying experience to a national audience.”

The service for domestic travelers will be similar to the international terminal offering, but offers a smaller range of products from fewer retailers. The pickup point is near the Air New Zealand arrivals gate in the domestic terminal.

Local travelers could pick up their goods from Auckland or upon arrival, Good said. The national offering took three months to develop, a third of the time it took to develop The Mall’s original offering.

Auckland Airport had $ 141.5 million in retail revenue in fiscal 2020, a decrease of $ 84.3 million or 37 percent from the same period last year.

It earns concession revenue from retailers within both terminals, the Strata Lounge, as well as off-airport and duty-free sales collected by passengers at international terminal pickup points.

“We know that an amazing retail experience is part of what makes the beginning and end of many great vacations. For our retailers, it is really important to be able to support them in these challenging times and for us as a company it is also a great way to be able to to participate again [with customers] and continue to build our business, “Good said.

During Covid-19 alert levels 3 and 4, most of the retail stores in both terminals were closed. All stores within the domestic terminal are now operational, but only a small number of international terminal retailers are open.

There are currently 15 duty-free, food and beverage, travel essentials, and currency exchange stores open to departing international passengers.

Wear said Auckland Airport was inspired by Changi Airport in Singapore, Frankfurt Airport in Germany and Heathrow Airport in London, which had a similar offering of tax-included online shopping at their domestic terminals.

Auckland Airport was, however, the first airport to introduce this in response to Covid, Good said.

“Heathrow and Frankfurt do more of a booking and charging proposition where you book the item online and pay and get paid when it arrives at the airport, where we’ve been aiming for a seamless pre-trip shopping experience,” Wear said.

“We are very aware of the accelerated shift to online to complement physical channels and that is why we are very excited to build a new channel for our retail partners.”