December 21, 2024

The Airport Experience Now Includes Shopping for the Family

After visits to malls plummeted during the recession — and have yet to bounce back — many mass-market retailers stepped up their search for other locations to lure shoppers.

Places where people might be bored. And unable to leave. One time-tested answer: airports.

While luxury stores set up shops in airports long ago to attract duty-free international shoppers, retailing in many domestic terminals was limited to newsstands and the occasional shop selling coffee mugs and local smoked meat. The real diversity in airport shopping was in the food concessions.

No more.

“Airports are becoming, really, a service facility, like a shopping mall,” said Jose Gomez, senior vice president for business development for Mango, the fashion retailer.

While clothing and specialty luggage and electronics stores aimed at male shoppers — like Johnston Murphy, Brooks Brothers and Brookstone — have been fixtures at airports, the new wave of stores moves beyond the businessman traveler to include teenagers, women and bargain shoppers.

Mango recently opened two stores at San Francisco International Airport. It will open one in the Orlando airport this fall and plans more airport locations in the next two years. Victoria’s Secret opened seven airport stores in 2010 and 2011.

Muji, a Japanese housewares and apparel store, has opened two airport locations, and Sean John, the clothing line by Sean Combs, a k a Diddy or P. Diddy, has a store in Hartsfield-Jackson Atlanta International Airport, which has grown from “news and gift and generic concepts” to “almost complete retail diversity” over the last 10 years, said Paul Brown, director of concessions at the airport.

Even Brooks Brothers — which was one of the first clothing stores to expand into airports, opening its first airport store in 1999 — is riding the wave, with plans to add about five stores a year to the 26 it already has in the United States. And overseas, the fashion retailers HM and Zara have each opened several airport stores.

The draw of the airport location is simple: an attentive clientele. “After security, you’re locked up,” Mr. Gomez of Mango said.

Domestic travelers spend more than an hour, on average, waiting in airports once they have passed security, said Gerry Cecci, vice president for airport management at the Westfield Group the mall company, which manages retail sites at airports including Boston, Newark and Miami.

“Someone may have a street concept or a mall concept that’s very successful, and bringing it to the airport environment, you capitalize on the captive audience and on the dwell time,” Mr. Cecci said.

Retailers say that while rents are higher at airports than in mall or street locations, sales per square foot are also higher — especially when it is raining or snowing and flights are delayed.

“We have a motto — bad weather is good for business,” said Paulette Garafalo, president for wholesale, international and marketing at Brooks Brothers. “Whenever there’s bad weather, we enjoy a hearty day. It’s the polar opposite of retail here.”

Making money in retailing at the airport, though, requires some adjustments to the traditional sales model. Stores are smaller, and the customers are often rushed, or at least very time-conscious. A premium is placed on convenience.

“Though there is a dressing room where you can try on dresses, maybe people are not so much inclined to try on, because they don’t have a lot of time,” Mr. Gomez of Mango said. “So accessories and tops sell better.”

Retailers also have to alter the layout of stores. Aisles have to be wide enough for luggage, and the pristine storefront displays used in malls often have to be tossed aside in favor of more open concepts and the stacking of merchandise at the store’s entrance.

“They figure out that removing the plate window glass and opening up is turning out to be a great idea,” said Mr. Brown of the Atlanta airport.

Article source: http://feeds.nytimes.com/click.phdo?i=98b09612a6ba174f5b31ca86b3b3d445

Advertising: Bargains on Flash Sale Sites Serve a Long-Range View

After Saint Parfum sold $55 candles perfumed with peony and grapefruit for $25 on the flash sale site One Kings Lane, visitors to Saint Parfum’s own Web site spiked to 6,000, from about 250 on a typical day. In the next few months, sales of full-price merchandise on Saint Parfum’s Web site and at retailers also climbed, and 20 new retailers asked to sell the candles.

“We don’t profit much, because of the discount,” said Spencer Krenke, Saint Parfum’s founder and perfumer. “But more important is that what we gain is long-term, loyal customers.”

Saint Parfum’s experience has become the norm for many brands that sell discounted merchandise on flash sale sites like One Kings Lane, Gilt, HauteLook, MyHabit and Ideeli. Brands like Volkswagen, Brooks Brothers and Starbucks have used the sites for marketing campaigns.

The phenomenon is an example of the muddled lines dividing editorial, advertising and commerce online as Web sites increasingly serve all three purposes. And it is the latest evidence that shoppers, overwhelmed by the options online, are turning to e-commerce sites that do the choosing for them, narrowing the selection and giving advice on which brands to buy.

“It’s really becoming less about dumping inventory and more about shining a spotlight on a new or existing brand,” said John Gerzema, executive chairman of BrandAsset Consulting, a marketing strategy firm. “Getting an endorsement from a company like Gilt or HauteLook or Ideeli is really a way to get your brand a higher profile that spending additional marketing dollars really can’t do.”

One Kings Lane, which sells discounted home décor, says that these days it is as much a marketing company as an e-commerce company.

“Our pitch actually starts that way now,” said Susan Feldman, co-founder of One Kings Lane. “Instead of, ‘We can help you with your excess and closeouts,’ the marketing part of it is really much more powerful.”

Amazon.com introduced its flash sale site, MyHabit.com, in March, partly because brands that sell on other Amazon sites said they wanted to use flash sales to get in front of new customers, said Maria Renz, president of MyHabit.

Amazon’s merchandise buyers write testimonials about the brands at the top of each sale page, and Amazon prominently links to the Web sites of the brands so customers can also shop there.

“We’re very happy to also drive traffic to the brands,” Ms. Renz said. “At the core, these sites are great ways to introduce your brand to a new customer.”

Some brands have started using Gilt, the most prominent of the flash sale sites in the United States, to introduce products instead of selling overstock.

To introduce the 2011 Jetta, Volkswagen sold three of the $15,995 cars for $5,995 on Gilt. Fifty-five thousand people who missed out added their names to the wait list, and Volkswagen sent them $500 coupons to buy or lease a Jetta.

Volkswagen sold 69 full-price cars as a result of the Gilt sale and has an e-mail list of interested customers, said Charlie Taylor, general manager of digital marketing for Volkswagen of America.

“This wasn’t a sales objective, it was only three cars,” Mr. Taylor said. “It was very much an awareness play, meant to build buzz.”

Brooks Brothers introduced its Back to Campus line, slimmer-fitting clothes for younger men, by selling the clothes at full price on Gilt Man six weeks before selling them in stores to advertise to younger men who shop on Gilt but not generally at Brooks Brothers.

Seventy percent of the buyers on Gilt Man were under 39, according to Brooks Brothers.

Some of the flash sale sites are evolving into online fashion or design magazines. They often serve as copywriters, photographers and stylists for the brands, melding commerce and editorial in ways that were never possible for print publications.

“We are moving toward being an online retailer that understands that our mission is as much to impart information and give you ideas and help you make the best purchasing decisions,” said Susan Lyne, chairwoman of Gilt.

Younger people are more likely to discover new brands online than in magazines or department stores, she said, and they like doing it online because they can buy on the spot.

Gilt employs 100 stylists, makeup artists and photographers to shoot models wearing the clothes. It hired Ruth Reichl, former editor in chief of Gourmet and former restaurant critic for The New York Times, as editorial adviser for its new food site, Gilt Taste, which publishes essays and recipes in addition to selling food.

To promote another Brooks Brothers sale on Gilt Man, Gilt interviewed the costume designer for the detective TV show “White Collar” about men’s fashion on GiltManual, a site with articles like “How to Clash With Panache” and “How to Match Your Suit to Your Shoes.”

One Kings Lane has hired writers from Elle Décor and Domino. It publishes slide shows and articles with tips from designers on how to layer rugs or the latest wallpaper trends.

“These are e-commerce platforms, but they’re also marketing and media platforms rolled into one,” Mr. Gerzema said.

Article source: http://feeds.nytimes.com/click.phdo?i=b0f6fefa5297f3d010585232a0dd2c51