As we noted in an abstract from early in the pandemic (“No Flights, No Passengers, No Retail?”), the drastic travel restrictions imposed by COVID-19 left airports virtually empty and many of the stores within them completely shuttered. Even as some passengers started flying again, and restaurants and newsstands started earning at least some revenue, other sellers bided their time. For retailers of less essential products, the viability of reopening terminal locations seemed questionable; for luxury retailers, their continued assessments of the market suggest that airports are no longer the appealing locations they once represented. The number of travelers continues to be depressed, such that only about half as many people flew in 2021, compared with 2019. And those who are flying generally are travelling domestically, rather than internationally. Most of the luxury brands previously had prioritized the big international hubs though, with the rationale that international passengers had more time to shop and more inducement to buy due to the duty-free options available to them. In addition to these global trends, strategic and regional efforts diminish the very need to put luxury stores in international airports. For example, China has added more domestic duty-free allowances, so wealthy Chinese consumers no longer need to travel overseas to get a great deal on luxury products. In turn, luxury retailers are adding more stores in China or encouraging digital sales. If shoppers can get the same products, at around the same prices, at home, without incurring the hassle or risk of traveling, they have little inducement to head to the airport to shop. And if shoppers aren’t there, neither will the retailers be.

Source: Carol Ryan, “Why Your Airport May No Longer Resemble a Luxury Mall,” The Wall Street Journal, February 11, 2022