SYDNEY: Retailers such as Ralph Lauren, Fendi and French Connection have helped drive earnings growth at Sydney Airport.
The Macquarie Airports owned terminal has reported a full-year earnings growth of 6.9 per cent to $812.7 million for the 12 months to December 31. Retail revenue was a standout category with a 10.1 per cent increase to $192 million, signalling nearly $1 in every $4 of revenue came from retail rents over traditional airport services.
Macquarie Airports CEO Kerrie Mather said recent months had seen increased spending from overseas travellers looking to capitalise on Australia's weaker dollar.
"Commercial revenues held up very well through the year, supported by the fact that the duty free contract continues to operate on minimum guaranteed rents and the opening of the multi-storey carp park in the international precinct in July."
Current fashion retail stores at the airport include Ralph Lauren, Fendi, Mimco, French Connection, Mimco and Witchery. As reported by Ragtrader Online in December, luxury fashion houses Burberry and Giorgio Armani had committed to opening a site in the international terminal.
Retail Sydney Airport Corporation Limited general manager Derek Larsen claimed a $500 million expansion and retail development program, set for completion this year, would make the airport the most profitable retail asset per square metre in Australia.
The airport currently has 126 retail outlets in the international terminal and 24 retail outlets in Terminal 2. Retail space is currently 18,100m2 in the international terminal and 2,600m2 in Terminal 2.