Business commentary andanalysis of key developments inthe global duty free and travelretail industry for readers of The Moodie Report.

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Reach, Reliability, Respect

ISSUE 42 JULY 2009

The Moodie Report PLUS© ispublished by Moodie International.

Please direct any comments toMartin Moodie by e-mail:Martin@TheMoodieReport.com

Back issues can be found atwww.TheMoodieReport.com

i ns ide th i s i s sueA departure from design tradition ......2

Supplier soundbites .................................3

The Arrivals shopping opportunity . ....4

Áreas tailors its offer . ............................5

Flexibility is the key . ...............................6

Capturing the Catalan flavour ..............7

Simplifying the assortment ...................8

Picture gallery...........................................9

Aldeasa’s ambition underpinsBarcelona buzz

Editor’s Introduction: “Let’s go,” says Pedro Castro. “Like all good films,what you are about to see starts well and then gets better.” Aldeasa’sNational Operations Director for Spain is leading us on a tour of the newTerminal 1 at Barcelona El Prat Airport, just one day after it wasinaugurated by Prime Minister José Luis Rodriguez Zapatero.

For Aldeasa, and for the terminal, it is opening day, and to mark theoccasion I’m here with a number of Castro’s senior Aldeasa colleagues –Commercial Director Eugenio Andrades; Technical Director FernandoNadal; Deputy National Operations Director Angeles Montesdeoca;Regional Director of Catalonia Jordi Bret; and Head of CorporateCommunications Marisa Guilarte. We’re here to view not only the much-anticipated new terminal but also the Spanish travel retailer’s ambitiousand diverse shopping offer.

As the lead retail tenant Aldeasa will operate eight stores (seven haveopened so far) at T1, representing a ¤4 million investment and coveringsome 2,480sq m in the ‘Las Tiendas del Aeropuerto’ shopping complex runby airport authority Aeropuertos Españoles y Navegatión Aérea (AENA) inboth Arrivals and Departures.

The Aldeasa stores form the fulcrum of a diverse commercial offer thatincludes 81 shops and food & beverage establishments – a total thateventually will be extended to 73 shops and 43 bars and restaurants.

That commercial offer is in turn integral to the attraction of the spectacularnew gateway to Catalonia. T1 is designed to boost El Prat’s capacity from25 million to 55 million, but it is also intended to be so much more.Barcelona – the capital of the Autonomous Community of Catalonia – is one of Europe’s great cities, enjoying huge importance in cultural and commercial terms (and of course sport, given Barcelona’s recent triumph in football’s UEFA Champions League). It is synonymous with thearchitectural works of Antoni Gaudí and Lluís Domènech i Montaner –many of them designated UNESCO World Heritage Sites.

Such a great city deserves a great airport. In Terminal 1, AENA thinks ithas created just that. And Aldeasa thinks it has complemented that status.Let’s take a look.

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Some 32 years ago Spanish travelretailer Aldeasa opened a 600sq m dutyfree store at Barcelona El Prat Airport.The company – then state-owned, nowpart of the burgeoning Autogrill retail-to-food & beverage empire – has come along way since, both at the Catalangateway and internationally.

Before the opening of T1, Aldeasaoperated 15 stores at El Prat, coveringsome 2,970sq m. The eight new stores inthe terminal will all but double thatspace, underlining the size of andambition behind the new outlets.

Aldeasa’s stores (seven at present) areled by ‘The Shop’, two outlets of 1,055sqm and 526sq m which offer core dutyfree categories (perfumes & cosmetics,beverages, food and confectionery,tobacco and accessories). Destinationmerchandise – always an Aldeasastrength, both at home and abroad –finds its expression in Thinking Barcelona(dedicated to Catalan produce).

The Express Shop (two stores) is a last-minute duty free/travel retail concept,and the soon-to-be-opened Tous &Watches outlet will feature powerfulCatalan brand Tous and upscale watchesfrom the likes of Longines, TAG Heuer,Baume & Mercier, Ck and Tissot.

Aldeasa has focused heavily on corecategories in the main stores, supportedby a carefully honed specialist range in

the others and an outstandingdestination merchandise execution. Theretailer was keen to lay down a qualitymarker in Barcelona, presenting a retailoffer that mirrored the excellence andelegance of the terminal.

Certainly its main stores represent adeparture from tradition in terms ofdesign, colour and style. GivenBarcelona’s avant-garde reputation as aworld design capital, theretailer has opted to use simple

colours (mainly black and white), andgiven considerable emphasis to digitalpromotion (plasma and LED screens).For once Aldeasa’s trademark yellow isnowhere to be seen.

The stores are very much a work inprogress – much of the hoped-forpersonalisation won’t happen till later inthe year – but it’s already a much morecontemporary approach than you’ll see

The Shop is Aldeasa’s core retail offer, focused on fragrances &cosmetics, wines and spirits, tobacco, confectionery and accessories

Moodie Interactive: Click on the image above

The Moodie Report Publisher Martin Moodie (second fromright) tours the new terminal in Barcelona with Aldeasaexecutives (from left) Jordi Bret, Eugenio Andrades, FernandoNadal, Pedro Castro and Angeles Montesdeoca

at any other Aldeasa store anywhere inthe world. Barcelona brings togetherproven elements from locations such as Vancouver and Madrid airports, but has a modernist edge reflective ofBarcelona’s traditions.

Aldeasa needed to do well here. Not

only is Spain the company’s corporate,commercial and spiritual homeland andBarcelona one of its most glamorouslocations, but the company is alsofighting hard to retain its Spanishairport duty free dominance in the faceof a long-touted tender at most AENAairports.

Modern, functional and easyIt’s always exciting to view a newterminal for the first time, and El PratT1 doesn’t disappoint. Outside, a vastcanopy reminiscent of a giant aircraftwing (above) offers welcome shade aswe arrive at the terminal on a blazinghot summer’s day.

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Moodie Interactive: Click on the image above

The spectacular terminal building offers the vibrant city of Barcelona the dazzling gateway it deserves

Terminal 1 soundbitesBarcelona’s new Terminal 1 is a large, bright and luminous space designed withpeople in mind and with a clear objective: functionality. From the conception of the544,000sq m terminal the passenger was placed centre stage, and the end result isa nice balance of the operational and the commercial.

Certainly the new terminal has met with the warm approval of leading suppliers(also see page 7). Notes Puig Travel Retail General Manager Patrick Bouchard, whosecompany enjoys a powerful presence in the Aldeasa stores: “The new T1 is goodnews for Spain and Catalonia as it reveals some stunning retail concepts. At Puig weare delighted with this ambitious project as Barcelona is our home town. In today’schallenging times, the fact that investments continue is an encouraging sign for thetravel retail industry – and proves that the basis is solid.”

Kristoffer Pipusch, International Travel Retail Manager for Spanish wine producerMiguel Torres, agrees. “The new terminal is really fantastic. It was a great pleasureto fly out during opening day. Everything was well organised and – of upmostimportance – the terminal is really easy to access or to exit by either car or train, sothe location of the terminal is well planned. The building itself is state-of-the-art –the architect has been able to combine futuristic features with the accessibility thatis so important for travellers.

“Aldeasa and the other store operators have managed to utilise the space in theshopping square to its maximum. Aldeasa, especially, has done a fantastic job toopen a store that will create sales for all its suppliers. The wines and spirits sectionsare well designed and they draw buyers down into the main store. Torres has a greatexposure of our products.”

Inside the first impressions are of light,modernism and space. The roof is not ashigh as some other recent terminaldevelopments, helping to lend anaccessible rather than austere ambience.

“The building itself is fantastic – as wellas the commercial offer,” says Castro.Commercial Director Eugenio Andradesis equally enthusiastic. “It’s modern,functional and easy,” he says of theterminal. “The human scale anddimension is very appropriate.”

Both are quick to praise the vision andcontribution of AENA, which they sayhas played a crucial role in thesuccessful execution of the new building.And it’s not simply lip service: they trulybelieve that the partnership betweenairport authority and retailer has paiddividends here.

The terminal’s commercial offer, spreadover two levels, benefits from a single,centralised security area. As we clearsecurity on the top level, there aresplendid panoramic views to the maincommercial areas below in theSchengen zone. In the distance, behindthe shops and restaurants, a kilometrestretch to the furthest gates beckons –all whiteness and natural light.

Through the glass we gaze down overthe giant Sky Plaza – a vast, elegantcourtyard that includes most of thestores and food & beverage outlets.

Interestingly arriving and departingflows merge here, offering Aldeasa andthe other retailers a significant Arrivalsbusiness. Recognising that opportunity,Aldeasa has a dedicated cashier forarriving travellers in its main storebelow – allowing them to pay for theiritems quickly before exiting the terminal.

And so our tour begins. It’s a braveretailer that arranges a media visit onthe first day of trading, asinevitably there are numerous

‘fixes’ that need to be made in terms offittings, signage and so on. Such is thecase with Aldeasa’s stores, where muchof the anticipated brand personalisation– in perfumes & cosmetics, for example –is due to be finalised soon.

But the retailer is rightly confident in itsown story. It’s the big picture thatmatters here. Aldeasa is historically alow-profile company, but it knows it has

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Moodie Interactive: Click on the image above

Top-class trinity: The Jewellery & Gifts store offers three in-demandbrands: Swarovski, Folli Follie and local favourite Majorica

Famous Five: Men’s Fashion has a focused offer – Lacoste,Timberland, Hugo Boss, Gant and Calvin Klein Jeans

raised its game in Barcelona and is keento showcase the fact.

Before we even begin to assess theretail offer, it’s impossible not to bewowed by the magnificent terminalbuilding. From the soft, curvaceousexpanse of its arching structure to thequite lovely central Sky Plaza wheremuch of the commercial activity takesplace, this is an airport to be enjoyed,

instead of (as so often) escaped from.The copious natural light just adds tothe overall impression that this is indeeda very Mediterranean gateway.

Barcelona is not only a beautiful city, it is also a great cultural one. It issynonymous with modernism, largelythanks to the prodigious output of oneof its favourite sons, Antoni Gaudí. Thegreat master of architecture produced

nearly all of his work in the capital ofCatalonia, and due homage has beenpaid to his influence – not just in themajesty of the terminal but even withinthe retail offer (Thinking Barcelona).

Andrades is particularly hopeful for thedestination business. “This will be akiller category for us,” he says. Our firststop though is the duty free and travelretail store on the same level as

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Moodie Interactive: Click on the image above

A taste of Barcelona: Aldeasa has always been a championof the concept of Sense of Place and that principle isreflected in a very strong destination merchandise offer

Leading Spanish retail and food & beverage services providerÁreas has opened 15 new stores at Barcelona El Prat’s newTerminal 1.

The company is the largest concessionaire at the new terminal,having been awarded 15 shop outlets and five food & beverageconcessions last October. It also operates 145 vending machinesand two staff canteens. Áreas manages 3,289sq m of space(2,499sq m of retail and the rest F&B) in T1.

The company has developed two new concepts specifically for thenew terminal: Secrets Sucrés is a new confectionery concept, andStory Store is dedicated to characters from the world of comics,film and television. Brands on offer here include Imaginarium andTUC TUC.

The company also offers many other concepts. Women’s fashionand accessories are represented by brands such as Adolfo Dominguezand Aïta, while its sports range includes Ferrari and Adidas stores.Further outlets include Sibarium and Farga, which offer localdelicacies, and gift and travel items are available at Piquadro andTravelmate. Other Áreas staples include News & Books, Diversand The Airport Market. Among the food & beverage concepts itoperates are La Pausa, Medas and Medas Beer.

“We are truly pleased and excited with the opening of this new terminal,as well as the launch of our new establishments,” says Áreas CEO JoséGabriel Martín. “Barcelona Airport is very special for us because this iswhere we opened our first Divers shop in 1992 – the cornerstone on whichwe have built a network of 185 shops in airports around the world.”

“We consider the airport as unique, offering exclusive and appropriateretail articles,” he continues. “We carefully examined AENA’srequirements and closely studied travellers’ profiles and behaviour topropose a completely tailor-made and specific business solution for the airport.”

Áreas provides the complete business solution

security, which serves long-haul and UKflights. It’s a clean, neatly merchandisedand clearly segmented store. NotesNadal: “The idea here was to create avery neutral shop so we used primarycolours – mainly black and white – aseventually most of it will bepersonalised.”

But the key to the store is its flexibility.A change of passenger profile can beabsorbed painlessly and, say, tobacco orfragrances easily increased at the

expense of another category. There’sextensive use of glass in the fittings(white for perfumes & cosmetics, blackfor spirits) which not only looks goodbut has the advantage of flexibility.“There’s a lot of glass so you can use alot of advertising and promotions tokeep the shop alive,” says Nadal.

Screens above the cash points(themselves newly designed) tell thetraveller which aisles are open, as wellas featuring special offers. Offers can

also be programmed to the particularprofile of a flight.

Careful category management has beenintegral to the assortment and theallocated space, Andrades points out.“We’ve been simplifying theassortment,” he says. “Basically thisshop is core categories – includingdestination merchandise – as well asthree non-core categories: luggage,sunglasses and lower-end watches.That’s how we want to keep it –

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These gondolas in the Thinking Barcelona store pay homage to the city’s favourite son, Antonio Gaudí

Moodie Interactive: Click on the image above

This panooramic image looks down from the post-securitylevel to one of the terminal’s many food & beverage offers

simplified for peaks and troughs, andalso not to compete against othercategories (in other airport stores).”

Tobacco enjoys a big presence in thisstore, driven by the high British spend(the UK flights depart from nearbygates). Terminal-wide the biggest spendcomes from Spaniards, followed by

British, then Russians; but the latterhave the highest spend per transactionby a long distance.

Brilliant exuberanceNow it’s time to ride down theescalator and into the vastnessof the Sky Plaza, all glimmeringwhite roof and natural light

above, underlain by black tiles below,ringed by shops, and with a nicelyplaced catering offer in the centre.

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Moodie Interactive: Click on the image above

Wine, so often the poor relation of airport duty free shops, gets suitably dedicated treatment at Barcelona’snew terminal. There’s a great range of the country’s best wines and vintages on offer.

Capturing the Catalan flavour Terminal 1 is a contemporary expression of a historic city, one which emphaticallyembraces the concept of ‘Sense of Place’.

“The Olympic Games in 1992 made Barcelona an international tourism destination,”notes Claudia Philippi, International Area Director for powerful Spanish wineproducer Grupo Codorníu. “But it was known that the limits of El Prat’s capacitywould be reached in a few years. Thus the airport was not in line with theinternational standards it should have had. And the popularity of Barcelona grewfaster than expected.

“With the recently opened new Terminal 1, Barcelona is proving in a clear way that itwants to play in the ‘world league’ of international airports. It offers professionalservices to passengers from all over the world, and has direct connections to majorinternational cities.

“Once all the stores are completed passengers will enjoy a very good shoppingenvironment, finding an offer of international brands – but also having access to aninteresting choice of domestic/local brands and products as a nice souvenir of theirvisit to Barcelona and Spain.”

As soon as passengers step off theescalator, Aldeasa’s flagship 1,056sq mduty free store is immediately to theleft. As we step inside the open-frontedand sided store Bob Dylan’s‘Workingman’s Blues #2’ is playing overthe sound system. It’s a suitably edgysound for a store that has plenty of thesame hallmarks, with its stark coloursand dressed-down feel.

“The main characteristics here are anopen store… and we’re focusing on theright space and the right exposure for thebrands we work with,” says Andrades.

“We’re focused on core categories andwe also have toys, travel accessories andsunglasses. That’s it, and it’s very coherent.”

Although there is little personalisationto date, notably in the beauty area,Andrades insists that it is just a matterof time. “The intention is to eventuallyhave a fully personalised store… and itwill happen,” he says.

The low ceilings have influenced thedesign considerably. Blue spot lightingshines out of the black ceiling, whosestarkness is further alleviated by aspeckled white effect. The store spans30m from front to back and(standardised) fixtures have been keptconsistently low to maintain sight linesand avoid any feeling of clutter.

There’s a fabulous wines area featuring a

diverse range of Spanish wines. Nationalproducer Torres is to the fore with apowerful promotion for its new Celesteline (the company’s first Ribera del Duero).“We sold 15 bottles this morning – that’swhat promotion does,” says Castro.

Andrades pays tribute to a number ofbrands –including Torres, Ferrero andPuig – which have supported the openingof the stores with special promotionsdespite the terminal initially only handlingaround 20% of its planned traffic.

From The Shop we cross SkyPlaza to Thinking Barcelona,

featuring a wide range of souvenirs,books, glassware, T-shirts, gifts andaccessories ranging from entry-level tomore premium items. The quirkily,brightly coloured gondolas pay tastefulrespect to the Gaudí influence. “Here webecome a local retailer,” says Andrades.“It’s very important.”

Men’s Fashion is a neat and tidy storefocusing on just five brands – Lacoste,Timberland, Hugo Boss, Gant and CalvinKlein Jeans. “It’s a simplified shop withfive brands, where we would probablyhave had ten in the past,” says Andrades.

The 50sq m Jewellery & Gifts outlet iseven more pared down, offering justthree brands – Swarovski, Folli Follie andSpanish favourite Majorica.

Elsewhere near the gates Aldeasa alsooffers two Express stores, offering whatCastro describes as “the core of the corebusiness – what is it you want if you arereally in a hurry?” from perfumes, wines,spirits, food and tobacco.

Later we take a quick tour of the olderTerminal 2, from which I depart forLondon. T2 was built for the BarcelonaOlympics of 1992. Today it looks mucholder compared with the brilliantexuberance of T1. The comparisonunderlines just how quickly airports –and retail – move on. n ä

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Personalisation in practice: Belgian fine chocolate brandGodiva is showcased in style in the main duty free store

Moodie Interactive: Click on the image above

AENA’s overarching shoppingbrand, Las Tiendas delAeropuerto, enjoys prominencethroughout T1

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A sense of space: Note the striking black and white colours inside the main store – and the way Aldeasa has offseta very low ceiling to create an elegant and roomy in-store environment in keeping with the ambience of Terminal 1

Aldeasa focuses on core categories in its mainstream offer, mixing international, national and regional brands

Promotional vehicle: Barcelona-based Puig’s distinctive Carolina Herrera promotion was a highlight of opening day

Picture gallery