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I'm no expert on the economics of airport shops, but here's my take: Rent prices for airport shops are high and space is limited. If you reduce your prices to
by boberoni 5y ago
I'm no expert on the economics of airport shops, but here's my take:
Rent prices for airport shops are high and space is limited. If you reduce your prices to be more reasonable, you are relying on volume to make ends meet. This is challenging because space for inventory is limited and expensive in an airport.
So, most shops in airports either (1) have to charge high prices to make a profit, or (2) aren't actually in the business of making a profit and are instead a marketing tactic for big brands. There's a lot of foot traffic in airports, so the big luxury brands will be willing to spend money on an airport storefront, even if it comes out as a net loss on sales.
- toxik 5y agoWhich is funny, because the airport versions of most luxury stores are just way worse than the regular stores. Poorly attended to and somehow always manage to look cheap.