August 8, 2018 / 1:26 PM / 3 months ago

Fraport revamps Frankfurt airport shops to boost falling retail revenue

BERLIN, Aug 8 (Reuters) - Frankfurt airport operator Fraport is refreshing its shopping areas with more pop-up stores and food and drink as it battles a drop in falling retail revenue.

Airports often make a large part of their profits from retail but Fraport has been hit by increased security queues and higher numbers of short-haul passengers, who typically spend less than those on long-haul flights.

The company said earlier on Wednesday that retail revenue per passenger in Frankfurt, including a joint venture with duty free company Heinemann, fell to 2.93 euros in the second quarter, dropping from 3.29 euros in the first quarter and compared with 3.38 euros one year ago.

The group will also revamp its duty free shops, creating one focused on beauty and one on food, plus introduce new brands, Chief Financial Officer Matthias Zieschang said.

The measures will be implemented over the next 24 months and the group is optimistic that the trough has been reached.

“There will be ongoing pressure on it. But now there’s a good likelihood that we will see higher retail revenues compared to the last year,” he said. (Reporting by Victoria Bryan Editing by Alexander Smith)

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