Saudi Arabia is enhancing retail at Riyadh’s King Khalid International Airport with a major duty-free expansion and infrastructure upgrades. Abdullah Al-Salem of Riyadh Airports Co. announced a 180% increase in duty-free space, raising stock-keeping units from 4,000 to 10,000. The airport also became the first in the region to introduce an on-arrival duty-free store. Additionally, two new piers, A and H, are under construction to extend terminals 1 and 4.
These upgrades have driven a sharp rise in retail sales, with revenue tripling since the expansion of terminals 3 and 4. Riyadh Airports Co. led the post-pandemic retail recovery, becoming the first airport to regain pre-pandemic sales. Retail space in terminals 1 and 2 nearly doubled, attracting high-end brands and reshaping the shopping experience. Al-Salem emphasized that airport retail differs from malls, requiring a tailored approach to meet passenger needs.
The panel also highlighted evolving luxury trends and the growing role of digitization in travel retail. Umair Ansari of The Estee Lauder Companies stressed the need for personalized engagement, as luxury means different things to different travelers. Digital transformation now allows retailers to connect with passengers at every stage of their journey. Gen Z consumers, driven by emotions rather than features, are reshaping the industry, making emotional connections key for brands.
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