Business & Operations Review (Part 2) - Changi Airport Group

CHANGI AIRPORT GROUP
ANNUAL REPORT 2009/10
39
Together with our retail partners, we share a mission to
deliver the best travel retail experience in the world at
Changi Airport.
To grow the airport’s commercial business, CAG adopts
a holistic approach – attracting quality concessionaires to
operate at Changi, continuously improving the retail mix
and providing support to concessionaires by creating a
conducive retail environment at the airport.
To help tenants mitigate the impact of the economic
downturn, CAG provided concessionaires with a S$63
million assistance package in 2009, which comprised both
rental rebates and marketing support. On top of that,
monthly promotional events and activities were held to help
boost spending, as well as draw footfall to the airport.
The support was well-appreciated by Changi’s tenants.
Recovery in retail performance
The travel retail industry in general, as well as Changi
Airport’s retail business began to recover in the second half
of 2009 as passenger traffic turned around and registered
the first signs of a rebound. This was after a sustained
decline in concession sales for the first eight months of 2009
due to the global economic downturn.
Concession sales at Changi registered a steady uptrend
from September 2009. In line with the continued recovery of
the travel industry and the global economy, CAG observed a
visible improvement in retail sentiments in the early months
of 2010, as retailers began to display more interest in
leasing opportunities and greater optimism about
business prospects.
Below: New retail brands at Changi Airport