With visitors to Australian airports forecast to increase by around 30 per cent, to more than 160 million per annum over the next five years, coupled with increasingly positive economic conditions the demand for airport-based retail opportunities is set to soar, according to the Colliers International Retail Market Indicators Report, Spring 2010.

Nerida Conisbee, Colliers International Director of Research, who compiled the report, said the latest retail trade data shows that spending has remained solid, with national retail expenditure totaling $20.4 billion per year to-date, representing an increase of four per cent from 12 months ago.

"Consumer sentiment is also starting to rebound, which is another major indicator of retail trade growth," she said.

"Despite these strong results, we are yet to see a dramatic change in retail trade figures, although it does point to demand that will bring an upswing in conditions sooner than previously thought."

Ms Conisbee said that as one of the few retail destinations where people are contained within a relatively isolated space for extended periods, airports provide a unique retail opportunity.

"The types of retailers who thrive in this environment are those that cater to the wants and needs of transit consumers," she said.

"Travelers generally have a reasonable amount of time to fill and as such are looking for a diversion, are homesick and therefore thinking of what they can purchase for loved-ones or are often seeking alternative food options."

"It is therefore not surprising that those stores that allow for browsing and time consuming activities such as bookstores, newsagencies, gift shops, fashion stores, such as Witchery and French Connection emerging as airport regulars," Ms Conisbee said.

Nathan Clark, Colliers International National Director of Retail, said that many airport operators are becoming aware of consumer behaviours and in turn are delivering innovative retail destinations to ensure they cater to their consumers needs.

"Previously, airport retail consisted mainly of a food court with a scattering of café retailers. Today, we are seeing a growing trend of both international and national lifestyle retailers emerging, including the likes of Bally, Fendi, Hugo Boss, Apple, Beach Culture and Mimco," he said.

"There are a number of major redevelopments in the pipeline nationally, as well as some under construction or recently completed.

These include a $500 million redevelopment at Sydney Airport's International Terminal which now includes around 120 retailers.

"The expansion is designed to service what is currently around 32 million passengers each year, with numbers expected to reach almost 80 million over the next 20 years," Mr Clark said.

In Melbourne, a $330 million upgrade of Tullamarine Airport - the first significant upgrade since its construction in the 1960s - will add around 5,000sq m of new retail floorspace.

Brisbane Domestic Airport is also undergoing expansion to include to both increase terminal capacity and retail space to meet future demand and Adelaide's International Airport is in the master planning stage for a major retail component.

Mr Clark said that with more people forecast to move through Australian airports, and airports expanding to cater for this growth as their owners realise the significant source of revenue the right mix of retailers can provide, it is likely the success of airport retailing is only going to continue.

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