Shopping at Heathrow

For many people the thought of shops at a port or airport means 'Duty-Free'. Perfume, cigarettes, spirits and wine have been the trophies carried home by millions of returning travellers, but there are changes on the way. There are plans to abolish intra-European duty-free sales from 1 July 1999, and that could hit Heathrow's annual retail revenue by as much as £100 million.

The retailers are not sitting idle, of course, and there may yet be concessions to the new legislation, but no effort will be spared to find ways of replacing the spending power that might otherwise be lost. From the newspaper stands and coffee stalls that charged exorbitant prices some years ago, a whole new attitude to airport retail has developed. Not only are the shopping areas now purpose-designed, they are also occupied by many of the top names in retailing. But that alone is not a recipe for success. What has made the shopping facilities the envy of most other airports in the world, is the fact that passengers use them with confidence. Besides the top quality names, the magic ingredient must be BAA's absolute guarantee that anything bought at the airport will not cost a penny more than it would in a High Street store, and often will be cheaper. Add to that the fact that any item may be returned, for whatever reason, from anywhere in the world for a full refund including postage costs, and it is not difficult to see why Heathrow's retail operations turn over more than half a billion pounds every year.

Even though the growth in general retailing has been huge, 60% of the takings in Heathrow's shops is still for the traditional duty-free goods. BAA operates seven airports in the UK, and their combined sales of perfume account for 20% of the entire UK market. According to the statistics, when the shops are open for business a bottle of Scotch is sold every 7 seconds at Heathrow, and Johnnie Walker Red Label is the top-selling brand. Chanel No 5 is the favourite perfume amongst an impressive range of products that often sell for a saving of 50% over High Street prices.

Not only are goods sold duty-free, they are also free of Value Added Tax (VAT) which is currently 17.5%. Savings on that scale make a wide range of goods very attractive, and many of the retailers find that their airport outlets perform better than those in the High Street. Shoes and other quality leather accessories sell well at Heathrow, and for the youngsters the introduction of Disney Stores is a great diversion. Cameras and electronic goods are always a good buy and the choice is extensive. Dixons sell many times more personal stereos at airports than they do in any of their other stores, and the real luxuries like Rolex watches sell better at Heathrow than anywhere else in the UK.

The forward-looking approach to retail development at Heathrow has made time at the airport a pleasurable part of the whole travel experience for millions of passengers. A wide range of quality goods at guaranteed prices, tax-free and with the promise of full refund is a powerful mixture.