retail case study • aldeasa at madrid barajas t4 · pdf file76 the moodie report retail...

76 The Moodie Report

RETAIL CASE STUDY • Aldeasa at Madrid Barajas T4 March/April 2006

“This project has transformed Aldeasa and will contin-ue to transform Aldeasa,” says Aldeasa National Com-mercial Sales Manager Lorenzo de Benito proudly.

He’s talking about the Spanish travel retailer’s elegantlyimpressive offer at Madrid Barajas’ New Airport Termi-nal Four, a facility that has revolutionised the look, capac-ity and performance of the Spanish capital’s hithertoovercrowded gateway.

It’s a stunning new building, bright, open and airy. Sun-light is an integral element, a natural feature reinforcedby the canary yellow colours that dominate the airport –and which are mirrored in Aldeasa’s vibrant new logo.

Glass walls open the terminal to the runways outside,offering splendid views of the waiting aircraft and the hillsbeyond. High above the passenger walkways the under-sides of the roofs are lined spectacularly with bamboo slats– a beautiful and wholly unexpected touch.

The €6.2 billion project will allow Barajas to becomeEurope’s second-busiest airport after London Heathrowand the tenth busiest in the world. Having faced chron-ic capacity pressures for years, T4 doubles the passengervolume that can be handled at Barajas from 35 million to70 million, with aircraft able to operate from any of thefour runways. It features 470,261sq m of space dividedinto six levels – three above ground and three below.

Aldeasa brings ‘much more’to Barajas Airport’s new T4

The Moodie Report was privileged to be the first industry media to view Aldeasa'simpressive retail offer at Madrid Barajas Airport's stunning new T4 which opened inFebruary. We toured the facility with Lorenzo de Benito, Aldeasa's National CommercialSales Manager and twice, independently, since. He believes that T4 represents a newpinnacle of achievement for Aldeasa, and we think he's right. By Martin Moodie.

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T4 comprises a main terminal and a satellite building.The latter connects to the main facility through a shut-tle transport system capable of moving 13,000 passengersper hour. Around 11 million passengers a year will usethe main terminal initially, with a further three millionmoving through the satellite.

For Aldeasa, Barajas’ duty free and travel retailer for thepast 30 years, the new terminal offers vastly expandedshopping space. This has allowed the company to devel-op what it claims to be “the widest and most competitiveoffer amongst all Spanish airports”. So let’s examine thatclaim in detail.

Aldeasa’s long-term tenure at BarajasFounded in 1974, Aldeasa began retailing at MadridBarajas Airport in 1976 with two stores in the Interna-tional Terminal. It has operated there ever since.

The retailer has 42 stores in the existing T1, T2 and T3but is entering a whole new league with T4, where it ismanaging close to 8,000sq m of additional space. Here itis incorporating a range of new business concepts inte-grated within a pioneering new structure and a completenew shop design.

That has involved an investment of around €20 millionand, to optimise the offer, a survey of 1,000 Barajas pas-sengers across eight nationalities. Aldeasa concluded fromthis landmark survey that different business conceptswere necessary within the retail complex in order to max-imise penetration across all consumer groups.

The seeds of T4 were sown ten years ago, says De Ben-ito, as airport authority AENA debated how to respondto Barajas’ capacity constraints. A new airport, an extension of existing terminals or the building of a complementary terminal were all debated – the latterultimately being the option chosen.

This set in motion a decade-long project that culminat-ed in the inauguration on 4 February this year of a ter-minal that De Benito describes as “a monument to Spainand to Madrid”. In passenger terms, AENA has releasedthe steam from a pressure cooker that was ready to burst.Now it should be able to cope adequately with growth forthe next 25 years at least.

“They didn’t simply want an airport,”says De Benito, “they wanted some-thing that was new, modern and func-tional as well as being a goodexperience for the travellers rightfrom the beginning.” And, crucially,AENA also decided that retail andother non-aeronautical activitieswould play an integral role, from con-cept through to execution.

Convenience was the watchword for



Aldeasa T4 at a glance

Total space: 8,000sq m

€20 million investment

Over 200 new employees hired

1,200sq m dedicated to luxury brands

Largest shopping area of all Spanish airports

Price range: €1 to €24,000

19 Aldeasa stores in Main and Satellite terminals

Note: Across all Barajas terminals Aldeasa willfeature almost 16,000sq m of retail space, 57stores, over 1,500 brands and close to 200,000different products

Fashion & Funand Les Boutiques

are part of aconcerted effort

to create ‘a retailexperience’ and,

along with theduty free storeThe Shop, formthe ‘purchasing

triangle’

Untitled-2 1 2/3/06 15:05:24

Untitled-2 1 2/3/06 15:05:24

all commercial services from retail to F&B. Aldeasa wasinvolved in a particularly close collaboration with AENAfrom around 2002 to create a ‘retail experience’ at T4.Over the past 18 months alone the project has involvedmore than 50 people from Aldeasa as well as many exter-nal companies and consultants, De Benito says.

Aldeasa describes its objectivefor the New Airport TerminalFour as delivering a servicewhich provides “an easier, fasterand more convenient purchase”.The shops have wide visibilityand easy access. And Aldeasapledges to satisfy travellers’needs, from the most basic tothe most sophisticated, with abroad variety of offers andprices. The company also prom-ises one of the most extensiveand diverse shopping offers ofany European airport.

T4 handles domestic and Schen-gen travellers, who use the main

terminal, and non-EU international passengers, who aretransported to the satellite after the common check-inand security clearance. A ‘people mover’ provides a serv-ice every two minutes for the four-minute journey to thesatellite.

Despite the passenger traffic imbalance between the mainterminal and the satellite, sales are not vastly dissimilar.Because of the much higher [non-EU] spend of the satel-lite, over 40% of sales are generated there, driven by amuch higher spend per passenger.

The consumer base involves “a very European and Latinprofile”, De Benito points out. Spanish passengers dom-


New design for a new terminal

Aldeasa says it is committed to a new designconcept: one which provides a rapid and easypurchase for the passenger in each shopping area –all characterised by wide visibility, easy physicalaccess and the simple location of the product andthe offer.

Key elements include:

● Avoidance of ‘monochromatic’ stores, playingwith colour and redesigning the furnishingswhich are personalised by family. For examplewith fragrances the exterior look has beenupdated so that pastel colours are predominant.The display of products and brands has alsobeen reorganised in order to offer better serviceto the traveller

● The yellow porticos identify the entrances to thestores. Once inside travellers can guide them-selves to each shopping area thanks to accessdirectories and sets of colours and shapesdesigned to facilitate a quicker purchase

● The ceilings and floors for each category havealso been redesigned.


211

75

65

245

79

74

323

82

86

274

81

87

301

79

86

Note: *Including Canary Island sales under a special fiscal regime

Source: Aldeasa

Aldeasa Spanish airport sales2000–2004

2000 2001 2002 2003 2004

■ Travel Value ■ Duty free ■ Duty paid*

500

400

300

200

100

Eur

os (m

illio

ns)

Les Boutiques: The largest area for luxury brands in any Spanish airportrepresents a qualitative leap for Aldeasa

inate, representing around 60%of total numbers, followed byBritish, German and French.Asian nationalities such as Japan-ese, South Koreans and Tai-wanese are not significant intotal passenger terms, thoughtheir spends are high. Spain nowhas Approved Destination Statusfor Chinese travellers andAldeasa is hopeful that this mayresult in a vibrant new consumerbase in the future.

Once through security passen-gers gather in a central plazaarea, which features the maincommercial services – Aldeasa’sshops, F&B services and non-Aldeasa specialist storessuch as a Relay news and bookshop, and Puma andMango boutiques. Additionally Aldeasa offers LastMinute stores called ‘The Express Shop’ at the extremi-ties of both the main terminal and the satellite.

De Benito says that Aldeasa had certain key principles inmind when it developed its retail programme. One was tobe in the right locations; another was to create “big com-mercial concepts” based on a diverse offer and clear well-ordered themes. “This is the result of a concerted teameffort in which AENA’s participation has been a key factor,”he says.

“We decided to simplify things,” he adds, “so we creat-ed the core business offer ‘The Shop’, which is the tra-ditional duty free – this is the main builder of thebusiness. We also wanted to create something more inline with a commercial centre, which we called ‘Fashion& Fun’. And we acknowledged the need for a specialenvironment for luxury in ‘Les Boutiques’. Those are thethree basic concepts in both the principle terminal andthe satellite.”

A triangular approachThe Shop, Fashion & Fun and Les Boutiques offer com-plementary categories, together representing whatAldeasa describes as the “purchasing triangle”.

Here’s a snapshot of the three:

The Shop: This groups the traditional duty free products:perfumes and cosmetics, wines and spirits, foodstuffs,tobacco and some accessories. There are three shopswith an overall area of 3,100sq m.

Here the key category is fragrances – and it shows. Withthe sector representing nearly 50% of sales Aldeasa hadto get it right, and the resultant 650sq m of space in themain terminal store (more in the satellite) does exactlythat.

The new concept is designed to be light, modern andinnovative. The big brands are the drawcards and are allsubtly personalised within bright pastel (pink, white andblue to differentiate areas) stores – buoyed by natural lightfrom outside.

“We have created our own personality here,” says DeBenito enthusiastically. “The premium brands are to thefront and the rest of the brands are on the back walls. We

The Moodie Report 81

March/April 2006 RETAIL CASE STUDY • Aldeasa at Madrid Barajas T4

351

69

18

398

80

23

492

82

24

442

77

21

466

70

29

Source: Aldeasa

Aldeasa airport sales by region2000–2004

2000 2001 2002 2003 2004

■ Spanish airports ■ Non-Spanish airports ■ Other income

600

500

400

300

200

100

Eur

os (m

illio

ns)

Great sight lines, bright colours and a fantastic feeling of space give the mainduty free outlet a unique personality

Untitled-1 1 6/3/06 23:36:36

have taken Aldeasa’s generic fix-tures and had them personalisedto the brands.”

Yellow ‘cuts’ or dividers are clev-erly used in the back walls tohighlight areas such as travelretail exclusives and special priceoffers. The stores also featureSkincare for Men, treatmentareas for women and gondolaswith large and striking visuals(such as the new David Beckhamfragrance Instinct).

Uniquely perhaps, it’s the salescounter that stands out most.This dazzling pink area, lit withtheatrical spotlights, is a treat in itself.

The staff look elegant in their peach Aldeasa uniformswhile behind them a back wall neatly showcases a collec-tion of fragrance bottles in art-house fashion, the colourssubtly setting one another off. It’s a nice touch that liftsthe whole store out of the realms of the familiar.

Sight lines are also key. “You have visibility across almostthe whole shop,” says De Benito with a sweep of his arm.

From fragrances and cosmetics the traveller walksthrough to liquor, tobacco and confectionery via a tran-sition area featuring watches and sunglasses. In the main

terminal a prominent Swatch personalised unit domi-nates, followed by what the signs declare as ‘Y muchomás’ – ‘and much more’.

Confectionery features a mix of international and Span-ish items. Generic Aldeasa fixtures line the floor whilethe back walls are personalised with the big names.There is some segmentation by impulse, gift and con-venience purchases as well as collections from several ofthe major brands. Food represents around 11–12% oftotal sales.

Any aficionado of Spanish food will admire the sectiondedicated to local foodstuffs. There are some splendid



34.7 33.3 33.5 31.8 32.0

28.2

18.0

11.9

10.0

28.3

17.6

12.3

10.0

26.2

17.9

12.8

9.7

24.8

17.8

13.5

10.6

23.7

18.2

13.3

10.1

Source: Aldeasa

Aldeasa Spanish airport sales breakdown by product

2000 2001 2002 2003 2004

■ Perfumes ■ Tobacco ■ Misc ■ Spirits ■ Food

100%

80%

60%

40%

20%

67.8 68.8 69.4 70.8 70.3

9.3

20.4

8.4

20.8

7.7

22.9

6.9

24.3

6

26.3

Source: Aldeasa

Aldeasa Spanish airport sales breakdown by region

2000 2001 2002 2003 2004

■ Intra EU ■ Spain ■ Non-EU Countries

100%

80%

60%

40%

20%

Fashion & Fun: Neat and uncomplicated with an impressively diverse range ofitems ranging from consumer technology to kids’ fashion

hams, oils and cheeses on show, beautifully presented andwith a price point to suit everyone. Nearby there’s astrong line-up of around 350 Spanish wines ranging fromold Riojas to new-generation cavas.

The liquor and tobacco area again features a mixture ofgeneric gondolas and dedicated category units, for exam-ple for white spirits, with big brand personalisation fromcompanies such as Diageo and the major tobacco houses.Wines and spirits represent around 13–14% of the mix,and tobacco 25%.

The tobacco sections are highlighted by the walk-inhumidors. In the main terminal Aldeasa offers its own LaCava del Cigarro while the satellite shop features a majorfirst with the retailer’s inaugural Casa del Habano inSpain as well as in European airports.

Fashion & Fun: This comprises three concepts:

● Fashion: featuring fashion, leathergoods, accessoriesand footwear, it is the largest dedicated fashion sectionin a Spanish airport

● Kids: A unique area that combines for the first time inan Aldeasa store both clothing and toys for children inan environment alive with vibrant colours and shapes

● Sport & Music: Offering sports-related items andclothing, music and electronics, it is described as “thecreation of a leisure offer in a modern environment”.

The 882sq m Fashion & Fun store in the main terminal,for example, features Aldeasa kids, Aldeasa sports andmusic and Aldeasa fashion, including jewellery. It has ageneric fashion area, leathergoods, children’s items, fash-ion, music and electronics, toys, sports-related productsand accessories. There’s something here for most tastesand budgets, from entry price-points to mid-range andhigher.

Consumer technology items – especially mobile phones,digital cameras, Walkmans and CD players – are alreadydoing very well, De Benito says. Small jewellery itemsfrom the likes of Swarovski, Lalique and Majorica allfeature elegant personalisation and are also prospering.

Tous occupies a premium position in a nicely-presenteddisplay while leathergoods features Lacoste, Samsonite(the company’s impressive new range) and other brands.

It’s a neat, uncomplicated store, and everywhere Aldeasa’sbright new logo is to the fore. “The Aldeasa yellow iscommon to making key elements of the offer stand out aswell as underlining promotions and space,” De Benitopoints out.

Les Boutiques: Described as the largest area for luxurybrands in any Spanish airport, this upscale environment hasspecialist corners and areas for a range of top brands suchas Cartier, Loewe, Omega, Bvlgari, Montblanc, Furla,Pedro del Hierro, Ferragamo, Bally and many more.

Two elegant shops – 394sq m in the main terminal, 720sqm in the satellite – bring a classy yet accessible dimensionto the retail mix. Essentially the stores are segmented intotwo main areas: high-end names such as Cartier, Loewe,Omega, Bvlgari, Carrera, all with dedicated space sup-ported by generic Aldeasa furniture featuring a range ofother watch and writing instruments brands; then there’sa more fashion-orientated focus with names such as



Lorenzo De Benito: “Aconcerted team effort in which AENA’sparticipation has been a key factor”

The introduction of Aldeasa’s revamped logo wassynchronised with the opening of T4, a nice sym-bol of a new era for the company and a landmarkopening.

“It’s modern but it also has continuity with the oldlogo,” says De Benito. “That was essential becausethere is very strong recognition of the Aldeasabrand – it was a case of evolution not revolution.”

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Hackett (making its Aldeasadebut), Ferragamo, Pedro delHierro, Burberry andLongchamp.

The satellite shop’s increasedspace allows brands such as Tousand Hugo Boss more breathingspace in the form of boutiquesrather than shop-in-shops.Other top names are Paul &Shark, Tumi (another making itsdebut with Aldeasa) while Loeweand Cartier anchor the outlet.There are also a range of classicEuropean brands, includingLongchamp, Lamarthe andFurla.

From Destination to LastMinute shoppingThinking España: Developed byAldeasa’s Palaces & MuseumsDivision, this concept integratescultural as well as mainstreamsouvenirs. “It is a commitmentto a destination product whichbreaks away from traditionaltourist selling,” says De Benito,pointing out that Aldeasa hasthe capacity to create ownedproducts through its specialistdivision.

The retailer is an ardent cham-pion of the concept of A Sense ofPlace. The ‘Thinking’ bannerwill be adapted to other loca-tions such as Kuwait, Jordan, Vancouver and Barcelona,an important expression of Aldeasa’s determination to bea global retailer that understands and reflects local crafts,foodstuffs, wines and cultures.

Thinking España makes a refreshing change from thelacklustre souvenir stores that so often masquerade as‘destination merchandise’ retailing in this business. Themix of price points and the diversity and authenticity ofthe offer makes the concept an outstanding foil to themainstream shops opened a few weeks earlier.

The Express Shop: A concept designed for last-minutepurchases in which highlights of the traditional duty freerange can be found as well as selected accessories.

There are four variations of The Express Shop with anaverage size of 130–140sq m. Again fragrances on theback walls draw consumers into the stores, with the famil-iar yellow dividers from the main shops once more usedto highlight special offers.

Basic: This project, another first, is expected to open thisMarch. It will feature an offer specially tailored to thegrowing numbers of low-cost carrier travellers using Bara-jas. No further details were available as we went to press.

“The whole Aldeasa organisation has been involved withthe creation and the roll-out of this business,” De Benitoexplains. As a result the company plans to translate the bestof what it has done at Barajas onto the international



Les Boutiques: High-end names such as Cartier, Loewe and Omega anchor thestore, transiting through to a more fashion-oriented section with plenty ofbreathing space in between

Great sight lines, bright colours and a fantastic feeling of space give the mainduty free outlet a unique personality

stage. Equally, some of the Spanish airport’s innovationswere pre-tested in overseas countries such as Peru, Chileand now Kuwait. “So this is something that belongs to thewhole company,” he says.

That sense of ownership merges with considerable prideat the sheer achievement of building some 8,000sq m ofretail space in under three months – the time frame fromgreen light to inauguration.

“We have been working on the planning for two yearswith all the processes involved – shop construction, logis-tics and so on – but it has been executed in less than threemonths,” De Benito recalls. “So logistically it was verydemanding indeed.

“We agreed with AENA that retail would play a prefer-

ential role in terms of passenger flowand as you can see we have achievedthat. The passengers can see theshops before they see anything else,including food service and the gates.”

Indeed such is the visibility of theshops that Aldeasa is expecting veryhigh footfall rates – “potentially100%” – leading to much improvedstore penetration rates. “Around40% [of the stores] are openaccess,” says De Benito, pointingout that a complete walkthroughoperation was impossible due tobuilding restrictions that necessitat-ed back walls.

It may not be walkthrough but thereis certainly a lot of ‘see through’ withexcellent use of glass walls and multi-entrances to ensure ease of access.

Most importantly, it works. De Ben-ito believes the quality of the storesoffers an excellent shop window forAldeasa’s capabilities internationally.And without giving numbers he saysearly trading results are comfortablyon budget.

So what’s the verdict from a con-sumer perspective? Only time willtell in spending terms but firstimpressions are certainly favour-able. The shops are spacious, stylish

and there’s a surprising diversity of products within the‘triangle’.

For the first-time visitor to Barajas it makes for a pleas-ant voyage of discovery, allowing the consumer – in thewords of another of the Aldeasa’s shopping slogans – to‘Mira descu bre siente’ – see it, find it, feel it’.

“We’re very proud,” concludes De Benito. “We havebeen working hard. As a marker [internationally] it’s atransforming product for the company. We have devel-oped new concepts and tested new brands. In the newAldeasa it’s a key expression of success – for our airportpartners, for our suppliers and for our passengers.”

“And,” he concludes with a smile, “you can say what youlike about the Spanish – but the fact is we did it.” ■



Pretty in pink: The fragrances & cosmetics sales counters light up the wholestore, lending a subtle elegance instead of the typically crowded airportcash point

Aldeasa es mucho más – Aldeasa is much more; note the excellent use ofgiant split screen viewing of the shop interior

retail case study • aldeasa at madrid barajas t4 · pdf file76 the moodie report retail...

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