BCSC - Retail Development - London, Retailers Line Up For Landing At Heathrow Terminal 5
Date: 15 Jun 2007
The retail element of Heathrow Airport's new Terminal 5 has been designed to work with and enhance the passenger journey and includes an impressive mix of retail and catering.
Nick Ziebland and Charles Byrne of BAA Retail said that with just under a year to go until Terminal 5 opens on 27 March 2008, the retail element, which comprises over 110 retail units occupying 220,000 sq ft, would be "the right amount of space in the right place" for the estimated 27 million British Airways passengers who would be using the terminal.
"We believe that Terminal 5 has really moved airport retailing forward, taking advantage of the opportunity to design it in from the start," Byrne told an audience attending retail property organisation BCSC's members' lunch held at BAFTA in London.
Those retailers and operators already named for Terminal 5 include: Gordon Ramsey, Paul Smith, Mulberry, Giraffe, Amato, Harrods and Tiffany among others. Over 75 % of the units have now seen deals inked.
"It's not often you get to start with a blank piece of paper and design-in rather than retro-fit the retail element of an airport terminal," Ziebland, Director of Retail Strategy / Retail Director T5 for BAA, said. "First and foremost, this an airport terminal and it has been designed to handle a given number of passengers. Unlike a shopping centre, we do not use anchor stores to direct customer movements but instead we have worked with the inherent passenger flows of the airport. What BAA has done is to lay out the retail offer along the passenger journey from check-in to departure in a way that avoids 'cold spots' or blockages. We have the same number of units as a sizeable shopping centre but we are occupying a much smaller space. In essence the retail is a distilled version of a shopping centre."
Ziebland said that the retail programme has been particularly detailed and controlled to ensure that it dovetails with the construction and the operational readiness periods. Many of the units are already being fitted out as part of an extended programme to ensure there is no clash with the pre-opening activities.
Byrne said that there has been a lot of work done to ensure that retail at the airport will work for all the passengers, covering everything from their day-to-day needs through to the opportunity for indulgence. "With the catering as an example you have everything from quality coffee offers with freshly baked pastries to great family dining at Giraffe through to the top end at Gordon Ramsay's and the wonderful Amato."
Byrne also said that BAA was looking for the 'added extra' from each of the concessionaires, from the quality and range of the products, from the services offered and from the store designs.
"Each retailer who joins the line-up is being asked to bring something extra to the offer," he said. "We looked back at what centres like Bluewater did before they opened. Terminal 5 is an exceptional, iconic building and we want the offer to reflect that."
Byrne also said that discussions are in place with various cultural institutions in London and throughout the UK about a programme of events. "Heathrow is a gateway for London and UK. We want to build a programme that reflects and celebrates the great diversity, culture and talent we have. We are talking to leading institutions about this."
Comments Michael Green, Chief Executive of BCSC:
"Retailers and the retail property industry recognise that Terminal 5 will effectively offer an international 'stage' to showcase retail," he said. "Everybody is now awaiting its arrival."
(left to right) Nick Ziebland - Retail Strategy Director/Retail Director T5, BAA Limited; Charles Byrne - Head of Category, Sponsorship and Experience, BAA Limited.
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