Retail sales surging at O’Hare Airport after redevelopment

WASHINGTON, D.C. – April 24, 2015 – (RealEstateRama) — One year after the unveiling of the new International Terminal 5 at Chicago O’Hare International Airport (a $26 million transformation by Westfield that features a reconfigured environment, a more-efficient TSA checkpoint and 24 sophisticated dining and retail destinations), sales are reaching record highs. They are up by roughly 70 percent since redevelopment began in 2011, according to city data. Last year total sales exceeded $43 million, generating approximately $6.5 million in revenue for Chicago, more than double the 2010 revenue. The terminal was built in 1993.

The re-engineered layout enhances the traveler experience by improving passenger flow and offering dining, retail and amenities, including a 10,000-square-foot, duty-free shop by Dufry that departing passengers flow through after crossing the TSA checkpoint. Westfield nearly doubled the retail and dining space to nearly 30,000 square feet.

“With record sales, greater revenues for the city, more jobs than ever before, and an incredible new experience for travelers from all over the world, Westfield applauds Mayor Rahm Emanuel, the city of Chicago, and the Chicago Department of Aviation for having the vision to take a bold stand, reject the status quo and embrace a better future for Chicago’s global gateway,” said Dominic Lowe, an executive vice president at Westfield, in a press release. “We are honored and committed to serving the city of Chicago, and we are only just getting started in working with the city to drive tourism, spur even greater economic development and continue to forge a bold new path at Chicago’s airports.”

From 2011 to 2014, food-and-beverage sales at Terminal 5 grew by 94 percent, duty-free sales by 61 percent, and retail sales by 65 percent, setting records in each category and contributing to the record total sales, Westfield reports. Passengers at Terminal 5 are spending more. Last year passengers spent $23.32 each on average, up by about 50 percent from 2010.

Before the redevelopment, 95 percent of the options were located before the security area, making it difficult for passengers to access food and shops while waiting for flights.

Westfield, best known for its mall business, also manages retail at airports around the globe, including Kennedy Airport, Newark Airport, LAX, George Bush Intercontinental and others.

Source: ICSC