TFWA Research Workshop: TR liquor shoppers under spend

Travel retail liquor shoppers spend significantly less than others purchasing from different categories, according to data presented at the TFWA Research Workshop in Cannes this week.

Counter Intelligence Research’s data was presented as part of a TFWA Research Workshop

The data, presented by Counter Intelligence Retail (CIR) research director, Alison Hughes, showed that average transaction values in the alcohol category stood at US$78, versus a travel retail average of $140.

The CIR category report was generated from 1,000 at-gate random shopper interviews carried out at JFK, Schiphol, Changi and Dubai airports.

CIR figures suggest that 71% of alcohol buyers are male and 29% female, compared to a travel retail average of 44% and 56%.

On average, 61% of travel retail shoppers are adults under 40. For alcohol, this decreases to 57%.

Despite the lower average transaction values, alcohol shoppers are more likely to visit, and purchase from, multiple travel retail categories. The average number of categories visited is 1.8, against versus 1.5 for all shoppers, with liquor customers purchasing from 1.3 categories versus 1.2 for all shoppers.

Whisk(e)y was the most popular category, accounting for 20% of wine and spirits sales at the four locations. It also had the highest conversion rate at 45%.

66% of alcohol shoppers said they planned their purchases, with 77% of those claiming to know the exact brand or product they were looking for in advance. 29% were impulse shoppers.

62% of shoppers were buying for themselves with an average spend of $79, 27% were looking for a gift and spent $63, and 11% were shopping on the request of someone else, and spent $53.

In terms of triggers and barriers, 49% of shoppers said they were interested in travel retail exclusive products. 25% said they would like to see an increased alcohol range in airports, however 47% believed that alcohol was more expensive in travel retail – a possible barrier to future purchases.

Hughes was presenting the research as part of TFWA’s first Research Workshop, which saw CIR and m1nd-set’s Peter Mohn present highlights and key findings from the Association’s recently commissioned studies.

Earlier in the week, TFWA president Erik Juul-Mortensen revealed that travel retail spirits sales fell by 2.5% for the first half of 2015.