SINGAPORE - Effective promotions and strong passenger growth: These are the reasons the Changi Airport Group (CAG) has cited for its improved retail business last year.
Retail sales at the airport grew by 12 per cent last year over 2011, to hit a record $1.8 billion. According to CAG, the jump in sales most likely beat passenger-traffic growth for the year.
Going forward, CAG said yesterday that it expects to push out more promotions.
Retail sales made up 50 per cent of the airport's annual revenue last year and for 2011.
Growing this business is very important for the airport as it goes towards subsidising costs incurred in the provision of aviation facilities and services, said Ms Ivy Wong, senior vice-president of airside concessions at CAG.
"This will help to keep our aeronautical charges very competitive and strengthen our position as an air hub for Changi Airport," she said.
Yesterday, CAG announced the winner of its Be A Changi Millionaire 2012 Grand Draw - Mr Peh Hock Peng, 45, a business-development director of an intellectual-property firm.
He had bought over $200 worth of cosmetics for his wife at the airport before boarding a flight to India for a business trip last August and was surprised to be the winner of the draw, which had 2.1 million entries over a six-month period.
On his $1-million cash prize, Mr Peh said: "I never imagined that I would (win). I plan to upgrade my property and buy a car."