Traditionally Hudson Group stores are brick and mortar. But the leading travel retailer found that some customers weren’t always able to get the merchandise they wanted and needed. This was because of several issues: (1) there wasn’t a physical store nearby their gate; (2) peak store traffic offered the additional need for a larger presence; (3) it is less convenient for disabled passengers and those supervising a child to visit the stores; (4) travelers running late for their flight wouldn’t prioritize shopping; and (5) “gate-huggers”— inherently paranoid of missing their flight, getting lost, or held up in security — would go straight to their gate and camp out.
A mobile cart store concept solved those issues, allowing Hudson News to move their store from gate to gate at a moment’s notice enhancing the customer service experience while boosting revenues. The idea is to proactively bring the product and store to the customer.
At roughly 3 feet by 5 ½ feet wide, the cart functions as a standalone store. It has its own POS system to track transactional data in real-time and houses essential items. A wireless device is attached to conduct credit card transactions. It has a mini-frig to keep drinks cold. It even has its own store number.
The cart consists of four essential travel retail categories: beverage, electronics, health/beauty, and snacks and candy. For instance, customers can find toothbrush, toothpaste, and mouthwash; pen and paper to take notes and fill out crossword puzzles; portable chargers and headphones, chips and a bottle water. It can hold up to 400 skews of products.
The assortment changes to align with the changing customer. For instance, in the fall months it includes more chocolate because it’s more popular with adults; whereas, in the summer months there are more gummy candies to account for extra kids traveling with school closed.
While its addition has been smooth, starting out there was a myriad of concerns that needed to be addressed. Initially it was weight with the cart being too heavy to move swiftly. To remedy this, it became motorized with wheels propelled by a single sales associate — low overhead — with the ability to go four miles per hour. It is charged daily, but can last upwards of three days at full capacity.
“It is both seamless yet functional without causing any congestion,” commented Mike Petersen, Hudson Group senior vice president of west coast operations.
There was also the issue of where to strategically place the cart and whether it would take away sales from the larger Hudson News store. It was critical to place the cart in a region with less of a store presence nearby. This is because impulse-driven customers who penetrate the stationary Hudson News store tend to spend more with greater product selection choices.
Another concern was whether it was best to launch additional kiosks in select locations instead. However, not every airport allows for this or has the space dedicated, and kiosks don’t offer the same flexibility. Indeed, the cart has the ability to serve multi-flights and ad hoc gates that might arise from an emergency landing or traffic jam.
And the numbers speak for themselves. Sales volume on per square foot basis is very high, averaging between $200 to $1,000. Longer flights generate more revenue, as travelers need to stock up on more items.
“Products sell faster because we go straight to our target customer, filling their void, and offering them the best of the best,” added Petersen.
Although the idea at John Wayne Airport came about from the airport’s request, Hudson Group has experimented with it years back. Just after 9/11, when security was extra tight passengers were getting stuck in TSA lines. As a result, a pop-up mobile cart for several airports was launched. Overtime the lines subsided and the need lessened.
And its rebirth in recent years and subsequent success has led to expansion with a duty free mobile cart in Seattle and Hudson News mobile cart in Burbank airport.
“It’s one of a number of strategies and innovations used over the years to continuously evolve as the industry evolves and better live up to our goal to be ‘The Traveler’s Best Friend,’” noted Roger Fordyce, EVP and COO of Hudson Group operations.
