BAA unveils Heathrow T1 extension

John Rimmer

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The new £21m project breathes new life into the airport's oldest facility, as BAA develops new retail concepts that could help the company grow on the international stage

UK airport authority BAA today officially unveiled the extension of London Heathrow terminal one, containing 22 new outlets spanning nearly 2,000sq m (21,520sq ft) of retail space. The area, which opened to the travelling public on May 27, features a number of new concepts and airport "firsts", including World Duty Free's (WDF) new men's grooming corner, a Giraffe restaurant and a 118sq m (1,270sq ft) store by women's footwear specialist LK Bennett.

"This is quite a momentous occasion for us," said BAA managing director UK airport retail Colin Hargrave. "It heralds a remarkable transformation of the terminal and contributes to our winning formula founded on investment. We are three years into an £8bn investment programme that has allowed us to increase passenger spend and in turn increase our profitable returns."

BAA managing director global airport retail and WDF managing director Mark Riches said that the T1 extension marked the next step in the retailer's bid to segment product categories to better target customer groups—as illustrated by the new men's grooming corner. "This is the first time we've tried to create a special environment for men. Men are now brave enough to care about their appearance but they remain uncomfortable in a female environment. Here we've positioned the grooming area close to whiskies, fine wines and tobacco, and if the concept works it will inform what we do in T5 [scheduled to open in 2008]."

The new layout in T1 guides travellers emerging from security towards a WDF store in which the men's grooming area is prominent. Riches said the retailer had encouraged suppliers to create simpler on-pack messages for the male consumer, and singled out L'Oréal's Biotherm brand for particular praise. "Men aren't reluctant to take advice but it must be given in a form they understand," he argued. "We also know they're happy to have three different edts on their bathroom cabinet. There's no stigma attached to men's grooming any more." Among the new brands offered in the new area are the Dettori range, inspired by the champion jockey Frankie Dettori and scheduled for an official launch next week, plus Nickel and Jack Black.

The company will also introduce men's range Boss Skin upon its launch in September. Riches said the range "could revolutionise the whole men's skincare market".

The new retail template created at T1 and other BAA locations reflects the company's desire to grow its international business, revealed Riches. "We're now looking for opportunities to develop internationally. The Global Airport Services business (RavenFox.com April 14) offers a solution for duty-free, while we are also looking to manage or buy other airports. We have a kit of parts available but that kit is only as good as the total offer we can out together. If we get these concepts right, we can offer airports solutions that they will not have seen before. That's one reason why we are spending so much on research and development."

In addition to the new WDF outlet—which also offers tobacco and confectionery and features a self-run Berry Bros corner alongside a World of Whiskies wall—the new T1 offers a number of standalone boutiques. Adjacent to familiar UK high street names such as HMV and Dixons, the extension's fashion line-up includes LK Bennett, Timberland, Fat Face, French Connection, Tie Rack and Rolling Luggage. Accessories retailers present include Links, Goldsmiths and Mulberry, while The Nuance Group operates its Chocolate Box concept offering a wide range of high-end confectionery.

The food and beverage offer in the new area is marked by two "firsts"; the Tin Goose pub and restaurant, run by Geronimo Inns, and Giraffe. Tin Goose offers upmarket pub food and a spacious seating area, and has a retro travel theme—the Tin Goose was Ford's first fully metal aeroplane, built in 1927. Giraffe, the first airport appearance for the acclaimed London chain, offers a wide range of meals with innovative low-level seating.

Since last Friday all passengers at T1 are channelled through the new area after security, but must move towards the existing retail area in T1 to get to their gates. BAA is renovating that zone to create a bigger, walk-through WDF store alongside a Caviar House fine food outlet. The new walk-through store will be complete in September, when BAA will turn its attention to other parts of the existing T1 lounge, which will be complete within two years.

For more details, see the next issue of DFNI, out June 15.