Williams: insight and innovation key to Alpha’s future

Gavin Lipsith

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Alpha Airports Group CEO explains the company’s strategy of differentiation to RavenFox.com

Alpha Airports Group’s efforts to differentiate itself from other retailers will hinge on consumer insight and innovation, CEO Peter Williams has told RavenFox.com. Williams, who described Alpha’s year-end results announced earlier today as a consequence of the company “resetting the scales” after a period of internal turmoil, said that the strategy follows a wide-reaching internal review.

Innovation will come on three fronts, he explained. First will be the opening of Alpha’s new flagship store at Manchester International airport terminal one, which is due to open in two phases with the first scheduled for early 2008.  Williams promised that the new 20,000sq ft (1,859sq m) store, designed by international design consultancy HMKM, would “look very different from any other airport store, and will not just be part of the airport”.

Williams also mentioned an interesting new approach to the inflight retail market, looking at alternatives to the traditional trolley approach. “The inflight business is more of a logistical operation than a retail one, with the trolleys going up and down the aisles,” he said. “We’re taking a hard look at that and thinking of some alternatives. The present offer is a bit naff and poorly merchandised.”

The third innovation will be “train-side” at the new Eurostar terminal at London Kings Cross St Pancras, which is due to be tendered imminently and will open in November. Alpha, which already operates outlets at the existing train terminal at London Waterloo station, will bid for outlets at St Pancras, and Williams said that consumer insight into customers’ needs would be key to Alpha’s proposal.

Consumer insight will also play a key role, and Alpha is in the process of establishing a consumer insight and marketing department. Williams cited a recent survey of 500 passengers, conducted over the internet, in which Alpha found that 43% of air passengers wanted to buy books and magazines on board, with 39% requesting CDs and DVDs.  “That says that what we’re selling at the moment is not what the customer wants and that just stocking the core categories is a quirk of history that needs to be addressed. The amount of stock that is taken on board and not sold is colossal, and we are flying a lot of products around the world wasting expensive fuel.

“We have done consumer research in the past, mainly when we do pitches, but it has not been a systematic part of our business. Often in this industry the passengers' needs are not taken into account, and you wouldn’t dream of ignoring customers in high-street retail. That will be an important part of Alpha’s difference.”

For more on Alpha’s strategy and results, see DFNI April 15, out next month.