Hudson Group: History

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1 Embry-Riddle Aeronautical University & Airports Council International North America Airport Concessions Conference Trends in Retail What s New and What s Hot With Airport Concessions Hudson Group: History The Hudson News Company was founded in 1918 by Isaac Cohen as a newspaper wholesale distribution company. 88 years later in 2006, it is still a 100% family owned and managed company. Hudson Retail Division was started in Today, Hudson Wholesale services over 20,000 retail outlets. Total company sales over $800,000,000 in Current Forbes Top 500 list of privately held American companies for the last three consecutive years.

2 Hudson Group: Retail Division Miami International Airport Over 19 years airport retail experience sales of $439,000, sales of $475,00, sales on track to exceed $500,000,000. Almost 500 stores in 65 locations across North America. Over 4,000 employees. Hudson Group: North American Locations 56 Airports 9 Transportation Terminals

3 Concepts Concepts

4 Nashville International Airport Nashville Star, Nashville International Airport, Spring 2007

5 Hudson News CMT and Discover/Nashville Music City

6 Nashville Kitchen/Sony BMG JFK Terminal 4, Fall 2006

7 JFK, Terminal 9 Baggage Claim Richmond International Airport, Spring 2006

8 Trends in Retail Trends Almost all sales are 100% impulse driven. Customers do not come to the airport to shop and the following elements are vital to make the customer stop and enter your store. The gate is the draw, if you can get consumer to enter the store on the way to the gate, the odds of selling to them are very high. The real challenge is to get them to cross the threshold. Offer top quality merchandise, including apparel. People want to wear what they buy and do nor want to be embarrassed to give it as a gift. Offer cutting edge fashion. Know what is in style and when to get something fresh. Offer national brand labels on everything you sell. Trust and expectation are vital. Partnering with other organizations to offer a variety of concepts.

9 Fashion Trends Artwork: screen prints, embroidery, needlepoint, rhinestones, glitter, sand, textures. Graphics: graffiti is out, distressed, tattoo-like graphics are in. Color: garment dye is hot right now. Fabrics: blends, sheer, thinner softer fabrics of cotton. Body: last year tees were short. This year, longer tees are in. Customers are looking for value at competitive prices and are willing to pay more for better goods. Fashion Trends 65% of consumers are women, concepts and merchandise need to speak to them. Women also drive the discretionary sales in men s, women s and children s merchandise. Women are attracted to merchandise for their homes and families. Impulse buys buys include home furnishings, jewelry, toys, and apparel.

10 Fashion Trends People do not necessarily go to shop, they shop where they are. Shopping can be done via internet or when traveling. Greater preference for specialty shops/boutiques. Customers desire service. If they do not get things the way they want them, they will go to a retailer who will. Customers are only as loyal as their last experience and one mistake can easily lose them. Be willing to gift wrap, ship, special order as nobody wants to carry too much home. Christmas in Vancouver Offer the unexpected and create something that cannot be found anywhere else.

11 KidsWorks Travelers want to be entertained, and if they have children to keep them occupied as well. Richmond, VA Vancouver, BC House of Blues, Chicago O Hare Create a shopping experience. It takes about 4 seconds for a consumer to make a decision whether or not to deviate from their movement to the gate.

12 Life is good, Chicago Midway Offering concepts and merchandise that are fun and whimsical. Regional Concepts and Branding Offer strong regional brands. Charleston, SC Seattle, WA

13 Regional Concepts and Branding Offer strong regional brands and build an entire experience around it. Houston, TX Seattle, WA 1 Space, Multiple Concepts Store in store space is the best way to increase the average customer sale. Know your customer and place several exciting national brands together. Mix in a regional concept and an exciting shopping experience is created. Richmond Int l

14 1 Space, Multiple Concepts JFK, New York City National Brands National Brands give consumers a level of comfort. Consumers know that they will get quality and protection if something goes wrong. National brands give consumers something to identify with in an often stressful environment.

15 Our HBC Brands Merchandise

16 Electronics and Travel Brands Arrival Kits

17 Our Toy Brands Embry-Riddle Aeronautical University & Airports Council International North America Airport Concessions Conference Trends in Retail What s New and What s Hot With Airport Concessions

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