Airport Retail Next Project for The Grove's Caruso
Caruso Affiliated is best known for developing malls such as The Grove, which mix luxury and a Disney-like whimsy. For his next act, company founder Rick J. Caruso announced he will open a business to develop airport retail shops.
Caruso also announced retail veteran John Cugasi will be the first vice president of airports for Caruso Affiliated. Cugasi formerly worked as director of concessions at Hartsfield Jackson Atlanta International Airport in Atlanta. There, he directed lease management and development of the airport’s concessions program, which included over 250 properties generating $700 million in gross revenues.His first job will be to scout for retail opportunities in airports, and some of the first projects might be in Los Angeles, according to a Caruso company statement.
Caruso said there’s a lot of money to be made when planes are delayed. “With travelers spending more time in terminals, airport authorities realize the financial value of offering something special because people are more willing to spend if you provide style, quality and service,” Caruso said.
Airport retailing has great opportunities because of high traffic and a captive audience, said retail consultant George Whalin, but airport retailers also must face challenges specific to airports. Airport spaces are typically smaller than the square footage of a mall storefront, so merchandise must be highly edited.
“The airport retailers I know also face the challenge of getting and keeping competent associates and managers. Getting to and from work for these employees are often difficult,” Whalin said. He is founder of Carlsbad, Calif.–based Retail Management Consultants.—Andrew Asch
