RIYADH: Saudi Arabia is set to elevate the retail experience at King Khalid International Airport in Riyadh by expanding its duty-free offerings and upgrading infrastructure to better serve passengers.

This was announced by Abdullah Al-Salem, general manager of Commercial Business Development at Riyadh Airports Co., during a panel discussion at the Retail Leaders Circle Global Forum in Riyadh on Wednesday.

Recognizing the importance of enhancing passenger experience, Al-Salem revealed: “We’ve expanded the duty-free area by 180 percent, increasing the number of SKUs (stock-keeping units) from 4,000 to 10,000. We’ve also become the first airport in the region to introduce an on-arrival duty-free store.”

The official also highlighted ongoing expansion efforts at the airport, including the construction of two new piers—A and H—which will extend terminals 1 and 4.

Al-Salem emphasized that the expansion of terminals 3 and 4, completed last year, has led to a significant boost in retail sales. “We’ve seen sales more than triple compared to previous years,” he said.

Riyadh Airports Co. has also emerged as a leader in post-pandemic retail recovery.

“We were the first airport to recover in terms of retail sales after the pandemic,” Al-Salem noted.

He pointed to the expansion of retail space in terminals 1 and 2, which has nearly doubled in size from 1,100 sq. meters to 2,400 sq. meters, attracting high-end brands.

“We now have a much better understanding of our customers,” Al-Salem added. “Passenger behavior is different from that of mall customers,” and the airport teams have developed the expertise needed to cater to their specific needs.

The panel also featured Umair Ansari, senior vice president and general manager of travel retail for Europe, the Middle East, and Africa at The Estee Lauder Companies.

Ansari discussed the evolving nature of luxury and shifting consumer preferences. “Luxury is not one-size-fits-all,” he said, emphasizing the need to understand what luxury means to individual travelers.

He also discussed the role of digitization in transforming the travel retail experience: “When you start with digitization in mind, you travel differently. We can now engage with passengers before, during, and after their journey, making the entire experience more seamless.”

Ansari also touched on the growing influence of Gen Z consumers, who make purchasing decisions based on emotions rather than product features. “If you tap into their emotions, you can create a strong connection,” he said.