SERVICES & EXPERIENCE

Our team has direct and extensive management experience in travel retail

Services-airports
airport
Our services to Airports include:
  • Retail/concession planning;
  • Quantity of space determination;
  • Space optimisation;
  • Retail layout and program design;
  • Tenancy planning;
  • Tender process management and design;
  • Tender document preparation;
  • Tender evaluation and recommendation;
  • Performance improvement;
  • Concession contract structuring, design and negotiation;
  • Inter-airport retailer price comparisons;
  • Retail performance benchmarking;
Our experience in advising Airports include:
  • Working in multi-disciplinary teams with architects, engineers and designers.The Mercurius Group team members have worked closely in such teams with companies such as Woodhead Architects, Cox Architects, URS, Urbis, Hassell Architects and Portland Design;
  • Working with airport commercial teams in master planning, terminal planning, terminal layout and design, tenancy planning and tender preparation.The Mercurius Group team members have worked on such projects for a wide range of airports including Sydney, Adelaide, Cairns, Bankstown, Wellington, Queenstown, Dunedin, Singapore, Hong Kong, London Heathrow, Beijing, Guangzhou and Los Angeles.

 

The Mercurius Group Supports Cairns Airport on T2 Reconfiguration Project (2018)

The Mercurius Group was engaged by Cairns Airport to assist on the $55m Terminal 2 (domestic) Reconfiguration Project.  The project will expand the T2 Departures Hall by around 50%, and increase the retail footprint by 100% (a combination of new footprint and relocating non-essential functions such as offices from the Departures Hall) with construction kicking off in Q4 of 2018.  The services provided by TMG included:

 

  • Overall Project Director – TMG played the role of Project Director, working through project definition, business case development, concept design and all the way to 100% detailed design, coordinating CNS’ retail, operational and financial teams as well as external project managers, architects, airport planners, structural engineers, services engineers, quantity surveyors, fire engineers and building certifiers;

 

  • Retail Planning – TMG provided retail planning input into the project including determining how much retail (specialty, F&B and services) was sustainable, the optimal layout for retail within the terminal, taking into account construction constraints and operational requirements and on-going refinement of the retail offer through construction staging;

 

  • Retail Leasing – having recommended a 100% increase in the amount of retail floor space, TMG was engaged to engage with potential tenants.  TMG arranged and managed several leasing roadshows, developed tenancy plans to achieve desired tenant diversity and product category outcomes, constructed multiple options and proposals for prospective tenants and negotiated outcomes to meet and often exceed the business case expectations;

 

  • Tender Management – TMG worked with the CNS commercial team to manage a full F&B tender process for 12 spaces in T2 (up from 7 currently) which received proposals from local, national and international F&B players.  TMG also led the negotiation and closing of the F&B leasing deals; and

 

  • Local sourcing – TMG conducted a comprehensive audit of the local produce supply capability of the Far North Queensland (FNQ) region to develop a database of produce supplies – eggs, bacon, milk, cheese, vegies, bread, other bakery, chocolates, meat as well as beer, wine and spirits – to educate potential F&B tenderers on the produce supply capability of the FNQ region, thereby helping them produce more environmentally sustainable and financially viable tenders.

 

Commenting on the project, Norris Carter, CEO of Cairns Airport said:

“The Mercurius Group played a critical role in shaping the design of the terminal and the retail mix to suit the needs of our passengers and retail operators, so that Cairns Airport’s customers will arrive excited and depart delighted.”

Commenting on the project, Ivo Favotto, Managing Director of TMG said:

“The Cairns T2 Reconfiguration Project has been one of the best projects of this type that The Mercurius Group has worked on.  The team at Cairns Airport are fantastic. They have both a bold strategic and commercial vision as well as the willingness and talent to execute.  We set out to achieve a 50% uplift in the airport’s retail income from this terminal and are on track to achieve this challenging objective.”

 

The Mercurius Group Conducts Benchmarking Study & Review For Newcastle Airport (2016)

June, 2016.  Newcastle Airport (Australia) has engaged The Mercurius Group to conduct a benchmarking study and review of its retail program.  The project involved benchmarking the sales and rental performance of all retail and F&B outlets at Newcastle Airport as well as assessing passenger volume and mix trends to determine the optimal amount of sustainable retail floor space.  The review identified a number of operational and space improvements to the Newcastle Airport retail program.

 

Ballina Byron Bay Airport Engages The Mercurius Group To Conduct Retail Observation Study (2017) 

January, 2017.  Ballina Byron Bay Airport has engaged The Mercurius Group to conduct an Observation Study in support of planning for a major terminal expansion.  The Observation Study documented the total number of people entering the terminal building, their flow and dwell patterns within the terminal and their retail spend.  The Observation Study recommended a material increase in the amount of retail floor space profitably sustainable at Ballina Byron and provided a vision for how retail returns could be materially increased.  The Observation Study provided input into he terminal expansion currently being designed by STEA architects who specialise in regional airport terminals.

 

London Heathrow Airport – Performance Benchmarking (2018)

The Mercurius Group teamed up with UK based retail and commercial strategy consultants, Pragma, to conduct performance benchmarking and develop retail strategy for London Heathrow Airport.  Mercurius’ role was to provide benchmarks, insights and trends from key airports in the Asia-Pacific region as input into the overall project.

 

Gold Coast Airport – Retail Benchmarking & Planning (2018)

The Mercurius Group was engaged by Gold Coast Airport to conduct retail benchmarking and planning for both its international terminal expansion and a proposed reconfiguration and expansion of the domestic terminal area.  Mercurius worked with the Gold Coast Airport team, architects Hassel, retail designers Geyer and cost planners to develop retail expansion teams that would generate a positive financial return to the Airport.

 

Canberra Airport – Retail Benchmarking & Planning (2018)

The Mercurius Group was engaged by Canberra Airport to review the performance of the existing commercial program (retail, F&B and duty free) and advise on options to expend the retail program and improve its performance.   Mercurius worked with the airport’s planning team and architects Guida Moseley Brown to develop terminal reconfiguration options and to conduct feasibility and cost-benefit analysis.

 

Canberra Airport – Retail Tender & Leasing Support (2018)

The Mercurius Group was engaged by Canberra Airport to prepare tender documents, conduct a potential tenant outreach program and negotiate leases for the reconfiguration and expansion of the commercial program at Canberra Airport.

 

Perth Airport – Retail Tender Support (2018)

TMG engaged to support Perth Airport in managing a $500m tender for duty free and retail concessions. Our role included pre-tender market assessments, assessments of contract value, assessments of proposed tenderers and financial evaluation of bids.

 

Whitsunday Coast Airport -– Retail Benchmarking & Planning (2017)

TMG engaged to review PPP’s existing retail and F&B program, benchmark performance against similarly sized airports and devise a strategy to enable more retail space to be sustained and greater rentals to be achieved.

Services-infrastructure
infrastructure
Our services to Infrastructure  include:
  • Opportunity identification and valuation;
  • Human traffic flow design and management;
  • Retail/concession planning;
  • Quantity of space determination;
  • Space optimisation;
  • Retail layout and program design;
  • Tenancy planning;
  • Tender process management and design;
  • Tender document preparation;
  • Tender evaluation and recommendation;
  • Performance improvement;
  • Concession contract structuring, design and negotiation;
Our experience in advising Infrastructure include:

The Mercurius Group team members have worked on such projects for a wide range of infrastructure assets including Skycity Casino in Auckland, Taronga Zoo in Sydney, a major teaching hospital in Sydney and a toll road in the USA.

 

The Mercurius Group Engaged By NSW Health Infrastructure to Conduct Observation Study And Retail Planning Analysis at Blacktown Hospital (2017)

August, 2017.  NSW Health Infrastructure has engaged The Mercurius Group to conduct an Observation Study and retail planning analysis at Blacktown Hospital.  The Observation Study was conducted to inform the Retail Planning Analysis by estimating the total number of patients, staff, students and visitors entering the hospital each day and by understand the pattern of their movements around the hospital campus. These two data points were then used in a Retail Planning Analysis which determined how much retail and commercial floor space could be sustainable at Blacktown Hospital after the completion of Stage 2 of its development in 2018/19.

 

The Mercurius Group Engaged by NSW Health Infrastructure to Conduct Hospital Observation Study (2017)

January, 2017. NSW Health Infrastructure has engaged The Mercurius Group to conduct an Observation Study at a major NSW hospital. The Observation Study had two prime purposes: to estimate the total number of patients, staff, students and visitors entering the hospital each day; and to understand the pattern of their movements around the hospital campus. These two data points were then used in a retail planning process to help determine how much retail floor space was sustainable and where that retail floor space should be provided to optimise commercial outcomes. The Observation Study included a team of 10 observers capturing data for a 1 week period.

 

The Mercurius Group Engaged by NSW Health Infrastructure to Conduct Retail Planing Study For Major NSW Hospital (2017)

February, 2017.  NSW Health Infrastructure has engaged The Mercurius Group to conduct retail planning for a major NSW hospital.  The retail planning process took into account the retail needs of patients, staff, students and visitors.  The project made recommendations on the amount of sustainable floor space, the appropriate mix of food & beverage, specialty retail and services, the optimal location for the retail precinct with respect to the flow and dwell patterns within the hospital and estimated the financial returns after accounting for potential capital costs.

 

NSW Health Infrastructure – Westmead Hospital Retail Master Plan (2017)

NSW Infrastructure (which oversees the planning, design, procurement and construction of health capital works in NSW) engaged The Mercurius Group to provide a retail master plan for the Westmead Health precinct that employs around 50,000 staff across the private, public and children’s hospitals, university campuses and research institutes. Our retail master plan made provision for a 6,000sqm retail precinct to be delivered progressively with the precinct’s development.

 

NSW Health Infrastructure – Blacktown Hospital – Retail Master Planning (2017)

NSW Infrastructure (which oversees the planning, design, procurement and construction of health capital works in NSW) engaged The Mercurius Group to develop a retail plan for the addition of an Acute Services Building to the existing Blacktown Hospital. The project included review existing performance, determining the amount of profitably sustainable retail space and a plan for optimising flow and dwell through the facility to achieve better commercial outcomes.

 

NSW Health Infrastructure – Nepean Hospital – Retail Master Planning (2018)

NSW Infrastructure (which oversees the planning, design, procurement and construction of health capital works in NSW) engaged The Mercurius Group to develop a retail plan as part of the Stage 1 $550m tower development at Nepean Hospital. The project included review existing performance, determining the amount of profitably sustainable retail space and a plan for optimising flow and dwell through the facility to achieve better commercial outcomes.

 

NSW Health Infrastructure – Nepean Hospital – Consultation Room Utilisation Study (2018)

NSW Infrastructure (which oversees the planning, design, procurement and construction of health capital works in NSW) engaged The Mercurius Group to conduct a study on the pattern and extent of consultation room utilisation across 8 different hospital departments.  The results of the Study were used as inputs into planning the provision of consultation rooms in the expansion of the hospital.

 

CPB/John Holland JV – Sydney Central Station Metro works (2017)

The Mercurius Group was engaged by the CPB/John Holland Joint Venture to develop a retail/F&B and advertising master plan in support of the JV’s bid for the Central Station Metro works including building new platforms and a new east-west pedestrian thoroughfare.

Services-retailers-2
travel
Our services to Retailers include:
  • Preparation of business development strategies and tactics;
  • Tender preparation including sales forecasts, category and brand mix development, capital and operational cost estimation and approvals;
  • Tender bid strategies;
  • Store layout and design;
  • Brand identification, negotiation and margin improvement;
  • Concession contract review and negotiation;
  • Retail price benchmarking;
  • State-of-the-brands reviews;
Our experience in advising Retailers include:

The Mercurius Group team members have advised major travel retail clients including The Nuance Group (now owned by Dufry), Lagardere Travel Retail, Newslink, Travelex and SSP (food & beverage).

 

Major International Duty Free Operator – Tender Support (2017)

The Mercurius Group was engaged to support a major duty free operator’s tender for a major high profile international duty free concession. The project included developing an understanding of the passenger market, competitive positioning and operational as well as financial modelling.

 

Major Australian Airport – Retail and Duty Free Performance Audit (2017)

The Mercurius Group was engaged by a major Australian airport to review conduct a full review of a duty free operator’s performance in the context of their contractual arrangements. The review included price reviews, range reviews, in-stock situation, promotions, store layout, logistics, staffing and operational efficiency.

Services-brands
brands
Our services to Brands include:
  • Business development strategies;
  • Market entry strategies;
  • Real estate scouting and acquisition advisory;
  • Performance improvement;
  • Marketing and promotional positioning and strategies;
  • Tender preparation including sales forecasts, category and brand mix development, capital and operational cost estimation and approvals;
  • Tender bid strategies;
  • State-of-the retailers reviews;
  • State-of-the-industry reviews;
  • Retail price benchmarking;
  • Rental benchmarking;
  • Agency distribution agreements;

 

 

Our experience in advising Brands include:

The Mercurius Group team members have advised and worked with major brands from all the major product sectors including liquor, wine, champagne, confectionery, perfume, cosmetics, technology, sunglasses, watches, fashion, souvenir and destination products.

 

Estee Lauder Travel Retail Asia Pacific Engages The Mercurius Group to Conduct Strategic Study (2016)

November, 2016. The Mercurius Group, a leading travel retail group providing advisory, product distribution and retail operation services to the Travel and Infrastructure Retail sector has been engaged by Estee Lauder Travel Retail Asia Pacific to conduct a strategic study of the travel retail market for Perfume & Cosmetics market in the Pacific region, focusing on the category’s recent strong growth in both Australia and
New Zealand.

Services-goverment
government
Our services to Government & Investors include:
  • Commercial due diligence – vendor and purchaser, debt and equity;
  • Commercial/retail program valuation;
  • Opportunity/upside identification;
  • Strategic reviews;
  • Risk identification and management;
  • Rental benchmarking;
  • Contract reviews;
  • Competition reviews;
  • Benefit-cost analysis;
  • Economic impact analysis;
  • Policy assessment;
  • Pricing regulation reviews;
Our experience in advising Government & Investors include:

The Mercurius Group team members have advised Governments & Investors on airport privatisations (sell side), asset acquisitions (buy side) and divestments. The team has also conducted multiple economic impact analysis studies and new development feasibility studies.

 

The Mercurius Group advises ICG on Sunshine Coast Airport Privatisation (2016)

December, 2016. Infrastructure Capital Group (ICG)- an Australian specialist, independent infrastructure fund management firm – engaged The Mercurius Group to prepare the Business Plan supporting ICG’s bid in the recent privatisation of Sunshine Coast Airport (Queensland, Australia). Preparing the business plan involved coordinating with ICG and other advisers (including aeronautical, traffic forecasting, planning, operational, environmental and financial) to document ICG’s proposed approach to the management of the Airport post privatisation and the expected financial, aeronautical commercial and community outcomes.

 

Services-industries
industries
Our services to Industries include:
  • Performance benchmarking analysis;
  • Global pricing studies;
  • Economic impact studies;
  • Policy advocacy;
Our experience in advising Industries include:

The Mercurius Group team members pioneered performance benchmarking in airport retail with the publication of the Airport Retail Study in 1998. A bi-annual study into the performance of airport retail performance across the globe, the study continues to be published to this day by the leading travel retail industry publisher, the London based Moodie International.

The Mercurius Group also pioneered the benchmarking of airport car parking prices and management practices in 2016 with the release of the industry first Airport Car Parking Pricing and Management Study.

Our experience includes conducting economic impact studies for industries including the economic impact of the Australian casino industry for the Australian Casino Association and the economic impact of the sale of duty free tobacco for BAT.

 

Adelaide Airport – Tourist Refund Scheme Review (2017)

The Mercurius Group was engaged by Adelaide Airport to prepare a comprehensive review of the Federal Government’s Tourist Refund Scheme and its impact on duty free and retail slaes at Australian airports. The review examined the growth of the scheme over time, GST refunds/claims by airport, GST refunds/claims by passenger nationality and GST refunds/claims by product category. The review was conducted in the context of allowing Australian airports to consider the commercial impacts of proposals to privatise the scheme.

 

Major Australian Airport – Duty Free Price Comparisons (2017)

The Mercurius Group was engaged to conduct a duty free price competitiveness study for a major Australian airport. The Study involved comparing the prices for a basket of 200 SKUs at this airport with key competing airports across the Asia-Pacific region.