Remodeling of retail spaces at
Reno/Tahoe International Airport takes
another step forward this week, and airport
officials say a vibrant retail scene at
the terminal is important to the facility's
financial health.
Work begins this week on remodeling of
the Paradies retail stores on the lower level
of the airport's central lobby.
The stores will receive new exterior and
interior looks that attempt to capture the
feel of the Reno and Lake Tahoe areas with
natural stone and wood facades.
A new store, Explore Reno/Tahoe, will sell
merchandise branded with many of the
region's most popular special events.
During this work, which is scheduled for
completion in November, stores on the
south side of the lobby and the Travelers
Gifts store in the B concourse will be closed.
Stores on the north side of the lobby as well
as Ethel M will remain open, said airport
spokesman Adam Mayberry.
The north-side stores along with
Travelers Gifts in the C Concourse will
close for construction in January. That work
is scheduled for completion next March.
The retail remodeling comes after recent
completion of renovation of the airport's
food court.
Compass Group USA Inc., which operates
the food court and the food concessions
on both concourses of the airport under the
trade name of Select Service Partner, invested
$3.5 million in the remodeling.
Paradies, the retail concessionaire, holds a
lease to operate the stores until 2011.
The airport's stake in its retail sectors is
significant.
Joan Dees, director of finance and
administration at Reno/Tahoe
International, said last week that concessions
account for 60 percent of the
total revenue at the airport.
Car rentals and the parking account for
the lion's share of the airport's non-airline
revenue. Even so, the airport's share of retail
and food-and-beverage business contributes
about $2 million a year to its operation.
That's important, Dees said, because it
means the airport which is financially
self-sufficient can keep a handle on the
fees it charges airlines for airport services.
And lower fees to the airlines, she
said, encourage carriers to continue
serving Reno.
The effects of the dramatic slowdown
in travel following the Sept. 11 attacks
were seen in those revenue streams.
The airport's revenue from car-rental
concessions, Dees said, have been running
about 30 percent under budgeted levels.
Parking revenues have been running at
least 15 percent behind budget.
Contracts for food, gaming and
retail concessions, however, require
minimum annual payments to the airport,
a stipulation that limited the
effects of a slowdown in sales.
While the retail remodeling project is
under way, new carpet will be installed
throughout the terminal.
Mayberry said, too, the ski sculpture now
located at the terminal doors will be moved
to the center of the main terminal building.
