The announcement that the Port Authority of New York and New Jersey (PANYNJ), The New Terminal One and Unibail-Rodamco-Westfield (URW) Airports have selected Duty Free Americas (DFA) as the exclusive duty-free operator for John F. Kennedy International Airport’s New Terminal One is more than just a next stage in a $9.5 billion development.
It’s a sign that one of the major gateways in the U.S. is finally catching up to the rest of the world, where some of the most luxurious shopping destinations are in airports.
“Creating a uniquely New York sense of place across all new and renovated terminals is a fundamental tenet of the Port Authority’s transformation of JFK Airport into a world-class global gateway,” said Port Authority Executive Director Rick Cotton in the announcement. “Global brands alongside locally inspired shops, public art and beautiful architecture that is evocative of New York will make the New Terminal One an appealing part of the passenger journey.”
The New Terminal One is being built on sites now occupied by Terminal 1 and the former Terminal 2 and Terminal 3, where it will anchor JFK’s south side. Construction is taking place in phases. The first phase, including the new arrivals and departures halls and first new gates, is expected to open in 2026. Additional gates will open in subsequent phases until the project is complete in 2030. When complete, the New Terminal One will be the largest terminal at JFK, with 23 gates and more than 300,000 square feet of retail, dining and lounge space over 2.6 million square feet.
Under the bespoke brand “Skyline Duty Free by Duty Free Americas,” New Terminal One’s retail experience, spanning nearly 20,000 square feet, will anchor the terminal’s “World’s Runway” commercial district. The flagship multi-level store will feature bold architecture, alongside four additional duty-free locations throughout the terminal. Plans call for global brands, locally made products and immersive shopping experiences.
“Showcasing unique New York City products and iconic global brands, Skyline Duty Free will offer travelers an unparalleled shopping experience — whether they’re searching for the perfect gift or treat before departing our legendary city or completing their shopping adventure in the city that never sleeps,” said New Terminal One CEO Jennifer Aument. “This investment in enhancing our guest experience reflects the strength of the New Terminal One’s value proposition and reinforces our position as the terminal of choice for international airlines serving JFK Airport.”
After moving through security, customers will encounter “Love Local,” a storefront featuring all New York City- and Queens-based makers and businesses. Customers will then enter the terminal’s full retail experience, anchored by the expansive Skyline Duty Free flagship store — a shopping destination that will blend Fifth Avenue elegance and Art Deco flair, enhanced with a distinctive, personal touch.
At the store, travelers will experience the traditional duty-free collection of spirits, wines, skincare, cosmetics, fragrances, confectionery, fashion, accessories, gifts and more in independent brand boutiques. “Outside In,” the 1,000-square-foot local business showcase, will evoke New York’s local markets with a curated selection of small-batch goods and locally made artisanal products.
“As JFK’s largest terminal, New Terminal One is set to redefine international travel to and from New York, and we are excited to play a key role in shaping its retail landscape. We are especially proud to introduce Skyline, a distinctive brand flag for the terminal and a new benchmark in the global travel retail industry,” said Duty Free Americas CEO Jerome Falic. “Our innovative stores will elevate the shopping experience, providing international travelers with an unmatched selection of premium products in a dynamic and engaging setting.”
Duty Free Americas’ team of local category managers will source a wide range of products, with an aim to offer unique merchandise that represent diverse segments, from craft distilleries to individual artisans, from emerging to established products, all with continuous rotation throughout the lease term. To further support local businesses, Skyline Duty Free will organize quarterly outreach programs, providing local vendors opportunities to pitch their products for locations during seasonal markets and “sell for the day” events.
In front of the flagship store, an “experiential center” including virtual reality simulators, fashion, art and brand activations will provide immersive, interactive moments that will capture the imagination of passengers and draw them to the duty-free shops. This interactive center will incorporate cultural, sports and local themes while recreating experiences from New York City neighborhoods through brand and product debuts.
This area, the partners say, will be the heart of the Terminal’s retail experience, offering an unmatched selection of duty-free exclusives and a true New York City sense of place.
“Our vision is to set a new standard in the U.S. with our commercial program at JFK’s New Terminal One, and Duty Free Americas is delivering on that ambition with a duty-free program that combines the best international brands with distinctly New York City flavor,” said URW Chief Operating Officer Dominic Lowe. “This project is a once-in-a-generation opportunity to redefine travel retail and, together with our partners, we are honored to play a role in shaping this transformational experience coming soon to travelers.”
JFK isn’t alone in upgrading its shopping. Retail has become an increasingly important part of aviation revenues, despite obstacles. Rents are high, and the stores are much smaller than main street or mall locations. Security logistics are challenging, including transporting merchandise to and from the stores, stringent employee background checks and time-pressed customers. But shoppers are a captive audience, often are on the way to or from a vacation — or a guilt-inducing business trip.
The result is tremendous opportunity and tremendous growth. Future Market Insights Global and Consulting (FMI) predicts that U.S. airport retailing revenues could reach $37.23 billion in 2025, and $107.6 billion by 2035, a compound annual growth rate of 11.8% for the decade, despite those challenges.
“Airports are evolving into multifunctional travel hubs, offering a diverse range of services and experiences. These include not just shopping, but also entertainment, dining and leisure activities, all of which contribute to improving the overall passenger experience. This transformation is creating a more dynamic and engaging retail environment that resonates with travelers,” FMI said.
URW has expanded the retail at Newark Airport, adding New Jersey-themed retail and dining throughout 2019, and the recently renovated Terminal B at LaGuardia Airport has introduced a number of retail options. Los Angeles International Airport has also announced plans to up its retail game and just opened a new Cartier store. But the greatest experiences, at least so far, are outside the U.S.
A recent survey by All Clear Travel Insurance of the world’s most luxurious airports found that the top U.S. airport, JFK, placed 10th, behind top-ranked Dubai International, followed by London Heathrow, Hamad International in Doha, Qatar, Paris Charles de Gaulle, Sydney International, Singapore Changi, Suvarnabhumi International in Bangkok, Hong Kong International and Frankfurt.
According to KPMG research, London Heathrow — with more than 350 F&B and retail units over four terminals and sometimes called “a mall with an airport attached” — generates over 20% of its income through retail. In 2024, the airport saw further bolstering of its luxury component, including a flagship Louis Vuitton, Loewe, Saint Laurent, Penhaligon’s and Hugo Boss. Dubai Airport, long a pioneer in aviation retail, allows mobile ordering of food, beverages and merchandise, to be delivered to a gate or lounge or for customer pickup.
Perhaps no airport is so immersive as Istanbul Airport, opened in October 2018. Operated by Unfree Duty-Free, the airport boasts 55,000 square meters (592,000 square feet) of retail, including luxury international boutiques, classic duty-free (organized into nine themed sections) and a traditional bazaar area. In 2023, the airport saw €1 billion in revenue for the first time, reported TR Business, a duty-free travel publication.
JFK may finally be catching up.
“As an all-international terminal, New Terminal One plays an important role as the region’s front-door to the world,” said Port Authority Chairman Kevin O’Toole. “A best-in-class terminal will include an unparalleled retail experience that travelers from around the world expect to find when they come to our region.”
