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A pivotal meeting in the battle to save duty-free tobacco took place on October 23 in Cannes, where a large gathering of retailers heard pleas for support and a call to action from industry lobbyists.
With the long awaited conclusion of the governmental review of duty-free, Canadian operators can breathe a collective sigh of relief. Gavin Lipsith assesses the implications of the review, and how the events of September 11 have affected the Canadian industry.
The Canadian border business? commitment to customer service excellence is echoed in its approach to the annual FDFA Gold Standard awards. Stores are judged on over 120 categories.
The relationship between World Duty Free Americas and its counterparts across the border were often fraught. The BAA subsidiary was often accused of using its greater buying power to engage Canadian operators in price wars, undercutting them even when the industry could not afford price cuts.
Industry associations took the opportunity in Cannes to sign agreements, attract new members and voice their support for one another. Here are some of the notable Cannes collaborations.
This year's TFWA World Exhibition, up close and personal.
At last month?s airline executive meeting in Cannes, inflight retailers debated the merits of an industry association for the sector.
The Nuance Group launched a first for the industry at this year?s TFWA World Exhibition: a retailer-sponsored product design award, called Pizzazz.
As an ageing, unfit, uncertain, hungover ,depleted and deeply worried Luxury Lions team turned up for the annual duty-free rugby international at the Stade de St Cassien, they cast fearful looks towards their opposition.
The political climate brought out a determined response from 12 of the industry?s leading retailers and suppliers as they gathered for the inaugural ?Crisis? What Crisis?? Golf Trophy at the Mandelieu golf course on the Saturday before the exhibition.
The special guest appearance of Finnish McLaren ace Mika Hakkinen at this year?s Reemtsma West powercarting event was enough to push all driving enthusiasts to their limits.
At this year?s Frontier Awards held at the Martinez Hotel in Cannes, Dubai Duty Free was awarded Airport Retailer of the Year. It was the first time an operator had won the prize for two consecutive years.
BAA has reported an operating profits rise in continuing businesses of 5% to £355m ($522m) for the six months to September 30. But a £190m ($279m) exceptional loss incurred through the sale of World Duty Free Americas (WDFA) cut its interim profits.
Retail News Analysis
FRANCE. Espace Voyageur will be implemented across French travel-retail locations in the coming weeks. If successful, it could create a Europe-wide legal framework for travel-retail as an entity with its own trading and pricing structures.
URUGUAY. The Uruguayan Ministry of Defence has received four bids for the eight-year duty-free concession at Montevideo Carrasco airport. As DFNI went to press, the government was studying technical bids from local incumbent Neutral, Mexico?s Operadora de Aero-Boutiques, Brasif and Aldeasa. Financial bids?believed to be the clinching factor?are expected within a week.
SWEDEN. The Nuance Group has been named the winner of the $66m, 15-airport tender for duty-free retail in Sweden. This includes the key outlets at Stockholm Arlanda and Gothenberg, as well as a number of smaller airports.
UAE. Despite the adverse impact of the terrorist attacks in the US on its latest results, Abu Dhabi Duty Free (ADDF) is pressing ahead with phase three of its expansion drive at Abu Dhabi International airport.
INTERNATIONAL. LVMH Moët Hennessy-Louis Vuitton last month announced consolidated sales for the nine months to September 30 of E8,661m ($7,735m), up 10% on the same period last year.
UK. BAA has reported an operating profits rise in continuing businesses of 5% to £355m ($522m) for the six months to September 30. But a £190m ($279m) exceptional loss incurred through the sale of World Duty Free Americas (WDFA) cut its interim profits overall by 45% to £150m ($221m).
UAE. In the most emphatic statement of faith in the travel market since the events of September 11, Middle Eastern carrier Emirates has announced a record $15bn aircraft order.
INDIA. Air India has suspended its inflight duty-free service indefinitely.
UK/SWITZERLAND. Swatch, a division of The Swatch Group, has introduced a new retail concept exclusively with BAA at London Gatwick South terminal. Expanding on its existing open-sell retail design for watches, called Casper and introduced at the TFWA World Exhibition last year, the Gatwick location will be the first fully open-sell store in the world.
SWITZERLAND. The sale of the world?s leading airport retailer, The Nuance Group, is expected during the coming weeks, according to president and ceo Peter Petersen.
FRANCE. As expected, buyer and other visitor numbers at this year?s TFWA World Exhibition fell sharply against last year?s figures as the knock-on effect of the US crisis took hold.
ICELAND. Leif Eiriksson Air Terminal, operator of Keflavik airport, will tender 2,000sq m (21,500sq ft) of new retail space in the South terminal building in early 2002.
US. New World Duty Free Americas (WDFA) owners The Falic Group attended last month?s TFWA World Exhibition to introduce their company and attempt to allay suppliers? fears about the family?s previous grey market dealings.
Liquor & Wines
The drawn-out sale of Seagram?s drinks business to Diageo and Pernod Ricard has been further delayed after the US Federal Trade Commission (FTC) vetoed the deal.
Jinro Ballantines, the joint venture set up between South Korea?s leading liquor supplier Jinro and Allied Domecq in 1999, is to launch Korea?s biggest-selling Scotch whisky Imperial Classic 12yo in duty-free.
Speaking after his appointment as the new head of Brown-Forman?s travel-retail business, Patrick Moran told DFNI there was much left to do to ensure growth within the liquor category.
Highland Distillers unveiled a duty-free exclusive line extension in Cannes last month.
Exclusive: By John Rimmer
Tobacco Products
Fender Tobacco is a new name in the duty-free business. The US company has launched three brands, which are available now in worldwide duty-free.
Fragrances
Cosmopolitan Cosmetics believes the launch of a third Naomi Campbell fragrance will firmly establish the brand in the beauty industry. ?It is an example of a good licence,? a spokesperson told DFNI.
EuroItalia is to launch a Dolce & Gabanna women?s fragrance, as well as a new Moschino women?s fragrance next year.
L?Or de Torrente from Perfumer?s Workshop International is to be rolled out to worldwide domestic and duty-free markets between now and Spring 2002.
The latest fragrance for women from YSL Beauté was introduced to the travel-retail market at last month?s TFWA World Exhibition in Cannes. Nu was launched in domestic markets earlier last month, and will now be rolled out to duty-free worldwide.
Cosmetics
Elizabeth Arden plans to build its lip and eye category with a number of innovations, according to international marketing director Bénédicte Foucart.
Puig is to establish its Payot brand on the domestic market before entering the travel-retail channel. Brand director Dominique Derwa believes there are two ways to attract female make-up consumers in travel-retail.
Givenchy?s two priorities for 2002 are to improve its travel-retail business and to develop the Asian market, both of which, according to a spokesperson, ?have room for improvement?.
Confectionery & Fine Foods
Confectionery continues to be the top-selling category by value at Duty Free Philippines. Together with liquor and tobacco, the sector accounts for 70% of sales.
World Duty Free (WDF) is to launch its first stand-alone branded confectionery stores, Bon Bon Voyage, in three airport terminals over the next few months.
US agent Alfa Brands Corp is launching several products on behalf of its principals at the Frontier Duty Free Association convention and trade show in Montreal later this month.
Gifts & Electronics
Birmingham International airport (BIA) has expanded its airside gifts offer with the opening last month of two new outlets, gadgetshop and official-merchandise.co.uk.
Finnish ferry company Birka Line?s strategy of focusing more on its toy category is paying handsome dividends.
Jewellery & Watches
Austrian jewellery manufacturer M Frey Wille (formerly M Frey Wien) is focusing on men in its latest collection.
Exclusive to DFNI
UK jewellery supplier Attwood and Sawyer is repositioning itself in the travel-retail industry as a separate profit centre under the Buckley Jewellery umbrella.
Fashion & Leathergoods
The Fashion and Leathergoods division of French luxury goods conglomerate LVMH Moët Hennessy-Louis Vuitton is weathering the post-September 11 storm facing the luxury segment, according to new nine-month data from the company.
Danish fashion company Sand is continuing to expand into the airport arena with an ambitious series of shop openings.