The arrival of a second terminal at Munich airport is a giant leap along the road to becoming a leading European transfer hub. The retail repercussions are also positive as Kevin Rozario discovered when he explored the extensive shopping facilities the day they opened last month.

With sales last year of SFr1.72bn ($1.27m), The Nuance Group is the world?s largest airport retailer. But there are perils in operating a global business, especially during a downturn. And given the operator?s strong presence in Asia/Pacific, SARS has taken a heavy toll on its 2003 figures. Yet a troubled first half to the year hasn?t stopped president and ceo Peter Petersen from casting an eager eye over new business opportunities, with an emphasis on Europe and China. Five years after assuming the reins at Nuance, and a year on from the group?s acquisition by Gruppo PAM and Stefanel, Petersen outlines his vision for Nuance, which includes, where possible, tie-ups with other operators. He says the travel-retail industry is badly in need of a shake-up if it is to fulfil its potential. And as former president of Swatch, Petersen adds that the evolving needs of the consumer must lead the way the trade thinks about its future.

A year that threatened to be ruined by SARS could be rescued by RFPs. That?s the situation at Toronto Lester B Pearson International airport, where the city?s viral outbreak?now under control?has not slowed the airport authority?s ambitious expansion plans, which includes a big duty-free tender launched late last month. John Rimmer spoke to Greater Toronto Airports Authority director of properties and concessions Jack Gaum and concessions manager Dan Driedzic.

Switzerland-based retailer Caviar House is well known for its delicacies and gourmet foods. But visitors to its airport stores across Europe are discovering a range of creative, premium liquor items alongside the smoked salmon and caviar. John Rimmer visited the operator?s store at London Heathrow terminal four to find out more.

Before taking over World Duty Free Americas in 2001 the Falic Group had proved itself to be a formidable beauty retailer. Now owner of leading US travel retailer Duty Free Americas, it has quickly learned its way around the liquor category. John Rimmer talks to the operator about its strategy in the sector.

Once a powerhouse in Europe but a seven-stone weakling elsewhere, Pernod Ricard is now undisputably a global concern. In the Americas, duty-free division Pernod Ricard World Trade (PRWT) has stepped up its investment drive to capitalise on the appeal of new priority brands Chivas Regal Scotch whisky and Martell cognac.

Start spreading the news?New York JFK airport terminal four has a new vision. Gavin Lipsith talks to Saveria owner Rakesh Sardana about plans for retail at the only privately-owned airport terminal in the US, and discovers how the Austrian retailer?s new partnership with Aer Rianta International could turn the facility into a travel-retail standard bearer.

DFNI ExclusiveBy Gavin LipsithUS/INTERNATIONAL. DFS Group ceo Ed Brennan has warned that further tough action will be necessary to return the company to profitability, including more restructuring and redundancies.

LATIN AMERICA. Next month?s ASUTIL conference in Cancún, Mexico will focus on the recovery of duty-free in key markets in the region and on how the customer profile has changed in the past two years.

HONG KONG. The new East Hall extension at Hong Kong International airport will open on August 4, marking the completion of the first phase of retail expansion.

SOUTH AFRICA. Airports Company South Africa (ACSA) has reported a 19% increase in revenue for the year to March 31 2003, with commercial revenue up 25% to R629m ($83.8m) at the company?s 10 airports.

DFNI ExclusiveBy Jonathan BrownLEBANON. Beirut Duty Free has reported an increase in June sales of 52% on the same month last year.

HONG KONG. Hong Kong International airport continued its promising recovery from the SARS-related downturn in late July, with traffic already back to 80% of normal levels.

FIJI. Fijian duty-free operator Motibhai Group has begun a $30m joint-venture project to create a new Suva Central business and retail complex.

By Jonathan BrownFINLAND. The investment in facilities at Helsinki?Vantaa airport continues with the completion of the domestic terminal one extension.

DFNI ExclusiveBy Kevin RozarioGERMANY. The retail subsidiary of Munich airport operator Flughafen München (FMG) expects to see its revenues leap by more than 27% in 2003, thanks to the opening of a second terminal at the Bavarian hub

By Anna FentonCHINA. As revealed in DFNI eXTRA (July 16), the holiday island of Hainan off the southwest coast of China is to become a testing ground for visa-free arrivals and open skies for airlines in a bid by the Chinese government to compete with the resorts of Bali in Indonesia and Phuket in Thailand.

UK. Virgin Atlantic Airways? latest inflight retail programme has shown strong sales since it launched its new brochure in June, according to the carrier.

CZECH REPUBLIC. The European Commission (EC) delegation to the Czech Republic has reacted angrily to a decision by the Czech Chamber of Deputies to delay the proposed closure of border duty-free outlets, previously scheduled for the end of the year.

UK. BAA group retail director Brian Collie has said 2003 could prove a watershed year for the industry, provided the trade embraces the opportunity to implement structural change.

DFNI ExclusiveBy John RimmerCANADA. Greater Toronto Airports Authority (GTAA) has named the winners of the speciality retail contracts at Toronto Lester B Pearson International airport?s new terminal one.

ISRAEL. Israel Airports Authority (IAA) has published the first of its long-awaited retail tenders at Tel Aviv Ben Gurion airport?s new international terminal three.

HONG KONG/CHINA. A new ferry service is set to connect Hong Kong International airport (HKIA) with seaports in southern China.

US. Fast-growing inflight concessionaire Duty Free World has landed its biggest contract yet with a three-year deal to operate United Airlines? onboard duty-free programme.

The winners of this year?s Raven Fox Awards for Travel-Retail Excellence in Asia/Pacific will be announced at a private dinner at the Hotel Martinez in Cannes on Friday 24 October.

MALTA. Maltese beauty retailer Leaders, part of the Salvo Grima Group, is fighting to retain its concession at Malta International airport following the airport authority?s decision to award the licence for its skincare and cosmetics duty-free shop to rival firm Franks Travel Retail.

?We are a great industry for speaking out on the big issues that concern us, and we always speak very eloquently about partnership. But when it comes to combining this talk with action, then too often we fail.? That?s the view of The Nuance Group president and ceo Peter Petersen, whose views on his own company and on the trade at large make fascinating reading in this issue.

MEXICO. Mexican airport authority Grupo Aeroportuario del Sureste (ASUR) has capitalised on a 10.2% increase in passenger traffic in the second quarter of the year with first-half duty-free revenue growth of 11.5%.

Scotch whisky company Edrington Group is to open an office in Shanghai to oversee sales of its leading malt whisky brand The Macallan in Asia/Pacific.

Finnish ship chandler ME Group, one of the leading liquor distributors to the Nordic and Baltic ferry trade, is to join forces with Norwegian supply chain specialist VSD Logistics in a joint-venture partnership designed to offer clients a one-stop logistics solution for the Scandinavian market.

TRI ExclusiveBy John RimmerFour years on from intra-EU duty-free abolition, a survey commissioned by liquor supplier Pernod Ricard World Trade suggests that most UK travellers are more aware than ever of the savings that can be made on liquor at the airport.

Scotch whisky specialist Morrison Bowmore Distillers has won the distribution rights for the Matusalem Rum range in duty-free and travel-retail markets in Europe, the Middle East and Africa.

Philip Morris? Italian distribution agreement may be in jeopardy following rival British American Tobacco?s purchase of state-owned tobacco supplier Ente Tabacchi Italiani last month.

Henri Wintermans has continued to grow travel-retail sales throughout the year, announcing a 20% increase in market sales volumes for the year to June 30.

DFNI ExclusiveBy Jonathan BrownLa Casa del Habano officially opened its new store at Beirut International airport duty-free last month.

JT International has re-launched its flagship menthol brand Salem with a new pack design, backed by a fresh approach to advertising in southeast Asia.

JT International has re-launched its flagship menthol brand Salem with a new pack design, backed by a fresh approach to advertising in southeast Asia.

By Jane LabousFrench retailer Aelia has refreshed its Beauty Unlimited concept at the new Paris Charles de Gaulle terminal 2E, adding dedicated space for travel-retail exclusives as well as expanding the area devoted to men?s skincare and themed promotions.

Lancaster?s Jil Sander brand has introduced a new women?s fragrance. Pure was launched in Paris by designer Jil Sander, Lancaster president Michele Scannavini, Coty ceo Bernd Beetz and Jil Sander general manager Roberto Massardi.

Elizabeth Arden has acquired the licence to create and distribute Gant fragrances and associated products.

Origins has introduced its first stand-alone fragrance, Frolic.

Amouage has announced the introduction of a new fragrance line with versions for men and women.

Lancôme?s new men?s skincare range Lancôme Homme is to be launched exclusively in worldwide travel-retail before it hits local stores.

Lancaster Group Worldwide Travel Retail & Export has set up its new headquarters in Miami, Florida.

Pureneige has introduced a special facial skincare line for sale onboard airlines, consisting of five complementary products, day cream, night cream, anti-wrinkle cream and a mask all in 5ml jars and a cleanser in a 30ml bottle.

Clinique has used the power of water in its new skincare line Water Therapy.

Helena Rubinstein has introduced a foundation that it claims ?clones? the colour of women?s skins.

DFNI ExclusiveBy Michael EatonAbu Dhabi Duty Free?s (ADDF) new confectionery and food hall has increased turnover by about 25% and achieved daily sales of Dh100,000 ($27,225) with help from the airport?s cross-category Summer Adventure carnival event.

A cluster of brand owners well-known to duty-free markets dominate the top places in the latest research on the confectionery market released by research company Euromonitor.

The Nordic region?s top retailers plus several airport authority executives are among the 100 delegates due to attend the Danish Duty Free and Travel Retail Association?s conference, to be held onboard a DFDS Seaways ferry on August 19.

Specialist distributor A&E Petersen is pushing hard for worldwide distribution on behalf of Carletti, within a year of being appointed by the 90-year-old Danish company.

Belgian premium chocolate manufacturer Neuhaus is adding two lines to its Brussels Collection of 150g handy packs over the next few months, strengthening its portfolio of impulse purchases.

Amsterdam Schiphol retailer World of Delights, traditionally a fine foods specialist, has taken over the concession for a last-minute shop in pier F from The Nuance Group.

Russ Berrie claims it is coping well with the downturn in the Asian travel market, and has achieved new listings in shops and onboard several airlines.

The Nuance Group is to expand The Olympic Store concept to Chinese travel-retail from 2005, in the run-up to the 2008 Beijing Olympic Games.

Children?s gifts, logoed items and jewellery continue to play a vital role in Saudi Arabian Airlines? inflight retail selection, according to the carrier?s annual figures for 2002.

Following the celebrations for its 150th anniversary in the watch-making business, Swiss supplier Tissot has announced a number of new additions to its collections, available in travel-retail outlets.

DFNI ExclusiveBy Jonathan BrownSwiss watch supplier Frédérique Constant announced its intention to concentrate more on the travel-retail market as it launched its latest model, the Moonphase Chronograph.

Swatch?s autumn/winter 2003 collection is soon to hit the travel-retail market, with the brand?s usual eclectic mix of designs.

Swatch children?s brand Flik Flak has announced its new 2003 Fun Collection.

By Kevin RozarioOne of the last stores to open at Munich airport?s new terminal two will also be the only one to have permission to utilise its signature ?closed? shop front fittings and styling.

Despite a heavy reliance on the Asian market hit by SARS, the UK fashion house Burberry Group has increased its overall revenues by 18% in the first quarter ended 30 June 2003.

Italian fabrics specialist Mantero is building a spring/summer 2004 ties collection with a flavour inspired by the key 20th century styles of Art Déco and Art Nouveau.

Disappointing first-half results for French luxury group LVMH Moët Hennessy-Louis Vuitton showed once more that fashion and leathergoods remains the most resilient of the company?s product sectors.