The military and diplomatic markets are idiosyncratic sectors with characteristics very different from those in airport retail. Jane Labous talks to military and diplomatic supplier Chacalli-De Decker managing director Willfred van der Kloet about the changing face of airbase shops, and the company?s dynamic growth in airport retail.

Jane Labous spoke to Navy, Army and Air Force Institutes (NAAFI), the official trading organisation for the British armed forces, about the latest shopping trends in military stores.

As one of the most popular products with servicemen around the world, beer is a crucial sector in the military channel. Dutch brewer Heineken quickly realised the market?s potential and created a specialised department to deal with demand from military forces worldwide

Many people have no idea where it is, but those who have visited Andorra talk of good skiing and even better duty-free bargains. The principality, nestled in the Pyrenees between France and Spain, is a duty-free haven that harbours ambitions to tempt tourists away from more established resorts outside its borders. John Gallagher reports.

Contrary to what some in the trade might believe, the threat to duty-free tobacco has not disappeared. As World Health Organization member states line up to sign the Framework Convention on Tobacco Control, DFNI assesses the risk of national governments seeking to restrict such sales, and asks regional operators for their own forecasts.

The premium cigarettes category continues to grow, with brands Chancellor and House of Prince both launching high-priced, high-quality lines in duty-free in recent years. But, writes Jonathan Brown, the market is not immune to fluctuations in the global economy.

Merchandising units are not the only way to increase visibility at travel-retail locations. Both Altadis and Imperial Tobacco have invested heavily in promotional and advertising campaigns to bolster their in-store efforts.

In a category that has traditionally epitomised the retail philosophy of ?pile it high, sell it cheap?, many still believe the category sells itself. But a professional and innovative merchandising approach can make all the difference. DFNI asks two leading cigarette suppliers how important in-store branding really is.

MEXICO. Passenger traffic at the nine Mexican airports controlled by privatised airport operator Grupo Aeroportuario del Sureste (ASUR) was up 11.2% in May compared with the same month last year.

By Jonathan BrownSWEDEN/DENMARK. Swedish ferry operator HH-Ferries has reported encouraging sales in the past year, with revenues of over $15m.

UK. BAA?s net retail income played a strong part in boosting the company?s profits for the full year to March 31.

LATIN AMERICA. Operator board members at ASUTIL, the South American duty-free trade association, will all contribute strongly to this year?s sixth annual conference, to be held in Cancún, Mexico on September 3?5.

ARGENTINA. Despite the dispute with airport authority Aeropuertos Argentina 2000 over its duty-free contract, duty-free retailer InterBaires has said it expects sales to grow by 20% this year as economic performance in the country improves and consumer confidence grows.

UK. BAA has opened seven new stores as part of a 30,000sq ft (2,800sq m) retail expansion at London Stansted airport.

By Jonathan BrownUK. Britannia Airways has reported an encouraging reception for its latest inflight retail offering.

As operators in the 15 existing EU member states will attest, coping with the loss of intra-EU duty-free taught the trade some harsh lessons in 1999.

ARGENTINA. London Supply director Paco Heredia has confirmed to DFNI that the economic recovery in Argentina has produced better results for the duty-free operator than previously expected.

US. Duty Free World (DFW) has won a three-year contract to provide US Airways with its onboard retail programme, beginning this September.

BULGARIA. Representatives of Bulgaria?s duty-free operators have met finance minister Milen Velchev in an attempt to stave off the proposed closure of the country?s border duty-free stores.

MIDDLE EAST. Tax Free World Association (TFWA), the Middle East Duty Free Association (MEDFA) and Moodie International are to collaborate on this year?s MEDFA conference, to be held at Dubai?s Al Bustan Rotana Hotel on December 3?4.

KUWAIT. Kuwait Duty Free has posted sales for the year to May up 1% on the same period last year.

IRELAND. Irish airports group Aer Rianta has announced profits, before exceptional items, of ?30.9m ($36.4m) for the year ending December 31 2002, almost unchanged from the corresponding figure the previous year.

CANADA. Plans for the 19th Annual Convention of the Frontier Duty Free Association are proceeding, the Association has assured the trade, despite the recent alarm over SARS in Toronto and southern Ontario.

By Anna FentonHONG KONG. Nuance-Watson (HK) has retained the prestigious fragrance and cosmetics concession at Hong Kong International airport.

US. Aer Rianta International (ARI) and Saveria JFK are to join forces to run a seven-year concession for speciality fashion, gift and gourmet food stores at New York JFK airport terminal four.

ESTONIA. Over 160 delegates attended the Baltic & East European Travel-Retail Conference, held in Tallinn, Estonia last week and organised by DFNI publisher Raven Fox.

ExclusiveUS. The fortunes of DFS Group at Los Angeles International airport continue to fluctuate from month to month.

INTERNATIONAL. Tax Free World Association (TFWA) will reimburse in full stand reservation costs to all companies that were registered for this year?s TFWA Asia Pacific show by March 1.

FRANCE. Logair, the new joint venture between Aeroboutique Inflight Retail and French catering company Servair, has been awarded a three-year concession to operate inflight retail onboard Air Austral?s new long-haul service.

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