Cover Stories
ISRAEL. Duty-free operators have reacted with alarm to a bill tabled earlier this month advocating a ban on duty-free tobacco sales.
EGYPT. Egyptair Duty Free Shops and Aer Rianta International-Middle East (ARI-ME) aim to build on their new seven-year management consultancy agreement by investing heavily in the business.
People & Company
Raven Fox has announced several changes to its senior editorial team and revealed plans for an exciting new event to take place in early 2005.
The European Travel Retail Council (ETRC), the new body that represents more than 500 companies in European travel-retail, has named its management board.
Nestlé International Travel Retail (NITR) has made several changes as part of a customer management initiative. Effective July 1, Iain Harrison takes on the new role of deputy general manager.
Features
Malta's accession to the EU appears to have holed its cruiseline business below the waterline, with duty-free sales down by 30%. But plans are afoot to entice travellers back to stores at the country's ferry port, cruise port and airport. Lorna Strickland reports.
As the effects of Cyprus's accession to the EU are felt, and as airport privatisation enters its the final stages, the country's retailers are bracing themselves for a new era. Gavin Lipsith reports.
A new partnership between Egyptair Duty Free Shops and Aer Rianta International-Middle East could transform duty-free in Egypt. So what will it do for the Bahrain-based operator? Dermot Davitt asks managing director John Sutcliffe.
The leathergoods sector is taking a lead from the beauty business and looking to stars from the fashion, music and art worlds for inspiration. Is this a step in the right direction for travel-retail? Kevin Rozario investigates.
Leathergoods sales in travel-retail fell to their lowest point for five years in 2003. But as operators respond with innovative pricing and merchandising policies, the sector's fortunes may be about to change. Kevin Rozario reports.
Gebr Heinemann's entry into the Norwegian duty-free market is a milestone in the company's development. DFNI editor-in-chief Dermot Davitt speaks to Claus Heinemann about the deal and gauges the trade?s reaction to an emerging force in Nordic travel-retail.
Alpha Retail has rebranded its Glorious Britain concept, and now it wants to change the whole perception of destination gifts retailing. As part of the strategy it has introduced a range of new products into the mix. Lorna Strickland went to London Heathrow airport terminal three to investigate a rising star.
Importer, wholesaler and distributor Bond & Co has developed a gourmet and gifts home delivery service for more than one-third of all airlines flying to Japan. But its president is still hungry for new business. Michael Eaton reports from Kobe.
For Gibraltar, being outside the European Customs Union means no VAT and a ready-made price advantage which has fuelled a retail boom. As tourist numbers rise, operators hope the good times will continue, despite a recent increase in import duties. John Gallagher reports.
Although the flush of victory has barely subsided following Greece's Euro 2004 football championship performance, the country is already back in the spotlight. But will this year's Olympics prove as successful for travel retailers as the football was for the Games' Greek hosts? Tina Milton reports.
Retail News Analysis
HUNGARY. Hungarian Duty Free (HDF) is in negotiations with airport authority Budapest Airport to increase its retail space at Budapest Ferihegy airport.
SINGAPORE. Nuance-Watson (Singapore) is to enlarge its fragrance and cosmetics store in Singapore Changi airport terminal two south by 30%.
UK. Alpha Inflight Retail has rejected the view that low-cost carriers should focus on meals, snacks and drinks in their inflight offers.
HONG KONG. Inflight Sales Group Hong Kong (ISG) has won the five-year contract to supply all product categories to Cathay Pacific's inflight duty-free.
GREECE. Hellenic Duty Free Shops (HDFS) and The Nuance Group are anticipating unprecedented sales at Athens International airport during this summer's Olympic Games.
The duty-free world's spotlight turned this month on Egypt, with news of a ground-breaking deal that will change the face of the business in one of the trade's biggest potential markets.
AUSTRALIA. Adelaide airport has received enquiries from four operators interested in bidding for retail space in its new A$260m ($185.7m) combined international and domestic terminal, due to open in October 2005.
SAUDI ARABIA. Saudi Arabian Airlines is moving towards privatisation later this year, but inflight division Skysales general manager Shawgi Mushtag was quick to insist the move would not affect its retail arm.
Delegates who book a place at this year's ASUTIL Latin American duty-free conference by the end of July can save 30% on their registration fee. The event, organised by south American trade association ASUTIL and DFNI publisher Raven Fox, takes place from September 8-10 in Salvador de Bahia, Brazil.
US. The International Association of Airport Duty Free Stores (IAADFS) is anticipating a rise in buyer numbers at the 2005 Duty Free Show of the Americas, with exhibitor attendance remaining steady at 2004 levels.
US. HMSHost and Minnesota-based partner CBR have unveiled retail plans for Minneapolis-St Paul International airport after winning seven of the eight concession packages offered by the Metropolitan Airports Commission.
INTERNATIONAL. Dufry Group has boosted its international business with two new stores and a lucrative confectionery concession at Singapore Changi airport.
UAE. High penetration and record average spend per passenger have contributed to first-half sales of $236m at Dubai Duty Free, up by 43% on the same period last year.
EUROPE. The European Commission has given the UK government two months to change its customs policy on intra-EU tobacco and liquor.
The June/July issue of Travel Retailer International is out now. Focusing on the European travel-retail market, the issue explores the challenges facing retailers in the new EU member states, including an interview with SAS Trading president Patric Sjöberg.
MALTA. Maltese flag carrier Air Malta has scrapped its onboard duty-free offer, citing lower passenger numbers as a result of strong competition from low-cost carriers. The national airline made the decision earlier this year, and it came into effect on July 1.
US. Dallas Fort Worth airport is hoping to attract a range of international retailers and well-known brands to its new international terminal.
GERMANY/NORWAY. Gebr Heinemann co-owner Claus Heinemann has praised the "professional and precise" approach to the recent duty-free tender by the Norwegian airport authorities, and defended his company's aggressive bid to win the business.
INTERNATIONAL. Industry partnership was the key discussion point at the fifth annual Airline and Supplier Conference, held in Geneva on June 27?29. Suppliers in particular highlighted the lack of support that still exists between themselves and operators, and insisted that those doing well shouldn?t see it as an excuse to let relationships stagnate.
Liquor & Wines
The Nuance Group-owned Downtown Duty Free has introduced a range of North Queensland tropical fruit wines at its Cairns airport store under the banner: "Wines are a Souvenir of Australia: A Postcard You Can Drink".
French liquor supplier Hardy Cognac has decided to target the inflight retail channel with miniature versions of some of its most popular products.
More flavour for Boru: Irish premium vodka brand Boru is expanding its family of flavours with Boru Crazzberry, a blend of vodka, cranberries and raspberries.
Sweden's largest airport, Stockholm Arlanda, has cut prices sharply in its duty-free stores in a bid to make its liquor offer more attractive.
Miami-based Imagination Unlimited International (IUI) has pulled out of its exclusive duty-free distribution agreement with Martin Miller' s London Dry Gin less than one year after it was signed.
Tobacco Products
Imperial Tobacco has reported a 130% increase in sales of its Davidoff cigarette brand at some airports following the launch of its "Windows of the World" promotion.
French retailers have reported an 18% drop in turnover per passenger from traditional duty-free categories over the first quarter of 2004, with tobacco sales particularly affected by French tax increases introduced last year.
Henri Wintermans has reported a 20% volume increase in travel-retail sales over the 2004 financial year ending June 30, similar to results in 2003. But the company has warned that further marketing restrictions and the accession of 10 more countries to the EU in May could hinder progress in the duty-free channel over the next year.
Duty-free tobacco sales remain under threat, despite the temporary reprieve gained in South Africa last month. The tobacco sector had barely started celebrating the withdrawal of the government's bill when a similar document was presented to the Israeli parliament.
Fragrances
Yves Saint Laurent has revealed a number of travel-retail developments for the Asian market, to be introduced in the last quarter of the year.
Perfumer's Workshop International is eyeing China and Thailand to continue its duty-free development across Asia, and expects to expand into north Asia and India in the longer term.
Parfums Kenzo is expecting double-digit growth sales growth across Asia, with Japan, South Korea, Taiwan, China, India and Russia among its targeted travel-retail markets.
Hungarian Duty Free (HDF), which operates shops at Budapest Ferihegy airport in partnership with Gebr Heinemann, is to place a stronger emphasis on fragrances in the coming months.
Designer brand Sonia Rykiel is planning further steps in Asia after its duty-free debut in Europe and the Middle East last year. The brand has a presence with King Power Thailand but has yet to push into Hong Kong and Singapore.
Tommy Hilfiger and pop singer Beyoncé unveiled the designer's new fragrance True Star at a high-profile press launch in London on June 21. The Hilfiger brand is part of Estée Lauder's Aramis and Designer Fragrances division.
Cosmetics
Grosvenor of London is set to make its beauty debut in the inflight channel with its Bratz products and is in negotiations with a number of carriers in a bid to boost its airline presence by the end of the year.
Shonfeld's is seeking to tailor its colour-coordinated room sprays, hand soaps and bath oils specifically for the duty-free market.
Clinique eyes SPF market: Clinique has introduced its first eye product with a sun protection factor, Advanced Stop Signs Eye Preventative Cream SPF 15.
Cosmetics supplier and retailer L?Occitane en Provence has secured several new retail sites in Europe, where it plans an extensive expansion programme.
Estée Lauder has unveiled what it described as a "ground-breaking" skincare product, Future Perfect Anti-Wrinkle Radiance Creme SPF 15.
Confectionery & Fine Foods
Kuwait Duty Free (KDF), where confectionery and food accounts for about 25% of turnover, has introduced shop floor consultants to the category, allocating dedicated personnel to key manufacturers including Masterfoods International Travel Retail and Nestlé International Travel Retail.
Godiva Chocolatier international travel-retail manager Gerry Murray has expressed some frank views on retailer-supplier relationships within the confectionery category, a subject explored in DFNI July 1.
Aelia has strengthened its gourmet food and confectionery presence at Paris Charles de Gaulle (CdG) and Orly South and West airports with the takeover of rival Chédeville's operations at the three airports.
Maxim's de Paris is to introduce a new selection of biscuits this autumn, together with a new look for its lemon and peach tea candies, which will be presented in a suitcase-style pack with windows. These will be available in September.
Gifts & Electronics
UK destination gifts retailer Glorious Britain, run by Alpha Retail, is to launch a shopping website at the beginning of the winter season. The new site will be called Glorious Britain Online.
Consumer electronics manufacturer palmOne has opened a concept electronics store, Airport Wireless palmOne, at Pittsburgh International airport's Airmall.
Hungarian Duty Free (HDF) is to restock its 53sq m (570sq ft) electronics outlet at Budapest Ferihegy airport with items from alternative categories while it reconsiders its product assortment at the location.
Jewellery & Watches
German jewellery supplier Thomas Sabo is to build on its success onboard airlines. This year the supplier is focusing on sterling silver jewellery and its new line of pink gemstone and pearl products.
US watch supplier Nike Timing, a division of the Nike fashion brand, has stated its ambition to be the leading sports brand in travel-retail in the next decade.
French dual time-zone watch supplier Oxygen has launched new products for travel-retail. The company, which only supplies duty-free and travel retailers, has introduced two new models to its men's Globetrotter line.
German gifts supplier Schabak is enjoying a booming business in die-cast aeroplane models for inflight sale as the number of new airlines continues to increase and airline liveries change rapidly.
French homeware and jewellery supplier Bernardaud has launched two heart pendants for domestic and travel-retail.
UK distributor Cat Design is making a push for further airline listings this year with its Carlo Gioielliere range. The distribution arm of the Zero Group has said it is hoping to add to its 90 existing airline listings with a focus on the Asia/Pacific region after a good first TFWA Asia Pacific Singapore show.
Fashion & Leathergoods
Following its successful distribution in Bahrain Duty Free, Indian pashmina supplier Pashma Moda is to focus on the Middle Eastern market this year.
Hugo Boss is set to unveil a new fixture and furniture concept for its Traveller Shops during the TFWA World Exhibition in Cannes in October.
Following a swift expansion programme in travel-retail, particularly through Dufry Group's airport concession network, Bijoux Terner has predicted that its bags business will generate increasing sales to become one of its best-selling product categories.
Abu Dhabi Duty Free?s (ADDF) attempts to delist poorly performing brands and rationalise its fashion offer has resulted in a surge in business for the Elle and Benetton brands.
To celebrate the tenth anniversary of Pliage, one of the most successful bag ranges in travel-retail, French leathergoods house Longchamp last week unveiled a special line designed by UK artist Tracey Emin, famous for her autobiographical art installations. The line's themes include travel and finding ?international love?.

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