Cover Stories

INTERNATIONAL. The trade has reacted positively to the news that US-based private equity firm Advent International is to take a majority shareholding in Swiss travel retailer Dufry.

Features

Since Hans Bakker arrived at Hong Kong International airport three and a half years ago he has revolutionised the duty-free offer. He takes DFNI on a guided tour of the shops in the new East Hall before the facility's official inauguration next month.
In the field of military operations, the work of the Navy, Army and Air Force Institutes (NAAFI) often goes unheralded. A dedicated retailing, catering and leisure outfit supports the British military's international presence, and NAAFI's new commercially minded management team has helped it achieve a £27m ($50m) turnaround in the past three years. Gavin Lipsith reports.
The Navy, Army and Air Force Institutes is responsible for bringing "a taste of home" to UK troops in action worldwide through its uniformed division, the Expeditionary Forces Institute (EFI). DFNI speaks to Chris Malcolmson, head of EFI operations in Iraq.
Some brands sell whatever the economic climate, and writing instruments are no exception - heritage brands tend to ride out any recession. But less well-known names are also playing their part, as established brands from other sectors exploit their reputations to expand into the category. By Jonathan Brown.
With so many electronics products on the market and an increasingly demanding clientele, how do duty-free operators price goods competitively without losing custom? Lorna Strickland examines the highs and lows of electronics pricing.

Retail News Analysis

SOUTH AFRICA. Tourvest Duty Free is already looking ahead to the next Inflight Sales Person of the Year (ISPY) Awards, to be held in December.
US. Duty-paid airport retailer Hudson Group is aiming to grow sales at WHSmith's former US airport stores from $180m in 2003 to $250m by the end of the year.
CHILE. Spanish duty-free operator Aldeasa is to open an 80sq m (860sq ft) duty-paid outlet at Antofagasta airport in northern Chile later this month.
UK. World Duty Free (WDF) managing director Mark Riches hailed a "strong performance" from parent company BAA's retail business in the final quarter of 2003.
SOUTH AFRICA. Local travel retailers have joined forces to combat the South African government's proposal to ban duty-free tobacco sales (DFNI Nov 15 ?03).
MALAYSIA. Low-cost airline Air Asia is set to agree a deal with a duty-free retailer for the operation of its inflight sales and retail outlets at Senai International airport in southern Malaysia, which it jointly owns.
URUGUAY. Duty Free Uruguay, the new duty-free operator at Montevideo Carrasco airport, has reported an encouraging first month of operations as tourist traffic to Uruguay improves.
UKRAINE. Kievrianta's new duty-free store at Kiev Boryspil airport has performed strongly in its first six weeks, helping the operator post a 52% increase in sales in January compared with January 2003.
ITALY. Rome Fiumicino airport authority and operator Aeroporti di Roma (AdR) has revealed plans to expand its duty-free offer and to open two new shops in the first half of 2004.
FRANCE. The joint venture between French retailers HFP Phénix and Aelia has won the three-year contract to operate fashion at Paris Charles de Gaulle airport (CdG) terminal F.
The purchase of a controlling stake in Dufry by private equity firm Advent International raises intriguing questions for one of the world's leading travel retailers.
UK. BAA has opened the latest phase of retail expansion at London Stansted airport, where just under 30,000sq ft (2,790sq m) of space has been developed over the past year.
CANADA. Border duty-free stores reported a 13.7% decline in sales in 2003 as a result of a drop in tourism following SARS, BSE, forest fires, floods and the most widespread blackout in north American history.
GERMANY. Gebr Heinemann has opened a new 80sq m (860sq ft) Travel Value shop at Hamburg airport.
ISRAEL. Israel Airports Authority has dismissed speculation that Tel Aviv Ben Gurion airport's new international terminal may not be opened until as late as November this year.
UK. The Navy, Army and Air Force Institutes (NAAFI) has reported a £6.5m ($12m) profit for its 2003/04 financial year, capping a £27m ($50m) turnaround from 2001/02 when it posted a loss of £20.5m ($38m).
FRANCE. Travel-retail association AFCOV (Association Française du Commerce du Voyageur) has released the first results of its new AFCOV Index, a study designed to measure sales patterns across key travel-retail locations in France?s Espace Voyageur network.
US. Miami International airport could make substantial changes to its rental structure when it publishes its eagerly anticipated tender for duty-free this summer.

Liquor & Wines

Irish supplier The Roaring Water Bay Spirits Company last month merged with US firm Great Spirits Company (GSC) to form Castle Brands.
World Duty Free (WDF) has unveiled a dedicated Glenfiddich sales unit at London Stansted airport in a bid to improve malt whisky sales at the location.
Kentucky-based Heaven Hill Distilleries has high hopes for its bright blue liqueur brand Hpnotiq in Orlando next month.
Pernod Ricard World Trade (PRWT) has boosted the profile of its Cuban rum brand Havana Club with the introduction of a new reference, enhanced packaging and an additional bottle size.

Tobacco Products

To commemorate 100 years since its founder began making cigars, Dutch supplier Henri Wintermans has unveiled a new logo, and confirmed its commitment to travel-retail.
JC Newman plans to focus its travel-retail efforts on its Cuesta Rey Centro Fino and Diamond Crown Maximus cigars this year, with displays scheduled for this year's Orlando show in March.
Habanos has launched a new humidor in its Montecristo range, one of its best-known brands.
Tax exemption labels on tobacco products destined for the military market are denting margins for both retailers and suppliers, the Navy, Army and Air Forces Institutes (NAAFI) has revealed.

Fragrances

Guerlain Paris is to launch a trio of fragrances into the travel-retail market over the coming months.
Ralph Lauren was the strongest growth brand in travel-retail for L'Oréal in Europe last year with an 11% leap in sales, according to general manager travel-retail Europe, Middle East and Africa Florian Chanet.
Summer fragrances, travel sprays, exclusives and coffrets as well as big launches will be the cornerstones of Estée Lauder's strategy to grow its fragrance revenue over the next five years.

Cosmetics

L'Oréal has announced plans to open stand-alone shops across Europe.
Yves Saint Laurent Parfums has unveiled a promotion for travel-retail called Lip Partners.
Airport pampering brand d_parture spa has revealed plans to roll out another eight sites at the rate of one a year.
Japanese firms Kanebo International and Kao Corp have abandoned plans to form a joint venture.
Estée Lauder coo Fred Langhammer has cited travel-retail as one of the "strong performances" that has driven growth within the company in its second fiscal quarter.

Confectionery & Fine Foods

Italian gourmet food specialist Racconto is targeting the US for a move into duty-free.
Toms Confectionery has unveiled a new all-purpose display system and put together a package of promotional events as part of its new, unified in-store presence.
Swiss Delice has launched Carrés Suisses in a heart-shaped 205g tin with a matt gold finish after showing customers a range of options at Cannes last autumn.
Godiva Chocolatier has broken ranks with other leading chocolate manufacturers to launch a range of gourmet food lines in travel-retail.

Gifts & Electronics

German operator Gebr Heinemann has opened a gifts concept called Destination Hamburg in the new Pier South at Hamburg airport.
German electronics supplier Braun has announced a range of new products for the IAADFS show in Orlando in March.
UK gifts supplier Premier Portfolio has announced its product line-up and strategy for 2004.
Four airlines have ordered Connexion by Boeing, the inflight broadband internet system developed by The Boeing Co.
Mobile communications supplier Motorola has unveiled five additions to its 2004 handset and accessories range.

Jewellery & Watches

Caran d'Ache has announced several new products and redesigned its travel-retail corners.
SAS Flightshop has reported encouraging jewellery sales for the past year, and is confident the sector will grow in 2004.
The duty-free channel is increasingly important for the Parker and Waterman brands and a productive relationship with retailers is set to help the sector expand, according to travel-retail and duty-free director Diane Linon.

Fashion & Leathergoods

Fendi has expanded its accessories collection for the spring/summer 2004 season using a musical theme.
The Patriots Corner kiosk at Boston Logan International airport has enjoyed a sales boom since the New England Patriots won the Super Bowl XXXVIII on February 1.
The fashion division of Italian jeweller Bvlgari recorded the highest growth of the company's different product divisions last year.
After decades of strict control of its distribution channels - a policy that has ensured its absence from travel-retail - reports have suggested that Louis Vuitton may enter the Asian airport market in the year of its 150th anniversary.