Cover Stories
INTERNATIONAL. In a welcome boost to the global duty-free business at the end of a tough year, one of the market's leading operators DFS Group posted a fourth-quarter recovery and returned to profit.
RUSSIA/CIS. Aer Rianta International (ARI) is pressing ahead with heavy investment in new stores at Moscow Domodedovo, Kiev and St Petersburg airports, under plans to expand its business in Russia and the CIS.
Features
A recent exclusive DFNI survey of European travel retailers reveals that the struggling liquor category faces tough obstacles in 2004. Yet areas of growth remain and there are reasons to be optimistic, writes Joe Bates.
Selling expensive fine wines in the hectic airport environment requires great skill and a steady stream of wealthy travellers. Joe Bates meets Berry Bros & Rudd Heathrow manager Chris Mathews for a guided tour of the company's terminal three store to find out more.
Long-term changes in the champagne market could mean growth opportunities for sparkling wine producers. Joe Bates talks to Freixenet and Codorníu, two Spanish cava brands blazing a trail for sparkling wine in travel-retail.
Annual footfall of 40m people makes Zhuhai's Gongbei border duty-free shop the biggest and busiest in China, if not the world. Anna Fenton braved the January crowds two days before Lunar New Year.
Many travel retailers - and many passengers - consider arrivals shops to be the poorer cousins of departures stores. As Lorna Strickland discovers, retailers can do much to raise awareness and to increase sales.
Heightened security at US airports over the past two years has convinced many authorities to look airside for their retail revenue. But, as Sheldon Klapper from the Center for Airport Management tells Gavin Lipsith, all is not lost for landside retailers.
Retail News Analysis
US. Bidders in the tender to run retail at Minneapolis-St Paul International airport are to submit final proposals on February 12.
CHINA. Beijing Capital International Airport is to manage duty-free in-house at the airport's third terminal when it is opened shortly before the 2008 Olympic Games.
PHILIPPINES. The Philippine supreme court has declared that the government must pay compensation to Fraport-led consortium Philippine International Air Terminal Corp in order to take control of Manila Ninoy Aquino International airport's new terminal.
NORTH AMERICA. The Nuance Group has outlined ambitious plans for its north American business in 2004, and has confirmed it is interested in tenders for duty-free space at Chicago O'Hare and Miami International airports due later this year.
UK. Alpha Airports Group has restructured to bring its Flight Services management into line with its airport retail business.
BELGIUM. Brussels International Airport Co is expecting strong retail results despite the travel industry suffering from "every calamity but a grasshopper plague" in 2003.
SWITZERLAND. The Nuance Group recorded revenues of SFr1.68bn ($1.37bn) in 2003, a drop of almost 2% compared to 2002.
ASIA/PACIFIC. At the company's annual general meeting on January 29, WH Smith announced it is to review its strategic options for its Asia/Pacific division, which runs airport outlets in locations including Hong Kong and Singapore.
INDIA. Airports Authority of India (AAI) is to increase the retail space on offer at Mumbai and Delhi airports when it releases renewed tender documents for new duty-free areas this month.
UK. Alpha Inflight Retail will take over the inflight sales operation for MyTravel on May 1, coinciding with the launch of the carrier's spring/summer inflight brochure.
ESTONIA. SAS Trading has extended its duty-free contract at Tallinn airport until 2009. The operator will double its space at the location after winning the tender for a new 130sq m (1,400sq ft) shop.
Does China still represent the future of travel-retail and tourism? According to the World Tourism Organization (WTO), sound reasons to be positive remain despite a 6% fall in tourist arrivals to China in 2003.
IRELAND. Despite the threatened break-up of Aer Rianta, plans to develop commercial operations at the Irish airports group's key locations are proceeding, retail director Frank O'Connell has told DFNI.
US. Passengers are spending 25 minutes longer at US airports since security measures were introduced after September 11 2001.
RUSSIA. Multi-industry conglomerate Alfa is to invest up to $2bn in Moscow Sheremetyevo airport after outbidding a consortium including Russian airline Aeroflot and French airport authority Aéroports de Paris for the three-year contract.
INDIA. India Tourism Development Corp (ITDC) is to change prices in its duty-free stores from dollars to euros following the US currency's recent drop in value.
US/BOLIVIA. Inflight concessionaire Duty Free Air and Ship Supply has won a long-term contract to operate duty-free onboard Bolivian flag carrier LAB Lloyd Aereo Boliviano.
UK. EasyJet plans to change all aspects of its onboard duty-free operations, following its successful participation in the Inflight Sales Person of the Year workshops and awards in November.
Liquor & Wines
Allied Domecq Duty Free joined forces with World Duty Free for a large Courvoisier cognac promotion at Gatwick airport South terminal last month.
Alpha Retail has called on more spirits manufacturers to supply PET (plastic) versions of their brands after UK politicians last month urged the British government to ban glass bottles on planes because of their potential threat as terrorist weapons.
Half of European travel retailers predict liquor sales will fall in 2004, according to an exclusive DFNI survey published this month.
Tobacco Products
The UK's London Luton airport has announced encouraging growth in tobacco sales for 2003 and said it is optimistic about the coming year, despite the uncertainty surrounding the category's future.
British-American Tobacco (BAT) has presented a strong case to the South African government for the retention of duty-free tobacco sales, focusing on the economic and social impact any ban would have on the country.
The tobacco industry in the European Union has received a boost with the news that the European Commission has resisted French proposals to impose higher taxes on cigarettes.
Fragrances
Retailer Rose Valenti is to operate a new 550sq ft (50sq m) landside fragrances store in terminal A at Newark Liberty International airport.
L'Oréal Luxury Products Division plans to drive revenues in travel-retail organically and aims to achieve double-digit growth in 2004 according to international marketing director travel-retail worldwide Jean-Michel Bostroem.
Dutch brand Oilily is poised to increase its duty-free fragrance presence across the Americas.
The Henkel Group's fragrances division Morris Profumi is set to expand and plans to strengthen its portfolio.
Cosmetics
Male skincare brand Zirh is to widen its new marketing campaign following a successful launch in London Heathrow airport last year.
The Falic Group-owned brand Hard Candy will get a new look when it is launched in Japan in March this year.
Estée Lauder senior vice-president general manager travel retailing worldwide Olivier Bottrie has told DFNI that the company will focus on emerging markets such as China, Russia and eastern Europe to secure travel-retail growth in coming years.
Confectionery & Fine Foods
Helios Airways, a privately owned company established in 2000, is gearing up for Cyprus's entry to the European Union this summer.
Fine foods operator World of Delights has received the go-ahead for a new, bigger store in Amsterdam Schiphol terminal one and for a Say Cheese booth in the same terminal, replicating its outlet in T3.
Masterfoods International Travel Retail has seized the growing opportunity offered by low-cost and charter airlines by creating a Masterfoods Inflight Snackbox.
Kraft Foods World Travel Retail Division has launched a series of spring and Easter limited editions for Toblerone and Milka in a bid to capitalise on the incremental sales potential of seasonal lines.
Gifts & Electronics
Danish toy supplier Uniset has unveiled a selection of Magic Sticker products for the duty-free market.
UK electronics supplier Oregon Scientific has introduced a slimline clock designed specifically for travellers.
North American computer and electronics supplier Apple has introduced a smaller version of its best-selling iPod.
UK gifts supplier Halcyon Days launched its spring range in duty-free markets at the end of January.
Jewellery & Watches
Cat Design has reported solid sales for its Carlo Gioielliere line, and Cat international director sales and marketing Richard Thorpe told DFNI that he believed the brand's presence in travel-retail would increase substantially in the coming months.
Oxygen has reported an "excellent start" to 2004 for its Travel Time brand, launched at last October's TFWA World Exhibition in Cannes.
UK watch supplier Rotary has introduced two new designs to its Big Date line. The new models are a stainless steel bracelet version, with a domestic price of £140 ($255) and a black leather strap variant at £110 ($200).
Fashion & Leathergoods
Italian leathergoods house i Santi is converting its four Football Corner airport stores in Portugal into Euro 2004 outlets by the end of February in preparation for the UEFA European Championships taking place in Portugal next summer.
Jean Paul Gaultier has confirmed it will return to Asian travel-retail in 2005 after withdrawing over three years ago.
Aéroports de Paris will reveal the new operator of a raft of fashion stores in Paris Charles de Gaulle airport terminals F1 and F2 this week.
French luxury conglomerate LVMH Moët Hennessy-Louis Vuitton suffered a 6% fall in sales in 2003, down from Eu12.69bn ($16.06bn) to Eu11.96bn ($15.14bn).

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