Cover Stories

UK. BAA has unveiled a radical new look for its stores at Glasgow, Edinburgh and Aberdeen airports in Scotland
INTERNATIONAL. The industry took a critical and constructive look at itself earlier this month when many of travel-retail’s biggest companies gathered in London for the Global Travel Retail Summit 2005

People & Company

The Tax Free World Association has announced that Chris Patten, former governor of Hong Kong and EU Commissioner, will be the keynote speaker at this year’s TFWA Asia Pacific conference on May 16 at the Singapore Suntec Centre
US travel retailer and catering company HMSHost has announced a major restructuring of its senior management team
More people and company news
Dr Sheikh Ahmed Bin Saif Al Nahyan has been appointed chairman of the Abu Dhabi Department of Civil Aviation by decree of HH the President Sheikh Khalifa
The Raven Fox Awards for Travel-Retail Excellence in Asia/Pacific have become a key industry event, and this year for the first time they are joined by a sister awards programme celebrating achievements in another crucial travel-retail region

Features

By John Rimmer Editor
The diplomatic supply market has become more competitive than ever since the abolition of intra-EU duty-free. Gavin Lipsith speaks to one of the newest companies on the market, Diplomatic Supply Europe, about how it plans to take on its rivals
Roberto Graziani, President and CEO, The Nuance Group
The electronics category continues to show impressive growth year-on-year. But as technological developments gather pace, travel retailers are finding it harder to keep up with the latest trends. Lorna Strickland reports
Many writing instrument companies are broadening their product assortments to include fashion accessories and jewellery. Lorna Strickland looks at some of the reasons why pen brands are branching out into new markets and assesses their success
This year’s Global Travel Retail Summit brought together an impressive line-up of speakers and welcomed the best ever representation of airports at an industry conference. DFNI looks back at the highlights of a packed two-day programmme

Retail News Analysis

JAPAN. As DFNI went to press, airport authority Central Japan International Airport Co was putting the finishing touches to Nagoya’s new airport, due to welcome its first flight on February 17
SPAIN. Spanish ship supplier and port shop operator Provimar has told DFNI that it hopes to open a store at Costa Cruises’ new Barcelona terminal
BELGIUM. The renovation of Brussels Zaventem airport’s non-Schengen retail area is taking longer than anticipated, following the acquisition of airport authority Brussels International Airport Co (BIAC) by Australian group Macquarie Airports
NETHERLANDS. Rival operators are fighting for retail space in Eindhoven airport’s redeveloped passenger terminal, which is due to be completed by May
INTERNATIONAL. European Travel Retail Council president Frank O’Connell has called on the trade to become more involved in funding and assisting industry associations, if it wants to be recognised as a legitimate voice by the world’s legislators and the general public
INTERNATIONAL. The Nuance Group president and CEO Roberto Graziani has insisted that walking away from under-performing operations is “very much a last resort” for the company
SCANDINAVIA. SAS Trading has announced increases in its operating revenue and net income for the financial year to December 31 2004 compared with 2003
FINLAND. Helsinki-Vantaa airport’s refurbished non-Schengen duty-free shop, operated by the airport, has recorded a 30% sales increase since it opened last September
SINGAPORE. King Power International, a subsidiary of King Power Group (Hong Kong), has topped the bidding for a new travel products shop concession at Singapore Changi airport terminal one, departure lounge east
FRANCE. Aéroports de Paris (AdP) is to choose between French firms HFP Phénix and CDG Participations when it announces its choice of fashion operator for Paris Charles de Gaulle terminal one later this month
US. The Nuance Group has won the concession to operate duty-free stores at George Bush Intercontinental airport in Houston
UK. Alpha Airports Group has again revised its profit forecast for the year ended January 31 following the Asian tsunami and greater than expected start-up costs at new operations
LATIN AMERICA. Spanish travel retailer Aldeasa has secured a 10-year extension to its contract to run the duty-free outlets at Santiago Arturo Merino Benitez airport
EU. The European Union is considering a set of proposals on chemicals registration that could dramatically increase retail prices in many categories, including fragrances, cosmetics, confectionery and toys
CYPRUS. The European Travel Retail Council (ETRC) has granted associate membership to Cyprus Airways Duty Free Shops, allowing the retailer to represent its country’s travel-retail interests on the ETRC board
INTERNATIONAL. The inaugural Raven Fox Global Travel Retail Awards were held in London on February 3, honouring the world’s top retailers across all sales channels
LATVIA. Riga International airport is building a new terminal following strong growth in passenger traffic in the past few years
The Raven Fox Ball, held on February 3 in London, raised a record amount for charity as the travel-retail industry dug deep to support the work of Unicef in Beslan following last September’s terrorist atrocity

Liquor & Wines

Sky Connection and Diageo are working hard to make up for lost time after their year-long failure to agree satisfactory supply terms was finally resolved last November (DFNI Feb 1)
Whyte & Mackay has launched a new travel-retail exclusive special cask finish Dalmore malt whisky
A new premium cognac branded Chunghwa XO has been introduced at DFS outlets under an exclusive agreement between Shanghai Tobacco Group, DFS Group and Camus Cognac
Bacardi hopes to repeat the global success of diet soft drinks and light beers with the launch of the world’s first low-calorie rum, Island Breeze

Tobacco Products

UK airport retailer World Duty Free (WDF) has introduced a higher certificate in cigar retailing for its staff
The European Travel Retail Council (ETRC) has warned the industry to be “vigilant and prepared” as the World Health Organization’s Framework Convention on Tobacco Control (FCTC) is passed into international law at the end of this month
Philip Morris International’s worldwide duty-free division is in bullish mood after announcing a 7.2% increase in sales volumes in 2004
The European Union has expressed concern over the growth of counterfeit and pirated goods flowing into the region

Fragrances

Unilever has unveiled its programme for new limited editions and summer fragrances for 2005
Italian beauty brand Diana de Silva is poised to sell some or all of its business
Counterfeiting in the fragrances segment presents a greater threat to brand value than the grey market, according to Lancaster Group worldwide senior vice-president Axel Dietz

Cosmetics

First Choice Airways is to trial a new beauty therapy service on board selected long-haul flights from the UK to Cancún and Cozumel in Mexico from May
Parfums Christian Dior has called on airports to drop the high rental fees charged for the use of promotional space outside duty-free shops
Suncare brand Piz Buin is keen to re-establish its presence in UK travel-retail after dropping out of the sector last year owing to competition from the domestic market

Confectionery & Fine Foods

Multi Duty Free Dept, the agency formed by Paolo Berentzen and his wife Dagmar when Dufre went into liquidation last year (DFNI November 15 2004), has been appointed to represent Italian pasta company Pastificio Dalla Costa, which manufactures a range of Disney-branded products under licence
Premium Belgian chocolate manufacturer Neuhaus enjoyed a record Christmas, with sales at European airports up by between 30% and 50%, according to international sales director Philip Geeraert
The future of specialist confectionery retailing at London Heathrow terminal two is unclear following the closure shortly before Christmas of a 460sq ft (43sq m) outlet operated by Belgian Sky Shops (BSS) subsidiary The Chocolate Company

Gifts & Electronics

Electronics supplier Sony won the Travel Retail Super Brand of the Year award at the first Raven Fox Global Travel Retail Awards earlier this month
German miniature camera supplier Minox has developed its first multimedia device incorporating a digital camcorder, digital camera, MP3 player and dictaphone
Electronics online and travel retailer Dabs.com has told DFNI that sales fell by 5% over the peak Christmas season last year compared with the same period in 2003
Germany-based electronics distributor Pacific and Atlantic Sound Co (Pasco) has signed a distribution deal with fashion accessories and outdoor apparel supplier Jack Wolfskin
Dutch airport retailer Take Off Multitronics is to open three outlets at Munich airport
Netherlands-based distributor Dufri International has signed new distribution agreements with Kodak, Krups, Rowenta and Tefal

Jewellery & Watches

Swiss retailer Dufry Group has opened a Bijoux Terner fashion and accessories store at Singapore Changi airport
Vienna-based jewellery supplier Frey Wille has told DFNI that it is seeking stand-alone opportunities in Hong Kong
Scandinavian jewellery and homewares supplier Georg Jensen has launched its first men’s jewellery line for both domestic and travel-retail markets
The jewellery and watchmaking arm of Italian fashion house Versace is preparing to showcase its latest timepieces at the BaselWorld industry watch and jewellery show in April
UK-based supplier and distributor Premier Portfolio has developed a watch set in association with Fitness First health clubs
More jewellery news

Fashion & Leathergoods

Bologna-based leathergoods house a.testoni has created its first travel-retail position, head of travel-retail worldwide, as part of its expansion drive into the channel in 2005
Texier has created four collections for the spring and summer seasons designed to appeal to a wide variety of consumers
A new accessories brand named Kikuoka Italy will be unveiled at the end of the month in Milan during the city’s fashion week
The new Peru Plaza retail area at Lima Jorge Chavez International airport, which was opened earlier this month, features a strong fashion element designed to improve the image of the previously outdated facilities at the airport