Cover Stories

BRAZIL. As DFNI went to press, speculation was mounting over the possible sale of leading Brazilian travel retailer Brasif Duty Free Shop
INTERNATIONAL. DFS Group will continue its strategy "to achieve a more upmarket positioning" in 2006 and beyond, according to parent company LVMH Moët Hennessy-Louis Vuitton
SPAIN/INTERNATIONAL. Aldeasa's revenues rose by 5.4% year on year to €646.9m ($779.4m) in 2005, helping to boost profits at parent group Autogrill, whose consolidated results were announced on March 15

Insight

Any operators feeling sorry for themselves over space constraints or onerous contract terms should read the "Storm Troopers" article
A story on the cover of the February 15 issue of DFNI caused something of a stir within the inflight retail industry
It's not difficult to see the attraction of Bijoux Terner for Arcapita, the investment firm that has acquired the Miami-based jewellery and accessories company for $90m
Low-cost terminals are the latest must-have accessory for some of the world's leading airports. This month sees two of the most high-profile of these facilities open their doors, at Singapore Changi and Kuala Lumpur International airports. But the trend is not confined to Asia. Marseille-Provence airport has launched retail tenders for its new budget terminal, and it is unlikely to be the last to do so
There has been no worthier winner of the Raven Fox Lifetime Achievement Award than Liam Skelly, the Aer Rianta veteran who accepted the honour at the Global Travel Retail Awards in London on March 10
Fans of the risqué adult cartoon South Park will be familiar with the catchy tune Blame Canada, a parody of the perceived US reaction at times of national peril. Judging by some attitudes expressed within the US congress, the parody is not far off the mark
The recent performance of LVMH and other luxury goods companies is a useful barometer for travel-retail's fortunes. We could even be entering one of the best periods ever of sustainable industry growth
In the February 15 issue of DFNI, we ran a feature on the diplomatic and military market in which Emily Pacey talked to operators Chacalli-De Decker and Diplomatic Supplies Europe about pressures on pricing in Europe, especially on tobacco. The discussion about price cutting in the feature prompted the following response from International Diplomatic Supplies managing director Patrick Doyle, to whom we are happy to allow the right to reply
The words of LVMH Moët Hennessy–Louis Vuitton chairman Bernard Arnault upon the publication of his company's annual results earlier this month must have been music indeed to eager listeners in Hong Kong

People & Company

Godiva Chocolatier international travel-retail manager Gerry Murray is to leave the company at the end of March
More people & company news
Nuance-Watson (Singapore) executive general manager Ken Tse has taken on an extra role as The Nuance Group global head of category fragrances and cosmetics with immediate effect

Features

The fifteenth ACI Europe Airport Trading Conference and Exhibition was held in London from February 28 to March 1 and hoped to challenge the "status quo" of airport retailing. DFNI reflects on the key sessions of an event that underlined the importance of investment
John Gallagher recently visited Madrid Barajas airport for a tour of the new terminal four development. He speaks to Aldeasa commercial director Lorenzo de Benito and his deputy Angel Paredes about a revolutionary approach to airport retailing
As recovery in the Mercosur region continues, ASUTIL secretary-general José Luis Donagaray talks to John Gallagher about the association's recently-announced changes to the board and its plans for the next conference in Santiago
The LVMH-owned company celebrated a strong return to form in 2005 by securing the top prize at the Raven Fox Global Travel Retail Awards, presented in London on March 10. Here DFNI reports on the highlights of the event
Travel-retail exclusives are a mainstay of the beauty business. But does their number outweigh their value to US retailers and consumers? Tina Milton reports
The Boolchand's Group has enjoyed a long and illustrious history in Caribbean retailing, celebrating its 75th anniversary last October. Chairman Ram Boolchand tells Lorna Strickland how the year marked a change in operations
Keeping their citizens safe is the understandable priority for most of the world's governments in today's geopolitical climate. But North American border retailers fear the obsession with security will have a big economic impact. John Rimmer reports
Havana Club has fought long and hard in the past decade to defend its Cuban credentials. Joe Bates travelled to the brand's biennial cocktail competition in Havana to find out more about the company's plans to grow its international business
Last year, hurricanes tore through the Gulf of Mexico laying waste to lives, homes and businesses. The travel-retail industry suffered serious losses from which it is only now recovering. Emily Pacey discovers what work remains to be done and finds that the memory of the worst hurricane season on record is still fresh in the minds of travel retailers
Delegates to the first India Duty Free Workshop in Cochin last month were under no illusions about the enormity of the task they face in bringing the country's industry up to international standards. But, writes Gavin Lipsith, their pragmatism was seasoned with a big dose of optimism
Last year's Americas Travel Retailer of the Year, Argentinian duty-free operator InterBaires, is continuing a programme of renovations at Buenos Aires Ezeiza International airport. How close is it to meeting its own ambitious targets for growth? John Gallagher talks to InterBaires president and CEO Enrique Urioste to find out
Peru's capital Lima already welcomes considerable tourist traffic and its airport boasts an enviable commercial mix. John Gallagher talks to Lima Airport Partners commercial director Jan Laufs and retail product manager Fiorella Carty about plans to increase commercial activity at the airport and develop the Peru Plaza concept
Established over 60 years ago, London Supply is one of the most experienced operators in the world. Although it has diversified into airport management, duty-free remains its core business. John Gallagher takes an in-depth look at one of South America's oldest travel retailers
As the dust settles after the hotly-contested duty-free tender at Miami International airport last year, Tina Milton speaks to commercial operations manager Patricia Ryan about a busy year ahead for the airport
Raven Fox senior research manager Sandra Newman analyses the latest travel data for the Caribbean to establish how 2005's record hurricane season has affected tourism in the region
Princess Juliana International Airport Operating Co on the island of St Maarten is at the forefront of aviation investment in the Caribbean. John Rimmer talks to president Eugene Holiday about the retail line-up in the airport's new terminal, set to open in July
As Ciudad del Este struggles to find its role in the 21st century, John Gallagher visits the Paraguayan border city and talks to local entrepreneurs about their plans to develop duty-free there
As cruiseships move closer to becoming 'floating malls', land-based duty-free retailers in the Caribbean are being forced to fight their corner. Tina Milton reveals how they plan to compete
As Ciudad del Este struggles to find its role in the 21st century, John Gallagher visits the Paraguayan border city and talks to local entrepreneurs about their plans to develop duty-free there
John Gallagher recently visited Madrid Barajas airport for a tour of the new terminal four development. He speaks to Aldeasa commercial director Lorenzo de Benito and his deputy Angel Paredes about a revolutionary approach to airport retailing

Retail News Analysis

HONG KONG. Liquor and tobacco operator Sky Connection is set to boost its store portfolio with the addition of a new outlet at Hong Kong International airport
SINGAPORE. Concession revenues will play a crucial role in the Civil Aviation Authority of Singapore's (CAAS) aim to make Singapore Changi's new budget terminal pay for itself within 10 years, the landlord told DFNI
US. Miami International airport has revealed further details of plans to introduce 12 new duty-free locations—covering 35,841sq ft (3,330sq m)—across the north and south terminals
MEXICO. Dufry Group has opened its new shopping centre at Mexico City International airport
SPAIN. Spanish airport authority AENA has completed the renovation of the airside commercial zone at Bilbao airport
North America. Hachette Distribution Services (HDS) is to redesign its network of Relay airport stores in North America over the months ahead.
DENMARK. Copenhagen Kastrup airport landlord Copenhagen Airports has confirmed that it has shortlisted eight operators in the tender to run duty-free at the location
CANADA. Figures released by the Frontier Duty Free Association point to a bleak year for Canadian border operators in 2005, with the industry posting a 6.8% fall in sales compared with 2004
SRI LANKA. The travel-retail industry has promised to continue its support for the tsunami-stricken villagers of Palliyawatte after funding the creation of 20 homes at a new settlement 10km inland from the original site
MACAU. DFS Group and Las Vegas Sands Corp have signed a deal allowing the travel retailer to occupy a big space at the hotel group's Four Seasons Hotel Macau on the Cotai Strip, Asia's biggest gambling resort
US. US retailer and distributor Fairn & Swanson has announced the opening of a new distribution warehouse for Baja Duty Free, its retail division on the US' southern border
US. Northwest Duty Free Stores aims to increase sales by up to 15% in 2006 through store renovations, an aggressive marketing programme and its new Future of Flight store in the Boeing Tour Centre at Everett Washington airport
CHILE. SCL, the airport management concession holder at Arturo Merino Benitez International airport in the Chilean capital Santiago, has announced profits of $4m in 2005 and is forecasting an increase to $7m in 2006
The airport's proximity to Auckland and increased trans-Tasman traffic have resulted in strong growth at the airport, said Duty Free Stores operations and marketing manager Grant Archibald
NORWAY. Norwegian ferry operator Color Line is to launch two new fast ferries in 2007 and 2008
CROATIA. Duty-free sales at Dubrovnik airport increased by 29.2% last year to reach just over €7m ($8.43m)
PARAGUAY. Paraguayan duty-free retailer La Petisquera president Mohamed Said "Alejandro" Mannah has told DFNI that his company is to open duty-free outlets at Asunción Silvio Pettirossi International airport
UK. Alpha Inflight Retail has been awarded the retail concession on board UK low-cost carrier FlyJet
NETHERLANDS ANTILLES. Princess Juliana International airport (PJIA) on St Maarten is close to completing the line-up of concessionaires in its new terminal, scheduled to open in July
HONG KONG. Hong Kong International airport's (HKIA) SkyMart enjoyed a sales increase of 20.3% in January compared with the same month last year. In February the retail facility posted total sales of HK$615m ($79.2m), representing a rise of 6.1% compared with February 2005.
BAA USA vice-president and regional director Mark Knight has confirmed his participation in the panel discussion Airport Retail in a New Age at the Global Travel Retail Summit, to be held at London's Millennium Gloucester Hotel on June 21–23
US. Cincinnati/Northern Kentucky International airport is to waive minimum annual guarantee payments from retailers in 2006 to help them through the slump caused by Delta Air Lines' route cutbacks
PARAGUAY. Asunción-based duty-free operator Bright Star Business Corp posted a 38.8% year-on-year sales increase in 2005. The company runs stores at Asunción Silvio Pettirossi airport and holds the inflight concession on board TAM Mercosur
FRANCE. Airports group Aéroports de Paris (AdP) has responded to the French government's approval of the Espace Voyageur concept by adapting signage at its flagship airport, Paris Charles de Gaulle (CdG)
UK. The Raven Fox Global Travel Retail Awards were presented on March 10 at a special ceremony during the DFNI publisher's annual Ball, which this year benefited Colombian charity Hogar Camino de Esperanza (the Path of Hope Home). The double celebration helped raise a preliminary total of $100,000 for the Bogotá-based charity, which shelters and provides an education for young girls who have been victims of abuse

Liquor & Wines

Duty-free operators in the Americas have predicted a strong performance from their liquor businesses in 2006, but some have voiced concerns about heightened security measures and supplier consolidation
Haleybrooke International has been appointed as the exclusive US duty-free distributor for herbal digestive brand Underberg
Demerara Distillers will unveil a new duty-free exclusive rum at this month's Duty Free Show of the Americas in Fort Lauderdale
Heineken will launch a new light beer at the Duty Free Show of the Americas, aimed at the increasing number of light beer drinkers in the US
Duty-free beer retailers are braced for a fall in sales if the European Commission's proposed changes to duty-free allowances for travellers entering the EU are approved

Tobacco Products

By Gavin Lipsith Tobacco products editor
Swiss premium cigar supplier Davidoff has stated its faith in the recovery of the US aviation market with the launch of a new product designed exclusively for international airlines
UK tobacco manufacturer Gallaher has attributed a drop in UK domestic sales to British travellers returning home with large quantities of cigarettes
Two new travel-retail developments in Hong Kong are expected to provide retailers and suppliers with a significant boost to tobacco sales when they are opened later this year

Fragrances

Canadian border retailer Blue Water Bridge Duty Free is to adjust its pricing strategy to make its beauty offer more attractive to US consumers in view of the strong Canadian dollar
The Lancaster Group is to introduce the Summer Fizz collection from core brand Davidoff this month in Europe, Asia and central and Latin America
Northwest Duty Free Stores has enjoyed a 10% increase in beauty sales over the past four years, which the US operator attributed mainly to sales of travel-retail exclusive items. Beauty now accounts for 41% of total sales at Northwest

Cosmetics

Spa concept Be Relax plans to increase its expansion drive this year with the introduction of six new outlets
General manager of Bahamas-based cosmetics outlet The Beauty Spot Timothy Lightbourn has insisted that the grey market and poor availability are still the two biggest factors that hinder the beauty category
Aer Rianta International (ARI) has postponed the opening of a 70sq m (753sq ft) Runway Beauty store at Moscow Domodedovo airport. The outlet will be located at the front of the second level, beyond passport control
Men's beauty brand Grooming Lounge plans to make its duty-free debut later this year and is in negotiations with Miami, New York JFK and London Heathrow airports as well as locations in the UAE. It aims to introduce its products to the market by the third quarter of 2006.

Confectionery & Fine Foods

Switzerland-based distribution company Francis Selection, which has specialised in Belgian chocolates since its establishment two years ago, is poised to take its portfolio beyond Europe
Chase International will unveil new launches for Hershey's and Irish premium chocolate specialist Lily O'Briens at the Duty Free Show of the Americas in Fort Lauderdale this month, when it will also introduce Belgian speciality chocolatier Starbrook Airlines to the Americas market (DFNI February 15)
Milka will form part of a two-pronged focus for Kraft Foods World Travel Retail at the Duty Free Show of the Americas, reflecting its growing presence in the region according to a Kraft spokesperson
Masterfoods International Travel Retail (MITR) is rolling out a programme promotions in arrivals shops on the Indian sub-continent, aiming to capitalise on what MITR consultant Stuart Bull calls a "huge opportunity"

Gifts & Electronics

Toy supplier Hasbro has announced its first licensing agreement with comic book company Marvel
Netherlands-based electronics supplier Philips is to sharpen its approach to the travel-retail industry this year with aims to grow its global presence in the channel
Austrian crystal and homewares supplier Swarovski has launched a range of accessories and gifts for the home, focusing on an ice theme

Jewellery & Watches

Caribbean downtown and duty-free retailer The Boolchand's Group is preparing to expand its network of jewellery stores
US watchmaker Pevazi has joined forces with German supplier and agent Culto in a bid to expand its travel-retail presence
Jewellery supplier and retailer Tateossian is celebrating its fifteenth year in UK retail this year and is promoting its British heritage with a range of campaigns

Fashion & Leathergoods

Christian Lacroix has confirmed it will enter the travel-retail channel in the third quarter of this year. The brand was acquired by the Falic Group—owner of Duty Free Americas (DFA)—in January 2005
Duty-free newcomer Moonsus Designs is to exhibit its luggage and bags range for the first time at the Duty Free Show of the Americas in Fort Lauderdale this month. It has expanded rapidly in North American travel-retail thanks to its relationship with HMSHost
Marc O'Polo is finalising plans for its fourth and fifth travel-retail stores. Next month the German fashion house, which is positioned in the "premium casual" sector, will inaugurate an 80sq m (860sq ft) store in zone B of the shopping mall at Frankfurt airport, which will be followed by a 120sq m (1,2990sq ft) store at Düsseldorf airport in the second quarter of 2006. Both outlets will be operated directly by Marc O'Polo
Italy's Luxottica Group has poached another big eyewear brand from its rival Safilo after signing a licence agreement with Polo Ralph Lauren
Swiss leathergoods and fashion house Bally has created its first dedicated travel-retail division, to be based in New York
Canadian leathergoods and accessories brand Club Rochelier is returning to the Duty Free Show of the Americas in Fort Lauderdale after an absence of two years. The supplier is aiming to expand its airport presence in Canada and the US
Basel-Mulhouse airport will open its enlarged departures shopping area this April with fashion outlets taking prime positions in the facility. All retail outlets will be operated by Dufry Group, whose global headquarters are located in Basel
Hugo Boss has opened its first two combined menswear and womenswear stores in travel-retail. The first outlet was inaugurated at Prague Ruzyne airport in January, and the second at Frankfurt airport last month