Cover Stories

SERBIA/INTERNATIONAL. Dufry Group has signed a contract with Aerodrom Beograd to operate all landside and airside duty-free and duty-paid shops—as well as existing and future food and beverage outlets—at Belgrade airport
UK. Australian bank Macquarie is the latest name tipped to join forces with Grupo Ferrovial to bid for UK airports group BAA. As DFNI went to press, reports in the UK press suggested that a joint deal could emerge "within days"
INDIA. Leading international retailers have registered their interest in the Indian duty-free market as projects to build new airports in Hyderabad and Bangalore take shape

Insight

Duty-free exclusives have often been labelled as the saviour of airport retail
As the old English saying goes, you should never count your chickens before they've hatched
When the Japanese tourist stopped travelling after September 11 2001, few destinations were hit as hard as Hawaii
In an issue of DFNI last year, my colleague Dermot Davitt devised a new, extremely simple means to measure an airport store's performance—the "shopping bag" test
Agility, flexibility and the ability to spot trends before they become mainstream are necessary tools in any modern retailer's armoury. The best high street fashion stores reproduce the latest looks just days after the catwalk shows. But is the travel-retail industry as quick off the mark?
The India Duty Free Workshop, held in Cochin last month, was a pleasure to attend and not just for the warmth and hospitality of our Keralite hosts
One of the most fascinating aspects of our industry is the variation in purchasing motivation among the different nationalities that visit the world's duty-free shops

People & Company

Following a meeting to elect a new board, South American trade association ASUTIL has named Walter Zeinal of Zeinal Hermanos as president. His term will run from 2006 to 2008

Retail News Analysis

RUSSIA. Moscow Domodedovo airport authority East Line Group expects to call tenders for new landside retail and airside duty-free space in September this year
COLOMBIA. With only six weeks to go before the deadline for bids to renovate and manage Bogotá Eldorado airport, only four companies have purchased tender documents from Colombian civil aviation authority Aerocivil
US. Atlanta Hartsfield Jackson International airport is expected to call tenders for most of its retail concessions later this year as the airport authority considers an overhaul of its retail business
PANAMA. Following the postponement of the duty-free tender at Panama's Tocumen International airport last December, DFNI understands the process will be relaunched in March.
UK. Inverness airport has confirmed that it is in talks with incumbent operator Alpha Retail with a view to expanding its retail and catering facilities at the airport
UK. The Office of Fair Trading (OFT) has launched a second investigation into charges levied by Mastercard just six months after the UK watchdog published a report condemning the credit card firm for breaching the country's competition law
HONG KONG. Airport Authority Hong Kong has reported an "overwhelming response" to its latest tenders for new space in the airport's luxury East Hall retail area
DENMARK. Copenhagen Kastrup airport is to overhaul the area in front of The Nuance Group's main tax-free store in international departures this month
INDIA. The Indian travel-retail industry is to seek the help of the Asia Pacific Travel Retail Association (APTRA) to lobby for changes to government regulations restricting the growth of the business
EGYPT. Six companies have been shortlisted for the retail tender at Sharm el Sheikh airport and will shortly submit financial bids
SPAIN. AENA is to consider slashing concession rents at Madrid Barajas terminals one, two and three. Since T4 and its satellite terminal opened last month, passenger traffic at the older terminals has fallen by more than 50%
HONG KONG. Nuance-Watson (HK) is testing initiatives to increase penetration in its stores at Hong Kong International airport
LATVIA. Riga International airport has revealed the winners of its recent retail tenders, which concerned five outlets in its departures area. Contracts will take effect in the next few months
INDIA. A strong turnout of airport authorities, retailers and suppliers gathered at the India Duty Free Workshop in Cochin on February 21–23 for an event that underlined the latent promise of the sub-continent's duty-free market
INTERNATIONAL. Airports Council International (ACI) has warned its members that an avian flu epidemic could prove "far more significant" than the 2003 SARS outbreak, which had a serious impact on passenger traffic and duty-free sales at airports popular with Asian travellers
NEW ZEALAND. Auckland International Airport Limited (AIAL) plans to increase the space dedicated to arrivals retail as part of a NZ$100m ($67m) investment in its international terminal
MONTENEGRO. Regal GH, the joint venture between Slovenian operator Regal and Gebr Heinemann, has won the contract to operate duty-free shops at Montenegro's Podgorica and Tivat airports.

Liquor & Wines

Sparkling wine suppliers have reported robust rises in travel-retail sales, but some leading operators in markets with strong champagne sales are reluctant to give the category shelf space.
Brown-Forman Wines will introduce a line of Virgin branded wines at the Duty Free Show of the Americas in Fort Lauderdale next month. The Virgin Vines range was developed in partnership with Virgin Group of Companies chairman Richard Branson
Ian Macleod Distillers is to launch a single malt Scotch whisky brand aimed at Islay malt whisky lovers
Independent duty-free distributor Criollo Supreme Brands has added several premium wines and spirits brands to its growing portfolio

Tobacco Products

Belgian cigar producer Vandermarliere has announced that it has changed its name to adopt the branding of its flagship cigar J Cortès
Thailand's duty-free stores could be the next Asian outlets to be subject to a ban on duty-free tobacco shelf displays, according to a report in the Bangkok Post
Imperial Tobacco is to maintain its focus on British cigarette brands in US travel-retail, concentrating on Lambert & Butler, Superkings and Regal
Swiss cigar manufacturer Villiger has unveiled its latest extension to the Villiger Premium Line, Villiger Premium Slims

Fragrances

Beauty sales are set to benefit from changes to stores at New York JFK airport terminal one, where International Shoppes operates retail space.
US fashion designer Betsey Johnson has signed a deal with fragrances and accessories specialist Colorful Licenses to produce and distribute her new signature fragrance
Maldives duty-free beauty operator Lintel reported a 33% sales drop at its Malé operations in 2005. According to research and development director Mahmood Razee the decline was a direct result of the tsunami and its aftermath
Idesa Parfums, creator and manufacturer of women's fragrance Mandarina Duck, is to continue the brand's international expansion by entering the US domestic market followed by airports in the North America region. The fragrance will be sold exclusively at Barney's NY stores in March

Cosmetics

Airports group BAA is to introduce its new Rejuve well-being concept on the airside mezzanine level at London Heathrow terminal one in May.
Estée Lauder is to introduce Perfectionist Power Correcting Patch for Eyes to travel-retail in April to support its growing portfolio of skincare products
Origins has unveiled its latest range of products to optimise the skin's defences against anti-ageing, in collaboration with health expert Dr Andrew Weil

Confectionery & Fine Foods

Nestlé International Travel Retail (NITR) claims that category management played a crucial role in making 2005 another record year for the company. "Results were better than expected and were boosted by our strategy of targeting specific sub-categories," said acting general manager Iain Harrison
Kraft Foods World Travel Retail aims to expand its programme of Mirabell Mozartkugeln events with leading operators after it achieved a 50% year-on-year increase in volume sales with several retailers in recent weeks
Godiva Chocolatier expects the Truffle Collection, launched at TFWA World Exhibition in Cannes last autumn, to be a main attraction at the Fort Lauderdale show this month. North America was one of Godiva's best-performing regions last year
Paton's Macadamias has appointed specialist agent Abbott Duty Free Confections (ADFC) to drive expansion in the US and the Caribbean. Initial plans include the launch of Macadamia Sensations at the Duty Free Show of the Americas in Fort Lauderdale this month.

Gifts & Electronics

The Nuance Group is to open a new gifts store at Stockholm Arlanda airport. Swedish Design will feature a range of popular giftware and glass items from traditional Swedish brands, including Kosta Boda, Design House Stockholm and Orrefors
Middle East consumer electronics supplier Aftron, a subsidiary of Al-Futtaim Electronics, has developed a range of duty-free exclusive accessories
Toys, gifts and novelty electronics supplier The Wandering Monkey has opened its first stand-alone retail outlet at Liverpool John Lennon airport
German electronics supplier Braun has announced its product line-up for the Duty Free Show of the Americas in Fort Lauderdale later this month
Signature UK, the distributor of brands from Paris-based writing instruments supplier Sanford, is to focus on the promotion of the Waterman brand this year

Jewellery & Watches

Spanish watchmaker Festina is to launch an 18ct gold line extension of its Diamond Capri collection
Austrian enamel jewellery supplier Frey Wille has stopped its development strategy for duty-free and travel-retail channels
Australian jewellery supplier Toscow has developed shop-in-shop concepts for domestic and travel retailers
US-based watch supplier Nike Timing is to launch a dedicated range of women's watches as part of a focus on female consumers. The collection complements the parent company's worldwide marketing campaign to promote its Nike Women range

Fashion & Leathergoods

UK high street fashion brand Reiss will enter the airport channel in April when it opens its first travel-retail store at London Heathrow terminal three. DFNI understands that it has earmarked T5 as a potential second location.
Danish fashion house Sand will double its dedicated travel-retail team in April when it adds two permanent staff to its existing sales duo
Fashion brand Mango has hinted that it could open a flagship travel-retail store in its home city, Barcelona, when El Prat airport is expanded in 2008
Bijoux Terner will open its first Greek store next month at Athens airport. The Miami-based accessories retailer operates shops that sell items at a fixed price of €15 ($18). Its new outlet will open at Athens International on March 5, in association with jewellery brand Folli Follie

Special Reports

Choosing the right commercial path into travel-retail can be a tricky business for fashion brands, whether they are new to the channel or firmly established. With airport authorities and specialist retailers also offering their services, finding a partner and suitable terms is a complex process. Kevin Rozario reports
The bold decision of International Association of Airport Duty Free Stores to move the Duty Free Show of the Americas to Fort Lauderdale has changed the complexion of the industry's annual gathering in Florida. Here, the organiser's executive director Michael Payne looks ahead to this year's show.
This year will see a fresh wave of airport retail tenders across the world. DFNI reports on the main contracts on offer and assesses the likely runners and riders