Cover Stories

UK. Alpha Airports Group has admitted that it may lose between £700,000 ($1.2m) and £2.5m ($4.4m) in revenues as a result of fraud by a third party
MIDDLE EAST. As Aldeasa begins its contract at Kuwait International airport, one of its main regional rivals has warned that the aggressive bid posted by the Spanish retailer has already prompted neighbouring airports to reassess their retail contracts
TAIWAN. Following an open tender at Taiwan's Taipei Chiang Kai-shek airport terminal two, local duty-free operators EverRich Duty Free Shop and Tasa Meng Corp have won 12-year concessions to operate space at the location

Insight

With all the talk of alternative models, you'd think that simply awarding a duty-free contract to the highest bidder is not just old-fashioned but also tainted.
Closer cooperation between retail tenants and landlords is a mantra most frequently heard at the airport
If the industry spent a little more time targeting the consumer rather than each other, the benefits would be great. And with growing competition from other sales channels, travel-retail needs to act now
The adoption of the Espace Voyageur concept in France is a turning point in the long struggle to secure a solid legal grounding for the intra-EU travel-retail industry. Here, the concept's architect Alain Falque explains why this could prove a landmark for the trade

People & Company

More Company news
More people and company news
World Duty Free (WDF) head of fragrances and cosmetics category Nigel Keal has left the company after six years of service to take on a new role at Swiss travel retailer Dufry Group

Features

The diverse inflight retail market has suffered in sympathy with the airline business in recent years, but there are signs that the fresh emphasis placed on inflight sales by key carriers is paying dividends. DFNI asks operators around the world for their assessment of today's market
Champagne is enjoying considerable success as travel retailers begin to exploit its potential. But with domestic prices falling and production in the Champagne region nearing capacity, could trouble lie ahead? Joe Bates reports
Europe remains the world's biggest market for duty-free liquor sales, but there is little cause for celebration. While other product categories forge ahead, liquor's market share is under pressure. Joe Bates asks leading retailers and suppliers what can be done to remedy the situation
SAS Flightshop, the retail arm of Scandinavian Airlines System, is unveiling a new shopping website this month where passengers and other consumers can buy tax-free goods. Lorna Strickland visits the airline's Swedish headquarters to find out what prompted the latest development
The collapse of Swissair in 2001 was the defining moment in a period of intense crisis for the aviation industry. The carrier's re-emergence as Swiss International Air Lines, and the fresh emphasis placed on its inflight sales business, offers encouragement to the industry as a whole. John Rimmer reports

Retail News Analysis

SWEDEN. Stockholm Skavsta airport is consulting travel retailers with a view to changing its existing retail structure
NORWAY. Travel Retail Norway has revealed ambitious plans to enhance levels of customer service in 2006
ASIA/PACIFIC. DFS Group has promoted Mark Daley to the new role of president worldwide store operations and business development as the retailer makes big changes to its structure in Asia/Pacific
FRANCE. Logair, the joint venture between concessionaire Aeroboutique Inflight Retail (AIR) and French inflight caterer Servair, has secured an extension to its retail contract on board Air France. The company, whose contract was scheduled to expire in 2007, will now run inflight sales for the carrier until April 2010
PARAGUAY. Paraguayan operator Bright Star Duty Free has more than doubled sales on board regional airline TAM Mercosur in the second year of its concession, according to the company. The operator recorded a 144% increase in sales last year and said it expected further growth in 2006
UAE. Abu Dhabi Duty Free (ADDF) has reported an 8% increase in sales in 2005 compared with 2004, and the company aims to achieve bigger increases in 2006 as the new Etihad terminal opens
ESTONIA. Baltic ferry operator Tallink's latest vessel M/S Galaxy is to feature a liquor area designed by a team of selected suppliers
SCANDINAVIA. Scandinavian Airlines System's (SAS) inflight retail division SAS Flightshop is to unveil a new shopping website for passengers and non-passengers
The first India Duty Free Workshop, to be held at the Le Meridien hotel in Cochin on February 21–23, has attracted a strong line-up of speakers providing expert insight into one of the world's most promising travel-retail markets
SINGAPORE. Civil Aviation Authority of Singapore (CAAS) has revealed plans to host a 25-week shopping festival at Singapore Changi airport in the second half of 2006, marking the airport's twenty-fifth year of operation
SWITZERLAND. Five local companies have won contracts for new landside space at Basel-Mulhouse airport. The winners were chosen from a field of 40 bidders
UK. The Navy, Army and Air Force Institute (NAAFI) has reported a profit of £4.4m ($7.74m) for the financial year 2004–5
RUSSIA. Aer Rianta International (ARI) has reported record sales across its Russian operations in 2005
MACEDONIA. Gebr Heinemann has retained its supply contracts for duty-free stores at Skopje and Ohrid airports in Macedonia following a tender published by the Public Enterprise for Airport Services (PEAS), which manages the airport stores. The one-year contract covers the supply of liquor, tobacco and beauty items at the airports
AUSTRALIA. Sydney airport owner Southern Cross Airports Corp has announced a 6% increase in retail revenues for the second half of 2005 compared with the same period in 2004.
HONG KONG. Retail and catering sales at Hong Kong International airport's airside retail complex SkyMart increased by more than 20% last year, surpassing $1bn for the first time according to Airport Authority Hong Kong (AAHK). Passenger traffic at the location rose by 10% while spend per passenger increased by 9.2%
TURKEY. Border shops operated by Global, Flamme and Vivarini at the Kapikule crossing between Turkey and Bulgaria will remain shut while Customs authorities decide whether to revoke the retailers' licences
EUROPE. European travel-retail sales in the third quarter of 2005 grew by 1.2% compared with the same period in 2004, according to the latest edition of the European Travel Retail Council's (ETRC) Index

Liquor & Wines

P&O Ferries has reconfirmed the importance of liquor to its retail offer despite difficult trading conditions on its key Dover–Calais route
Start-up Scotch whisky supplier Jon, Mark and Robbo's Easy Drinking Whisky Company has taken its first steps into the travel-retail market, at World of Whiskies airport stores in the UK and Virgin Atlantic's Clubhouse at London Heathrow terminal three
Imagination Unlimited International (IUI), the exclusive duty-free distributor for Vincor International, has ambitious plans to expand the Canadian firm's share of the super-premium duty-free wine market
As revealed on RavenFox.com (January 16), Bacardi Global Brands has formed a new travel-retail division, to be headed by newly-appointed managing director Maurice Doyle
Supplier consolidation moved even higher up the list of European travel retailers' concerns last year. Liquor buyers' contact books were looking thin after last July's blockbuster acquisition of Allied Domecq by Pernod Ricard and Fortune Brands

Tobacco Products

Hong Kong International airport (HKIA) liquor and tobacco concessionaire Sky Connection has been forced to restrict sales of ultra-premium Chinese cigarette brand Panda following unexpectedly high demand
Tobacco brands from international suppliers will not be affected by South Korea's decision to ban duty-free tobacco sales to its military personnel, industry campaigners have told DFNI
Virgin Atlantic Airways has adopted a new policy on liquor and tobacco prices in a bid to make them more attractive to passengers familiar with US domestic prices
Suppliers to Canada's border duty-free stores have reported a dramatic increase in sales of budget cigars during 2005, both in the long- and short-filler segments

Fragrances

Nina Ricci Parfums, a division of the Puig Group, is to introduce several travel-retail exclusive sets in April under the Nina Ricci To Travel banner
Salvatore Ferragamo Parfums plans to consolidate its growth in duty-free in key markets in 2006, backed by the launch of new women's fragrance Incanto Charms
L'Oréal Luxury Products Division has outlined plans to launch its newly-acquired Diesel brand into travel-retail markets
LCI Cosmetics International, part of the Lancaster Group, has previewed a number of new Calvin Klein summer fragrances for 2006

Cosmetics

Miami-based company 10 Minute Manicure opened its first airport store at Cincinnati/North Kentucky International airport last month
Saresco Afrique has completed the renovation of its store at Dakar international airport, allocating a bigger area to beauty
The skincare category posted encouraging growth at Cathay Pacific Airways in 2005 as sales increased by more than 40% compared with the previous year
Bahamas travel retailer The Beauty Spot and sister company The Perfume Shop reported strong sales at its outlets in 2005, boosted by the closure of several competing outlets in the surrounding area

Confectionery & Fine Foods

UK charter airline MyTravel Airways is training cabin staff to maximise product orders on return flights as part of a continued focus on confectionery following a strong performance in the category in 2005
Strasbourg foie gras specialist Edouard Artzner, which celebrated its 200th anniversary in 2003 and claims to be the oldest foie gras supplier in France, is keen to develop a duty-free presence outside western Europe
US agency Alfa Brands is to handle a number of Isis chocolate launches for Italo Suisse this year
Cloetta Fazer has reversed its 2003 decision to restructure its distribution set-up (DFNI November 1 2003) and asked Danish specialist distributor Valora Trade Travel Retail to resume responsibility for serving its Color Line, Scandlines and Stena Line ferry accounts from this May

Gifts & Electronics

US-based ornament supplier Crystal World has appointed Worldwide Imports as its distributor for UK domestic and duty-free markets
Scandinavian Airlines System (SAS) has transformed the electronics selection in its Flightshop inflight catalogue
Swiss writing instruments supplier Caran d'Ache has expanded its line of duty-free exclusive products for launch in 2006
Asia/Pacific diamond company Le Lumiere has launched a diversification strategy

Jewellery & Watches

Hong Kong-based diamond watch and jewellery supplier Diafuego is keen to focus on the duty-free sector in 2006 and plans to appoint regional distributors for the channel
UK cross-Channel operator P&O Ferries is to introduce a series of Swatch shops and dedicated areas on board its fleet
Monaco-based watch and pearl jewellery supplier Misaki has developed a new store concept for domestic and duty-free markets

Fashion & Leathergoods

The Tie Rack-owned brand Naturally Cashmere is to expand into the US airport market this month with its first store at Minneapolis-St Paul International
Retail projects in Asia are set to take centre stage at eyewear supplier Luxottica this year as the firm builds on its strong growth in the region in 2005
UK fashion firm Glamour To Go is targeting travel-retail for expansion in 2006, following the success of its range of fashion items that fit into a tiny bag