Insight

In the first instalment of a new regular column, DFNI responds to a letter from a frustrated traveller asking why so few travel retailers offer their prices on the internet and when the situation might change
With the recent good news in Switzerland, and Sweden’s lobbying efforts prompting strong reactions in Denmark and Finland, arrivals duty-free seems to be enjoying a surge in popularity. In Canada, a market blighted by misfortune in recent years, the debate has also resurfaced
French minister for foreign trade Christine Lagarde was the toast of Cannes following her speech at the opening conference of last month’s TFWA World Exhibition. Unlike many of the big-name (and big-money) speakers that have graced the TFWA stage, her presentation was eloquent, relevant and insightful
The news that the Global Airport Services’ (GAS) venture between World Duty Free and Steve Franklin, Randy Emch and Adrian Murray of Crossbar Associates is to wind down is sad

People & Company

More People and Company news

Features

BAA commercial director Duncan Garrood has stepped into a new role at a challenging time for the UK airports group. In the DFNI Interview he explains why he is happy with the strategy that BAA’s new owner Grupo Ferrovial has planned for its commercial operations. Gavin Lipsith reports
Aer Rianta International has returned to Cyprus in grand style, with an 11% stake in the airport management company and the opportunity to build retail from scratch at two new airports. Gavin Lipsith speaks to Cyprus Airport Duty Free Shops general manager Gerry Crawford about prospects at Larnaca and Paphos airports
EgyptAir Tax Free Shops is close to sealing the retail contract at Cairo airport’s new terminal three. But if it takes the prize how will the new shops affect the company’s other operations? Tina Milton reports
DFNI examines the highs and the lows of the changes across the Middle East region during the last year and its plans for future development
As a second private company prepares to open a duty-free store at Addis Ababa Bole airport, state-owned retailer Ethiopian Tourist Trading Enterprise (ETTE) and Alfarag Trading are poised to go head to head with the new competition. But, as Tina Milton reports, former monopoly ETTE plans to fight back
A renovation programme at Nairobi Jomo Kenyatta International airport is set to revolutionise duty-free and double passenger capacity at the location. Tina Milton reports
The TFWA World Exhibition has always been a place to discuss matters of industry-wide importance as well as an opportunity to welcome product innovation
In light of the situation at airports across the world since the foiled terrorist plot of August 10, this year’s opening conference was always going to be a serious affair, and the speaker line-up of French minister for foreign trade Christine Lagarde and former German chancellor Gerhard Schroeder promised to offer a stimulating insight into the high-level decisions that are likely to determine the new framework in which the airport duty-free industry will operate
Better onboard sales, external pressures and the reduction of credit card fraud were among the wide variety of subjects under discussion at this year’s Airline Conference in Cannes. Eluned Woollven reports
Middle East Duty Free Association chairman Colm McLoughlin welcomed trade journalists to a press conference during the TFWA World Exhibition in Cannes
At last month’s TFWA World Exhibition, the New Aviation Security Regime conference laid bare the implications of the sealed bag system for liquids carried on board, which has now become law. Eluned Woollven reports
More news from Cannes

Retail News Analysis

INTERNATIONAL. Travel retailers across the world are adapting to a new trading environment in the wake of airport security restrictions imposed on November 6.
EGYPT. Cairo International airport owner Cairo Airport Co (CAC) has denied that the recent decision to stop the tender process for retail space at terminal three was due to the standards of pre-qualification documents from international contenders
INDIA. As Mumbai International airport finalises its shortlist of parties to participate in its forthcoming tender for retail, an interesting series of partnerships is emerging.
SWITZERLAND. Swiss airport retailers came a step closer to an estimated SFr20-23m ($16-18.4m) windfall earlier this month, when the Swiss Federal Council voted in support of changing legislation to allow the introduction of arrivals duty-free stores
UK. After conducting a strategic review of UK airports group BAA’s operations, new owner Grupo Ferrovial has decided to focus on the core UK market
From RavenFox.com News
CANADA. The introduction of a private visitor tax rebate programme (VRP) was the main focus for discussion at the annual Frontier Duty Free Association’s (FDFA) operators’ meeting on November 12, held during the association’s twenty-second annual convention in Niagara Falls.
EU. A new European Court of Justice ruling due on November 23 could pave the way for a boom in cut-price internet liquor and tobacco sales, with severe consequences for cross-Channel ferry companies and travel retailers
TURKEY. ATÜ, a partnership between Unifree and Tepe-Akfen-Ventures (TAV) is set to become a force in the bidding for worldwide airport development projects
SOUTH AMERICA. The announcement of Dufry’s forthcoming IPO for its subsidiary Dufry South America (DSA) probably took its direct competitors by surprise, and they will now be trying to anticipate the Switzerland-based retailer’s next move
SCANDINAVIA. State-owned Swedish airport authority Luftfartsverket (LFV) is to seek permission from the government to sell duty-free liquor to international arrivals passengers at Stockholm Arlanda airport (RavenFox.com, November 9)

Liquor & Wines

Airport retailer Aelia has reported a boost in wine sales following a big wine promotion at its French airport stores throughout October
Premium Polish vodka brand U’Luvka claims that its strong appeal among female consumers will be the key to duty-free success
Whyte & Mackay’s new travel-retail head James Prescott has spoken of his excitement at moving to the Glaswegian drinks firm as it repositions its liquor brands upmarket
Premium Polish vodka brand U’Luvka claims that its strong appeal among female consumers will be the key to duty-free success
Whyte & Mackay’s new travel-retail head James Prescott has spoken of his excitement at moving to the Glaswegian drinks firm as it repositions its liquor brands upmarket
Family-owned company Camus has admitted that duty-free sales of Chunghwa XO, its cognac targeted at mainland Chinese travellers, have been “very disappointing” since its launch last February

Tobacco Products

Tax Free World Association (TFWA) has reassured tobacco exhibitors at the TFWA World Exhibition that next year’s show will pass without the disruption faced at last month’s event
US-based cigar supplier JC Newman has reported strong growth in Asia/Pacific travel-retail thanks to a new focus on the market and the appointment of former British-American Tobacco travel-retail executive David Tomlin as a consultant
Kuala Lumpur International airport (KLIA) retailer Dimensi Eksklusif’s cigar outlet has been named retail outlet of the year in the airport’s inaugural awards
After an emergency meeting last month between diplomatic suppliers and the world’s four largest tobacco suppliers—Philip Morris, British-American Tobacco, Imperial Tobacco and Japan Tobacco International—it appears that there is still no resolution to the pricing crisis threatening the sector

Fragrances

P&G Prestige Products director Asia/Pacific and global travel-retail Hans Wohmann has praised the travel-retail industry for producing an offer that has superseded its high street counterpart and is no longer based solely on price
Hermès Parfums is gaining visibility in the travel-retail market, which international operational marketing director Serge Nguyen described as a “channel of opportunity” for the brand
Givenchy previewed its next travel-retail exclusive fragrance, Absolutely Givenchy at this year’s TFWA World Exhibition in Cannes and confirmed its commitment to producing exclusive fragrances
Selective Beauty has signed an agreement to create, develop and distribute fragrances for Iceberg, the fashion brand owned by the Gilmar Group

Cosmetics

DFS Group is to roll out a new specialist cosmetics shop concept, DFNI understands
Premium skincare brand La Prairie has secured a regional flagship location at Hong Kong International airport. The 25sq m (269sq ft) space will be operational from December, with the official opening scheduled for January 2007
To say that the travel-retail beauty industry has experienced turbulence of late is an understatement
L’Oréal Paris is to close its 32sq m (345sq ft) stand-alone store with World Duty Free at London Heathrow terminal four this month, as part of a plan to end its commitment to operating stand-alone stores

Confectionery & Fine Foods

Italian luxury chocolate manufacturer Venchi is preparing to expand its fledgling retail operation (DFNI December 1 2005) in Italy and beyond and has begun talks with a view to adding premium ice cream to its offer
Seven years on from what it described at the time as “our most important and best-supported product launch to date”, Nestlé International Travel Retail (NITR) has transformed its premium Cailler of Switzerland brand
Toms Confectionery has given its flagship Anthon Berg brand a makeover, switching from silver to gold for the logo and incorporating a distinctive “swirling” letter A into new and redesigned packs.
Godiva Chocolatier has outlined its five-year strategy involving a greater focus on retail activity, brand modernisation, an additional layer of management and an overhaul of its merchandising units
Lindt is finalising one of its biggest-ever in-store promotions in partnership with InterBaires at Buenos Aires Aeroparque and Ezeiza airports for January and February next year
Belgian chocolate manufacturer and retailer Leonidas took a new team, a new range of products (DFNI October 15) and a new philosophy to Cannes last month

Gifts & Electronics

Travel retailer Zoom Systems has received $35m to fund a fresh expansion drive
Electronic travel accessories supplier World Connect is launching a mini mobile phone charger in travel-retail under its Swiss World brand, having trialled the product successfully over the past month
Gaming and iPod accessories brand and distributor Logic 3 has revealed a rise in sales of 70% for the year to date compared with the same period last year

Jewellery & Watches

US jewellery supplier Angélique de Paris has begun a search for new distributor partners in the UK and Irish domestic and duty-free markets
UK jeweller Tateossian has announced a boost to its travel-retail business after gaining a number of new inflight listings and has also revealed plans to develop its presence at airports
Watches supplier Fossil is to open a Miami showroom and office to serve the Caribbean cruise and port store markets

Fashion & Leathergoods

US travel retailer HMSHost is extending its fashion apparel concept, under the widely-adopted Destination fascia, to four more locations
The familiar crocodile motif on Lacoste apparel is set to be snapped up at airport locations worldwide, according to chairman and CEO Michel Lacoste
Colourful and offbeat UK bag supplier Billy Bag has extended its reach in travel-retail following a deal with UK operator Alpha Retail
Italian brand Salvatore Ferragamo put a new marketing spin on scarves at the TFWA World Exhibition in Cannes by holding a catwalk event to highlight them

Launch Pad

More confectionery & fine food news
More Liquor & wine news
More Gifts & electronics - jewellery & watches - fashion & leathergoods news
More Fragrances - cosmetics news

Market Watch

In this new section DFNI analyses the latest financial results for companies in the travel-retail sector. This month the spotlight is on Altadis, part owner of Spanish travel retailer Aldeasa, and French airports operator and retailer Aéroports de Paris, both of which have just released figures for the first three quarters of this year.
DFNI focuses on the travel-retail related companies that have seen the biggest changes in their equity prices over the past month