Airport restrictions hit French travel-retail sales

Stefanie Ives

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The AFCOV index for 2006 shows strong end of year sales across all categories except tobacco.

A strong final quarter in 2006 enabled the French travel-retail trade to make up some of the revenue lost due to stricter regulations on liquids and gels, according to French travel-retail association AFCOV. The AFCOV Index, which charts sales across French airport, ferry and Eurotunnel operations, points to the “upheaval” of the new regulations as a defining factor in retail last year.

Only cosmetics and fragrances grew above the rate of passenger traffic, a surprising result as this was the category grouping most affected by the new rules after August, with France being the most stringent enforcer.

Liquor had poor sales throughout the year only showing a recovery in November and December. The final two months saw a growth of 10% on the previous corresponding period and overall year-on-year growth in this sector finished only slightly below that of passenger traffic.

Tobacco sales were generally low throughout 2006. Despite a sharp increase in the last two months, growth for the year finished below that of traffic.

Passenger traffic increased by 4% in 2006 yet this was not matched by overall commercial growth due to increased regulations on gels and liquids.