Dufry expands in Russia

Bill Lumley

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The retailer has acquired 51% of Regstaer at Moscow Sheremetyevo airport with additional plans for Vnukovo

Dufry has this week concluded a deal to buy a majority share of a joint venture with Regstaer Group’s duty-free operations at Moscow Sheremetyevo airport, which generate annual sales of more than $50m. The deal includes an exclusive commercial and purchasing agreement for the group’s retail operation at Moscow Vnukovo airport.

The travel retailer already runs significant duty-free operations at Sheremetyevo and Domodedovo airports and, according to Dufry, the acquisition at Sheremetyevo combined with the opportunities at Moscow’s third largest airport, Vnukovo, will generate “important synergies”. The deal strengthens Dufry’s position as an airport retailer and which plans unspecified further development of the business in the region.

The deal will complement Dufry’s existing operations at Sheremetyevo and will add nine duty-free shops with a total retail space of 1,200sq m (12,900sq ft) in different terminals. The shops sell fragrances and cosmetics, accessories and liquor. The acquired business employs 200 staff and will be integrated into Dufry’s existing local business. The new operations will be managed jointly with Dufry’s other business in Russia.

Dufry CEO Julian Diaz said: “This is an important transaction for Dufry as it substantially strengthens our position in the Russian airport travel-retail market and sets the basis for developing other travel-retail markets in the region. We have been an important player in the country for more than 10 years and with this transaction, we have established ourselves as the leading operator with a strong presence in the two largest airports in the country, namely Sheremetyevo and Domodedovo. Thanks to our partners, we will also be able to support them in their business at Vnukovo airport and we are very happy to team up with such a strong local competitor.

“By combining the new businesses with our existing ones in the country, we will be further able to extract a substantial amount of synergies in the region,” he concluded.