London Supply reaps benefits of Argentina's recovery

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The peso's newfound stability is aiding a recovery in travel among Argentinians

Argentinian duty-free retailer London Supply is enjoying a strong rebound in its trading performance this year as the Argentinian economy recovers. The duty-free trade in the country has been buoyed by the recent stability in the peso against the dollar, a key factor in determining consumer confidence.

London Supply commercial director Francisco "Paco" Heredia said: "People will keep their dollars under their bed and if the value constantly changes they stay under the bed. If the value stays stable for months they are tempted to spend them. This helps consumption in general terms but it particularly helps consumption of luxury goods and it certainly helps the duty-free industry."

Heredia added: "We've had a strong first half in our outlet at Iguazu with sales rising by 57% compared with the same period in 2003. As usual, in Iguazu we've had a mix of Argentinians and Brazilians but our shop is now firmly established now on the tourist route and we are now seeing some Europeans and North Americans. At the end of the second quarter we opened an arts and crafts shop stocked mainly with items for use in the home. Sales are way ahead of expectations. As well as items from local suppliers, we are looking at including some Mexican items and maybe products from further afield."

The company plans to open a new sportswear section in the Iguazu store, as well as extend its electronics range at its outlets in Tierra del Fuego and Punta del Este airports later this year.

"Turnover in our outlets in Tierra del Fuego has increased by 68% so far this year," he added. "Even though the outlets in the south are less important in terms of total turnover, we are still excited about this increase as we have been doing a lot of work in product selection. We have seen a notable increase in international traffic as the tourist business has had an excellent year."