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China’s top spend billing proves in-store relevance


Chinese travellers have topped the list for the top 10 spenders in DF&TR. While perhaps unsurprising, m1nd-set’s analysis provided to TRBusiness casts an interesting light on the importance of in-store engagement: 77% of Chinese visitors interact with sales staff, while 70% of buyers that engage are influenced by sales staff. Similarly, 78% of buyers compare prices, with 71% of non-buyers also seeking


a deal. Aside the key takeway that in-store staff are crucial to the shopping experience, the result underlines the significance of bricks and mortar retail theatre in a digital world that challenges its very existence. As Portland Design’s Director of Environments Lewis Allen made clear at the recent Duty Free and Travel Retail Summit of the Americas: “The internet will not kill shops, it will liberate them.” Elsewhere in this edition, TRBusiness hears from Lagardère Travel


Retail on its European retail and news and convenience aspirations in Paris and Italy and we interview TFWA MD John Rimmer on his expectations for TFWA Singapore. This issue also considers price and demand pressures within watches and jewellery and charts a successful year for Autogrill, which collected concessions wins and renewals to the tune of $12.1bn last year.


Voice of the consumer On a separate – yet no less important – note, it gives me great pleasure to congratulate all the finalists in the first consumer-voted Travel Retail Awards. Following an intensive six-week judging process conducted in association with partner m1nd-set, 56 suppliers and eight international airports have made it onto the shortlist [turn to page 22 for the full supplier category and airport lineup]. The breadth and depth of entries across the categories pays


tribute to the award’s objective of placing the decision-making power in the hands of consumers. Retail, like many other industries, is notorious for using easily misunderstood acronyms and language to describe BAU [business as usual for those that are unfamiliar...]. While it undoubtedly serves a purpose in the corporate world, stakeholders would do well to step away momentarily from the retail margin calculations and budget reconcilation charts to consider one important point: today’s travelling consumer can make or break brands at the click of a button, amplifying their successes or failures by suddenly thrusting them into the social media stratosphere, sometimes without rhyme or reason. Travel retail, like its industry counterparts, seeks real-time feedback from the users of its products and services. With that in mind, breaking into the Travel Retail Awards’ shortlist is a sterling achievement. On behalf of the entire TRBusiness team, I would like to offer our sincere gratitude to all who entered the Travel Retail Awards. I hope to see you all on Monday 7 May for the award’s evening, which I hope will become a veritable stomping ground for consumer engagement debate in the many years to come. Enjoy the issue.


Acting Managing Editor APRIL 2018 TRBUSINESS 13 Luke Barras-Hill,


Hudson notches $450m in first public issuance


Turnover at Dufry-owned Hudson Group reached $450m (+8%) in fourth quarter 2017 – its first results statement since publicly listing on the New York Stock Exchange (NYSE) in February. Adjusted EBITDA for the period amounted to $41bn, a year-on-


year increase of +9.2%, as net sales increased by $34.9m (+8.6%). Gross profit lifted by 8.6% to $281.5m and gross margin rose 50 bps to 62.3% in 2017 ‘due to a sales mix shift to higher margin categories as well as improved supply chain synergies linked to the integration of acquired World Duty Free stores’. Joe DiDomizio, President and CEO of Hudson Group said: “Our strong performance in 2017, highlighted by increased like-for- like and organic sales growth, underscores our ability to drive value and productivity from our existing portfolio of stores, while simultaneously executing new business opportunities. “During the year, we expanded our breadth and scale by


winning RFP processes in five new locations, extending or expanding operations in eight existing airports and increasing our overall footprint. “As a newly public company, I am energised by the prospect


for continued growth and believe we are well-positioned to drive long-term shareholder value through our core purpose of being the traveller’s best friend.” As of December 31, Hudson operates 996 stores across 88 locations over 1.1m sq ft of retail space. A flurry of activity in 2017 resulted in concession victories in Jackson, Raleigh, Chicago Midway, Ontario, Phoenix, Grand Rapids, LAX and Dallas Fort/Worth. It has also secured new retail units at Phoenix Sky Harbor International Airport under a 10-year joint venture (HG PHX T3 Retailers) and renewed at Pittsburgh International Airport for a further 10 years. Hudson recorded a record full-year performance in 2017, with sales up 6.8% year-on-year to total $1.8bn. Full year organic sales growth totaled 8.8% with like-for-like sales up by 4.8%.


LEADER/NEWS


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