LEADER/NEWS Leader


What will 2021 mean for travel retail?


Just like that, we have reached the 12th and final month of 2020; a year which will be remembered for a plethora of reasons, but I’d like to stress, not all bad. Some of you may be struggling to


conjure up any positive sentiments right now, but I also know for a fact that many of you are ‘incurable optimists’ as one reader classed themselves just recently in their response to the Annual Industry Survey, which they have already completed. [For those of you that have yet to share your


comments in the Global Industry Survey, please act quickly. This year, more than any, we value your thoughts and opinions as the industry accelerates its recovery plans into 2021. The deadline to submit comments is 4 January. For more information, contact: luke@trbusiness.com]. I would not necessarily class myself as an incurable optimist, but I


feel it is my responsibility to reflect the opinions of all our readers, not only the majority.


‘A long overdue industry evolution’ Since the initial outbreak of the coronavirus, TRBusiness has diligently monitored its impacts on the global duty free and travel retail industry and I am exceptionally proud of how the company has served its readers this year. As a result of our tireless efforts to gain the insights, hard facts


and all-important figures from industry stakeholders in all sectors and regions, we have built up an extremely comprehensive archive of video interviews, in-depth reports and data & analysis pieces that can be drawn on in years to come. We have all learned important lessons from the many tragic and


painful developments of 2020, both business and personal, that we hope will stand us in good stead for the recovery. From canvassing opinions submitted early on by survey


respondents this year, it is clear that many believe it is possible that a long overdue evolution of our industry could take place as a result of such unprecedented circumstances in 2020, which has shocked DF&TR to its core. For example, TRBusiness has been told by numerous global


operators that they have observed movement in the right direction when it comes to closer and more meaningful relationships and negotiations between themselves and landlords in order to bring about mutual survival, recovery and eventually a return to growth. Long may it continue! Returning to my earlier point about positive


sentiments to share during this very challenging period, I would like to say ‘thank you and goodbye’ – at least for a short while – as I begin my maternity leave. I sincerely thank all of you for your support and kind wishes this


year and look forward to catching up with you once again in 2021; a year that we all hope will bring us much needed peace, clarity, health and happiness.


Charlotte Turner, Editorial Director 8 TRBUSINESS


MAGs must be waived indefinitely, says International Shoppes


US travel retailer International Shoppes has called for minimum concession fees (minimum annual guarantees – MAGs) to be waived indefinitely due to the impact of the coronavirus (Covid-19) pandemic on business. Speaking during a recent webinar hosted by the International


Association of Airport Duty Free Shops, International Shoppes Vice President Matthew Greenbaum stated MAGs have been waived at most US airports. He said: “In the places we operate, those concession fees have


been waived at least through the end of this year. We would like to see those commitments for abatement of rent put out indefinitely. “It’s hard to operate in an environment where we don’t know


if the airport is planning on instituting minimum based rents. Those numbers are very dear and would really change the way we can operate.” Greenbaum, who was the subject of a TRBusiness ‘Adapt &


Survive’ video interview, is adamant the airport concession model must change to address MAG obligations. “Language will be needed so we can be flexible if and when the


next event [of this magnitude] happens. For us, when the crisis started, we were just not sure what our obligations would be moving forward.” Outlining the impact of the pandemic on International Shoppes,


which will celebrate its 70th anniversary in Spring 2021, Greenbaum said: “Most stores we had were closed initially for some period of time. Most, however, returned to service by the summer. “Our airport operations have been impacted differently. The


recovery in each location is very different. This is even true in the different terminals at the same airport.” He added: “At New York John F. Kennedy International Airport,


where we operate in terminals one, five and eight, the story in one terminal is different from another. It has been interesting to observe.” The support of most airport landlords in terms of rent and


operating hours has enabled International Shoppes to be flexible with regards to its trading. International Shoppes adds that while the expansion of its


e-commerce platform has yielded ‘encouraging’ results, the in- store experience remains the key focus.


DECEMBER 2020


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50