LEADER/NEWS Leader


Are we ready for a second wave?


As TRBusiness was going to press, the above question was being asked of the UK health service and other connected authorities prompted by an open letter published in the British Medical Journal. In the letter, signed by presidents of the Royal Colleges of Surgeons, Nursing, Physicians, and GPs, UK ministers were warned that urgent action would be


needed to prevent further loss of life, as UK Prime Minister Boris Johnson announced a further easing of lockdown measures. The warnings are more than warranted, if we are to learn anything


from the spike in new cases in China. Inside this issue’s China Report (p27-33), we address a setback in Beijing where businesses have been thrown into a ‘second round of chaos’ (according to one reliable industry source based in the capital). China’s health authority reported 19 new coronavirus cases in the


mainland for 24 June, up from 12 a day earlier. Of the new infections, 13 were in Beijing, the National Health Commission said, compared with seven cases a day earlier. Mainland China had reported no new infections for 50 days prior to a spike of new cases recorded on 13 June. Still, the number of cases remains low (at the time of writing in late June)


compared to those in neighbouring countries. While many of China’s other provinces appear to have maintained control over the virus, they remain fearful of welcoming foreign visitors, especially those from Europe and the Americas, where the crisis is far from contained.


A painful reality In the first quarter of 2020, while the travel retail industry was experiencing unprecedented levels of disruption and revenue declines, many commentators remained optimistic that a recovery could come as soon as ‘the summer’. However, as the peak holiday season is now upon us, the long-


term effects of the crisis are now becoming painfully clear. Dufry, for example, chose to withdraw its full-year 2020 guidance previously announced on 12 March. The company most recently disclosed that it would be cutting staff expenses by 20-35% to reflect anticipated sales decline scenarios of between 40-70%. Copenhagen Airport (CPH) also provided a gloomy update at


press time: it now expects an overall loss after tax of up to DKK 750 million/$113 million for 2020. This estimate includes the effects of various government relief packages, without which the losses would likely be in the range of DKK 700m-1,000m/$105m-150m. As to be expected, travel and tourism industry stakeholders


continue to publicly condemn many government-imposed restrictions and quarantine measures. One of the many lessons learned by the travel industry during this period is that so much more can be achieved through collaboration, but also innovation and agility as many of the interviewees inside this issue can attest.


Charlotte Turner, Editorial Director JULY 2020 TRBUSINESS 13


Hudson scales up shop reopenings as Q1 turnover drops 23% to $341.5m


Dufry-owned Hudson Group plans to accelerate its trading after reopening more than 100 shops. The travel retailer, which runs more than 1,000 shops at airports,


commuter hubs and tourist landmarks in North America, has started to resume business as coronavirus (Covid-19) lockdown restrictions ease in some areas and airlines slowly increase their flight rosters. In a statement coinciding with the release of the company’s first


quarter results, CEO Roger Fordyce said: “Thanks to the hard work and unwavering commitment of our team, and through partnership with our landlords, we have slowly begun the rebuilding process of reopening stores as passenger volume increases. “In doing so, we have taken extraordinary steps to ensure our


stores are supplied with ample PPE (personal protective equipment) and that enhanced health and safety measures are in place as we begin to warmly welcome back our team members and customers.” Fordyce says that while the increase in passenger levels is pleasing,


they remained approximately 85% down through the second week of June year-on-year. He continued: “Business conditions remain extremely


challenging. Our ongoing actions to reduce expenses and manage cash flow are critical in navigating this crisis and positioning Hudson for a full recovery and successful long-term growth.” To that end, Fordyce stresses that while the business recovery


remains top of the agenda, Hudson’s strategy ‘remains intact’ with the focus on serving travel partners and growing through a mix of travel convenience, speciality retail, duty free and F&B concessions. “To adapt to new traveller expectations, we are further


evolving our digital footprint with contactless shopping environments,” said Fordyce. Hudson is phasing in (PPE) vending machines at 27 airports across


North America. These will dispense health and safety essentials and in some cases electronics products. The company will also introduce 250 Sunglass Hut


shop-in shops through its network of eponymous outlets and convenience concepts after striking an agreement with brand owner Luxottica Group.


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