NEWS ROUND-UP LHR reopens World Duty Free T2 store


London Heathrow Airport has reopened a number of stores as the coronavirus (Covid-19) situation gradually improves. Shops at the airport had been closed since


the end of March, when the government ordered all non-essential outlets to cease trading in order to contain the spread of the virus. Correct at the time of writing [mid-June],


World Duty Free ( Terminal 2), WHSmith (six stores across T2 and Terminal 5), Boots (six stores across T2 and T5) and Excess Baggage (one store in T2) have all resumed operations. A number of restaurants have also


reopened, including Café Nero (three stores in T2 and T5), Pret A Manger (one outlet in T5) and Leon (one shop in T2). Jamie Anderson, Terminal Manager,


World Duty Free revealed an extensive amount of work had gone into setting up new ‘Covid-secure signage’ in the store. “After a long week preparing for our


main store at London Heathrow Terminal 2 to open, we pulled the shutters back at 5am this morning [22 June], after being shut for three months,” he said. “The first sale was to a lady who spent


Lease extensions of three years granted at Sea-Tac


The Port of Seattle Commission has introduced further support measures for its business partners at Seattle-Tacoma (Sea- Tac) International Airport. Airport, dining and retail (ADR) tenants


have had their tenancies extended by up to three years, with minimum annual guarantees suspended through 2020 – and possibly into 2021. Sea-Tac approved the lease extensions,


which follow previous support actions to stabilise local businesses, to enable current tenants more time to recuperate from the impacts of the coronavirus. The port had previously announced four-


month rent and fee deferrals (April – July) for qualifying concessionaires at Sea-Tac, including retail and F&B tenants. This was expanded to more airport-related tenants and businesses last month. At the height of the pandemic, 66% of


airport retail and F&B concessionaires were closed, according to the port authority. The port authority continues to press on with projects totalling $1.5bn.


£100/$125 on Shiseido at 5:10am.” T2 was expected to handle 60 departing


flights today to locations including Doha, Dubai, Abu Dhabi, Xi’an (charter), South Korea and India.


The reopenings represent some much- needed good news for the airport, which reported a -97% passenger drop in May year-on-year. Heathrow, which registered a -15% drop


in Q1 retail revenue to £136m/US$170m, has been forced to cut managerial positions, restructure frontline roles and shift passenger operations.


DF&TR liquor sales to rebound by 2024


During an eye-opening presentation, IWSR Drinks Market Analysis revealed that though worldwide beverage alcohol volume increased slightly in 2019 – reversing declines from the year prior – it will be five years before the global industry rebounds from the ongoing Covid-19 crisis. Global travel retail, severely affected


by widespread travel restrictions, will see a particularly harsh decline in 2020 but is expected to reach pre-crisis levels by 2024. Overall (all markets) total spirits dropped


-2.5% in volume last year, due in part to steep volume losses in baijiu (a spirit consumed almost entirely in China). Notwithstanding this, excluding


baijiu, global spirits volume grew +1.0% in 2019. Among traditional spirits categories, gin


was the fastest growing in 2019 (+6.1%), but that growth has slowed somewhat


as consumers are beginning to show signs of ‘gin fatigue’, especially in some European markets (growth of gin globally was +9.6% in 2018). Within the whisky category, Irish grew


by +10.6% in volume, Japanese increased +10.3%, and US whiskey posted +5.8%. The IWSR forecasts that whisky and gin


will likely rebound fastest to pre-Covid-19 levels. Vodka volumes are not expected to recover to 2019 levels until after 2024.


28 September - 2 October 2020 www.travelretailmarketplace.com


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