AMERICAS LEADING OPERATORS: OVERVIEW Leading operators respond to market dynamism


In an analysis of regional business mechanics, TRBusiness’ Leading Americas Operators report discovers that retailers remain resilient, continue to seal new contracts and implement investment cycles in a region that has faced its challenges. Luke Barras-Hill reports.


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F&TR revenues in the Americas dipped by 3.7% to total $10.9bn in 2016,


according to figures from Generation Research. However, there remains plenty of room for optimism. Sales rebounded slightly by 1.3% in Q1 2017 to total $3bn year-on-year, underpinning a return to health – albeit marginal – across the regions. This recovery, particularly in the


case of Latin America, is cause for optimism. It is perhaps too early to predict a marked recovery in the global fortunes of an industry that registered sales growth of +2.4% to $63.5bn in 2016. However, the perpetual debate surrounding international passenger traffic growth outpacing sales can be blunted by some notable performances across the Americas. In the following pages of


TRBusiness’ annual Leading Americas Operators report, it is clear that ingenuity is a quality in abundance for many retailers negotiating what are often sizeable – and hotly contested – contract tenders in the past 12 months. A snapshot of the top performers


in terms of international passenger traffic yields at Americas’ locations can be found on page 59 via exclusive research supplied to TRBusiness by Counter Intelligence Retail. All the top five duty free retailers in


the region – Dufry, DFA, DFS Group, Motta Internacional and DFASS benefitted from international traffic gains. Frontrunner DFS enjoyed healthy growth in its US traffic (+7.6%), no doubt due to rises at its anchor locations in San Francisco, Los Angeles and New York John F. Kennedy. In 2016, DFS introduced Alipay at


San Franscisco, becoming the first offline retailer to offer an easy-to- use mobile payment option at its shops. As Mark Sullivan, Managing Director, DFS North America


MARCH 2018


Dufry store at Buenos Aires Ezeiza international arrivals Terminal A.


explains on page 42, growth has been exponential. “With the support of Estée Lauder


Group during the 2016 October Golden Week, we launched a special promotion with Alipay,” he outlined to TRBusiness. “Today Alipay is accepted in all DFS North America locations.”


Traffic resurgence Meanwhile, Motta Internacional has tapped the resurgence in Brazilian traffic (+21.8%), while numbers were also up from Argentina (+25.8%) and Panama (+12%). In turn, every top- 10 departure airport in the Americas showed some level of growth. Mexico City (+16.3%) delivered a particular boost to Dufry’s operations, where it opened a 400sq m duty free outlet at Terminal 2 in August. Regional turnover for the travel


retail giant grew 13% to CHF1.3bn ($1.4bn) in its nine-month results in 2017 [see page 36 for the full report]. For DFA President Leon Falic, 2017


was a more challenging year, but the retailer nevertheless secured some important wins, notably at Panama Tocumen International Airport Terminal One in which it collected two concession lots. As such, Falic is confident DFA will deliver something extraordinary.


“The idea is to implement


specific concepts which will capture everyone’s imagination,” he tells TRBusiness on page 39. “It is one of those where you have


the passenger flow and passenger mix and just have to cater to them. We feel they haven’t been catered to well up to now. This is going to be a game-changer for us.” For DFASS Group, new openings


at Bogota (DFASS/Dufry joint-venture) and Dallas/Fort Worth, coupled with contracts at Charlotte Douglas and the International Cruise Terminal in Progreso, Mexico last summer were key wins. [see page 48 for the full story]. Group Executive Vice Chairman


Roberto Graziani commented at the time: “We anticipate a unique retail experience for international and domestic passengers in Bogota for many years to come.” «


“With the support of Estée Lauder Group during the 2016 October Golden Week, we launched a special promotion with Alipay that drew shoppers’ attention to this popular payment method. Today, Alipay is accepted in all DFS North American locations.”


Mark Sullivan, MD North America, DFS Group TRBUSINESS 35


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