AMERICAS LEADING OPERATORS: DUFRY Dufry keeps improving in the south Unlock the full potential...
LATAM countries such as Brazil and Mexico remain a lynchpin for Dufry in the Americas, as Luke Barras-Hill discovers in an analysis of the travel retailer’s strong recent performance.
travel retail’s largest player. “Dufry’s knowledge and
experience has been crucial to the company to overcome external shocks in general,” comments Gustavo Fagundes, General Manager Brazil and Bolivia. “We are confident about the
development in LATAM, especially in markets such as Argentina, Uruguay, Chile, Mexico, Columbia and Brazil to name a few.” Fagundes predicts that regional
Above: Dufry arrivals store at RIOgaleão – Tom Jobim T2.
I
t is perhaps no coincidence that the ‘high organic growth and cash generation’ characteristic of Dufry
Group’s nine-month 2017 results was accelerated by its stronghold locations in Latin America. Regional turnover grew by 13%
This content is for subscribers only.
to CHF1.3bn ($1.4bn) with organic growth almost on par at +12.7% during the period. This contributed towards group growth of +6.7% to CHF6.3bn ($6.3bn), with organic growth turning in a performance of +7.9%. Dufry said
that Brazil,
Uruguay, Chile, Peru and the Dominican Republic all notched positive performances. Indeed, a more detailed appraisal
To receive a full digital copy of the March issue, plus 12 monthly print editions and the critically acclaimed TRBusiness Top 10 International Operators Report, please visit
of Dufry’s 2017 performance was not available to TRBusiness at the time this report was compiled [full-year results were not due to be published until 15 March]. Dufry opened over 20,500sq m of
Latin Americas’ share of net sales as a percentage of Dufry Group’s total turnover has edged up one percentage point to total 20% in 2017, while North America sustained its 2016 share at 21%.
TRBusiness 36 TRBUSINESS
Global Industry Survey, Dufry Group CEO Julián Díaz acknowledged that 2017 marked a turning point for two reasons: Improvements in the overall political and business environment, and a substantial reduction in emerging market currency fluctuations. In turn, this has benefitted high- spending nationalities such as Brazilians, Russians and to a lesser degree, Chinese.
www.trbusiness.com/subscriptions
Brazil’s waiting game Broadly speaking, economic forecasts seem to paint a largely positive picture for Latin America. According to a recent report from Focus Economics, regional GDP was projected to have grown by 2.3% annually in Q4 – its healthiest since Q1 2014 and a marked pickup on Q3’s +1.7% expansion – as commodity prices rise and demand quickens. However, political and economic uncertainty persists in many countries, but this is not new to
gross retail space during the period across 135 stores, via new openings and expansions. It announced at the time of its nine- month results that a project pipeline will add 18,000sq m to its portfolio for the remainder of 2017 and in 2018. Commenting in the 2018 TRBusiness
growth will strengthen in the coming year in the context of improved fiscal and monetary dynamics, but he recognises that factors such as encroaching elections could factor in some economic volatility. As this report went to press, developments on the anticipated introduction of land border stores on the Brazilian side, which were initially approved by government in 2012, were gathering pace [for the full story, see pg28]. “The land border stores is a subject
that attracts a lot of attention from government and the industry, but it is still under development,” Fagundes points out. “The government is committed
to the project and is working on the timeline to have these stores opened. Currently, customs is testing the software that will regulate and control the allowance of purchases in Brazilian stores. “For Dufry, this new channel meets
the company’s goal to diversify its operations and expand to different channels other than airport retail.” There have also been reports that
Brazil could follow Uruguay and Argentina’s lead in raising its duty free allowance from the current $500, which would prove very important for the region’s duty free business and its airports. “It is hard to comment if and when
the allowance raise will happen and how much it will be,” responds Fagundes. “Considering US inflation since 1991, the new limit would be
MARCH 2018
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 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92
