LEADING AMERICAS OPERATORS: DFA DFA bullish on Brazil ahead of store opening
Duty Free Americas (DFA) is already plotting further Brazilian land border duty free stores once its inaugural outlet opens in Uruguaiana, a muncipality in the Brazilian state of Rio Grande do Sul. Andrew Pentol looks back on the company’s developments in 2019.
government is excellent. We are still investing and bullish on Brazil, but it is going to take some time until it gets to where we want it to be.” Another significant development
for DFA in 2019 was the launch of an inflight duty free retail programme with Ukraine International Airlines (UIA).
Above: DFA has invested strongly in Brazil since winning its first airport duty free contract in the country in 2014.
W
hen TRBusiness spoke to Duty Free Americas (DFA) in September,
the company was preparing to open its first Brazilian land border duty free store in Uruguaiana, the second largest city on the Brazilian border with Argentina and Uruguay. The store, which at press time was
yet to open [TRBusiness understands DFA is awaiting customs approval] is located across the street from the 850sq m Dufry outlet that began trading in July last year. Around a week before the Dufry opening, the first Brazilian border stores were unveiled in Brazilian municipalities Barra do Quaraí and Jaguarão. Speaking to TRBusiness at the time,
Leon Falic, President, DFA said the new border store would be relatively similar to the Dufry outlet. “In our business it’s tough to
“It is very difficult when we enter a country just to open a single outlet. We are definitely going to open more Brazilian border stores.”
Leon Falic, President, Duty Free Americas
30 TRBUSINESS
differentiate. Everybody carries the same products and the rule of thumb is that there is always demand for a certain product locally. This is the product we end up selling the most of. We will differentiate ourselves, perhaps in service, pricing and promotions, but in terms of product, our offer will be similar.” Back then, Falic indicated that
DFA was eyeing further Brazilian border stores once the first one finally opened. “It is very difficult when we enter a
country just to open a single outlet. We are definitely going to open more Brazilian border stores.” In recent years, DFA has
experienced significant expansion across its Brazilian airport operations following the capture of its first airport duty free contract in the country at Afonso Pena International in 2014. With that in mind, it would be foolish to bet against the company making a similar impact across the Brazilian border duty free business. As Brazil continues recovering
from a prolonged period of political and economic uncertainty, DFA is relishing the opportunity to capitalise. “Brazil has been difficult for us,
but will only get better which is good news,” said Falic. “The new
Pre-order focus Since July, UIA passengers have been ordering online prior to departure from a curated collection of fragrances, elite spirits and wines, fashion accessories, electronics, special souvenirs and travel essentials. Products have then been delivered on board. TRBusiness was the sole DF&TR
media in attendance at a launch event in Kiev the month prior, which marked the commencement of the programme and DFA’s first foray into inflight retail. Dov Falic, Vice President, Duty
Free Americas told TRBusiness: “This partnership made sense because UIA has a strategy to accelerate inflight retail sales when other airlines are reducing their inflight duty free programmes. This aggressiveness will make for a strong partnership.” “We are very enthusiastic about
the pre-order element of the business which was UIA’s main focus and agree with their approach. Inflight retail is clearly heading in a certain direction and we are excited for this part of the business.” The main focus for DFA and UIA
is clearly the pre-order element. However, the importance of the trolley must not be underestimated. “We are confident we can still
draw sales from the trolley because there is a very small transit time in Kiev meaning passengers may not have time to visit the duty free stores,” added Dov Falic. “The trolley will be an important
part of the business, but our focus is on driving sales through pre-order.” «
MARCH 2020
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