LEADING AMERICAS OPERATORS: STELLAR PARTNERS Stellar CEO committed to US travel retail growth


Padraig Drennan, President and CEO, Stellar Partners is adopting an aggressive growth strategy, be it through contract wins and extensions, acquisitions or direct negotiations. Since assuming the role in 2019, the IAADFS Board Member has vowed to capitalise on opportunities as they materialise. Andrew Pentol reports.


W


hoever took the helm at Stellar Partners was always going to


have big shoes to fill following the retirement of Founder and CEO Susan Stackhouse last year. Stackhouse founded the US-based


travel retailer in 1988 and developed the company from one duty free store into a formidable operator. At present, Stellar, which was acquired by HMSHost in 2016, operates over 100 stores in 21 US airports. Concepts include news and convenience, speciality (regional, national and international brands) and proprietary brand concepts. The person now responsible for


maintaining and developing existing operations and monitoring future opportunities is Padraig Drennan, who assumed the role of President and CEO in 2019. Drennan, the company’s former


COO and President since 2017, has more than 25 years’ retail experience and more than 10 in airport retail. During his long career in the


channel, Drennan has served as CEO, DFASS Group (now known as 3Sixty Duty Free) and President, World Duty Free North America, with responsibility for news and gifts, duty free and speciality retail. He tells TRBusiness: “Susan built


an excellent team and together they established a strong foundation for the business. Because of that strong foundation, we have been able to successfully build on the legacy and strength of Stellar as a leader in the US travel retail industry.”


A different approach The company’s business approach to growth is different to when Stackhouse held the reins, according to Drennan. He explains: “I think it is important to remember


that Susan was the founder of a small woman-owned business that became Airport Concessions


MARCH 2020


Disadvantaged Business Enterprise Program (ACDBE) certified. As such, the business approach to growth was conservative which allowed for steady company growth over time.” Drennan says: “Our current


approach differs in that we are committed to growing as opportunities arise. We will accomplish this through acquisitions, contract wins and extensions, and direct negotiations.” Drennan’s DF&TR experience


has proved invaluable in terms of providing the necessary brand knowledge and insight into customer preferences. “It has also helped me identify real


gaps in the US travel retail business, which has set Stellar on a course to build and broaden its brand portfolio,” he tells TRBusiness. Since he became President and


CEO, Stellar has completed the acquisition of privately held business Pacific Gateway Concessions (PGC). The acquisition increased Stellar’s airport portfolio to include locations where it did not previously operate. The PGC acquisition followed the


purchase of Avila Retail Development & Management, LLC (Avila) in 2018, which increased Stellar’s airport retail footprint in the western region


of the US. Despite the PGC and Avila


acquisitions, Drennan denies suggestions the company is in the midst of an acquisition drive. He comments: “The PGC


acquisition gained Stellar entry into a number of high-profile airports where new retail contract opportunities are not readily available. “This acquisition considerably


expanded our footprint and brought some highly desirable and exciting new brands to our retail portfolio. It was an acquisition that was quite beneficial to Stellar.”


Stellar ‘in growth mode’ Acquisitions are frequently part of


“Our current approach differs in that we are committed to growing as opportunities arise. We will accomplish this through acquisitions, contract wins and extensions, and direct negotiations.”


Padraig Drennan, President and CEO, Stellar Partners


TRBUSINESS 33


Above: A Philadelphia Tribune store opened at Philadelphia International Airport in January 2020. Credit: MarketPlace PHL.


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