AMERICAS: BORDERS REPORT
“When we invested in the country, the [US dollar to Brazilian real] was 3.68 and today if you want to buy dollars back you are at 4.38 [Brazilian real], so it is a huge loss if we want to buy products to pay into Brazil,” explains Beridze. “Effectively you are making a loss
Top Brands International acquired the Neutral Duty Free operations in 2019.
“As a new business, a lot of people are seeing how it develops. There are a lot of things that may help increase the opportunity for business, but there are issues.”
José Luis Donagaray, Secretary General, ASUTIL
as it allows people to do more shopping,” says Beridze. “People are visiting here to cross the border and buy from other countries. Brazil is one of the main destinations to come and shop.” In the next 12 months, Sky Duty
Free intends to establish its footprint across at least half the region. “In Uruguay, we will definitely do
something, and we already have a company in Paraguay.” While Brazil is a priority, the
prevailing currency ‘headache’ is not helping matters.
already before you have started. The other problem is the inland trucking inside Brazil is extremely expensive. That is not going to hold us back in the region because we are looking into every country here. Brazil is the start.” Panama’s Top Brands International
is another eyeing opportunities in Brazil (see panel on p47) and across Latin America and the Caribbean beyond the 14 countries where it currently operates – Panama, Belize, El Salvador, Chile, Cuba, St. Thomas, Tortola, French Guiana, Colombia, Costa Rica, Bahamas, Paraguay, the US and recently, Uruguay. Last year, it completed the
buyout of Neutral Duty Free in a significant move for the region’s duty free industry.
Challenges vs opportunities Long-serving Neutral Duty Free CEO Enrique Urioste moved to take up a new position at Dufry Americas, with the respected Marcelo Montico joining Top Brands to head up its newly rebranded Neutral by Luryx duty free shops. These are located on the Brazil/Uruguay border at Rivera, Artigas, Aceguá, Rio Branco, Chuy and on the Argentina/ Uruguay/Brazil. For now, ASUTIL is concentrating
Dufry on ‘learning curve’ since first Brazil border opening
Dufry inaugurated its first Brazilian border duty free shop in Uruguaiana, Rio Grande do Sul at the border with Argentina in August. The 850sq m store carries many of the
same prestige brands present at Dufry’s airport stores across the globe, including MAC, Carolina Herrera, Victoria’s Secret, Shiseido, Lindt, Godiva, Johnnie Walker, Chivas, Absolut, Tanqueray, JBL, Lacoste and Desigual. Customers can shop using Dufry’s RED
loyalty programme, reserve and collect services and take advantage of sampling
46 TRBUSINESS
René Riedi, CEO, Division Central and South America, Dufry Group.
and digital activities instore. Since the opening in August, Dufry’s
René Riedi says the company has been on a learning curve to improve operations in the new channel. “One of our main goals is to adapt the
product assortment to this new type of customer, so we can offer an even better world-class retail experience. “The border shop represents a new
and important channel as well as a new retail experience where shoppers are able to find the best world-known brands from the most important categories that weren’t available in the local market.”
MARCH 2020
on developing the Brazilian border shops regime to the future benefit of its members. ASUTIL President Gustavo
Fagundes says: “Some aspects still need to be learned, reviewed, adjusted and improved especially in relation to the legislation. For this reason, ASUTIL is bringing to Brazilian customs some issues and at the same time some proposals in order to develop further the border shop operations. “That said, while travel retailers,
suppliers and government authorities still have challenges ahead, the opportunities are even greater as this sector is very promising and profitable.” Indeed, quite how many new
shops will open this year remains to be seen. Donagaray says: “As a new
business, a lot of people are seeing how it develops. There are a lot of things that may help increase the opportunity for business, but there are issues.” Brazil’s land border duty free
allowance rose from $300 to $500, effective 1 January, following an earlier announcement from President Jair Bolsonaro that coincided with a lift in the duty free purchase ceiling at airports from $500 to $1,000. “Brazil has a $1,000 allowance
for airports, $500 for people coming by land from outside Brazil, but Brazilians can only buy $300 from their own stores,” explains Donagaray. “It is expected that the government will increase that from $300 to $500 and that
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
