Unlock the full potential... North/South divide more pronounced in 2018
LEADING AMERICAS OPERATORS: INTRODUCTION
While it was widely reported that retail operators with stores in Brazil, Argentina and Venezuela were exposed to geopolitical uncertainty and suffered from a lack of consumer confidence in the second half of 2018, the US economy strengthened along with its currency. Charlotte Turner reports.
travel retailer and restaurateur in North America’, according to the company’s Executive Vice President, Gerry Savaria.
DFA eyes big developments Indeed, Duty Free Americas (DFA), which also has a strong footprint in the US, benefitted from the buoyant trading environment at its network of airport stores, including Washington Dulles and Miami International, in 2018. It is looking forward to the completion of a massive retail development at the latter this year (see p31). Big developments were also on the
Above: DFA will complete retail developments across both North and South terminals at Miami International Airport, which registered a record 45m passengers in 2018.
I
n Julián Díaz’s appraisal of Dufry’s performance in the Americas for 2018 – as well as his 2019 outlook
– he encapsulated the thoughts and feelings of many DF&TR companies operating in the region. The Dufry CEO told TRBusiness at
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the beginning of this year that the company is hoping for currencies in South America to stabilise in 2019 after a challenging year for the company’s operations in these markets.
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Argentina remains tough Although Dufry (p28) began strongly last year, in the second quarter of 2018 it reported sales declines in Argentina, Brazil, Chile and Uruguay
“For Latin America the main driver will be the level of confidence in the new Brazilian government and the pick-up of the economy – with a related appreciation of the Real. This will also influence the neighbouring countries in South America; maybe excluding Argentina...”
Julián Díaz, CEO, Dufry 26 TRBUSINESS
Argentina is likely to remain a tough business environment for the next 12-18 months as new government initiatives are given time to embed. “For Latin America the main driver
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will be the level of confidence in the new Brazilian government and the pick-up of the economy – with a related appreciation of the real. This will also influence the neighbouring countries in South America; maybe excluding Argentina...” However, in the mature DF&TR
market of North America trading conditions were much more favourable in 2018. Those with operations in the
US in particular appeared to fare better in 2018, including Paradies Lagardère, which registered sales in excess of $1.2bn last year (see p42), making it the ‘third-largest
Operators will be hoping that currencies in the region stabilise and improve this year.
MARCH 2019
Global Industry Survey (inside the January issue), Díaz said that it is difficult to give firm predictions on the company’s performance in 2019, but following the Brazilian election last year there appeared to be ‘low levels of stabilisation’. However, he does believe that
due to the devaluation of their respective currencies against the US dollar. In his contribution to the TRBusiness
agenda for 3Sixty (formerly known as DFASS), which underwent a game- changing transformation in October. Since then it went on to secure the Costa Maya cruise concession in Mexico and a 10-year duty free and duty paid concession at Nashville International Airport (read more about the company’s ground store operations on p41). Finally, Motta Internacional,
which was similarly exposed to currency volatility in some regions last year, still had plenty to celebrate when it famously secured one of two 10-year duty free contracts at Panama Airport last year alongside fellow incumbent DFA. Erasmo Orillac, CEO, Motta
Internacional, tells TRBusiness what passengers can expect from the retail landscape in Terminal 2 when it opens in the late summer (p35). «
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