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Fortune favours the brave in Brazil


Last year turned out to better than initially expected for Duty Free Americas (DFA) who managed to register sales exceeding the predicted $1.65bn. However, current political uncertainty in LatAm and the US will make for a challenging 2019, says Leon Falic, who admits that even Brexit could have an impact. Charlotte Turner reports.


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ast year was certainly better than expected, according to DFA President Leon Falic, who


tells TRBusiness the company actually achieved sales in excess of his original 2018 revenue forecast of $1.65bn, up from $1.53bn in 2017. “We beat it by a little bit,” he says.


“2018 ended up being ok. It had its tough moments, but it ended up being ok.” As reported by TRBusiness.com,


DFA has continued to expand its operations in Brazil within the last year, most recently with a new store at Belo Horizonte Tancredo Neves/ Confins International Airport in January of this year. Currently operating in nine


paid store in Salvador. A complete renewal of two shops in Porto Alegre will also support DFA’s strategy in Brazil. Despite a politically tricky


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period for the region, Falic remains excited about the company’s growing business there. As was to be expected, immediately prior to Brazil’s presidential election (in October) and in the months following it, civil unrest unsurprisingly had a knock-on effect on consumers’ propensity to spend. However, DFA, which is now


of Brazil’s biggest airports, the new Belo Horizonte store was an important step in DFA’s Brazilian expansion. This includes the opening of a new arrivals shop in Salvador and 11 convenience stores in a joint venture with WHSmith in Rio de Janeiro Galeão and São Paulo- Guarulhos International Airports.


Investing in Brazil In the coming months, two new stores will also open in São Paulo- Guarulhos Airport and one new duty


MARCH 2019


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used to operating within a cyclical economy, believes that this is just another cycle and remains positive about the opportunities in the region. “We really believe Brazil is going


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to be great,” he says. “We have great thoughts about it and have made great investments. We’re going to continue to invest in Brazil. “We know Brazil’s economy goes


in cycles and we think the cycle is coming back and once that cycle comes back, it comes back very strong. So, we’re going to continue betting on Brazil for sure. “We’re moving into new locations. We’re opening up a bunch of


Leon Falic, President, DFA TRBUSINESS 31


on the Donna-Rio Bravo Bridge,” confirms Falic. The new 1,000sq m store will mirror the design and offer of most other UETA stores and will carry the following: liquor, perfume, cigarettes, chocolate, watches and sunglasses.


“Macroeconomic factors: we’re not going to change them [...] we just need passenger traffic and passenger flow and so far we are getting it. That’s what we are focused on. If I look at the news all day long I’ll never do anything. We really try not to pay too much attention.”


different new businesses there and we’re looking at airports too.” While Brazil remains a top priority


for the company, it also continues to open new stores in the US, including one in the Texan city of Donna in Hidalgo County, which borders the Mexican city of Río Bravo and is slated to be finished by the end of this year. “A new UETA store is opening up


Above: Leon Falic says DFA will continue to invest in Brazil, as it did at São Paulo- Congonhas Airport, pictured above.


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