NEWS ROUND-UP Waiting game for operators on Brazil’s land border
necessary permissions to implement a law to permit the shops to open. The law was originally passed in 2012,
but a mixture of political issues bogged down its passage into entry until significant developments took place last year. Customs had already laid out guidelines
Duty free and travel retail operators are braced for the first duty free shops to open on the Brazilian land border. During a recent ASUTIL webinar updating
sections of the press on the situation, the association’s Secretary General José Luis Donagaray affirmed plans for the first outlet to open this month at Uruguaiana. Another, smaller location may
immediately follow in Rio Branco, with Livramento, Foz do Iguaçu and the aformentioned Uruguaiana pinpointed as the main locations. The industry had been buoyed by news
announced by ASUTIL President Gustavo Fagundes 12 months ago that Brazil’s customs authorities had finally granted the
for the regulation of Brazil’s long-awaited land border shop business and this was rubberstamped at a meeting of key South American duty free stakeholders convened by the National Union of State Legislators in the presence of the Receita Federal (Brazil’s federal revenue service). Under the approved guidelines, border
stores can be established in any of Brazil’s 32 twin cities that border variously with, Argentina, Uruguay, Peru, Colombia, Venezuela, Argentina, Paraguay, Bolivia, Guyana, Suriname and French Guiana. Following the announcement last year, it
was suggested the first stores could open as early as August 2018, but confirmation from Receita that the required software to operate them would not be ready until the end of September put paid to that. It was then mooted that some small 30sq m or 40sq m border duty free stores,
Tampa unveils 69 shops and restaurants Terminal and concession renovations
Passengers at Tampa International Airport (TPA) were treated to live entertainment as part of a grand inauguration of 69 new retail stores and restaurants at the main terminal building last month. MIXX and Bay to Bay shops selling travel
essentials and fashion accessories opened at Airside F earlier this month. Other retail outlets to greet passengers
at the main terminal include a pop-up Tampa shop merchandising local goods and a variety of news/convenience and F&B options, a Tampa Bay Sports store and the 6,300sq ft Shoppes at Bayshore. This boasts national and boutique brands
such as Tommy Bahama, Quiksilver and Bourbon and Boweties.
Source: Tampa International Airport.
form part of a three-phase capital investment programme designed to lift passenger capacity at TPA to 34m per year. Construction on phase one started in
November 2014, with phase two beginning last year. Work on phase three, a 16-gate airside terminal, is set to begin after 2020.
operated by local entities would be up and running by the end of 2018, but this also failed to materialise. More recently in September, ASUTIL
indicated it did not expect any of the new shops to open prior to March. Once the stores finally open, Brazilians
will be able to buy goods to the value of $300 (as the allowance currently stands).
South Americans ‘more likely to visit shops’, says m1nd-set
Fewer North Americans visit duty free shops compared to their South American counterparts (22% vs 49%), but once inside, the former are more likely to make a purchase, according to research from m1nd-set (p27). “Interestingly, about half of North
American duty free shoppers buy as a gift,” observed the Swiss research agency. “Products not available at home is their
key driver to purchase duty free products, followed by availability of products suitable as gifts.” On the other hand, South Americans are
more prone to making a trip to duty free shops but are less inclined to purchase. Eight out of ten plan their purchases,
which is a higher percentage compared to North American shoppers. South Americans tend to spend more on
average, mainly on perfumes and tend to favour self-consumption, driven often by a clear price advantage. Indeed, about half of them buy products
on promotion.
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