LAGARDÉRE TRAVEL RETAIL
next five years – a position it is now challenging the number two, Lotte Duty Free for. Not even a fire that temporarily
closed Rome Fiumicino Airport T3 (on 7 May 2015) could derail the operation which still continues to progress today, with LTR’s investment still looking a pretty good bet. So much so, in fact, that Aeroporti
di Roma COO Gian Luc Littarru also confirmed to TRBusiness that ADR’s sales turnover reached €600m ($639m) in total last year – with extra Schengen average passenger spending the highest, at ‘north of €30’ ($31.95).
(LtoR) Frédéric Chevalier, COO Europe, Middle East and Africa LTR; Lucio Rossetto, CEO Italy, LTR; Dag Rasmussen, Chairman & CEO LTR; and Ambroise Fondeur, Chief Business Officer, LTR.
stores at the two airports at an ‘auction’ way back in July 2012 for €229.4m ($244.4m). At that time duty free sales stood
at around €140m ($149m) and many said that LTR had paid too much. But this was a 14-year contract
(to 2026) and it has to be said that Lagardére literally put its money where its mouth was at the time,
“What is very important for us is to listen, because we have retail formats which work and we want to localise them.”
Dag Rasmussen, Lagardére Travel Retail
even though it stated that the investment ‘was consistent with LS Travel Retail guidance’, as well as being in line with its strategy as outlined to investors in June 2012. Rasmussen also told TRBusiness
at the time that he was confident it was the right move and he was obviously correct. The fact that the Rome investment
was also a huge statement of intent to other airports around the world that LTR was here to stay was also pretty evident to TRBusiness. His belief in the Rome deal also
went hand in hand with his other big prediction back in 2012 that LTR would become the number two in travel retail worldwide over the
ADR and Lagardère to open gate shops
Aelia Rome Airport Aeroporti di Roma (ADR) has confirmed that it is talking to its duty free and travel retail partner Lagardère Travel Retail about creating new gate shop
concepts at Leonardo da Vinci Fiumicino Airport’s Avancorpo Terminal 3. ADR COO Gian Luc Littarru (above)
told TRBusiness last month that this is part of a new effort to generate incremental spends and revenues from passengers who may not always have time to visit its new 1,850sq m Aelia Duty Free walkthrough store on level one.
34 TRBUSINESS He said this is also an example of ADR
and LTR working both creatively and positively together, as he explained: “We are new to this concept of concentrating retail in one area and then moving people [downstairs] to the boarding areas,” said Littarru. “But we now believe there is more
potential to be exploited in the last- minute locations, so with Lagardère we are working on concepts to be implemented quickly to exploit the time that passengers wait before boarding – that is with shops that are close to the gates. “If you look at the new pier you will
see there is a lot of room for shops to be implemented there and we are now
thinking about what kind of shops we can put there. “These will be for people who are
rushing to board their flights, but who may see something nice at the last minute and just buy it. This will all be incremental revenue for us as we find something [a concept] that works for the retailer as well.” Meanwhile, Littaru also confirmed that
ADR’s sales turnover reached €600m ($639m) in total last year with extra Schengen average passenger spending the highest, at ‘north of €30’ ($31.95). He added that Chinese passengers are
also the highest spenders, with Rome ‘the most connected airport in Europe versus China in terms of destinations’ – a
MAY 2017
Battling early headwinds The fact that Rome is one of the most popular European destinations for Chinese tourists today – matched by 13 direct point-to-point flights to China – is also making a huge impact on the retail business there. Asked whether such a long tenure
has helped LTR to invest in a manner and on a scale that it might otherwise have been unable to with a shorter term, Rasmussen said: “Definitely it is a help. We have this long-term vision and it allows us to make some mistakes, or have some headwinds. “At the beginning here we had
headwinds, because there was less traffic than forecast and not the walk-through we expected – with a mix of duty free and duty paid and then we had the airport fire.
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