NEWS ROUND-UP Díaz: More to come from Asia as expansion on the cards
Dufry Group is prioritising Asia in future expansion plans as it looks to add 15,000sq m of commercial space to the 30,000sq m opened globally in 2017. Speaking exlusively to TRBusiness [see
page 20] CEO Julián Díaz emphasised the projected double-digit increase in Middle East and Asian consumers in the next five to 10 years. He said: “Regionally it is very important
we expand the business in Asia. It is still a question mark for us as we have only generated 10% of total business so far in this region when we are generating 42% of total business in the Americas and 26% in Central Europe and the UK.” The company’s Asian strategy is clear,
according to Díaz, but attacking first-tier airports is not a preferable as a model. He explained: “I like models where we
create sustainable business. “Second-tier airports where we can
provide value and [explore] alternative channels are probably the best next steps for Dufry to develop the business in this territory.” In the Americas, the recent decision
taken by Brazilian customs authorities to permit land border duty free stores in Brazil has Díaz interested: “There is great value to deliver. Dufry is involved and one of the priorities
in the country is to participate in the new market. “Again, we need to understand the
customer’s behaviour and motivation in going to places where you can go without any restriction.” Staying with Brazil, he highlights the
‘large growth potential’ driven by a trend towards airport privatisation and the potential of raising the arrival’s allowance from $500 to $900. He commented: “Brazil is still
the most interesting emerging market in the world. “I think the growth of the economy
will facilitate any retail activity, especially travel retail, as we benefit from both sides – retail and travel. “Obviously, events like the possible
opening of duty free shops on Brazil’s border following the approval and gradual increase in inbound allowances
are good triggers for increasing and accelerating value.” On the current Brazilian arrivals allowance, Díaz said: “Currently, we cannot sell anything above $500 and the combination of any product cannot be above $500. “This is limiting the possibility to display
60% to 70% of products in-store, which is obviously a tremendous challenge.”
City Plus exits Gimpo Airport as KAC begins new search
South Korean retailer City Plus has terminated its five-year tobacco and general merchandise concession at Seoul Gimpo International Airport. City Plus cited ‘unsustainable trading
losses’ linked to a combination of increased concession fees and the fall in Chinese group tours due to the THAAD missile crisis.
The Korea Airports Corporation (KAC) has since revealed to TRBusiness in an exclusive interview [see page 124] that it is in discussion with the Korea Customs Service to address the situation following the exit. The City Plus concession covers two
outlets totalling almost 750sq m. It won the contract, which excludes
perfumes & cosmetics, in a competitive tender in 2016. “The contract with City Plus was
terminated due to the concession payment being overdue,” commented Korea Airports Corporation Commercial Facilities Team Assistant Manager Kim Su Min. “We were officially notified on 21 March 2018. It has not yet been determined
whether they will receive an empty space or be granted an extension. “We are discussing the possibility
of a new operator with the Korea Customs Service.” Commenting directly to TRBusiness,
Allen Hong, Senior Managing Director Merchandising Division, City Duty Free said: “The high concession fee has caused a huge loss from the start. Now the level of loss is over the danger level.” “According to the tenancy contract, we
must extend our operation for six months after notifying the landlord of termination. We, however, chose to be terminated by the airport authority for defaulting on the concession fee payment to avoid a big deficit from the six-month extension.”
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 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132 |
Page 133 |
Page 134 |
Page 135 |
Page 136 |
Page 137 |
Page 138 |
Page 139 |
Page 140 |
Page 141 |
Page 142 |
Page 143 |
Page 144 |
Page 145 |
Page 146 |
Page 147 |
Page 148 |
Page 149 |
Page 150 |
Page 151 |
Page 152 |
Page 153 |
Page 154 |
Page 155 |
Page 156 |
Page 157 |
Page 158 |
Page 159 |
Page 160 |
Page 161 |
Page 162 |
Page 163 |
Page 164
