COVID-19: NEWS ROUND-UP Top 10 operators combined sales hit $51 billion in 2019


Combined sales for the world’s Top 10 international duty free & travel retail operators reached US$50.91 billion in 2019, up a very respectable +13% year-on-year. Solid performances were enjoyed by the majority, while Lotte, Shilla and CDFG stood out for their double-digit sales rises. The narrative for 2020 could not be


more stark in comparison, as every operator in this year’s ranking deals with the unprecedented human and economic costs of the coronavirus pandemic and there are understandably few that have positive news to report. One exception is China Duty Free Group (CDFG), for whom a recovery is gathering momentum. However, as is customary, the Top 10


Report ranks operators using sales figures registered in the prior year, which in this case is 2019 (calendar year). The majority of the companies in the ranking posted solid performances, TRBusiness can report.


World Duty Free parent Dufry retained its lead over Lotte in 2019, but the gap is closing.


This can certainly be said of reigning GTR operator Dufry Group, which was able to compensate for a challenging trading environment in Latin America last year with notable sales rises in Europe (particularly the UK and Spain), Africa and Asia, with total turnover growing by 1.9% to reach CHF8,848.6 million/$8.9bn. While it’s fair to say that Dufry was


satisfied with its global performance in 2019, it could not claim the remarkable sales gains registered by second-placed Lotte Duty Free, which describes 2019 as ‘miraculous’ in an interview with TRBusiness (p11). Whilst generating total DF&TR sales


Established 1998


of KRW9.93 trillion/$8.5 billion, even the leading Korean travel retailer would admit to feeling the pressure from its main


domestic rival, The Shilla Duty Free. The company also enjoyed a ‘fruitful’ year. Fourth-placed CDFG had nothing to


complain about in 2019 either, boasting sales of RMB47,361,262,879/$6.85bn, boosted by the milestone 10-year contract it won at Beijing Daxing Airport. In 2020, CDFG is the only operator to


report gains during the pandemic. Speaking to Charlotte Turner (p19), President Charles Chen reveals he is confident that sales made from CDFG’s downtown Hainan island business will double by year-end.


Find the top 10 table along with comprehensive profiles on each company – plus a special bonus feature on Dubai Duty Free – inside this year’s Top 10 International Operators report, published with this issue.


Brexit: UK to end tax free sales for all travellers in 2021


The UK government has confirmed the restoration of duty free sales between Britain and the EU at the conclusion of the Brexit transition period, but tax free sales on airside products (aside alcohol and tobacco) at UK airports will end for all travellers. The UK Travel Retail Forum (UKTRF),


which represents the interests of companies trading in travel retail, has expressed its ‘grave disappointment’ following the decision on tax free sales. [A more detailed report can be found on p22]. As anticipated, effective 1 January


4 TRBUSINESS


2021 EU-bound passengers won’t pay UK excise tax or duties on alcohol and tobacco products at British ports, airports, international train stations, aboard ships and airlines. The changes apply to England,


Wales and Scotland. It is unclear at this stage if the new rules would apply to Northern Ireland. The amount of excise-free goods


travellers can bring back from EU and non- EU countries alike will increase. However, ministers will not extend tax


OCTOBER 2020


free sales to airport passengers travelling to the EU and will simultaneously end the tax free sales concession for those visiting non- EU destinations.


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