AMERICAS: DUTY FREE AMERICAS
DFA to join Dufry in opening first Brazilian border store in Uruguaiana
Duty Free Americas is set to capitalise on the Brazilian border opportunity with a new store across the street from the recently opened Dufry outlet. Andrew Pentol analyses the company’s Brazilian business which remains challenging.
S
hould all go according to plan, Dufry Group will have a new neighbour in the Brazilian city
of Uruguaiana on the border with Argentina this month. Duty Free Americas (DFA) is set to
open its first Brazilian border across the street from the 850sq m Dufry outlet which opened in August. Since capturing its very first
Brazilian airport contract at Afonso Pena International Airport in Curitiba in 2014, DFA has added further operations at airports including Salgado Filho in Porto Alegre, Bahia in Salvador, Congonhas in São Paulo and Eduardo Gomes in Manaus.
A sense of stability? Political and economic uncertainty has not made things easy for DFA and other travel retailers in Brazil. But the election of new President Jair Bolsonaro on 7 October 2018 has brought an element of stability. People appeared to have
confidence in the new government and the Brazilian real began to stabilise, albeit at a low level, once Bolsanaro was sworn in on 1 January 2019. Brazil may be in the midst of a
resurgence, but with the real losing almost 8% in August, marking its weakest month in four years (Source: Reuters) there is still some way to go. The opening of the retailer’s
inaugural Brazilian border store, which will be relatively similar to the Dufry outlet in size and offer, will provide a welcome boost to its Brazilian business. Commenting on the close
proximity of the two stores, Leon Falic, President, Duty Free Americas tells TRBusiness: “In our business it’s tough to differentiate. “Everybody carries the same
products and the rule of thumb is that there is always demand for a
OCTOBER 2019
Wine is well represented in the new DFA duty paid store at Salvador Bahia International Airport.
certain product locally. “This is the product we end
up selling the most of. We will differentiate ourselves perhaps in service, pricing and promotions.” Further Brazilian border stores
are also in the pipeline, according to Falic. “When we enter a country to open a single store it is very difficult. We are definitely going to open more Brazilian border stores.” Elaborating on the external
challenges which continue to face the company’s Brazilian business Falic comments: “To be honest, Brazil has been difficult for us. It is not where it is expected to be. Brazil will only improve and the new government is excellent.” He adds: “We are still investing
and bullish on Brazil, but it is going to take some time until it gets to where we want it to be.” The opening of DFA’s largest store
in Rio Branco on the Uruguayan border with Brazil last year, was a signal of intent. Spanning 10,000sq m, the Panda
Free Shop, part of the state-of- the-art Rio Branco shopping area, opened on 27 November 2018. Each area of the Panda Free Shop
has a different theme and includes various amenities including a WiFi
Each area of the Panda Free Shop has a different theme. TRBUSINESS 91
“To be honest, Brazil has been difficult for us. It is not where it is expected to be. Brazil will only get better which is good news and the new government is excellent.”
Leon Falic, President, Duty Free Americas
zone, children’s area and the only Gaming Zone on the border. The new shop also houses ‘one of the best cellars’ in South America that offers a selection of high-end wines. Falic says: “The Brazilian real isn’t
helping us right now, but the store is there and is big and dominant. I think we can do much better, but it is performing well.” «
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