TOP 10 OPERATORS 2018 6: DFS GROUP


6 L


DFS Group boosted by ‘more buoyant markets’ in 2017


Last year was certainly a busy one for DFS, which focused on key downtown renovations in places such as Sydney and Auckland and significant airport projects in Singapore and San Francisco. Andrew Pentol reports.


ast year, DFS Group turned a positive corner thanks to ‘more buoyant markets’ – in the


second half in particular – and ‘cost control’ methods implemented over the past two years. In early 2017, DFS waived its


right to take up the three-year extension options for its separate five-year liquor and tobacco, general merchandise and perfume & cosmetics concessions at Hong Kong International Airport (HKIA). When it came to tender time DFS,


which held all three contracts in 2011 (beauty, fashion and liquor and tobacco) when spend levels were admittedly much healthier, only bid for the now combined beauty and accessories contract. This was won by Shilla Duty Free. It did not compete for the liquor and tobacco concession, which went to the China Duty Free Group and Lagardère Travel Retail joint venture. Undoubtedly disappointed not


to have been successful at HKIA on this occasion, exiting these three loss-making contracts at least allowed it to focus on new business development elsewhere. It was also able to concentrate on


OCTOBER 2018


ensuring the growth of large-scale downtown gallerias in Cambodia and Venice in particular. DFS’ first Cambodia store officially


opened in July 2016 in Siem Riep, the resort town and provincial capital close to the ancient temple of Angkor Wat, which is a world heritage site. At 8,000sq m, the T Galleria is the


largest duty free luxury department store in Cambodia, claims DFS, and offers travellers “an integrated retail, hospitality and leisure experience”. All the main categories of fashion/


accessories, watches and jewellery, wines and spirits, beauty, as well as a selection of locally handcrafted artisan products are available. DFS worked with Cambodian


artisans to incorporate traditional Khmer motifs and carvings to create that all important sense of place. Stone columns feature panels


carved in styles reflecting the nearby temples and palaces of Angkor Wat, while intricately patterned wall screens and floor tiles evoke local architecture. The Cambodia opening was


preceded by that of Venice in October 2016, where fashion is a key


category (see Box 2). TRBusiness estimates overall DFS


revenue increased by around 10% to $3.52bn in 2017 compared to $3.2bn the previous year. This might well have been driven by a recovery in revenue across its downtown businesses in Hong Kong and Macau.


Impactful marketing High impact marketing campaigns, continuous improvements in store offerings and digital initiatives designed to better serve travellers also helped. In Macau, for example, where DFS


runs six T Galleria stores, business was driven by the return to growth of the Casino industry. The stabilisation of the market and evolving customer also contributed, with DFS serving


“The ramp-up of new stores in Cambodia and Venice continued, while a fourth DFS Wines & Spirits store opened its doors at Singapore’s Changi Airport, which helped add to last year’s growth.”


Spokesperson, LVMH (Louis Vuitton Moët Hennessy)


TOP 10 OPERATORS 45


Above: DFS unveiled a retail store at the new Singapore Changi Terminal 4 last November.


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