TOP 10 OPERATORS 2018: INTRODUCTION


they want to expand. As Asia now generates the greatest


share of global duty free and travel retail sales, the above statement is not surprising and TRBusiness fully anticipates that operators from this region will only continue to grow in number and size in the coming years. Looping back to an earlier point,


consolidation has obviously greatly influenced the Top 10 table in the last two decades; something which former TRBusiness Editorial Director, Doug Newhouse was already writing about in 1998 and in many years before that.


What have we learned? He wrote: “What is clear is that the top ten travel retailers [...] have continued to increase their share of the global market in 1997. “The reaction to this increase in retail muscle is naturally mixed in the supplier fraternity, with some delighted that the number of accounts they now have to service has effectively reduced. “But others, conversely, voice


concerns that too much power in too few hands only weakens suppliers’ bargaining positions.” In 2018, although their voices may


be quieter, suppliers are still vocal about the downsides of retailer consolidation. [However, it is important to point out that suppliers have also been at the same game for many years]. Whilst consolidation appeared


Lotte has ambitions of becoming the no 1 travel retail operator in the world.


Consolidation has obviously greatly influenced the Top 10 table in the last two decades; something which former TRBusiness Editorial Director, Doug Newhouse was already writing about in 1998 and in many years before that. TRBusiness


to reach a peak in 2014/2015 – when Dufry was buying up WDF and Nuance – news of further significant acquisitions cannot be outruled; especially if No 2 operator (2017), Lotte, continues to profess


Report methodology and important considerations


Sales totals are informed almost entirely on one-to- one interviews, with top management at every one of the ranked companies, plus officially-released data for 2017. TRBusiness acknowledges that some operators include foodservice revenue or special retail concepts, while others do not. Some also include 100% of their joint ventures, but not all, so like-for-like comparisons are


difficult to make. In other instances, retailers


also have duty paid operations, while others have bigger or smaller duty free businesses, making even these comparisons problematic here (or in any other survey). Certain operators such as


DFS, Lotte, Shilla, Dufry and others have traditionally had greater exposure to more higher spending passengers,


arrivals shops, downtown outlets and higher allowances in some locations than others, so this can also distort comparisons. But the biggest distortions are


inevitably caused by sales made in local currency units, but then subsequently expressed in US dollars, such as euros, HK dollars, Chinese Yuan, Swiss francs, Korean Won, Japanese yen etc.


its ambition of becoming the No 1 global duty free and travel retailer in the world; much like BAA/WDF did twenty years ago… Although Lotte’s overseas business


represents a relatively small share of its total earnings, after acquiring JR/ Duty Free’s business in Australia and New Zealand, other operators are beginning to take Lotte’s claims more seriously, especially as TRBusiness knows that the Korean company was also looking to acquire Americas retailer DFA not too long ago. So is further consolidation on


the cards for the ever-decreasing circle of retailers? If history is anything to go by, TRBusiness may be writing a similar summary in another 20 years’ time. «


Above, top to bottom: DFS Group, Interim CEO, Ed Brennan; King Power International Group, Senior Executive Vice President, Susan Whelan; China Duty Free Group President, Charles Chen; DFA, President, Leon Falic; and ARI, Acting CEO, Anthony Kenny.


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