TOP 10 OPERATORS 5: LAGARDÈRE TRAVEL RETAIL


just incredible. “I’ve noticed a remarkable


engagement of network and responsiveness in pursuing and putting in place measures since the start [of the pandemic]. “The situation remains very


serious. We are still going through the hardest phase of the crisis. “Our teams have been amazing


and demonstrated responsiveness, agility and even frugality.”


“We want to be consolidators in this business and will be on the acquisition path. We have great people and concepts and a sound strategy.”


Dag Rasmussen, Lagardère Travel Retail


professional. They challenge us a lot, which is something I like.” Further acquisitions are a


Above: Sales in the first half of 2020 dropped -54.5% on a like-for-like basis to €947 million.


Reflecting on the International Duty Free acquisition, which was finalised last September, Rasmussen comments: “The acquisition was a key milestone in 2019. It enabled us to step-up our presence in Europe, as well as Africa where International Duty Free has this little Kenyan diplomatic store. The acquisition consolidated our position as one of the top travel retailers.” In terms of the appeal of


International Duty Free, Rasmussen singled out its high quality retail concepts for special praise. “These include The Belgian Chocolate House, which we obviously have now,” he says. “They also have a great team which are very


possibility for the company, which is present in 39 countries, 270 airports and 750 rail stations. It also runs 4,800 stores. “We want to be consolidators in this business and will be on the acquisition path. We have great people and concepts and a sound strategy. “Opportunities could emerge


after the Covid-19 crisis and we will be keeping a look-out.” The impact of Covid-19 has


certainly taken its toll on the company, which recorded a -54.5% like-for-like sales decrease to €947 million/$1.1 billion in the first half of 2020. In France business dropped -59.8%


due to air traffic strikes, which continued into the first month of 2020 which was then compounded by Covid-19. Government lockdown measures led to the rapid shutdown of virtually the entire network. This minimal revenue drop in


China was thanks to new openings in 2019, upbeat online and social media sales and a gradual resumption of domestic travel, notably in Wuhan, where Lagardère Travel Retail operates 88 stores at Tianhe International Airport. In August, Lagardère reported


like-for-like growth of +10% across its Chinese business. With domestic traffic in China gradually returning, the retailer will be confident of achieving great things in the country during the rest of the year and beyond. Covid-19 may be unheard of in


Spend per passenger and stock ratio grew in 2019. 24 TOP 10 OPERATORS


terms of magnitude, impact and the level of uncertainty it has generated, but Lagardère Travel Retail has stood up to the test. “I’m so proud of what the team has done. It’s


Early engagement The early deployment of protective measures in China and Asia Pacific seemingly shaped Lagardère’s response to the pandemic. Rasmussen recalls: “We created a coordination squad for the crisis to obtain real-time information from the different markets, share best practices from shutdown and re- opening and to manage inventory.” With more than two-thirds of its


stores now trading and all platforms open, Lagardère is in a bullish mood. “We’re ready for the re-start and I hope it won’t take too long. For me, the key learning from the crisis was the strength of our empowered culture, which meant the local CEOs started moving [and implementing various measures] before they were asked. “The strategy around our


three business lines and global geographical footprint also helped us remain resilient.” Speaking of resiliency, the creation


of a new management board in August will strengthen the Lagardère Group’s operational agility to tackle the impact of Covid-19. The new board comprises members


of the current executive committee, Rasmussen and Lagardère Publishing CEO Arnaud Nourry. Rasmussen and Nourry will play an active part in the strategic management of the group. “This


announcement is


confirmation of Lagardère’s full commitment to the publishing and travel retail divisions,” Rasmussen emphasises. He adds: “Our strategy is globally


unchanged with a focus on B2C4B (business-to-consumer-for-business) excellence across our three business lines. We will also continue with some selective business development in


OCTOBER 2020


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