TOP 10 OPERATORS 5: LAGARDÈRE TRAVEL RETAIL


order to keep a lean and empowered local organisation close to customers and operations. “This is supported by our enablers


which are innovation, digital systems, talent and our PEPS (Planet, Ethics, People and Social) corporate social responsibility programme.” One thing that has changed is the


need for Lagardère Travel Retail to perform to a financial level, which allows it to cope with lower volumes. It has also been forced to think strategically about more balanced concession models. Meanwhile, Lagardère Group’s


Supervisory Board has renewed the mandate of Managing Partner Arnaud Lagardère (who holds a 7.26% stake in Lagardère SCA) for a further four years, effective 17 August. The Supervisory Board remains an integrated entity of the group. The renewal of Arnaud Lagardère’s


tenure is the latest twist in a long- running dispute between the group and shareholder Amber Capital over Lagardère’s governance.


Logical strategy Rasmussen, however, denies suggestions the new management committee is a direct response to increased pressure from Amber Capital. “People may believe the newly created management board is more tactical than anything else, but this is not the way I see it. “I think it’s a really logical step,


with the implementation of the strategy to concentrate on the two remaining divisions (Lagardère Travel Retail and Lagardère Publishing). It makes a lot of sense to have Arnaud and


The duty free and fashion segment is one of the retailer’s three business lines.


myself playing a strong role in the governance.” From a Lagardère Travel Retail


standpoint, flexibility and agility are key parts of the operational plan. According to the company, flexibility and agility should also be key parts of the future concession model. “Internally, we’re launching a transformation project called The Leap Forward,” said Lagardère. “The purpose of the project is to ensure we are fit to succeed in the new environment and best placed to respond to traveller’s needs.” Looking ahead, however, it is


unrealistic to think business will continue as usual post Covid-19. “Things will change, for the good and bad,” says Rasmussen. “What is clear and a priority for all retailers is to have greater centricity and closer partnerships with landlords and brands.” As far as potential changes to the


concession model are concerned, moving to something fairer would benefit all parties. “This would probably mean


LAGARDÈRE TRAVEL RETAIL: ACTIVITY Full-year 2019 results / 27 February 2020


2019 revenue by geographic area US & Canada


25% 21%*


EMEA


(excluding France)


41% 42%*


Foodservice


22% 17%*


OCTOBER 2020


€4,264m (up 16.1% on a consolidated basis and up 6.3% like-for-like).  €46m positive currency effect and €315m positive scope effect.


TOP 10 OPERATORS 25


€4,264m €3,673m**


Asia-Pacific***


12% 13%*


Travel Essentials France


22% 24%*


38% 43%*


€4,264m €3,673m**


Duty Free & Fashion


40% 40%*


2019 revenue by activity


“The situation remains very serious. We are still going through the hardest phase of the crisis. Our teams have been amazing.”


Dag Rasmussen, Lagardère Travel Retail


introducing a material adverse change clause, because when everything collapses, you shouldn’t have to negotiate not to pay rent,” he adds. “It should be obvious. “On the concession model itself,


there are already so many different formats. You can have concession models based on percentage of revenue, with or without minimum annual guarantees (MAGs).” MAGs can be in absolute value or


on a per passenger or product basis, he adds. They can also be tiered depending on volumes. “I don’t think everything will concentrate towards one unique model,” concludes Rasmussen. “Things will be optimised in discussions between landlords and retailers. There is no universal solution.” «


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