TOP 10 OPERATORS 9: DUTY FREE AMERICAS


other technologies. Falic continues: “Companies will take advantage of these platforms and question whether they need to spend so much on travel. “I will be honest with you. Where


we have business, we are still doing well. It’s not like we won’t do the business if we don’t travel.” He adds: “I enjoy travelling


“By the time business has ramped-up and things have returned to normal, you will have probably lost two or three years on a contract [...]. This is enormous.”


Leon Falic, Duty Free Americas


and obviously enjoy seeing my businesses. Travelling is different to making a phone or Zoom call. There is something special about being there in person and talking to someone, whether it’s about business or more personal matters.”


Above: DFA stresses it is not shying away from its commitments to suppliers or airports.


Above right: Mark Fine has assumed the role of Vice President Sales & Marketing Cruise Line Channel, UETA Ship Supply.


staff, ensuring stores have the required signage and equipping cash registers so consumers and staff are protected. “We are doing what we can,” says


Falic. “From airlines to airports, to retailers and even passengers who don’t want to fly, we are all hurting.” On future travel prospects, Falic


does not think people will travel at the rate they did previously. “I recently had a meeting with


someone who is very involved with an airline. The person said there will be a slow ramping-up phase as there will be so many rules and regulations [when travelling] which might put some people off.” There is also a worry that


business travel may decrease due to the newfound reliance on video communications platforms and


Losing ground on contracts Despite his concerns for the travel industry and DF&TR business, Falic believes the aviation and DF&TR industries will come back at some point. “We are in this for the long haul.


There have been a lot of crises and this is just one of them. This is a bigger one, but we will get over it. “Thankfully, we have good


partnerships with our suppliers and ensured we could pay them. They are aware of our strength and know we will continue working with them.” Even before the Covid-19


pandemic, the state of the DF&TR concession model had been called into question and discussions over its changes appear to have intensified. Falic says: “At the end of the day,


a lot will depend on performance. Many retailers make a bid, come in, try to renegotiate contracts or simply do not perform. That is not what we


do. We come in wanting to give the airport as much money as we can so they can make as much as possible from our sales. Airports must trust we are going to perform though. This is where our strength is.” Falic emphasises that DFA


has done everything possible to show how serious it is about the DF&TR business before and during the pandemic. “We are not shying away from any


of our commitments to suppliers or airports,” maintains Falic. “Obviously, there is a new reality,


which everyone has to adjust to, but we are in it together. Right now, charging us for something that is not happening does not work for them or us. Concessions should be very sales oriented. There should be a percentage of sales given to the airport and obviously if we make the sales, they get a big cut. “This is how it should be. It


doesn’t make sense to put in some crazy minimum annual guarantee. Nobody can make money this way. It is just not going to happen with us or anybody else.” This aside, the issue of lost


time on contracts must not be underestimated. Falic explains: “Forget about the five or six months lost due to closures. By the time business has ramped-up and things have returned to normal, you will have probably lost two or three years on a contract, in terms of time available to meet sales and profit objectives. This is enormous. “Imagine having a contract,


DFA has maintained strong relationships with suppliers during the Covid-19 pandemic. 38 TOP 10 OPERATORS


growing it, getting to know your business, putting in the required inventory for the right flights, building it up and experiencing an improvement each year. Whatever contract we have, we feel we have lost two to four years.” «


OCTOBER 2020


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