TOP 10 OPERATORS 10: ARI 10


ARI identifies ‘harmonised retail’ as guiding light in turbulent climate


Aer Rianta International is proud of the ‘huge strides’ it has made in fostering greater synergies between its category, supply chain, marketing, merchandising and digital teams. After a solid performance in 2019, the status quo demands multi-disciplinary collaboration now more than ever, as Luke Barras-Hill reports.


ARIME negotiated a further 10 years to its management contract with Bahrain Duty Free last year. “T


wenty nineteen seems like a long time ago now…” The words from


Aer Rianta International (ARI) Chief Commercial Officer and Deputy CEO Anthony Kenny in conversation with TRBusiness are poignant; 12 months on and the world is an eerily different place. No one in 2019 could have


reasonably foreseen the health armageddon that lay ahead and the irreparable damage to a travel retail industry stricken by the coronavirus (Covid-19). However, many travel retailers


are using the learnings of last year to bolster their recovery efforts. Overseas profits at ARI rose by 17%


to €13 million/$14 million based on figures from parent company daa. ARI has operations in 12 countries


and retail interests in a further 11 in addition to holding daa’s shareholding in Düsseldorf Airport and Hermes Airports. Strong like-for-like sales were


generated across ARI’s international portfolio as gross margins benefitted from a new centralised buying structure. TRBusiness has learned that managed turnover grew by 8% year-


OCTOBER 2020


on-year to €1.2 billion/$1.3 billion. “We saw good growth


across the estate; all our businesses experienced growth with the exception of Cyprus,” comments Kenny.


Delays in Abu Dhabi ARI Middle East (ARIME), which has operations in Bahrain, Cyprus, Lebanon, Oman, Qatar and Saudi Arabia, yielded a strong return, with ARIME extending its management contract with long- term partner Bahrain Duty Free for a further ten years. However, the picture in Abu Dhabi


is less convincing. TRBusiness learned from a well-placed source recently that the Midfield Terminal Building opening would not open until 2021 at the earliest. ARIME won the rights to operate


perfumes, cosmetics, skincare sunglasses and jewellery in one of two 10-year contracts awarded by Abu Dhabi Airports Company in 2015, but the project has suffered consecutive delays. “We are progressing well in terms


of the setup,” says Kenny. “We have an implementation team working on it and the build is going well. We


have a credible bespoke shop fit, keeping with the ‘wow factor’ of the airport when it does open.” Without being drawn on the


question of whether ARI would expect further concessions on contract terms, Kenny says: “We continue to liaise closely with the airport and our partners to deliver premium stores. “We don’t have any other


comment on the assurances for the concession at this time. There is an ongoing dialogue.” In India, sales from joint venture


partner Delhi Duty Free rose by nearly 13% year-on-year, with the departure store benefitting from a timely upgrade following the successful opening of its arrivals


“We’ve brought together a global cross-functional team to define the future of travel retail and how customers and attitudes will change.”


Anthony Kenny, Chief Commercial Officer and Deputy CEO, ARI


TOP 10 OPERATORS 39


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