IRELAND. Leading state-owned Irish travel retailer ARI posted €1.24 billion in managed turnover in 2023, a rise of +13.9% year-on-year. The increase was built on passenger traffic growth and higher average spends, said the company.
ARI Chief Executive Officer Ray Hernan commented: “2023 has been a very successful year for ARI, with significant growth across our global estate. The remarkable performance across all our locations, many of which achieved record-high sales, is a testament to our colleagues and teams in each location. It is their continued dedication to improving the passenger journey and providing exceptional retail experiences for travellers that has led to such a resounding success.”
2023 was a year of “continued growth and recovery” in all key markets, noted ARI. Many business units achieved historically high turnover and levels of profitability.
ARI has direct or indirect interests in 14 countries across North America, Europe, the Middle East and minority shareholdings in Düsseldorf Airport in Germany, and Larnaca and Paphos airports in Cyprus; the company also manages the retail operations Dublin and Cork airports in Ireland.
“We remain focused on developing plans for future growth”, said Hernan. “Our performance in 2023 signals our intention to seek growth in key markets in the coming year, while also maximising and delivering on our commitment in our current operations.”
Dublin and Cork airports posted record passenger numbers, which helped to deliver strong growth for ARI across all categories, with sustained development of airport exclusives and first-to-market offerings in liquor, beauty and confectionery.
ARI’s joint venture with ANA at Portugal Duty Free “exceeded expectations”, with the business trading ahead of plan in its first full year of operations. The focus for 2024, ARI said, is to complete an extensive capital refurbishment programme to improve the retail experience in the stores.
ARI Middle East (ARIME), which comprises businesses in Bahrain, Cyprus, Lebanon, Oman, Saudi Arabia and UAE, had a “strong year despite challenges in the region in the last quarter”, said ARI.
The implementation of a “world-class” operation at Zayed International Airport in Abu Dhabi was completed in November 2023; it spans the categories of beauty, jewellery and sunglasses.
ARI’s business in Riyadh performed solidly, while Muscat had another year of robust performance in 2023, with trading boosted by good liquor and tobacco allowances in arrivals.
Bahrain Duty Free also showed a strong performance in 2023, with prevailing market conditions attributing to the solid performance across all sectors.
ARI’s retail operations at Larnaca and Paphos airports in Cyprus performed significantly ahead of 2019 levels with turnover exceeding €100 million for the first time. The business returned a healthy profit, benefiting from strong performance in the peak season period of the year. The business continues to benefit from the spend from UK passengers following the re-introduction of duty free, post-Brexit.
Recovery in ARI’s retail operations in Canada gathered pace and performed in line with 2019 levels despite the lack of high-spending Chinese passengers. ARI North America celebrated its milestone 25th anniversary in 2023. The retail area at Montréal-Trudeau International Airport was rebranded as Montréal Duty Free during the year. A stand-alone duty paid store in partnership with Chanel opened in September 2023 at Vancouver International Airport. At Edmonton Airport ARI won a new contract in 2023, with the opening in mid-January 2024.
ARI’s joint venture operation at Delhi Indira Gandhi International Airport in India (where ARI holds a 33.1% stake) had an “exceptional year”, said the retailer.
ARI’ said the operations at Podgorica and Tivat airports in Montenegro continued to trade profitably despite the lack of Russian and Ukrainian passengers.
Hernan added: “We began 2023 in a strong position, and with the launch of the revitalised ARI brand, and our new brand expression, ‘joy on your way’, our team were able to build on a solid foundation.
“We are delighted to be in a strong position for 2024, with ambitious growth plans and the anticipation of another successful year ahead. We will continue to enhance our current bespoke offerings and customer experience, nurture existing partnerships, and are excited by the prospect of exploring new territories.”
ARI noted that its financial performance is driven by its strategic commitments, including a sustained focus on strengthening its leadership position in ESG and reinforcing its DE&I assurances. Together with ARI’s improved Customer Value Proposition, these programmes “reinforce the brand’s reputation as a pioneer in the industry”, the company said. ✈
