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Autogrill’s new travel retail supergroup takes shape |
INTERNATIONAL. Autogrill has revealed restructuring plans for the new travel retail ‘supergroup’ it has created.
The move initially involves splitting Alpha Group’s business between a broad new UK retail division – dominated by World Duty Free – and Aldeasa’s international operations.
With the control of World Duty Free and Alpha Group’s UK retail division (Alpha Retail UK), Autogrill is now the biggest travel retailer in the UK, with sales of over £565 million. The UK retail business will become a single entity under World Duty Free CEO Mark Riches.
Alpha Group will focus on the inflight business (Alpha Flight) to optimise the offering for the UK and other international markets, said Autogrill today. Aldeasa CEO José-María Palencia will also be in charge of Alpha Group’s international retail business (Alpha Retail Asia and Alpha Retail US), the goal of which is to further strengthen the company’s presence in Asian and American markets.
The Moodie Report understands that Alpha Group CEO Peter Williams is to leave the company following the restructure. [For our subsequent interview with Williams, click here.]
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Autogrill has announced key new roles for Aldeasa’s José-María Palencia (left) and World Duty Free’s Mark Riches |
The reorganisation of Aldeasa, Alpha Group and World Duty Free – with total revenues of around €1.7 billion a year – is the beginning of a process of integration and implementation of best practice across companies that were once separate, said Autogrill.
By leveraging economies of scale across geographical regions and sectors, Autogrill expects to generate synergies of around €40 million a year by 2011, thus creating significant value for shareholders, the group said.
Riches said that both Alpha UK Retail and World Duty Free are currently trading ahead of forecast. “While the marketplace is challenging, I am optimistic that the performance will remain strong. We expect to leverage the benefits of being part of the largest global airport retail business as we immediately begin to identify opportunities as we work through the integration process.”
This integration process and the group’s objectives for the airport retail industry will be illustrated in an Investor Day, scheduled for mid-July.
World Duty Free Europe became part of Autogrill after its £546.6 million purchase from BAA closed on 21 May. The retailer has a 12-year contract with BAA for its UK airports.
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The £420 million World Duty Free business will spearhead the new UK retail arm of Autogrill |
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MORE STORIES ON AUTOGRILL
World Duty Free becomes part of Autogrill as £546.6 million acquisition is closed – 22/05/08
Acquisitions and organic growth drive Autogrill revenues in first quarter of 2008 – 13/05/08
The Moodie Retail Showcase – World Duty Free at London Heathrow Terminal 5 – 08/05/08
