INTERNATIONAL. Travel retail giant Dufry announced today that it has signed agreements to open new shops in Egypt, Honduras, France and the US – adding more than +3% to its global retail footprint.
Dufry said that the US agreements further strengthen its position in that market and allow the company to leverage existing business in an important region.
It noted that new contracts signed in Egypt will enable Dufry to grow its already established Egyptian travel retailing operations.
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“These new contracts are in line with our strategy to expand our operations both in existing and new locations“ |
Julián Díaz Chief Executive Officer Dufry Group |
The Honduras contract allows Dufry to operate a duty free shop in the new seaport of Roatan, adding a promising location to the company’s network and reinforcing its leading position in the Caribbean market.
Dufry said it expects these expansions to enhance sales and earnings in 2010.
Dufry CEO Julián Díaz commented: “We are very pleased to sign these new contracts in line with our strategy to expand our operations both in existing and new locations. The contracts in the US further strengthen our leading position in the market and allow us to leverage our existing business in the respective locations, with interesting synergies.
“The contract wins in Egypt are equally important to us as we have been able to build our Egyptian business in the past few years, starting from a small location and progressively consolidating our presence in a key tourist country and further strengthening our presence in Northern Africa.
“Last but not least, the new contract in Honduras further adds an interesting destination and reinforces our leading position in the Caribbean market.
“Overall, the projects illustrate not only the growth potential Dufry has, but also highlights Dufry’s capacity to implement its successful growth strategy globally, be it in duty free or duty paid, and to further leverage the current regional structures to grow profitably.”
Here are details of the new business:
EGYPT – NEW AIRPORTS AND ADDITIONAL DUTY FREE LOCATIONS
The contracts won in Egypt add two locations and further expand Dufry’s business in a country where it has operated successfully as a travel retailer for some years.
The company has signed two five-year contracts to operate four duty free shops in Assyut and Borg El Arab with a total retail space of 958sq m. Both locations will have an Arrivals and a Departures store, each offering the full assortment of duty free products, from perfumes and cosmetics to accessories, luxury fashion, watches and jewelry.
HONDURAS – ENTERING A NEW MARKET
In Honduras, Dufry has concluded a ten-year agreement to operate a 673sq m dutyfree shop in the new seaport of Roatan, an island located in Honduras Bay.
The contract marks Dufry’s entry into the Honduran travel retail market and reinforces its leading position in the Caribbean, the company said.
The shop will offer a full assortment of duty free products, fromm perfumes and cosmetics to liquor and confectionery. Roatan, which is located near the largest barrier reef in the Caribbean, has become a popular destination for scuba divers and cruise ships.
Its seaport services about half a million passengers per year.
FRANCE
In France, Dufry has signed two contracts to operate shops in Nice. The first contract is a six-year agreement to operate three fashion shops at Nice airport. Two will be located in the post-security area and one in the pre-security area. The total retail space will be 483sq m and will include branded shops such as Hermès, Armani, Hugo Boss and Celio.
The second contract (as revealed by The Moodie Report) lasts for five years and includes one food and souvenir shop with a total area of 157sq m. This outlet will sell international and local confectionery, local food items, local alcoholic beverages such as Champagne, wines and pastis, as well as souvenir products.
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“The contracts in the US further strengthen our leading position in the market and allow us to leverage our existing business in the respective locations, with interesting synergies“ |
Julián Díaz Chief Executive Officer Dufry Group |
USA – RENEWALS AND EXPANSIONS
Dufry is expanding its concession portfolio in the United States through its Hudson Group subsidiary. It is leveraging its successful Hudson News concept in five locations. Its is complementing this with specialty store concepts that combine the Hudson Group’s market presence with Dufry’s travel retail expertise.
The new contracts further strengthen Hudson Group’s existing presence at Boston, Miami, San Francisco, Newark and Omaha airports.
Boston
Hudson Group is expanding its presence at Boston’s Logan International Airport with a 177sq m bookstore in Terminal C based on a new five-year contract.
Miami
Two eight-year agreements have been concluded to operate eight duty-paid shops at Miami’s International Airport, North Terminal. The retail area of 731sq m will include specialty stores ranging from chocolates, sunglasses and electronics to a Lacoste shop.
San Francisco
An arrangement to operate duty-paid shops at San Francisco’s International Airport has been agreed for seven years. The three shops, two of which will be in the post-security area and one in the pre-security area, will amount to 353sq m in total.
Newark
Two seven-year contracts have been signed to operate seven shops at Newark’s International Airport, Terminals A and B. In Terminal A, Dufry will operate a bookstore of 177sq m while in Terminal B there will be six Hudson News shops: three in the post- and three in the pre- security area of the airport, with an overall retail area of 713sq m.
Omaha
The existing contract for Omaha’s International airport has been extended for seven years and will include four new retail shops, one bookstore and one newsstand, totaling 316sq m.
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MORE STORIES ON DUFRY
The Moodie Reportfolio: Dufry South America ranks as best performing stock for November – 07/12/09
Dufry secures gastronomy contract at Nice Airport T2 – 19/11/09
