SWITZERLAND. Nearly 500 brands and some 5,000 skus are showcased in two large new commercial areas officially opened in Basel Airport on Thursday by leading travel retailer Dufry and the airport landlord EuroAirport Basel-Mulhouse-Freiburg.
In an upbeat presentation to analysts and the media on Thursday to mark the ribbon-cutting ceremony, Julián Diaz, Chief Executive Officer of Dufry Group, spoke of the importance of the Basel airport operation to Dufry’s overall business.
“Basel is a critical path in our aim to be the number one travel retailer worldwide. It is the window display for the new Dufry in the next five years,” he told the audience.
Spend per passenger is expected to increase by around +40% from the new airside retail space, which has cost around €2 million to create and comprises a flagship walk-through Main Shop covering 800sq m, which started trading on 31 March, together with a 200sq m Fashion Shop, which opened its doors on 5 May. The new space adds to the 200sq m duty free outlet that opened on 22 December in the Departures Area.
Diaz began his presentation by reminding those present that Dufry was born in the Swiss city of Basel 141 years ago, where the company began trading with a tobacco store. Today, Dufry is one of the top two travel retailers worldwide, operating 371 shops across the globe.
“Dufry is very proud and honoured to be present at the airport in Basel,” he told the audience. “We have been operating in this airport since 1969. Today is the most important operation we have ever had in all those years, in terms of the quality of the airport, the passengers and the quality of the retail space.
“We have 486 brands and some 5,000 skus covering 1,400sq m in total,” he continued. “This offering can be compared with any other international airport offering in London Heathrow, Paris or Milan. We expect to receive more than 420,000 tickets [from passengers who purchase goods] in 2006 alone.”
Describing the walk-through Main Shop as “fantastic”, Diaz explained: “Walk-through is a major retail trend and is the most modern technique in airport travel retailing. You will see it everywhere. It is already in London, Argentina and Sydney, for example.”
The new technique already appears to be working. Diaz said that since the opening of the Main Shop at the end of March, sales had leapt across the board. Turnover of fragrances and cosmetics had jumped by +132% compared with last year; wines and spirits sales were up by +50%; and confectionery by +50%. Watch sales, in particular, were +400% higher, he said.
Turning to the completely new Fashion Shop with its branded boutiques, Diaz said that “the most important brands” were represented – including Hugo Boss, Lacoste, Tommy Hilfiger and Kipling. In addition, a comprehensive sunglasses range complemented the apparel and accessories offered by these international brand names.
Using a wonderful turn of phrase, Diaz emphasised that the Basel shops were “alive”.
“We are testing and trialling the selection in order to understand the customer, his motivations and his price sensitivity,” he explained, adding that Dufry’s customer department was constantly monitoring passenger feedback. The brand assortment would constantly be refreshed and adapted to meet customer requirements.
The expected sales mix for 2006 in the new commercial areas is: 40% fragrances and cosmetics; 23% tobacco products; 14% confectionery; 11% wines and spirits; fashion goods 7%; watches 4%; and other items 1%.
In his presentation at Thursday’s media conference, Airport Director Jürg Rämi said that the new commercial concept at Basel was “a leap forward”.
He explained that Basel airport authority’s first priority was to grow its passenger numbers, which stood at 2.5 million in 2004 and 3.3 million in 2005. They are expected to break through the 4 million threshold in 2006. This year, the company was focused on commercial revenues, he said, having nearly doubled its commercial space.
“This year it is very important for us to develop the shops and we have a great partner in Dufry,” he said, echoing Diaz’s views about the successful co-operation between the airport retailer and the landlord. “The first [sales] numbers prove we’re on the right track,” Rämi said.
Aviation and non-aviation revenues at Basel Airport are now split 50:50. The authority’s strategy was to continue to develop both sides of the business, said Rämi, adding that additional commercial space was still available at the airport both airside and landside.
About the Main Shop
According to René Baumann, Dufry’s Deputy Chief Operating Officer for France & Central Europe, fragrances and cosmetics take up 208sq m in the Main Shop, versus only 30sq m before the new commercial areas opened. He expected some 40% of turnover in the outlet to come from the beauty category, describing the perfume business as “huge”.
Dufry was working closely with the suppliers in terms of staff training, he observed.
A Chanel counter is currently being built to complement the Dior counter, which was already trading successfully, said Baumann. In addition, personalised gondolas showcased the leading beauty brands.
New to the Basel Airport assortment are single malt whiskies. Dufry carries 84 different types and already single malts were making up some 60-65% of whisky sales, said Baumann.
Also new are cigars, where Dufry is very strong, according to Baumann. A humidor contains 360 different references, including the Swiss brand Davidoff, and Cohiba.
CDs and DVDs are also new to the airport. French DVDs are already popular and the assortment will be expanded.
Watches and jewellery space had been boosted by 3.5 times compared with last year, at 150sq m. The selection was currently being changed, explained Baumann, as the most expensive watches by Breitling were the current best-sellers. New jewellery lines were also being added. A personalised Swarovski area is a highlight of the jewellery section.
Lindt is the most important brand in the confectionery assortment, according to Baumann.
French souvenirs are being added to the destination merchandise selection to cater for the requirements of French passengers.
About the Fashion Shop
A “cool, relaxed” ambience was Dufry’s aim for the branded fashion boutique area, according to Baumann. Tommy Hilfiger apparel is the most popular brand so far, followed by Lacoste apparel and accessories.
A branded boutique for Calvin Klein apparel is opening in mid-June and a Salvatore Ferragamo boutique selling shoes and accessories will also be opening later this month.
Hugo Boss is popular with Swiss business travellers, Baumann said, adding that customers browsing the fashion area wanted to buy T-shirts.
Regarding the airport’s overall passenger profile, Baumann said easyJet passengers travelling to Basel were “not low cost” and were willing to spend money on fashion.
Brands offered at EuroAirport Basel-Mulhouse-Freiburg
Dufry’s Basel Airport shops offer a large number of leading brands, such as Calvin Klein, Salvatore Ferragamo, Hugo Boss, Lacoste and Tommy Hilfiger in fashion; Kipling and Samsonite for travel accessories; Misaki, Morellato, Swarovski and Hot Diamonds for jewellery; Burberry, Carrera, Diesel, Christian Dior, Emporio Armani, Giorgio Armani, Gucci, Max Mara, Police, Prada, Ralph Lauren and Ray-Ban for sunglasses; Caran d’Ache, Montblanc and Recife for writing instruments; and Breitling, Calvin Klein, Flik Flak, Gucci, Jeep, Nivada, Police, Raymond Weil, Swatch, TAG-Heuer, Tommy Hilfiger and Zeno for watches; and Sony and Philips for electronics. A Bijoux Terner corner offers accessories and jewellery, with all items retailing at €15 each.
Retail promotions at EuroAirport Basel-Mulhouse-Freiburg
Dufry’s current retail promotions include a free mug emblazoned with the Swiss flag with any purchase over CHF60 and a two-for-one offer on selected items.
Werner Parini, EuroAirport’s Head of the Passenger Terminal Department, told The Moodie Report that the special offers would be constantly refreshed.
About EuroAirport Basel-Mulhouse-Freiburg
EuroAirport offers more than 75 direct destinations in scheduled and holiday flights as well as several intercontinental connections a day via the major European hubs. In the first four months of 2006, passenger figures at EuroAirport reached 1.1 million, reflecting a growth of +30% in comparison with 2005. The locally-departing passenger split is 40% Swiss, 30% Germans and 30% French.
A EuroAirport spokeswoman told The Moodie Report that recently introduced Bratislava flights had brought a new type of Eastern European customer to Basel, while the airport was also hoping to attract Russian flights.
About Dufry
Dufry is one of the top two travel retailers in the world, operating more than 370 duty free and duty paid shops in airports, cruiselines, seaports, railway stations and downtown tourist areas. Dufry employs more than 6,000 people. The company, headquartered in Basel, Switzerland, has about 50 subsidiaries for its business in 34 countries in Europe, the Americas and Caribbean, Asia and Africa.
