BRAZIL. Dufry opened 1,600sq m of new duty free Arrivals shopping retail space yesterday (18 August) in Terminal 2 at Guarulhos International Airport in São Paulo.
This marks the first part of the additional retail space agreed in November 2012 with GRU Airport, operator of the São Paulo hub.
The agreement foresees opening a total 2,290sq m of new retail space in Arrivals and Departures duty free shops.
The extension of the Arrivals space has particular significance given the proposed (though not ratified) increase in the duty free allowance to passengers buying on arrival at Brazilian airports.
As reported, the Brazilian Senate has backed a proposed increase in the individual allowance for duty free purchases made on arrival from US$500 to US$1,200.
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(Above and below) Artist’s mock-ups of the expanded Arrivals store at São Paulo Guarulhos Airport Terminal 2 |
The Senate’s Economic Affairs Committee approved the proposal on 13 August. However, it still needs to pass through Brazil’s lower house, the Chamber of Deputies, before becoming law. Senior retail sources tell The Moodie Report that such ratification could still prove difficult in the face of opposition from local market interests.
For Dufry, any lift in Arrivals allowances would have profound importance. In 2012 Brazil generated around 27% of group sales and nearly one-third of EBITDA. Critically, an estimated two-thirds of Dufry’s duty free business in Brazil is generated by Arrivals shops.
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