BRAZIL. Dufry South America is embarking on a series of refurbishments and investments in its core market of Brazil, aimed at improving penetration and average transaction values among Brazilians and foreign tourists.
The company has also won several important new concessions in the country.
Dufry South America Chief Executive Officer José Carlos Rosa told The Moodie Report: “Our walk-through stores at Sao Paulo Guarulhos Terminals One and Two have proved hugely successful. Now we are working on plans with the airport authorities to increase the overall space in Departures including the addition of space for duty free. If we gain some extra space we would like to add more shop-in-shops particularly for fashion and gifts, two fast-growing areas of the business.”
In Sao Paolo Arrivals, the retailer’s two biggest stores of around 1,500sq m each will be increased by 400-500sq m apiece. “In Sao Paolo Arrivals we have 40 cashiers, but at peak times even this is not enough to cope with the fierce demand, so we need that additional space,” said Rosa.
In Rio de Janeiro International Airport T1 airport authority Infraero is planning a full modernisation of the terminal, which would lead to a refurbishment of DSA’s stores there. And at Brasilia Airport the retailer has remodelled its duty free store as international traffic increases. TAP Air Portugal last month began a Lisbon-Brasilia direct service, boosting the customer base for duty free.
This summer DSA has also won new concessions at Belo Horizonte and Natal airports following tenders for the business.
“In Belo Horizonte we have won the tender for three outlets: a Departures, Arrivals and a duty paid shop in the Domestic Terminal,” said Rosa. “In Natal we won a duty paid shop concession already, but Infraero is also examining a tender for two duty free shops, which would be the first at that airport. Natal is the fourth biggest airport in the country for international traffic yet it has no duty free offer, so that is a big opportunity.”
In Q1 2007 (to 31 May) DSA reported sales of US$103.8 million, up +29%, fuelled by the rapid growth of the Brazilian airport market.
A full review of Dufry South America’s Brazilian business will feature in the forthcoming BRIC (Brazil, Russia, India, China) issue of The Moodie Report Print Edition, out next month.
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Dufry begins phased duty free opening at Moscow Sheremetyevo Airport Terminal C – 30/07/07
Deutsche Bank and Threadneedle take positions in Dufry following increase in free float – 30/07/07
