Duty Free City unveils ambitious plans to become major retail border force

USA. A potentially major new force is set to emerge in US duty free after Duty Free City today announced the Spring 2014 opening of a 14,000sq ft land border store in San Ysidro on the USA/Mexico border.

The company said that its executive team has plans for over 25 locations across the USA, including both the Mexico and Canadian borders. It will select key cities with high cross-border traffic and key demographic population pockets with high disposable income.

Duty Free City said it will carry a range of the most sophisticated products in beauty and lifestyle, including, critically a wide selection from within the Estée Lauder Companies portfolio (Estée Lauder, Clinique, Aramis, Designer Fragrances and Smashbox). Due to a long-running dispute between Lauder and Duty Free Americas, the giant of the US duty free land border business, the latter does not carry any of the beauty house’s products.

Duty Free City said: “Much like many of the brands carried at Duty Free City, the decision to work together was the Estée Lauder Group’s similarities with the vision of Duty Free City.

“Duty Free City offers a wide range of highly reputable products not seen in other border stores.”

The retailer’s senior management team is drawn from several highly experienced executives. Frenchman Lior Attias holds the key role of Chief Financial Officer while the key shareholder is understood to be Philippe Dray.

Martha Rosas, who is acting as a Consultant, is a much-respected travel retail executive who has worked for Cartier, Luxottica, Duty Free Americas, The Nuance Group and others. Director of Marketing Alejandra Rudner has a strong background in luxury retail marketing, most recently as the marketing manager at Aventura Mall in Miami, Florida.

These exterior and interior images of the proposed San Ysidro store underline Duty Free City’s ambitious plans for the project

Sonia Acevedo, Director of Merchandising and Procurement, has extensive experience in the duty free industry as a demand planner.

Roel Elizalde, Purchasing Director of Selected Brands, has over 33 years experience in the duty free industry and has worked previously in licensing and logistics. Bob Cranston, Beer and Spirits Consultant, has held roles ranging from a host of Wine Authority Radio to the Food & Beverage Director at the Ritz-Carlton, and has extensive experience in the wines & spirits sector.

Describing the San Ysidro store as a “sophisticated, new concept in duty free shopping”, the retailer said it will offer luxury accessories and beauty products, fragrances, leathergoods, confectionary, wine and spirits, and tobacco.

Anchored by Estée Lauder Companies products, beauty will be a core category

The flagship location will be positioned near the most trafficked crossing in the world, the San Ysidro border. Nearly 110 million people cross there every year, spending approximately US$5 million dollars daily while shopping at retail locations, the company said. Duty Free City opens just before the much-anticipated US-Mexico border expansion project, estimated to be completed in 2016.

Duty Free City said it will provide guests with “state-of-the-art product presentation surrounded by a sophisticated interior design inspired by Spanish Colonial architecture”. Premier customer service will include valets, beauty services, a dedicated kid’s area, and personal shoppers who will serve as in-house experts.

We’ll bring you more details on this important breaking story soon, including further details on the company and its management, plus a follow-up report in this week’s edition of The Moodie Report e-Zine.

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