FRANCE/UK. The new era of cross-Channel duty free shopping is set for a major boost on Monday, when shipping and logistics company DFDS opens its new 700sq m store in the French port of Dunkirk.
“In 1999 the Channel business suffered a huge drop after the end of duty free and took many, many years to recover but this new opportunity combined with higher limits is a real positive for the ferry industry” – DFDS UK Ferry Routes Commercial Onboard Director Steve Newbery
Denmark-headquartered DFDS – one of the largest ferry companies in Europe and the market leader out of Dover – said that its aim for the new duty free shop is to deliver DKK140 million (US$21.8 million) in revenue for the company over the next five years.
The store – which was fitted out at a cost of €290,000 (US$336,000) – is situated in the upstairs area of Dunkirk’s passenger terminal building right in front of the freight and passenger lanes, making it convenient to shop for bulky items.
As a result of Brexit when the UK left the EU on 1 January 2021, changes to regulations and allowances means travellers visiting the store or travelling on cross-Channel ferries do not have to pay tax on a variety of products.
They can now save -50% on UK high street prices for some categories including alcohol. A -20% discount is available on perfumes, cosmetics and electronics up to the permitted personal allowances. Each member of a group or family aged over 18 is entitled to this personal allowance.
Passengers travelling to Britain can bring back three crates of beer, two cases of still wine and one case of sparkling wine, or four litres of spirits without paying duties.
DFDS noted that its prices on products will be benchmarked against online retailers such as Amazon.
DFDS UK Ferry Routes Commercial Onboard Director Steve Newbery said: “We need to educate the passenger where there are real savings to be had. Perfume is already our biggest sales category but spirits, wines, beers and new categories like electronics will feature heavily.
“We have had to change till systems and ranges of products. Back in 1999 the Channel business suffered a huge drop after the end of duty free and took many, many years to recover but this new opportunity combined with higher limits is a real positive for the ferry industry.”
A second new DFDS duty free store will open in the revamped Port of Calais in the coming weeks, though the ferry operator told The Moodie Davitt Report that an exact opening date is yet to be set.
Read our extensive coverage of Steve Newbery’s views on the return of duty free to cross-Channel routes, given at the Nordic Travel Retail Seminar earlier this year here.
