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INTERNATIONAL. LS travel retail today revealed further details of its 2012 performance, which was driven by strong organic growth plus a number of acquisitions.
As reported, the company generated consolidated sales of €2,546 million, up by more than +12% year-on-year.
Dag Rasmussen, Chairman and CEO of parent Lagardère Services, said: “In 2012, LS travel retail pursued its strategy, developing its business concepts and widening its offer with products providing higher margins and a higher level of sales, particularly in the duty free, convenience and food service sectors.
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“In 2012, LS travel retail pursued its strategy, developing its business concepts and widening its offer with products providing higher margins and a higher level of sales, particularly in the duty free, convenience and food service sectors.“ |
Dag Rasmussen Chairman & CEO Lagardère Services |
“This course of action, along with the speeding up of acquisitions, has led to the significant development of the concessions portfolio, which has been particularly beneficial for duty free & luxury and food service operations. This will be continued and expanded in 2013 across the three geographic areas in which LS travel retail operates.”
The company claimed the performance was “remarkable, given that the market environment in 2012 was characterised by the negative impact of the economic crisis, especially in Europe and North America, the continued decline of printed goods and a slower pace of growth in air traffic.”
LS travel retail operations account for a network of 2,865 stores, up by 148 compared with 2011. They are organised into three zones: EMEA, ASPAC and North America and into three segments: Travel Essentials (mainly newspapers and magazines, souvenirs, accessories and convenience goods), Duty Free & Luxury, with 292 shops and Food Service, with almost 300 sales outlets in nine countries.
EMEA region
France LS travel retail France recorded significant growth in its duty free & luxury sales with an increase of over +20%. The year saw the deployment of the Aelia Duty Free concept across the network of regional airports and the opening of new terminals at Roissy Charles de Gaulle. The 28 fashion stores which LS travel retail France acquired at the end of 2011 met their sales turnover targets, said the group.
Travel Essentials sales turnover rose by +1.4%, despite an acceleration in the decline in newspaper, magazine and book sales. This was largely due to diversification in the food service segment with the setting up of the TRIB’s brand, plus the improvement in the offer of convenience goods under the brand name “˜hubiz’.
LS travel retail France grew its product mix with the introduction of electronic accessories. It also concluded numerous partnerships with specialist retailers, and took profit was helped by “the outstanding performance in sales of souvenirs”.
Germany
LS travel retail now operates 91 sales outlets in Germany. The opening of six additional outlets in 2012 and the full-year impact of sales from stores that opened in 2011 generated +8.8% growth in sales.
Poland
LS travel retail’s business operations in Poland grew considerably (+14.8%). Its activity was sustained by an increase of +29% in duty free sales and the development of food service operations with the new concept, EMPIK Café (+29%). The number of sales outlets in the polish network reached 713 at the end of the year.
Czech Republic
LS travel retail’s subsidiary in the Czech Republic posted +32.8% sales growth thanks to several acquisitions: FEE (70 food service outlets and convenience stores) and UNIMEX (15 duty free sales outlets at Prague airport). Duty free sales, including airport stores and CSA’s onboard sales, increased by +81.6% in total, while the food services business went up by +95%.
Romania and Bulgaria
Sales for business operations in Romania rose by +16% with a network which now has 198 sales outlets. In Bulgaria, the network has expanded rapidly to reach a total of 80. In 2012, the subsidiary strengthened its presence in food service under internal brand names (Hello, 1minute, le Café Inmedio, Bistro Inmedio) and the Subway franchise.
UK
England continued its development in 2012 by extending its scope and diversifying business operations with the opening of a Relay store and a Watermark bookstore on London public transports.
Italy
In 2012, LS travel retail acquired AdR Retail, the company which operates eight duty free outlets at Rome airports. Sales have already increased in three months, in line with targets, said the group, despite a -7% drop in traffic and the uncertainties linked to the taking up of the new business activity. “2013 will be a transitional year with a comprehensive programme of refurbishment of the shops,” noted LS.
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Above: LS travel retail ASPAC recently inaugurated the first Lonely Planet concept store in Asia at Kuala Lumpur International Airport; Below: New openings, such as the S4 satellite at Paris Charles de Gaulle Airport, spurred sales in 2012 |
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ASPAC region
Sales turnover in the Pacific rose by +9%, mainly due to the acquisition of 16 DFS Wellington stores in New Zealand and Australia and the full-year impact of the acquisition of Whitcoulls stores in New Zealand in 2011, as well as the refurbishment of sales outlets at La Tontouta Airport in New Caledonia.
LS travel retail Asia recorded a healthy increase in sales thanks to the development of its network in Singapore and “sustained growth” in China where the group’s subsidiary moved into luxury brands at airports and continued to develop its convenience store business at railway stations.
2012 was also marked by the launch of LS travel retail’s first business operations in Malaysia at Terminal 1 of Kuala Lumpur International Airport.
North America region
LS travel retail North America increased its turnover by +1.5%, opening ten additional sales outlets and helped by a full-year impact from outlets that opened in 2011. Like for like, business fell by only -2.2% despite a decline of over -10% in newspaper, magazine and book sales. This was largely due to its efforts to diversify into food, souvenirs and electronic accessories.
LS travel retail said it also increased its business in other countries where the group operates via its distribution companies, notably in Switzerland with the takeover of Airport Fashion (two fashion stores at Geneva International Airport) and in Spain with the opening of several convenience stores on transport networks.
