EUROPE. Swedish ferry operator Stena Line’s revenue from onboard shops rose significantly on routes between the UK and European Union (EU) countries during the first quarter of 2021, compared to the corresponding period of 2020.
The company – which said the results exceeded its expectations – attributed the sharp rise to duty free sales which are now permitted onboard the routes following the UK’s withdrawal from the EU.
There was a +34% increase in Q1 overall sales on UK-EU routes, compared to the January-March period of last year. This was higher on Stena Line Irish Sea routes where sales were up by +53%, while North Sea routes saw a +14.6% rise.
Sales in the quarter are outstripping 2020, despite only approximately half the passengers travelling onboard the company’s ferries. Stena Line said this is partly fuelled by the average amount of time spent in onboard shops per person, which has risen by +80%.
Passengers can now make significant savings of up to -60% compared to high street prices on alcohol, cigarettes and cosmetics, which can all be purchased duty and/or free. As duty tends to be higher in the UK and the Republic of Ireland than on the Continent, there is greater incentive to buy tax free, Stena Line noted.
Sales of alcoholic drinks were highest among the Q1 results. For example, on Irish Sea routes sales of Jameson Whiskey for the first quarter of this year exceeded sales for the whole of 2020, despite the much lower passenger levels.
Stena Line Head of Onboard Sales and Services Stephen Bryden said: “We have invested heavily in revamping and, in some cases, extending our onboard shops so the response is very positive and has outstripped our expectations.
“Following the large demand that we are experiencing from people eager to enjoy the savings they can make onboard, the company will now be extending our sales offering even further.”
He added: “The ferry sector has suffered worse than many other sectors, as we have remained fully operational 24/7 during the pandemic, despite having lower passenger and freight levels, so the boost from duty free is a welcome side-effect of Brexit not only for us but for all our passengers too.”
