UK/IRELAND. Stena Line has reported surging retail sales on UK-Ireland routes in January as consumers maximise their duty free purchases, just over a year since Brexit. Stena Line and its affiliate R&F Travel Retail expect sales to climb further as more traffic returns.
On 1 January 2021, duty free sales resumed on routes between the UK and EU after the UK formally left the European Union, following a transition period. The return of duty free sales has fuelled a surge in spends on wines & spirits as well as tobacco goods. Stena Line UK-EU routes include Dublin-Holyhead and Fishguard-Rosslare, as well as Harwich-Hook of Holland.
In January 2022, sales leapt by +304% on all Stena Line UK routes compared to January 2021, and rose by +432% year-on-year on the company’s key Dublin-Holyhead route.
R&F Travel Retail is an affiliate of Stena Line. R&F Head of Business Development Tony Michaelsen told The Moodie Davitt Report that tobacco and beverages drove the sales increases, adding that alcohol turnover was led by beer, followed by wine and spirits. Increasing travel numbers have also played a part.
Business has also been buoyed by a four-litre duty free spirits allowance for travellers on UK-bound routes. Michaelsen noted that average spends are three times higher than a year ago, with top selling lines including Jameson Irish whiskey and Absolut Blue vodka, among others.
He said that removing duties on liquor & tobacco had been the key lever in attracting customers. On how value is communicated, he added: “It is being marketed on the Stena Line website as well as advertised and promoted in the UK and Ireland. We believe the new allowance will be a strong driver and reason to travel going forward. We are calling for border shops with bulk sales in the ports with click & collect solutions, allowing for cars to be parked next to the shop and adding convenience for customers.”
As reported, R&F Travel Retail opened a duty free shop in a 40-foot container in Holyhead, Wales, a key ferry port for sailings between the UK and Ireland, last September. R&F said at the time that it could offer savings up to -60% off the UK High Street.
Asked how Stena Line and R&F view the longer term potential and size of this market, Michaelsen said: “We believe the ferry duty free market has the potential to double sales compared to 2019 – this means another +100% growth added to the numbers above. This will of course add importance to the overall business but duty free will also play a role as a strong reason to travel.”
