USA. World Duty Free Group (WDFG) has reached an agreement with fellow Autogrill subsidiary HMSHost in North America, to acquire and operate the travel retail stores which the latter currently runs.
This will expand WDFG’s network of stores by more than +70% and represents another major step forward in its international expansion, after earlier integrating the retail businesses of Aldeasa and WDF, the company said.
Upon completion of the transaction, 240 stores in 32 new locations across the USA from the Atlantic to the Pacific, will join WDFG’s existing 325 outlets in 21 countries, across five continents.
“The move is designed to provide North American airport operators with a clearer focus on distinctive retail and food & beverage services, which to date have both been provided by HMSHost,” the company said.
Padraig Drennan has been appointed President of World Duty Free Group North America to oversee “a seamless transition” of former HMSHost stores into the new retail organisation. He will report to World Duty Free Group CEO José Maria Palencia.
With the addition of 32 new locations, including seven of the 10 largest airports in the USA and stores in major tourism sites such as the Empire State Building and the Houston Space Center, the company will have a total of 565 retail outlets worldwide.
We’ll study the likely rationale behind the splitting of retail and food & beverage in this week’s edition of The Moodie Report e-Zine. Certainly Autogrill has opened up all its options for the future of WDFG. It has now created a pure travel retailer, one that (as the company has already hinted) could be spun-off or sold to a trade or investment buyer. First it has to deal with the challenge to the group’s long-time duty free dominance in Spain – currently the subject of an open tender. Then the situation should become clearer.
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World Duty Free Group (above) will acquire a broad portfolio of airport stores and other outlets currently run by sister Autogrill company HMSHost (below) |
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