Airport Authorities & Landlords
Capitalizing on strong revenue generation
With its market share of above 20%, Dufry is the undisputed market leader in airport and travel retail. The company’s extensive experience in all regions, its retail know-how and its world-wide presence make Dufry the ideal partner for landlords. Dufry’s ability to deliver best-in-class retail concepts and its excellence in understanding customers creates value for landlords and Dufry alike.
Dufry offers a comprehensive range of attractive retail concepts and shop formats to accommodate any need in both duty-free and duty-paid environments. Dufry’s portfolio of over 2,200 shops in 64 countries includes airports, seaports, railway stations, downtown areas, border crossings, cruise liners, hotels and other locations.
Partnerships equally benefit travel retailers and facility owners
A key aspect in travel retail is the partnership between facility owners and retailers, as it is the best way to tackle the challenges of a highly dynamic business environment and the ever changing shopping habits of travelers. By joining forces, we can create more attractive and inviting commercial spaces that capture the travelers’ attention and create better opportunities for the traveler to buy. From the passengers’ arrival at the airport until their boarding, airport authorities and travel retailers can increase revenues and generate additional value for all parties.
Dufry has a long-lasting tradition in partnering with landlords of larger and smaller airports in emerging and developed markets. We provide landlords with a high level of expertise on how to best develop retail space and maximize revenues, independently from the size of a given project. We always try to develop a partnership approach, often defining common goals together with the landlord, which has proven to be a successful model for the airport operators and for Dufry alike. Recent examples of refurbishments and expansions of our shops confirm the value of coordinated strategies. Projects developed at the airports of Milan, Athens, Phnom Penh, Siem Reap, São Paulo, Brasília, London Heathrow or Zurich are a few examples on how Dufry and landlords can work together on the structuring of passenger flows, improving appearance of commercial space and expanding retail offering to considerably increase sales.
Dufry’s Next Generation Store
Dufry has recently outlined its next generation shop concept, which makes extensive use of the digital technology to increase the communication with passengers at the airport. The digital route will allow Dufry to approach potential customers in an even more personalized way than ever before. The use of digital technology will allow in-store communication to flexibly adapt during the day to the changing nationalities and thus increase communication impact. The sense of place of our shop designs, an important aspect for landlords, is also secured in the new concept, as the format provides for a high degree of customization. Dufry knows how to perfectly match these requirements with efficient retail concepts to best serve travelers’ needs and to generate value for landlords and Dufry alike.
Offering landlords the largest industry experience
Dufry shares a common goal with the facility owners, which is to maximize returns on the available space and to create an innovative and attractive shopping experience for the traveler. With millennials becoming an increasingly important audience for our industry, retailers need to adapt their concepts and provide more personalized shopping experiences going beyond pure product availability. In order to understand the latest trends in consumer behavior, Dufry regularly does detailed consumer research.
Managing over 430,000 m² of retail space worldwide.
Successful contract extensions secure future business
In 2016, Dufry renewed a number of existing concession contracts well before the respective expiry date, extending the remaining average life-time of its portfolio, which is now over 8 years. Approximately 17 % of the portfolio have a remaining life-time of one to two years; 27 % have a duration of three to five years, while another 22 % have a life-time of between six and nine years, and the remaining 34 % of the concessions have a duration of ten years or more. On average, Dufry renews every year existing contracts that generate between 8 % to 10 % of our sales, and we add new contracts every year.
New shops added to first-class concession portfolio
In 2016, Dufry opened a total of over 220 new shops adding an additional retail space of 41,800 m². Important expansions and openings occurred in Latin and North America with over 70 % of the new space with all divisions increasing their retail space. At December 31, 2016, the entire concession portfolio of the group included retail space of around 425,000 m².
Dufry’s concession portfolio is highly diversified and well balanced across emerging and mature markets on all continents. This considerably reduces risks of being exposed to single markets and operations; the largest concession only accounts for about 7 % of turnover; while the biggest 10 concessions represent less than 35 %.
Safeguarding business profitability
When expanding its concession portfolio, Dufry applies a clear policy. Every single project and opportunity is analyzed individually from a commercial development potential and by taking into account initial investment requirements as well as the expected development of passenger number and profile perspectives. Through a strict evaluation of these criteria and our disciplined focus on returns, we ensure that our concession portfolio remains of the highest quality and that each concession offers attractive returns for the Group. This methodology is applied for all projects alike, whether we participate in a tender process, engage in direct negotiations with airport authorities or perform acquisitions.
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