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. Dufry’s extensive expertise in all regional aspects, its retail know-how and its worldwide presence are core competitive advantages, as is its comprehensive range of attractive retail concepts and shop formats to satisfy any need of a landlord in both duty-free and duty-paid environments. And in order to understand the latest trends in consumer behavior, Dufry regularly does detailed consumer research. 

Partnerships equally benefit travel retailers and facility owners 

The partnership between facility owners and retailers is one of the most critical aspects in travel retail. Our years of experience in the business show that the closer both parties work together and align their common goals, the higher is the value generated. By joining forces, we can create more attractive and inviting commercial spaces that maximize travelers’ spend, from the passengers’ arrival at the airport until their boarding.

Dufry has a long-lasting tradition in working together with landlords of larger and smaller airports in emerging and developed markets. We provide landlords with our expertise on how to best develop retail space and how to maximize revenues, independently from the size of a given project. Recent examples of refurbishments and expansions of our shops confirm the value of coordinated strategies. Projects developed at the airports of Milan, Madrid, 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.

First New Generation Stores opened.

Dufry’s New Generation Store – now open

Dufry has recently outlined its new generation store concept, which makes extensive use of the digital technology to increase the communication with passengers at the airport. The digital route allows Dufry to approach potential customers in an even more personalized way than ever before. The use of digital technology allows in-store communication to flexibly adapt during the day to the changing nationalities and thus increase the 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. First New Generation Stores have already been opened in Madrid, Melbourne, Cancun and Zurich.

Successful contract extensions secure future business

In 2017, Dufry renewed a number of existing concession contracts, some of them well before the previous expiry date, and extending the remaining average lifetime of its portfolio, which is now 8 years. Approximately 13% of our sales are based on contracts with a remaining life-time of one to two years; 32% have a remaining duration of three to five years; another 29% have between six and nine years left to run, and the last 26% have a remaining 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.

Dufry has a long-term concession portfolio.

New shops added to first-class concession portfolio 

In 2017, Dufry opened 170 new shops adding retail space of 30,000 m² with space growth across all divisions. At December 31, 2017, the entire concession portfolio of the group included retail space of over 437,000 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%.

Disciplined approach focused on investment returns

Dufry follows a disciplined approach on evaluating new projects and opportunities. They are analyzed individually on a commercial and financial basis. The many aspects of a project are put together including development potential and analyzing initial investment requirements as well as the expected development of passenger numbers and profile perspectives. Through a strict evaluation of these criteria and our disciplined approach to 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, irrespective whether we participate in a tender process, engage in direct negotiations with airport authorities or perform acquisitions.

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