The trust our landlords have placed in Dufry has allowed our company to become the market leader in travel retail, currently operating over 2,300 shops in 66 countries located in airports, seaports, railway stations, downtown areas, border crossings, cruise liners & ferries, hotels and other locations with captive audiences.

 

Benefitting from the widest industry experience

Dufry features a comprehensive portfolio of attractive retail concepts tailored to the individual needs of both duty-free and duty-paid environments to serve both domestic and international passengers, and which are increasingly expanded with online services and platforms. Complemented with the extensive expertise in all technical and regulatory aspects as well as sustainability management systems provided by Dufry, the landlords receive a complete package to best operate their spaces in a profitable and sustainable way. Customer insights regularly collected through dedicated surveys allow us to develop successful marketing initiatives tailored to meet the requirements of every single airport or any other shop environment. Our worldwide presence and the extensive intelligence by traveler profile are core competitive advantages and key drivers to increase sales and profitability, combined with our ongoing evolution of shop design and customer services.

 

Real Partnership is key for value creation

Over the many years we have been in the business, we have been advocating for the importance of close collaboration between landlords and retailers as a base for optimizing sales. During the past two years, the COVID-19 pandemic has impressively proven the importance of real partnership as the prerequisite to drive success and to overcome difficult situations. This is even more true during the current recovery and going forward. By joining forces, we can create inviting and attractive commercial spaces that maximize spend from the passengers’ arrival at the airport until their boarding – and if legislation allows for arrival duty-free after landing.

Attractive shops drive success and profitability.

All along 2021, Dufry has continued to evolve its store portfolio with attractive refurbishments and shop expansions to meet the latest customer expectations at the specific locations. Among others refurbishments to be highlighted are the Rio Galeão Dufry Shopping Megastore (Brazil), at the Pulkovo Airport in St. Petersburg (Russia), the extensive redesign at Milano Linate International Airport (Italy) as well as the completely renewed Brookstone shop concept in the US. It features an immersive design and an increased digitalization level and has been implemented at the Nashville International Airport, at the Norman Y. Mineta San Jose International Airport, at Seattle Tacoma International Airport as well as at the Virgin Hotels in Las Vegas. In total, Dufry refurbished 19,243 m2 of retail space in 2021.

 

Highly digitalized shops with stunning sense-of-place

Dufry has further evolved shop digitalization to both offer new services and to increase the level of customer interaction by nationalities and languages, while continuing to offer location specific shops with highly attractive sense-of-place designs. What started several years ago with the launch of New Generations Stores – as operated in Buenos Aires (ARG), Amman (JOR), Malaga and Alicante (ESP), Madrid (ESP), Cancun T3 and T4 (MEX), Melbourne (AUS), Zurich (CH), and London Heathrow T3 (UK) – has culminated in 2021 in the opening of the Hudson Nonstop shop which offers customers a complete contactless shopping experience.

Driving contact-less shop technology.

In late 2021, the Hudson Nonstop shop at Dallas Love Field Airport has even become the globally first travel retail shop implementing the Amazon One palm recognition technology. Amazon One allows travellers who have previously enrolled in Amazon One at select Amazon Go, Amazon Books, Amazon 4-star, Amazon Fresh, Amazon Pop Up, or Whole Foods Market stores, to simply hover their palm over the Amazon One device at the entry gates to enter this Hudson Nonstop.

Long-term concession portfolio.

Highly digitalized shops – which include applications such as Reserve & Collect and above all the loyalty program Red By Dufry – are currently in operation in over 50 locations and the implementation of the advanced technology is typically done in the context of the periodic refurbishments or when a new shop is built. This also includes the sense-of-place designs of the shops, which are an important aspect for landlords, as Dufry’s shop format system provides for a high degree of customization. Dufry knows how to perfectly match local requirements with efficient retail concepts, to best serve travelers’ needs and to generate value for landlords and Dufry alike. For a more detailed description of our digital strategy, please also refer to our strategy.

 

Securing business resilience through contract extensions

Concession contracts are a key business driver for travel retail operators, as they provide the right to sell their products and services at a given operation. In 2021, Dufry continued to win new contracts and to renew existing concession contracts, thus successfully strengthening the remaining average lifetime of its portfolio, which is currently 6 years. Within our concession portfolio, 36 % of our contracts have a remaining life-time of one to two years; 26 % of three to five years; another 20 % of between six and nine years, and the final 18 % have a remaining duration of ten years or more. On average, every year Dufry renews existing contracts that generate between 10 % and 15 % of our sales, while at the same time adding new contracts.

 

131 new shops added to our first-class concession portfolio

In 2021, Dufry opened and expanded 131 new shops adding over 9,797 m² of retail space across all divisions. At December 31, 2021, the entire concession portfolio of the group included retail space of close to 470,000 m² thus strengthening our portfolio, despite some crisis-related closures we had to perform.

Dufry’s concession portfolio is highly diversified and well balanced across emerging and mature markets on all six continents. This considerably reduces risks of being exposed to single markets and operations; the largest concession only accounts for less than 4 % of turnover; while the 10 biggest concessions represent less than 22 %.

 

Focusing on investment returns

During the past two years, our organization has followed its approach of financial discipline even more closely when evaluating new projects and opportunities. This methodology, successfully developed in the past, has again proven its value during the present challenging environment by contributing to optimize costs and adding flexibility to investments. Projects are analyzed individually on a commercial and financial basis. The many aspects of a project being put together include 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 project types, irrespective of whether we participate in a tender process, engage in direct negotiations with landlords or perform acquisitions.

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