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Dubai Duty Free (DDF) Russia decreased their spending over the frst Sales full year 2014: CHF1.82bn ($1.92bn) four months of 2015. The decline in Russian Market share: 4% passengers has resulted in a 46% drop in beauty P&C share in total sales: Perfume 17%, sales to this traveling group. The weakening cosmetics almost 8% of the euro has impacted sales to European Strategy: Dubai Duty Free revealed sales of passengers, who are the second-biggest Dhs6.99bn ($1.92bn) for 2014, up 7.36% customer group for beauty. However, DDF on the previous year. With sales of Dhs1.15bn reports that attractive price discounts and strong ($314m), fragrance remained the best-selling promotional activities are driving business. category, followed by liquor and gold. Cosmetics DDF will continue to enhance its retail rose by 19% to Dhs531m ($146.5m). operation with the ongoing refurbishment of country player, which will only get stronger with 2 Passengers travelling to GCC countries and Concourse C and the opening of a 7,000m the potential to expand both here and at Al 2 Asia are the leading customers for the beauty (75,347ft ) retail space in Concourse D at Maktoum International at Dubai World Central business; whereas travelers to Europe and Dubai International airport. A powerful single in the future. Ever Rich Duty Free Corp (whose citizens are allowed to travel to Sales full year 2014: CHF1.25bn ($1.33bn) Taiwan independently) on January 1. Market share: 3% The new policy has seen an increase in P&C share in total sales: N/A passenger levels of more than 20%, Strategy: The company’s investment and the company will focus on marketing, in tourism on Kinmen Island has grown promotions and exposure in China in considerably since opening the 32,000m the future. 2 (344,445ft ) Kinmen Ever Rich Golden Lake In general, the travel retailer’s mix of 2 Plaza duty-free store in May 2014. Leisure downtown and airport locations in Taiwan facilities were further bolstered with the is enabling it to capitalize on the country’s addition of the Golden Lake Plaza hotel in growing tourism market. Ever Rich Duty December 2014. Free is planning another retail and hotel However, sales across all categories have complex in 2017 at the harbour side on benefted from the introduction of a land Penghu Island, which will further expand its visa policy for mainland Chinese visitors hold in the country. Aer Rianta International (ARI) in the next fve years, which will primarily take Sales full year 2014: CHF1.15bn ($1.22bn) place though a mix of organic growth, new Market share: 3% concessions and partnerships and also P&C share in total sales: N/A possibly acquisitions. Strategy: ARI’s parent company DAA reported Last summer, in a key strategic development, that the travel-retail business performed well ARI acquired 50% of its joint venture airport in 2014, with sales at continuing locations retail business in Cyprus from Cypriot partner the increasing by 10%. Profts in ARI’s overseas Shacolas Group in a €55m transaction. division declined from €29m to €18m year-on- In China, the group ceased operations of the year, as the business had benefted in 2013 from duty-paid outlets it had operated at Kunming across a number of diverse markets, with the the one-off impact of the sale of its operations International airport since 2012. The company in Russia and the Ukraine. However, like-for-like, also secured a seven-year concession agreement Middle East tenders this year at Abu Dhabi and this still means that profts at ARI’s international at Auckland International airport in July. Muscat sure to be on its radar. n locations increased by 50%. ARI continues to focus on business ARI ceo Jack MacGowan has made no development in new and existing locations. The All sales fgures (full year 2014 in Swiss francs) and market share secret of his plans to double the group’s profts travel retailer is currently pursuing opportunities data sourced from Vontobel Equity Research. The remaining duty free operators account for 31% of the market. November-December 2015 - N°24 - BW Confidential 103