Page 99 - BWConfidential24

Dufry analysis Travel retail Game of thrones It’s been a stellar year for Dufry Group as it adds World Duty Free to its bulging portfolio. But where does the travel retailer and the industry go from here? by Tina Milton t’s been another transformative year for London Heathrow, which has a large by adding operations in the US, Canada, ISwitzerland-based Dufry Group. After number of emerging-market consumers. Mexico, Brazil, Peru and Chile, while the closure of the World Duty Free (WDF) The WDF business in Spain (44% of its boosting its growth in Asia and the acquisition, the travel retailer will further sales) and Italy is seen as complementary Middle East. boost its leading position in the travel- to Dufry’s presence in the Mediterranean. Vontobel forecasts that 50% of the new retail market and will be almost twice the Additionally, the deal will reinforce the Dufry Group’s sales will be from Europe, size of its nearest rival DFS Group, which Swiss operator’s position in the Americas followed by Latin America with 20%, n n n sits at number two, according to Vontobel Equity Research. Following the WDF deal, Dufry will boost its market share in travel- retail from 14% to 20% (24% in airport Dufry’s major recent buys retailing). Its nearest competitor, the Year Target Country Sales €m Price €m number-two ranked DFS has an 11% share. 2015 World Duty Free Group Italy 2,560 3,600 The deal will give Dufry more balanced 2014 The Nuance Group Switzerland 2,095 1,550 exposure to developed and emerging 2013 Hellenic Duty Free (49%) Greece 390 401 markets. The combined company will have operations in 67 countries and almost 400 2012 Hellenic Duty Free (51%) Greece 291 775 locations, and the acquisition furnishes 2012 Regstaer (51%) Russia 55 47 Dufry with long-term concessions across 2011 InterBaires/others South America 420 840 several major European airports, including Source: Vontobel Equity Research November-December 2015 - N°24 - BW Confidential 97