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“With these additional spaces and the next generation of store concepts, Dufry secures its presence in the Brazilian travel retail market.“ |
Julián Díaz CEO Dufry |
BRAZIL. In major sector news, Dufry has extended its duty free and duty paid retail contracts at two key airport locations.
The retailer will now run duty free operations with RioGaleão in Rio Janeiro until 2023 and the duty paid business until 2021. And in a second big announcement on a huge day for the industry giant, Dufry and Guarulhos International Airport in São Paulo have extended their agreement for the duty free operation until 2032, together with a big expansion of the duty paid offer.
RIOGALEÃO RESURGENCE
The RioGaleão duty free development will result in several major openings, including five new stores totalling almost 7,000sq m of retail space.
With the expansion of its duty free space from the original 4,000sq m, Dufry will now operate close to 11,000sq m of duty free retail space at RioGaleão Airport.
In addition, Dufry also expands its general travel retail shops located at the departure and arrival areas in the remodelled Terminal 2. These shops have been designed to give a Sense of Place of the city of Rio de Janeiro. [We’ll bring you a separate report on the new T2 commercial offer shortly.]
On the Departures side, the duty free shop has been enlarged from 450sq m to more than 2,200sq m of retail space allowing an improved offering. The last-minute-shops were also enlarged from just 150sq m by adding over 900sq m and reaching now 1,050sq m in total.
In the Arrivals area, the shop has more than tripled its original surface of over 1,300sq m to nearly 4,000sq m . The new shop has been designed as a walk-through concept offering a substantially enlarged assortment across all categories.
Following the roll-out of the brand boutique concept, Dufry has also opened four new mono-brand shops totaling almost 900sq m for luxury brands such as Salvatore Ferragamo, Hugo Boss, Michael Kors and Polo Ralph Lauren.
Among the new shop openings, a major development is also the new agreement signed to operate until 2021 a so-called Destination Shop of more than 600sq m located in the Departure areas.
This new shop features thematic concepts designed to create a Rio de Janeiro atmosphere, with a “best-of-class” look and feel of the most popular local brands. The shop presents a comprehensive offer including a wide range of premium brands, such as the beachwear Salinas, the casualwear Richards, Farm and Osklen, the famous flip flops Havaianas as well as Nike, which will sell the Brazilian football national team T-shirts.
Duty paid area increased by an additional 1,400sq m
Dufry has also extended its duty paid operations until 2021 and will add close to 1,400sq m of space under that contract. A Dufry Shopping megastore will offer customers what the retailer described as a “state-of-the art retail experience”.
The existing duty paid operations covering around 500sq m include five Hudson shops as well as three “Rio2016” shops, offering a wide range of official merchandise for the Olympic Games. Combined with the new megastore, Dufry will operate more than 1,800sq m of duty paid retail space at Rio de Janeiro.
Dufry Group CEO Julían Díaz CEO said: “We are very proud to extend the contracts with RioGaleão and to further expand our presence at Tom Jobim International airport.
“With these additional spaces and the next generation of store concepts, Dufry secures its presence in the Brazilian travel retail market. The increased commercial offering and the enlarged number of brands being featured, will contribute to further drive growth.
“During the last months, we have been working closely with RioGaleão, putting all our efforts together in order to successfully execute all these projects. The new contracts underline our confidence in Brazil, as one of the relevant markets in travel retail, where Dufry has continuously expanded its position over time in order to benefit from one of the most important geographies in terms of spend per passenger.
“Last but not least, we would like to thank RioGaleão for its trust in Dufry. We look forward to continue developing our operations together and make the traveller’s experience in this airport even better.”
SÃO PAULO DUTY FREE RETAIL CONTACT EXTENDED TO 2032
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“The extension is a great opportunity for Dufry in Brazil and reinforces our position in South America showcasing the strength of our company and our deep knowledge of travel retail, the Brazilian consumers and their preferences and habits.“ |
Julián Díaz CEO Dufry |
In related news, Dufry also revealed that it has signed an agreement with GRU Airport to extend the duty free retail contract at Guarulhos International Airport in São Paulo until 2032.
Dufry will remain the duty free operator in Terminals 2 and 3, which welcome all international passengers at GRU. Dufry currently operates 26 duty free stores at the airport: 22 shops at T3 and four shops at T2.
The major duty free area is located at T3 and extends over 7,500sq m, comprising two general travel retail shops in Arrivals and Departures, including one of Dufry’s largest walk-through shops in the world featuring 4,350sq m of retail space, 18 brand boutiques from leading houses such as Polo Ralph Lauren, Hugo Boss, Montblanc and Victoria’s Secret, among others.
At T2, Dufry operates around 4,100sq m of retail space.
In the duty paid channel, Dufry was also awarded 2,320sq m of additional retail space, which will be used to open a Dufry Shopping megastore in T2 as well as last-minute shops for domestic passengers.
Following the opening of Hudson’s first convenience shop in T3, Dufry also intends to open another three Hudson shops, extending the reach of the convenience concept and its range of travel essentials.
These new spaces, located airside and landside in T2, are expected to open later in 2016. Overall, Dufry will then operate 16 duty paid shops, totalling around 3,500sq m of retail space in Terminals 1, 2 and 3.
Julián Díaz commented: “We are very pleased about this new agreement with GRU Airport, who has been partnering with us since the beginning of their operations in 2012.
“The extension of the contracts fosters our cooperation with GRU Airport and it is a great platform to further develop the business at this important hub. The extension is a great opportunity for Dufry in Brazil and reinforces our position in South America, showcasing the strength of our company and our deep knowledge of travel retail, the Brazilian consumers and their preferences and habits.
“I would also like to highlight the additional retail space in duty paid, which will allow us to open another Dufry Shopping megastore in the country. This new megastore, together with the opening of the new Hudson stores as well last-minute shops, reinforces our strategy to roll out and further develop the duty paid business.
“Last but not least, this agreement is also a confirmation of Dufry´s commitment to Brazil and its confidence in the potential growth of the economy.
“Finally, I would like to thank GRU Airport for the long-lasting partnership and the trust in Dufry. We are confident that together, we will create and deliver an even better shopping and travel experience for all passengers.”
