FRANCE. In major breaking news, Lagardère Travel Retail has retained its co-partnership status with Groupe ADP in a new joint venture.
The French travel retailer will be a partner with the airport company in Extime Duty Free Paris, as part of the roll-out of the new Extime hospitality and retail brand unveiled in February.
The news follows a a public consultation on Groupe ADP’s duty free and retail activities for Paris-Charles de Gaulle and Paris-Orly airports.
Extime Duty Free Paris will operate around 140 beauty, gourmet, technical and fashion outlets. It will be 51% owned by the ADP Group and 49% by Lagardère Travel Retail, subject to the approval of the relevant competition authorities.
As reported, the mega-tender covered around 140 stores including multi-brand and mono-brand outlets, with sales valued at around €750 million per year, based on the average annual turnover of these stores between 2017 and 2019. Aéroports de Paris (ADP) estimates total sales of €9.4 billion over the ten-year term, starting from January 2023.
“Airports are places where people live, and our passengers want to be able to relax, enjoy themselves, shop and find the best of Paris and France in terms of shops and services once they have passed through check-in and security checks,” said Aéroports de Paris SA-Groupe ADP Chairman and CEO Augustin de Romanet.
“Extime Duty Free Paris, an expert in travel retail, will bring the Groupe ADP new hospitality brand, Extime, to Paris to offer our passengers a unique and memorable experience.
“Paris airports are the first and last image many travellers have of Paris, and of France. Under the new and ambitious Extime brand, we look forward to continuing our partnership with the Groupe ADP’s teams to offer travellers unforgettable shopping experiences and to bring the best of Paris and France to them, in terms of culture and know-how,” said Lagardère SA Chairman and CEO Arnaud Lagardère.
As reported, the new Extime concept is based around four levers of value creation. These include stimulating traffic through aviation marketing focused on the highest contributing destinations such as China. It also aims to drive demand pre-travel “via a high-performance digital ecosystem consisting of a loyalty programme” – brands will include Extime Reward and Extime Pass, plus a marketplace www.extime.com.
The plan is to deploy the new strategy at the Paris airports starting in 2022/23, Groupe ADP-wide thereafter, and at other airports from 2024.
Speaking later, Arnaud Lagardère added: “I would like to thank the ADP Group and its Chairman and Chief Executive Officer, Augustin de Romanet, for their confidence. It is a great pride for our group to continue its partnership with the ADP teams. A huge congratulations to the Lagardère Travel Retail employees who, under the leadership of Dag Rasmussen, have put all their talent and pugnacity in the conquest of this great victory. The Group is delighted with this success, which crowns the know-how and operational excellence of Lagardère Travel Retail, whose determination to satisfy its customers and partners is total.
“On this occasion, I would like to reaffirm, with [Deputy CEO] Pierre Leroy, our unwavering determination to build the world leader in travel retail and publishing, a dual strategic objective launched several years ago when we decided to focus all of the group’s forces on developing these two businesses. The arrival of Vivendi in our capital, which among other things has enabled us to preserve the integrity of the group, is a considerable asset that will give us additional resources for this great ambition.”
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