The Moodie Davitt Magazine
INTERNATIONAL. Welcome to the June edition of The Moodie Davitt Magazine, in which we examine the path to recovery for travel and travel retail, with comment from leading players in the industry.
We feature some important messages from Dufry CEO Julián Díaz about coping with crisis, market and corporate resilience and relationships with airport and supplier partners, in an exclusive interview with Martin Moodie.
Ensuring cash preservation has been top of the agenda for the travel retail market leader over the past three months, and uncertainty about the future remains high. “We have not burned the cash, which if we had would probably have destroyed the sustainability of the company,” says Díaz.
He seeks to reassure brands that who are concerned about slow or even potential non-payments. “As soon as we have visibility we will contact them (as we have done) to elaborate a plan for reopening and for paying the amounts that are outstanding.”
From Colm McLoughlin, who has led Dubai Duty Free through 37 years of almost constant growth, comes an upbeat message: “We have never seen or dreamt that there would be a complete closedown of the duty free industry, but my message would be just to stay positive. [The business] will rebound.”
As Dubai Duty Free slowly reopens its stores, McLoughlin talks about how the world’s biggest single-location duty free retailer has coped with the pandemic, how it is faring under new trading conditions and what the future holds.
We also bring you highlights of a compelling new Morgan Stanley Research report on the outlook for Mainland China travel retail and for its biggest player, China Duty Free Group. Even allowing for the impact of COVID-19, expect a doubling of duty free sales within Mainland China from now to 2025, says the investment bank, led by offshore (Hainan), downtown and ecommerce channels.
Despite the crisis, new projects have continued, offering signals of hope for the wider market. At New York LaGuardia Airport, Vantage Airport Group and its partners have just opened the upgraded Terminal B, featuring striking design, a vibrant commercial offer and a strong Sense of Place. We speak to Vantage Chair & CEO George Casey about the new environment and experience, and how COVID-19 has affected the wider business.
We also look at a blueprint for survival of the concessions business in North America, with the Airport Restaurant & Retail Association, and at how one leading F&B player, SSP, is addressing the rhythm of reopening across its own global network.
Please enjoy this June edition of The Moodie Davitt Magazine with our compliments.
