Dufry Expands By Extra Than 30% In Spain, Regardless of Shedding Airports

Following Spanish airport operator Aena finally awarding Dufry the retail concessions of Catalonia and Madrid—after no bids have been initially acquired—the Swiss journey retailer says that the full area awarded in Spain represents an extra 30% in comparison with its presence earlier than the $19 billion bidding spherical started.

In complete, Dufry gained 5 of the six tons accessible: Andalusia-Mediterranean, the Balearic Islands, the Canary Islands, Catalonia, and Madrid. The Northern Airports lot—which incorporates airports in Galicia, Asturias, Cantabria and the Basque Nation—have been snapped up by Lagardère Journey Retail, permitting the French firm to make its debut in Spain with duty-free retailers. The retailer already has vogue and information shops within the nation’s airports.

Dufry says that it didn’t bid for the Northern Airports lot and “gained all bids tendered for in Spain,” all beneath new 12-year contracts. Its new Spanish property now consists of 21 airports and 120 shops masking round 646,000 sq. ft. These airports served greater than 130 million vacationers in 2019.

Spain is an important marketplace for Dufry as it’s a massive income generator as a result of nation being the third-most standard international vacation spot for incoming vacationers. Based on international seat analyst ForwardKeys, based mostly in Valencia, Spain, each Barcelona and Madrid are among the many high 10 most looked for cities for international journey this summer time (in fifth and ninth locations), regardless of harmful heatwaves hitting elements of the Mediterranean together with Spain.

Dufry argues that its wins in all of the tons that it bid for confirms its international management within the journey retail channel. Nonetheless, bids are largely pushed by the monetary outlay that retailers are keen to place down—in addition to technical and design proposals—and a number of other retail operators walked away from tons slightly than bid excessive, corresponding to Gebr. Heinemann.

Not every little thing was retained

Dufry’s CEO, Xavier Rossinyol stated in a press release: “We see this award, the place we retain almost all our operations, as a affirmation of the potential provided by our newly mixed enterprise and our thrilling technique to create a journey expertise revolution.” He added that the corporate’s technique, known as Vacation spot 2027, will probably be dropped at life in Spain by means of a extra consumer-centric strategy to retail with digital engagement excessive on the precedence listing.

Following its merger with journey meals participant, Autogrill, Dufry plans to mix journey retail with meals and beverage (F&B) which Rossinyol says will “generate worth for our prospects, for our concession companion Aena, for our model companions and suppliers, and for Dufry.”

Nearly a 3rd extra space

The brand new contracts will probably be accretive to Dufry’s profitability and money movement, in keeping with the world’s largest airport retailer, in step with its enterprise improvement technique. Serving to with that’s the addition of 30% extra space in Spain, regardless of shedding one lot of airports. Rossinyol stated: “The variety of new classes granted and the brand new areas to function F&B inside retail, permits us to offer a key push to our new hybrid ideas.”

Dufry has additionally stored Canresa onside. The corporate, led by CEO Luis Suárez, has a longstanding collaboration with the Swiss journey retailer over a number of many years within the Canary Islands. There, the airports of Gran Canaria and Tenerife South have been among the many seven busiest in Spain in 2019 and very important for duty-free and journey retail gross sales.

As Dufry renovates its shops in Spain, it’s now making ready new hybrid choices, combining retail and F&B. The corporate says it is going to delivering a robust sense of place, tapping the historical past, tradition and custom of the cities the place every airport is positioned. Collaborating with famend cooks and opening new gourmand bars will probably be one strategy.

Later this yr, a brand new firm identify and visible identification for the merged Dufry and Autogrill entities will probably be revealed.