Dufry signs seven-year contract with airport group Swedavia
Duty free market leader Dufry has signed an exclusive seven-year deal with Swedish airport group Swedavia. The deal will see Dufry operate and develop tax and duty-free shops across eight airports, with a predicted sales value of $953 million - $1.2 billion during the period of the agreement. The largest development planned will take place in Stockholm Arlanda terminal 5, and result in a walkthrough shop covering more than 2,000 square meters.
This zone is designed to be a marketplace which provides passengers with a “totally new experience in food and beverage, retail and commercial services.” It will form a key part of Dufry’s offering, which includes an “innovative” product mix, and clearer brand positioning across locally adapted “target destination zones”.
An Artist’s impression of the new Dufry & Swedavia retail experience
Karl Wistrand, Swedavia’s head of commercial and real estate, said: “We are delighted to continue our partnership with Dufry in the coming seven years. This is a period when we are restructuring our airports in a fundamental way which will also be reflected by Dufry´s investments in the passenger’s retail experience. The retail industry is transforming and we have now secured a partner prepared to invest and to lead the changes within the market.”
Dufry’s division CEO for the UK, Central and Eastern Europe, Eugenio Andrades, was keen to point out the value in the Swedish market, saying:
“We have a massive growth in passengers in Sweden where it has been a lot about training and making it more commercial. We have introduced new tills, tried to make the customer experience better, done a bit with the layout and brought a lot of new promotions. We also have VIP vouchers and brought best-sellers to the front of the stores. We have to be very active due to the changing profile which requires more value. There are more millennials and younger generation passengers.
“We would like to thank our partners at Swedavia for the ongoing trust and belief they have shown in us through the tender process. We are delighted to be able to continue to work together and our dedicated teams are committed to developing outstanding stores for Swedavia and for our customers.”
Dominion holds Dufry in its Global Trends Managed Fund.
If you would you like to receive the Newsfeeds daily, please click here to sign up now!Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
- Click here to print this story: Print
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.