BW Confidential - Issue #4 - October/December 2010 - (Page 64)

Travel retail Interview: World Duty Free & Aldeasa Elevating in-store events European travel retail is seeing mixed results this year. The beauty managers of WDF and Aldeasa, two of the most influential airport operators in the region talk about how they were affected and what comes next by Kevin Rozario W orld Duty Free (WDF) in the UK and Aldeasa in Spain—both owned by Italy’s Autogrill—have been, and continue to be, affected differently by the downturn. Both markets are among the biggest for airport beauty sales in Europe, but performances have been impacted differently by falls and rises in air traffic, currency movements and consumer sentiment, not to mention the ash cloud incident earlier this year. In the first half of 2010 Autogrill reported its Spanish airport sales were up by just 0.6%, below traffic growth of 1%; whereas in the UK, airport sales proved far more robust with 5.4% growth against a 5.9% decline in traffic. Debbie Ansell, head of category for beauty and luxury goods at World Duty Free and Olga Pardo, global category manager perfumes and cosmetics for Aldeasa reflect on these trends. initiative in the new terminal in Malaga Airport where 38 incognito dancers took part in a ‘flash mob’ dance. This year, Aldeasa has also organized live concerts in Barcelona, Malaga and Palma de Mallorca Airport. These initiatives have allowed us to focus on younger customers, while establishing a link between the brands, art and culture. During the downturn, did beauty do as well as other categories? Ansell: All core categories showed good performances last year and beauty was no exception— although the star performer was liquor. New store developments helped drive sales, with strong brand across beauty Which beauty segments and brands personalization and more generic space allowing have been faring best? us to create bespoke campaigns and strong ‘calls Ansell: All three segments are growing. Skinto action’ for our customers. The exchange rate care has grown exceptionally fast due to the has been one of several factors that contributed to World Duty Free head of category for beauty and luxury goods success of premium brands, such as Crème WDF’s performance, but others—such as promoDebbie Ansell de la Mer, La Prairie and Sisley. The strength tions and innovation—have also boosted sales. of Estée Lauder and Dior has been pleasing Pardo: Beauty was the best performer last year as well. The stars in color are still MAC, YSL, and suffered the least. It also did well in the first Dior, Clinique and Chanel, but we’re seeing double-digit growth from half of 2010, especially in locations with new stores, such as BarceBenefit, Bobbi Brown and Clarins, as they have a stronger presence in lona and Malaga. This was driven by events, stronger collaboration our new and revamped stores. Many top fragrance brands have either with our partners and promotions. had great launches this year or are building on those from 2009. Pardo: All beauty categories have grown during the first half, but Promotions have been crucial in the past 18 months. What make-up has seen the best performance. Our top-five skincare beststrategies are working best? sellers in the first half were Dior, Lancôme, Yves St Laurent, L’Oréal and Ansell: Many of our stores have dedicated events space because Chanel followed by Clarins, Clinique, Biotherm and Estée Lauder. Frain-store theater really helps to engage our customers. Recently we grances are also delivering better results than last year, led by Chanel. also started to increase the focus on giving customers extra value, from free mini treatments or consultations, to gifts-with-purchase. Heathrow and Madrid are among your leading locations. Is Pardo: We run events in personalized spaces with the aim of beauty retailing here different from other locations? increasing footfall in our stores. These promotions also create a fun Ansell: Heathrow has led the way with the introduction of new atmosphere in our shops. For instance, we carried out an original “ Have passengers’ beauty tastes changed post-downturn? Ansell: Shoppers are always looking for something new and different—for themselves or as a gift. Travel exclusives are a unique selling point for us and limited editions are popular too. We find that customers really buy into those. Pardo: Customers are looking for products that give them exclusivity and additional value. Travel-retail exclusives can’t typically be found on the High Street and, in some cases, may even be exclusive to one airport. By offering New products, engaging inthese products, travel-retail shops become store theater and reinforcing a great place to purchase something difthe value message have helped ferent for a friend or something unique us achieve record weekly sales for themselves. ” 64 October-December 2010 - N°4 - BW Confidential

Table of Contents for the Digital Edition of BW Confidential - Issue #4 - October/December 2010

- Brand & retail news recap
- Digital digest
- Companies on the move
Take note
- Market facts, figures & trends
Best of BW
- Highlights from our e-publication
- The latest in fragrance, skincare & make-up
- BPI president Rémy Gomez
Insight: fragrance
- Category overview
- Retailing
- Industry viewpoint
- New opportunities
- Launch roundup
- Airport Spas
- Spa case studies
- New store concepts
Travel retail
- Market overview
- Retail strategies
- Interview: World Duty Free & Aldeasa
Show preview
- TFWA World Exhibition
- Six up-and-coming beauty brands
Market watch: India
- Country overview
- Industry roundtable
- Retailing analysis
- Sector outlook
- Sustainability
Last word
- Mintel head beauty consultant Nica Lewis

BW Confidential - Issue #4 - October/December 2010