BW Confidential - Issue #16 - November/December 2013 - (Page 116)

Travel retail Interview WDFG global head of beauty Antonin Carreau Beauty to the core A demerger from the food and beverage division, renewed growth opportunities and the revamp of its Spanish airport store portfolio are just some of the factors set to change the face of beauty at World Duty Free Group (WDFG). Global head of beauty Antonin Carreau talks about what lies ahead by Tina Milton T he duty-free and travel retail unit of Italian company Autogrill, World Duty Free Group (WDFG) is steering into new waters, whatever they may hold. A demerger from its food and beverage stable mate by October will trigger a renewed focus on growth opportunities this year and will allow the division to play to its strengths. Beauty is core to its operations, accounting for 44% of product sales during the first half of 2013, while sales were up 3.7% year-on-year. Autogrill reported a strong overall performance across its travel retail and duty free division in the first six months, with revenues up 3.8% to €922.9m, driven by UK airports, which saw sales growth of 5.4% against a 2.7% rise in passenger flows. The rest of the world witnessed organic growth reinforced by new openings, while revenues in Spanish airports declined, partly due to the closure of some points of sale in Madrid. On a comparable basis, the decline would be limited to 1.9% compared to a reduction in traffic of 5.9%. The group expects to record travel retail and duty-free sales in 2013 of around €2.05bn, despite concession fees in Spain and the negative impact from the euro and sterling exchange rate used in its forecast. The group will implement a huge transformation after having retained the core category concessions across Spanish airports last December, tendered by Spanish airport authority AENA. The Canary Islands operations plus shops at five airports in the country where it did not have a presence (A Coruña, Asturias, Granada, Murcia San Javier and Santander) also joined WDFG’s portfolio. The redesign of these 1 16 Duty Free Store and creating the biggest (airport) walkthrough store in Spain, according to the company. Partnerships and exclusivity are also among the themes driving the group’s ambitions, and both have been demonstrated in abundance this year. For example, WDFG secured the worldwide exclusive for Boss Jour Pour Femme ahead of its launch in both travel-retail and local markets in May, and in the same month, it was the first in Europe to introduce Dolce & Gabbana The Make Up at Heathrow T5. SK-II also made its European travel-retail debut with WDFG in July at London Heathrow airport T3. WDFG global head of beauty Antonin Carreau discusses the company’s plans for the beauty category and the challenges that lie ahead. “ Make-up provides a key opportunity for us to support penetration, experience and service into our stores […] we need to continue growing the super-premium fragrance category and […] support niche brands in our airports WDFG global head of beauty Antonin Carreau ” 26 outlets began at Palma de Mallorca in July, where €5.6m was invested in phase one of the store development plan, increasing the retail space to 2,659m2 (28,621ft2) at the Mallorca What is WDFG’s strategy for duty-free and travel retail beauty and where will the main focus be geographically? World Duty Free Group is the number-one airport retailer in beauty. Beauty is a core category within the business, currently benefiting from an increased focus, especially as we now have so many stores and a presence in new markets like Brazil and Germany. We have a clear strategy in place to reinforce our leading position in beauty across all the markets in which we operate, but I cannot share specific details, as these are commercially sensitive. What is working well in beauty and what is driving growth? In general terms, as far as the categories are concerned, skincare remains the growth engine, benefiting from the growing Asian passenger November-December 2013 - N°16 - BW Confidential

Table of Contents for the Digital Edition of BW Confidential - Issue #16 - November/December 2013

Cover
Comment
Contents
Update
Brand & retail news recap
Companies on the move
Take note Market facts, figures & trends
Best of BW Highlights from our e-publication
Launches The latest in fragrance, skincare & make-up
Interview Coty ceo Michele Scannavini
Insight: Fragrance
Category overview
Regional breakdown
Launch strategies
The niche market
Retailer initiatives
Launch roundup
Strategy M&A analysis
Retail
The store of the future
Creative strategies
Store concepts
Digital Innovation strategies
Market watch: Brazil
Country overview
Natura & Grupo Boticário
International brand strategies
Prestige retailing
Trendwatch Upcoming innovation
Travel retail
Channel analysis
The CIVETs
Digital strategies
Interview: L’Oréal Luxe md travel retail worldwide Barbara Lavernos
Interview: WDFG global head of beauty Antonin Carreau
Radar Up-and-coming brands
Emerging markets Company profile: Shanghai Jahwa
Packaging
Luxury packs in the BRICs
Luxury innovations
Industry viewpoint
Last word Euromonitor International senior analyst beauty and personal care Oru Mohiuddin

BW Confidential - Issue #16 - November/December 2013