Believer

By Jorge Muñiz

As restrictive measures and international travel bans start to be lifted in many countries, there is much curiosity and speculation about how different the world will be and what the “new normal” will look like! It seems that our usual routines and habits will change significantly, until we improve our understanding of the virus and, more importantly, how to beat it. The northern hemisphere is to kick off the holiday season and travel and start to give some signs of returning to this “new normal”after months of grounded planes and closed airport terminals –something unseen since the Great Wars. It ́s now time to get back to what we do best–welcoming customers into our stores and providing the WorldClass shopping experience they expect and are accustomed to. And beyond new protocols and ways of working and dealing with our customers, it ́s also time to harness all the skill, expertise and knowledge we have built up over the past few years, as the leading travel retailer.

It’s time to move on to the next chapter of this story. And here are my five reasons to be a believer:

Digital Transformation

It was July 2018 when Javier González, Dufry´s Global Marketing and Digital Innovation Director, gave us some hints about Dufry’s plans to seize the “digital” opportunity (see issue 27 of Dufry World). At that time, he anticipated two to three years to see tangible results in our digital evolution. That time is now; and Dufry´s digitalization a reality.

RED by Dufry, Reserve & Collect, Forum by Dufry, Staff Digitalization. Tangible itmes that are part of our new reality and that have enabled Dufry to take a major step forward in engaging with our customers. Today we have data of over 5 million customers in our CRM, which enables us to understand much more about their preferences. The digital customer journey is a strong one and has multiplied the opportunities we have to engage in conversations – even way beyond they even start their trips - and to tailor our offering to them. Just as in a big band, the orchestration of the different elements is what elevates our customer experience to unprecedented levels.

Forum by Dufry – raises the excitement by sharing relevant content from brands, influencer and bloggers directly with our customers. That excitement is capitalized with Reserve & Collect, offering the possibility of reserving your shopping in readiness for your next trip. RED by Dufry also creates a bridge between the pre-trip and the in-store experience, rewarding loyal customers and customizing the offering; once in store, our staff equipped with tablets can give more personalized help to customers helping to contribute to an overall positive and memorable experience.

Stores

Size matters, and by the end of 2019, Dufry had over 2,400 stores spread across 420 locations in 65 countries, totaling over of 470,000 m² of retail space. In airport retail, our market share is close to 20% –which means that almost 1 in 5 of all airport stores is operated by Dufry. Moreover, there are still opportunities to keep growing and Dufry has identified over 40,000 m² of additional retail space to fight for, which equates to about 8.5% of our existing retail space.

Location of the stores is another critical element. And, in this respect, Dufry has stores in 6 of the 10 busiest airports in the world (Atlanta, Los Angeles, Chicago O´Hare, Heathrow, Shangai and Dallas Fort Worth) and our portfolio include some of the best airports for shopping – both for the quality of stores and the average spend per passenger.

Lastly, the quality of our stores. In a company of our size, it is hard to keep all stores up to date. But we have invested a lot in the last few years, not just to keep the stores up to date, but to take them to the next level. Only in 2019 we refurbished around 10% of our total retail space. That´s key for us as we have proved that refurbished stores generate more revenue per passenger. As of the end of last year, we had opened 13 New Generation Stores, showcasing to the whole industry how far we can go in terms of innovation and creating exceptional shopping environments and delivering a new and superior store standard.

Our Staff and WorldClass Service

In previous issues of Dufry World, we have covered key training programs, such as ONEDUFRY, the Retail Excellence Program or specific and innovative training initiatives, such us the Responsible Retailer training program. All these skill upgrade programs have something in common: they are global programs. Thanks to the global reach of the programs, Dufry can offer a consistent, WorldClass service across the different locations and Dufry retail brands (Dufry, World Duty Free, Nuance, Hellenic Duty Free, etc.).

Service makes the difference and it’s what drives customers to spend more with us – and to return. We are building something big here. The Dufry logo in our stores is becoming synonymous with superior and recognizable service. And, in a time when online keeps growing and service has become the distinctive value and point of difference, this is an invaluable asset.

Relationships with Landlords and Brands

This should be a given for any travel retailer. In the case of Dufry, however, we go way beyond. Collaboration with brands and airports is natural to us and we have built great things around that. Dufry is proud of having pioneered concepts and joint initiatives with airports, hosted exclusive product launches and taken brands’ visibility to new heights. Dufry has helped to significantly improve the passenger experience in airports and contributed to increases in their non-aeronautical revenues. All of this is the fruit of many years work and the deep knowledge and expertise of our colleagues. In the current environment and going forward, this collaboration will be more necessary than ever before.

Financial Position

The level of uncertainty around the global economy is big and it is difficult to make any forecast as the number of variables are many. One thing is clear however, and it is that this situation won´t last forever and gradually and steadily, travel volumes will return. While this happens, it is reassuring to know that our company is built on strong financial pillars. The solid and disciplined financial track record of the company has enabled us to get the backing of investors and financial institutions in these uncertain times. Internally, Dufry has taken decisions to adapt the company to the current situation, to be better prepared for uncertainty, reducing expenses and adopting an even more flexible cost structure – a key element for the expected gradual recovery. The combination of all these elements has fostered the resilience of the company, and it is reassuring to know that the company remains strong and keeps moving forward and looking to the future.