Change presents opportunity, TWFA boss says

Change and upheaval in 2017  is likely to present opportunities for duty free and travel retail, the head of the TWFA has claimed.

Erik Juul-Mortensen, President of the Tax Free World Association (TFWA) President  described 2016 as a “tricky vintage” for duty free and travel retail, following an eventful 2015, but insisted that 2017 presented many opportunities for the sector because of the turbulence of the time. Despite a dip in travel retail during 2016 and ongoing political and economic challenges, the industry is well-positioned to take advantage of new opportunities, the boss of the industry’s trade association has argued.

“It is worth remembering that change often brings opportunities” he noted, drawing parallels to the initial struggle the industry faced in devising multi-channel strategies that could blend online and in-store experiences for its consumers.

“Our industry is waking up to the possibilities that a millennial-friendly, omni-channel approach can offer retailers and brands,” he said in his year end message. “With Britain voting to leave the EU, the election of a US President determined to do things differently and China’s continued rise, the pace of events looks unlikely to slow down in the coming months.”

“Who knows what openings may emerge from a Europe adjusting to post-Brexit life or the new administration in Washington?” he added.

China’s increasingly numerous and adventurous travellers had been a key plank in the rising ‘Asia Powerhouse” which had bucked the dip in worldwide duty free and travel retail sales.

Overall there was a drop across the duty free and travel retail sector of 2.3% in 2015 – the industry’s first decline in six years – marred by a “cocktail of geopolitical tensions, currency swings, slower growth and health scares”, Juul-Mortensen said. However the outlook was more positive in the Asia Pacific region, which had seen “significant growth” in 2015, with turnover rising 2.6%.

One of the biggest challenges highlighted by speakers at this year’s TWFA conference was in ensuring sales per head could match the rising traveller numbers, with customer data potentially providing a key to reverse this trend.