"One of the key advantages of travel retail is that, by definition, our customers come to us. Unlike the high street, we do not need to attract customers to our locations, they are there to travel." - Dufryhttps://www.dropbox.com/s/lxjk32lf3jiw1tw/Annual_Report.pdf?dl=0 …
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Paul Barnes Retweeted
According to Dufry: “Sales are often generated by impulse decisions and/or immediate needs, which protect travel retail from the direct competition of online platforms.” But what happens if the smartphone is curbing those IRL impulses? https://twitter.com/contracfa/status/973210559691751426?s=21 …
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“Very few channels have almost guaranteed traffic,” said Olivier Bottrie, who heads Estée Lauder’s global travel-retail business.https://www.wsj.com/articles/forget-the-mall-shoppers-are-buying-gucci-at-airports-11560772801 …
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Replying to @LennyIce
Also, these are high prices items sold without taxes, no?
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Replying to @Molson_Hart
In theory yes, but I wonder how much duty free is driven by high ticket items. ADP breaks down sales per passenger for duty free and duty paid. That leads me to believe your avg passenger isn’t buying the Gucci purse for €1k but might be buying the Gucci lipstick for €38.pic.twitter.com/ZLZC5VMpBF
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Replying to @LennyIce
It's kind of hard to tell though right? That's the nature of averages. There are two other drivers: - Business gifts can be expensed. Airport is logical place to make that purchase - When people go on vacation they think: "this is going to hurt my pocketbook no matter what"
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and they thusly spend without giving it the same thought that normal daily expenditures would get. Anyways, I agree with Dufry's thesis. Airport retail is robust to e-commerce. Luxury, convenience, home improvement, auto...these are the categories that Amazon will find tough.
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