Following a drop in sales in 2009 the global airport retailing market has bounced back. However, growth is being driven predominantly by passenger volumes, which are increasingly rapidly in emerging markets, rather than an increase in spend per passenger. In 2011, Europe was the largest airport retailing market, however Verdict forecasts that it will be overtaken in size in 2012 by Asia Pacific. The global airport retailing market is forecast to expand by 44.5% from 2010 to 2015 with most of this growth coming from emerging economies especially in Asia Pacific, which is forecast to grow by 76.2%, and the Middle East and Africa which is forecast to grow by 40.0%. Fashion and accessories is the largest product category accounting for 25% of global airport sales in 2010. Sales of fashion and accessories have increased rapidly in recent years driven by the strong appetite for luxury brands in Asia Pacific. In 2010 this region was responsible for 45.6% of fashion and beauty sales at airports. Walk through stores in airport terminals are growing in popularity. The format enables retailers to create an environment through which all consumers must pass to reach their departure gate. The shops, which tend to include flight information screens, are effective at targeting time scarce consumers.

1. Global Airport Retailing includes market size and forecasts for the sector through to 2015, by
region and by category, as well as providing a ranking of the leading airport retailers by market
share. The report also assesses the key issues faced by the airport retailing sector, the strategies
that operators are adopting, and profiles the top 10 retailers.
SECTIONS:
OERVIEW
KEY FINDINGS
STRATEGIC ACTION POINTS
MARKET CONTEXT AND OUTLOOK
STRATEGIC ISSUES
COMPANY COMPARISONS
LS TRAVEL RETAIL
AUTOGRILL
DUFRY
GEBR. HEINEMANN
NUANCE GROUP
DUBAI DUTY FREE
AER RIANTA INTERNATIONAL
SHILLA DUTY FREE
LOTTE DUTY FREE
DUTY FREE SHOPPERS GROUP
APPENDIX
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2. Spend per passenger will increase globally by 2015
 Between 2011 and 2015, Verdict forecasts that spend per passenger will increase across all regions. Spend
per passenger is forecast to increase most rapidly in Asia Pacific, increasing 23.2% on 2011. Meanwhile, the
Middle East and Africa will see a 9.6% growth, America will see a 7.4% growth (driven largely by the emerging
markets), and Europe will see a 3.1% growth in passenger spend.
 The high growth rates in Asia Pacific and the Middle East and Africa are driven by the regions' strong
economic performances. In the Americas, strong economic growth in Latin America is dampened by North
America's lackluster economic performance and the dominance of North America in terms of total regional
passenger numbers.
 By 2015, spend per passenger in Europe is forecast to still fall short of the $6.38 spent per passenger in 2008.
This can be attributed to the slower economic growth and the increase in regional travel forecast for the
region, for which passengers do not qualify for duty free and are less incentivized to spend.
Fig 9: Sales per passenger ($), by region, 2008–15f
Source: Verdict Research © Datamonitor
Table 5: Sales per passenger ($), 2008–15f
Europe Asia Pacific Americas Middle East and Africa Global
2008 6.38 6.43 2.68 13.62 5.42
2009 6.00 6.18 2.54 13.01 5.21
2010 6.04 6.57 2.54 13.23 5.36
2011e 6.07 6.90 2.57 13.50 5.48
2012f 6.12 7.25 2.62 13.78 5.66
2013f 6.17 7.63 2.67 14.10 5.84
2014f 6.21 8.05 2.71 14.44 6.03
2015f 6.26 8.50 2.76 14.80 6.24
Increase 2011e–15f (%) 3.1 23.2 7.4 9.6
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3. Global airport retailing outlook, 2011–15
Global airport retail sales to reach $39.1bn by 2015
Verdict forecasts that:
 The global airport retailing market will increase to $39,053m in 2015.
 Asia Pacific will become the largest region for airport spending by 2012.
 The Americas will exceed 2008 level of spending in 2012.
Fig 2: Airport retail expenditure ($bn), 2008–15f
Source: Verdict Research © Datamonitor
Europe's future growth is undermined by the lack of investment in airport infrastructure
Fig 3: Share of airport expenditure, by region, 2008, 2011e, and 2015f
Source: Verdict Research © Datamonitor
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4. STRATEGIC ISSUES
Fig 2: Distribution of high-speed rail in Europe, 2011
Source: Wikipedia © Datamonitor
Table 5: DFS company overview 2011
DUTY FREE SHOPPERS GROUP
DFS is a key player in South East Asian airport retailing
Duty Free Shoppers Group (DFS) is the world's eighth largest airport retailer. In FY2010, the
company generated an estimated turnover of €2,113m ($2,800m) from its airport and non-airport
duty free operations, of which an estimated €634m ($840m) stemmed from airport retailing. The
company has operations across Asia Pacific and North America; however, its main market is Asia
Pacific wher‫؀‬e it operates the majority of its 21 airport retailing locations. The company achieved
significant growth in 2010, most notably in its Asian travel hubs of Hong Kong, Macau, and
Singapore as a result of its successful targeting of Chinese consumers, who now account for 30%
of sales.
Its reliance on Asia Pacific places it in competition with key incumbent players in the region,
including the Korean operators Lotte Duty Free and The Shilla Duty Free, the Chinese operators
China Duty Free and Sunrise Duty Free, as well as King Power, JR Duty Free, and Dubai Duty
Free. DFS also faces competition from non-incumbent players such as LS Travel Retail, which has
identified Asia Pacific as its next big target for expansion.
Founded 1960
Chairman and CEO Ed Brennan
2010 company turnover $2,800m
2010 airport turnover $840m
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5. Share of global airport retail market 2010 3.11%
Source: Verdict Research © Datamonitor
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