Travel Retail up 9.4%

22 October, 2013

Global travel retail sales are up 9.4% to US55.8 billion, according to the president of the Tax Free World Association president, Erik Juul-Mortensen.

Juul-Mortensen was speaking at the conference ahead of the opening of the TFWA’s annual World Conference in Cannes.

He told a packed auditorium that the Asia Pacific region is the most valuable single region with sales of $19.9bn, up 19%. Europe increased by a modest 2% to $19.3bn. Nevertheless Europe benefits from being the most visited region.

The Americas were up 6% to $10.9bn while passenger numbers in the Middle East are growing at +10% a year, more than any other region. Africa sales were $764m, an increase of 9.6%.

Juul-Mortensen said that at any one time there are more than 10,000 flights airborne, carrying in excess of three million passengers. Airports account for 57% of sales. Fragrances and cosmetics  is the dominant category with 28% followed by spirits and wine with 16%.

The TFWA president said the organisation along with other bodies, was still trying to get the “one bag rule” implemented by carriers such as Ryanair, banned as it deterred people from shopping in the terminals.

The TFWA commissioned research into why people did not shop more in airports. Hardly surprisingly, the findings showed ‘frustration at lengthy security procedures, crowded retail stores and the perception that the prices of goods did not represent value for money’ as the major reasons.

Juul-Mortensen said: “It is surely within our capabilities to process passengers more quickly, to offer real value for money and as brands to offer products that stand out from the high street offer.”

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