Taking Travel Retail around the world

1
Taking Travel Retail around the world
Eamon Foley 1st April 2011
2
Contents

• ARI Background History
• International Business Experience
• Travel Retail Channel
• Strategic Location and Organisation

3
What is Aer Rianta International (ARI)?

• Duty Free, Duty Paid and In-Flight Retailer
• International Airport Shareholder and Operator
  (Dusseldorf, Larnaca Paphos)
• Subsidiary of Dublin Airport Authority
• Established in 1988 in Shannon

4
Strong Financial Performance

• ARI Turnover of 10.7bn from 1988-2010
• ARI Profits of 452m from1988-2010
• ARI Turnover of 954m in 2010
• 340m cash generated for the DAA
• Debt free
• ROCE of 26

5
Proud of our roots
History Duty Free Founders
Shannon 1947
Shannon 1950
6
Pathfinders into new markets

• Shannon 1947
• Dubai 1983
• Moscow 1988
• Bahrain 1991
• Kiev 1992
• Beirut 1996
• Montreal 1998
• Cyprus 1998
• Cairo 2004
• Delhi 2010

7
Retailing Operations
8
International Experience - Background

• Operated in 20 countries (now 13)
• Predominantly emerging markets
• Often the first mover
• Some failures JFK, Karachi

9
International Experience -Learnings

• Partnership
• To do or not?
• Selection process
• Relationship management
• Criteria for success
• Research the market
• Understand cultures (country, business,
  individual)
• Check out business infrastructure
• Set risk /reward objectives
• Risk management is critical
• People are key to success

10
Travel Retail Sector Business Model

• Retail is Retail and simple
• Specialised in many respects
• Concession model
• Consumer profile
• Price advantage
• Airport environment
• Sense of place

11
Travel Retail Sector Opportunities for
Indigenous Business

• Get to know the sector
• Need strong international brands or exclusive
  products
• Understand the operators needs
• Be innovative
• Case Studies Butlers, Shamrock Souvenirs IDL
  / Cooley

12
Butlers
13
Uisge Beatha Cyprus, Midleton Dublin T2
14
Uisge Beatha

• The Uisge Beatha developed to showcase malt
  whisky exclusively.
• Range initially covered Scotch only
• A more international selection has emerged over
  time.
• Cooley selections to be listed in Cyprus are
• Cooley (Ireland) Tyrconnell, Connemara, Lockes.

15
Strategic Location for International Organisation

• Head office
• Centralised or Regionalised?
• Global or Local
• Selection Criteria
• ARI Structure
• Why Shannon?

16

• Thank You
• Any Questions