Duty Free Americas
Duty Free Americas outlines high ambitions for border store business
Duty Free Americas Vice President Dov Falic tells Dermot Davitt about the strategy for growth at the company’s border store network, which spans over 88 outlets in eight countries.
The border store business in the Americas, and notably between the USA and Mexico, was a crucial support to Duty Free Americas’ (DFA) revenues during the pandemic. Today the company is focusing on growing business across more than 88 stores in eight countries and capitalising on consumer loyalty built up during the COVID-19 period.
DFA Vice President Dov Falic says: “Unlike airport stores, which depend on travel schedules, our border stores benefit from a recurring customer base. This provides an opportunity to build lasting relationships and foster loyalty to the brands investing in this channel.
“To leverage this loyalty, we are expanding into new product categories and allocating capital expenditure to drive growth and open new stores.
Duty Free Americas Vice President Dov Falic
DFA wants its border duty-free stores to be destinations in their own right
“Regionally, our strategy is tailored and localised to meet specific needs of the customers in each region. Since COVID, we have added over 2,000 new SKUs as part of our commitment to effectively address local preferences while maximising the overall potential of our border stores.”
Shopper demand has evolved post-pandemic, and become even more important for customers in many regions, with the border store in some places representing the closest retail store of any kind.
Falic says: “In response, we have broadened our product range and added essential services such as pharmacies and opticians, effectively transforming our stores into community hubs. We have also enriched the shopping experience with brand events and immersive experiences, which has strengthened customer loyalty. As a result, Duty Free Americas is now seen as a key destination not only for border-related purchases but also for everyday shopping needs.”
He adds: “By closely monitoring trends, we have identified a strong base of repeat customers who consistently drive our business. Their preferences and behaviours directly influence our product offerings and strategic decisions, ensuring that we not only meet their evolving needs but also stay ahead of market demands, reinforcing our position as a trusted shopping destination.”
Luxury and beauty brands such as Chanel sit alongside spirits, electronics and homeware at DFA’s Uruguayan border outlets
(continued next page)
Partner's message
The Moodie Davitt eZine
Issue 338 | 27 September 2024
The Moodie Davitt eZine is published 14 times per year by The Moodie Davitt Report (Moodie International Ltd). © All material is copyright and cannot be reproduced without the permission of the Publisher. To find out more visit www.moodiedavittreport.com and to subscribe, please e-mail kristyn@moodiedavittreport.com