The Trinity Forum – Lagardère Travel Retail
Finding the sweet spot
Lagardère Travel Retail Chairman and Chief Executive Officer Dag Rasmussen shared his optimism for the future of travel retail in an absorbing interview with Martin Moodie on day two.
“If we do our job correctly, travel retail has a great future,” he said. “We need good strategy and understand the evolving nature of passengers; they have free time and passenger numbers will keep increasing even in the face of economic challenges. The fundamentals for success are there.”
Dag Rasmussen: Seeking “a rebalancing of risk and reward” in contract structures
Rasmussen said the decision of passengers to use retail and F&B in airports is made quickly, so how these concessions are presented, variety in product assortments, having well-trained staff and easy payment methods are key.
He noted an important target for Lagardère Travel Retail’s product assortment in duty-free stores is that 30% of the ranges should evoke a sense of place. “If you are surprised each time you enter a store, you will buy more. Duty-free stores should not be uniform across locations because then people will buy only what they need and consequently spend less.”
While highlighting that flexibility in airport partnerships was vital, Rasmussen expressed his preference for a profit-sharing model where possible.
“Then you have a full alignment in your objectives,” he said, while adding that “a rebalancing of risk and reward” is required in the eco-system.
Partner’s message
The Moodie Davitt eZine
Issue 341 | 4 December 2024
The Moodie Davitt eZine is published 14 times per year by The Moodie Davitt Report (MA Travel Retail). © 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