Top Brands International enters new phase amid expansion into Brazil

When it completes a recently announced, long-anticipated move into the Brazilian market, Panama-based travel retailer Top Brands will manage a portfolio of over 100 stores in 17 countries, and cement its status as one of the leaders in Latin American travel retail.

The next stage in the company’s 30-year journey sees Top Brands’ division Neutral by Luryx acquire a downtown duty-free operation owned by Mazenta Brasil, as reported in February. Neutral, a major multi-store player on the Uruguay border, has also signed an exclusive contract to open a new duty-free store at Dreams Park in Foz de Iguazú, a key tourism location in the region.

Foz de Iguazú serves visitors to the famed Iguazú Falls and lies in the triple-border region between Brazil and neighbours Argentina and Paraguay. One of the natural wonders of the world, the Iguazú Falls features over 275 waterfalls surrounded by lush tropical rainforest. The attraction draws attracts 20 million guests a year to the region.

The Dreams Park store, set to open in July, will feature 2,700sq m of retail space. The ground floor will house fragrances & cosmetics, fashion & accessories and destination goods, with the lower floor carrying wines & spirits, confectionery, tobacco, toys and technology.

Dreams Park welcomes around one million visitors per year, with plans to increase this to five million in the coming years. The complex, which blends entertainment with museums, restaurants, a five-star hotel, a water park, plus other attractions, is located 20 minutes from the Iguazú Falls and 15 minutes from Foz de Iguazú International Airport.

In a statement announcing the move, Top Brands International CEO Danny Yohoros said: “Visitors from Brazil, Paraguay, Argentina, the USA, Europe and Asia flock to this region every year to experience its grandeur, enjoy its biodiversity and explore its many attractions.

“With a special focus on this ever-growing influx of travellers, the new Neutral by Luryx Duty Free store will establish itself as a premier shopping destination, offering a first-class experience with prestigious international brands and exceptional service.”

He said the company had an “aggressive and revolutionary marketing strategy” to convert many of these visitors into shoppers.

In March 2018, Brazilian Customs authorities permitted the licensing of downtown duty-free shops in 32 cities near the borders within the country. Alongside foreign visitors, Brazilian citizens are allowed to shop with a monthly allowance of US$500 per month and per person. This represents a sizeable opportunity for Top Brands and Neutral to extend their already considerable reach and build market share in a growing channel.

The move into Brazil follows soon after Top Brands International acquired Mega Shopping, a 1,200sq m operation in Iquique, Chile, from Vierci Group.

The store, which offers multiple product categories, will be rebranded under the Luryx name, which is already established in the Iquique Free Trade Zone (ZOFRI) with 13 stores. The transition to the new brand “reflects our commitment to providing an even more premium and recognisable shopping experience”, said Yohoros.

As part of the development, new brands exclusive to Luryx in Iquique are being introduced, including fashion label Mango.

These latest moves build on Top Brands’ swoop to acquire Neutral, at the time the largest duty-free chain in Uruguay, in 2019. Watch out for further consolidation plays and big investments from one of Latin America’s big-time travel retailers as it further extends its growing reach.