Cruise retail IV
The way forward for port retail
The Seatrade Cruise Global retail sessions also featured a discussion of the opportunity for shore-based shopping. We present highlights.
‘Seizing the cruise port opportunity’ was the theme for the final panel discussion at Seatrade Cruise Global in Miami (8-9 April), with the focus on current and future projects that will help define the cruise-related shore-based retail landscape.
Speakers included Global Ports Holding VP, Business Development, Retail & Ancillary Andres Villalever, Carnival Corporation Director Destination Partnerships & Business Development Bertrand Piller and Hematian Family Group Media Senior Director Commercial James Dill.
Andres Villalever singled out the recent US$300 million investment in Nassau, with a further US$30 million to follow, including an upgrade of the shopping villages, as a highlight project. Antigua and San Juan are other major projects that will have a retail focus for Global Ports Holding.
In Europe, GPH recently opened new terminals in Alicante and Tarragona and Villalever cited a vast expansion in Las Palmas, Canary Islands as key for the future.
Across these and GPH’s 34-strong port network worldwide, destination is a core theme for planning and executing retail.
(From left) Global Ports Holding VP, Business Development, Retail & Ancillary Andres Villalever, Carnival Corporation Director Destination Partnerships & Business Development Bertrand Piller and Hematian Family Group Media Senior Director Commercial James Dill talk about curating authentic experiences via port retail with Dermot Davitt
“Destination is one of my favourite words because it is a differentiator in retail. It is very important to have local flavour. New, younger demographics who can buy almost anything on Amazon are looking for a sense of place, something that ties into their experience.
“If you are going to a port where they make hammocks, don’t just sell the hammock – introduce the guest to the maker. If you have a wine or liquor tasting, have someone local talk about it, show them how to taste it. Make it really authentic.”
Carnival Corp’s Celebration Key in Freeport, Bahamas is the signature on-land project for the group this year, with a grand opening in July.
“We aim for this to be authentically Bahamian, with a strong local flavour, combined with traditional global brands,” said Piller.
“It does raise the question of what is truly local, and how do you define that depending on each audience you serve? If you have garments do they have to be made locally to qualify? What if they are designed there but made elsewhere? I am confident we have found the right balance here so that the guests can enjoy the retail experience at this destination.”
James Dill reflected two statement projects in the Effy Jewelry network. One was the recent opening of a new flagship in New York City’s Fifth Avenue.
“This allows us to engage with guests, both pre- and post-cruise as well as ensuring they can have that same Effy service and family atmosphere that they experience in ports of call in the Caribbean and Alaska.
“We are also proud of the design being used there, and we are partnering with cruise lines as we renovate our boutiques onboard to introduce that design aesthetic on the ships.”
The GPH port network now extends to 34 locations worldwide (Nassau pictured)
The other major partnership for the company is also at Celebration Key with Carnival, where Effy will soon open its first jewellery store on a private island. “This will also allow full synergy between the onboard boutique and port retail, and enable cross-promotions to stem from that.”
On the intersection between cruise and land-based retailing, Dill noted: “At sea we have more time with the guest and we aim to tell the whole Effy story across the week.
“In port, there is less time for make what can be a substantial purchase decision, but we are confident that the family atmosphere and consistency of service that goes between the two channels makes a difference.”
Villalever also addressed GPH’s expectations of its retailer partners today, emphasising that the global concessionaires must understand how important it is to engage with the local community across its port network.
“How do we include local vendors and local artisans, ensuring they can promote their products? Education is super important. Every week in Nassau for example, we host seminars for those local vendors to look at how they can engage and sell their products and experiences. For us, having a partner that understands the local community and that can create revenue for them, for the port, for the country, is very important.”
With that in mind, GPH has a general rule that 30% of space at its port duty-free stores are given to local merchandise. In some locations, that is far higher. “We must avoid a cookie-cutter experience and every port shop appearing the same to the guest.”
To encourage local vendors, retail partners need to commit to engaging with communities even if it’s a challenge to introduce goods that are limited in volume or need to work off smaller margins.
Piller agreed that scale is a challenge, but added that there are still sales opportunities. “You can host an event that gives a flavour of local products you have, you can host a showcase and then later on bring those products back.
“You also need to tailor how you present these brands. Many might ask for a store or showcase but it’s not always the right way to begin. Some are better served being a wholesaler to a local retailer, which removes the retail complexity for them.”
On how brands can play a part in driving the success of port retail, Villalever said: “I always take the example of Hennessy Pure White Cognac, which is a SKU sold only in the Caribbean and cruise. It is a huge success. So where are the whiskies, the Tequilas that are just for this region?
“There are things that the international brands can do to make the guest feel special, by offering an item curated for the destination. It can be in drinks but also in beauty, jewellery or other categories. Then you mirror that with local items that are about making memories.”
Piller said: “Sometimes I feel that the story-telling is lacking in our sector, especially among the smaller retailers. Guests don’t just want to buy a product, they want to buy a memory. That is very powerful.”
Dill added: “Storytelling is a part of the Effy DNA, and we weave our story with those of the islands, the local populations, and we play a part in helping them tell their stories. We can help make those stories succinct, concise and engaging for guests, so that they have a story to bring home with the product.”
*For more highlights from Seatrade Cruise Global 2025, go to MoodieDavittReport.com
Celebration Key will be a signature opening for Carnival Corporation this July
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