THE MARKETS – THEIR PERFORMANCE 2008
By Doug Newhouse, 10 July 2009
Last year's 8.8% increase in global duty free and travel retail sales to $37bn (and 7% rise in local currency units) owed much to very healthy traffic levels in the first half and the results would have been higher but for the slowdown in certain markets from the middle of the year and some harsh traffic falls in the final quarter.
In terms of the regional breakdown, Europe led the field with sales of $15.2bn (market share 41.3%) in 2008, followed by Asia & Oceania with $9.9bn (27%); The Americas with $8.7bn (23.7%); the Middle East with $2.4bn (6.7%); and Africa with $510.8m (1.4%).
In US dollar terms in 2008, Europe moved ahead by 6.8%; Asia & Oceania and The Americas (both) by 9%; Africa by 11.8%; and The Middle East by 20.9%. In local currency unit sales terms, Europe moved forward by 2.8%; Asia & Oceania and Africa (both) by plus-10%; The Americas by 7.8%; and the Middle East by 20.1%.
Interestingly, the market shares held by each region hardly changed, with Europe losing 0.8%, The Americas, Africa and Asia & Oceania unchanged and The Middle East picking up 0.7%.
The most notable aforementioned growth numbers here are those related to the sales growth in the Middle East (LCU = +20.1%), Asia & Oceania (+10.3%); and Africa (+10.1%).
Within the regional markets, European airports continued to head the global leader board with sales of $10.7bn, followed by airports in Asia & Oceania with $5.7bn; The Americas $3bn; The Middle East $1.9bn; and Africa $379m [figures are rounded-Ed].
This effectively saw the world airports' share of the global sales total of $37bn finish the year at $21.8bn, followed by contributions from 'other shops' (downtown, border, seaport, military etc) standing at $9.8bn; airlines at $2.6bn; and ferries at $2.5bn.
In the dominant airports' sector there were some significant sales increases at several locations, with the biggest increases being evidenced in Norway (primarily due to the arrivals shops' contribution at Oslo's Gardermoen Airport) and also - most notably - Russia.
In Norway the US dollar equivalent increase was an impressive 34.8% - bolstered mainly by Oslo Airport - while local currency unit growth still registered plus-26.2%.
In Russia, the US dollar equivalent sales growth registered at 42.6%, while local currency unit sales growth was 37.9%. This market has simply exploded in recent years, although there are significant signs that it has fallen back dramatically in 2009.
The United Arab Emirates also registered 24.6% growth rates in both US dollar and LCU terms, with impressive traffic increases at the airports of both Dubai and Abu Dhabi in particular.
Also significant was the 17.7% US dollar growth in China, with contributions from the new international terminals at both Beijing Capital and Shanghai Pudong which opened early last year. By contrast, in local currency terms, China grew by 7.3%.
Another country where airports’ sales growth in particular was very strong in 2008 was Brazil.
Concessionaire Dufry South America's retail improvements at the airports of Sao Paulo and Rio de Janeiro and extended credit terms to customers in particular made a strong contribution within the 20.4% US dollar sales growth (registered at 11% in LCU).
Other countries showing impressive US dollar equivalent sales growth across their respective sales channels last year included: Hong Kong (24.7%); Estonia (+15.5%); and Turkey (+14.9%).
Other countries within the top 25 ranking - including all sales channels within them - which registered 10% or more sales growth in US dollar terms last year included: Singapore; US; Denmark; and Thailand.
Markets also worthy of mention which were in positive US dollar equivalent growth territory last year, but fell into the negative zone in terms of local currency units included the following: Japan (-6.6%); Spain (-5.3%); Finland (-4.4%); Netherlands (-2.8%); Italy (-1.7%); and France (-0.1%).
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