Travel Retail & Duty-Free

TravelandRetail.jpgWith the acquisition of Aldeasa, Alpha Group and World Duty Free Europe, Autogrill has become one of the world's leading airport retail operators.

The travel retail & duty-free business serves a mostly international clientele, with a core range of products consisting primarily of fragrances and cosmetics, spirits, tobacco products and confectionery. The decision to use specific brands at a given location depends on recognition (where relevant, as in Spain), endorsement strategies (e.g. specialised departments or corners for luxury clothing or cosmetics brands), or concepts zones developed to feature a category of goods to best advantage. The resulting "shop-in-shops" provide a unique and engaging shopping experience across product categories that would otherwise be separate. Similar to department stores in their layout, they combined duty-free or travel retail savings against high street prices, with the prestige of premium brand stores.

Europe is the principal market, with a strong presence in the UK and Spain, followed by the Middle East, the Americas and Asia. Airports are basically the sole business channel1.

The Group's travel retail & duty-free stores in the UK are operated by WDF which includes World Duty Free and Alpha's UK retail business. In Spain, other European countries, the Middle East, the Americas and Asia, travel retail and duty-free stores are operated by Aldeasa, which also operates Alpha's international retail business. The process of global integration of the Group's business in this sector began as soon as the acquisitions were complete and will be finished in 2009, when the retail business will be brought under a single roof.

Travel Retail & Duty-Free locations by geographical region

  Spain United Kingdom Other countries Total
 Airports  22 18 33 73
 Buildings and museum  31    9 40
 Total   53 18 42 113

1 The travel retail & duty-free segment also includes the operations located inside museums (Aldeasa), which represented about 1% of the 2008 segment revenue