The Evolution of Duty-Free Retailing: Past, Present and Future

With a CAGR of 7%, the duty-free retail market has delivered consistent strong growth since 2000. This success has been despite major terror incidents, regulatory changes in the EU and the worst recession since 1929. With further investment planned and traveller numbers expected to rise, duty-free retail is forecast to grow strongly to 2016.

The duty-free retail model is different to most retail business model because so many airports adopt minimum annual guarantee (MAG)-based rental structures. This results in landlords having a larger role in delivering footfall than ordinary retail landlords do.

Whilst duty-free retail occurs through a multitude of channels, including inflight retail, the vast majority of duty-free sales occur through airports. The indications are, however, that on-board duty-free is likely to be one of the fastest growing channels due to a boom in the luxury cruise market.

The mix of travellers flowing through airport terminals is changing. Bolstered by a rising middle class, affluent travellers from across the developing world are beginning to form a much more important segment for duty-free retailers to cater to, and Chinese consumers, in particular, are of great interest given the growing importance of luxury in the duty-free retail world.

Having been the bastions of the duty-free world for so many years, both tobacco and alcoholic drinks are beginning to lose their appeal. The abolition of intra-EU duty-free trade and the rising importance of emerging market consumers has meant luxury goods have gradually started to replace them.

Report Scope

This global briefing offers an insight into the size and shape of the retailing industry, highlights emerging trends, their effects on retailing in markets around the world, on the development of channels and consumers shopping patterns. It identifies the leading companies and brands, offers strategic analysis of key factors influencing the market – be they the developments of new store types, the importance of non-store retailing, economic/lifestyle influences, private label or pricing issues. Forecasts illustrate how the market is set to change and criteria for success.

Product coverage: Non-Store Retailing, Store-based Retailing.

Data coverage: market sizes (historic and forecasts), company shares, brand shares and distribution data.

Why buy this report?

* Get a detailed picture of the Retailing market;
* Pinpoint growth sectors and identify factors driving change;
* Understand the competitive environment, the markets major players and leading brands;
* Use five-year forecasts to assess how the market is predicted to develop.