New step forward for Autogrill’s expansion in emerging markets
Milan, 01 August 2012 - World Duty Free Group, a division of Autogrill (Milan: AGL IM), is starting up for the first time in Brazil, where it has won a 10 year contract to operate duty-free stores in Belém International Airport. WDFG thus expands its presence in emerging markets and takes the number of countries in which it operates to 21. The concession is expected to generate overall revenues of over $30m in the period 2012 to 2022.
"Our entry in Brazil is only the first step in a country where we hope to expand, given its high growth potential” said World Duty Free Group CEO José María Palencia.
Brazil is one of the main Travel Retail and Duty Free markets, worth an estimated $900m. The country’s rapid growth has boosted airport traffic, with an average annual increase in passenger flows of over 12% for the last eight years1. Air transport will be given further impetus by sporting events such as the football World Cup in 2014 and the Olympics in 2016.
The two stores that the Group will operate in the airport - one in arrivals and the other in departures - occupy an area of over 300 square metres. The offering will include a wide assortment of fragrances and cosmetics, spirits and tobacco products, sports articles and accessories.
With around 3 million passengers in 2011, Belém International Airport is the tourist gateway to the Amazon region. Designed to make maximum use of natural lighting, the terminal is characterized by its sustainable architecture and an ambience that recreates the natural environment of the surrounding territory, with local plants and a system that reproduces the sound of rain.
In Central and South America, which form the main region for its Travel Retail business after Europe, WDFG is recording double-digit growth in revenues.
World Duty Free Group is one of the world’s leading providers in the airport Travel Retail segment. It operates around 320 stores across 71 airports and 41 cultural sites in 21 countries, from London Heathrow and Gatwick to Madrid and Barcelona, from Amman to Cancun. WDFG recently started up in Germany, at Düsseldorf Airport, and in Jamaica, at Sangster Airport.