Travel retail stores to pick up pace with reopening and new openings
29 Jul 2020
The world has undertaken an initiative to adjust to â€˜new normalâ€™ amid the pandemic and travel retail industry has been trying to pick up a pace as travel restrictions ease off following the lockdown. Opening and reopening of stores at the airports are among major events that take place in the industry. With safety precautions and strategic partnerships, stores have been started their operations, and will become fully functional over the next few months. The market for travel retail is gaining renewed vigor, and will grow significantly over the next few years. According to the report published by Allied Market Research, the global travel retail market is estimated to reach $153.7 billion by 2025. Following are some of the strategic moves taking place in the industry.
Amid the lockdown measures taken place in Japanese cities, the travel retail industry affected considerably. Though the government declared the â€˜coronavirus emergency over,â€™ the threat has been lingering over the few cities. However, the retailers at airport have begun restoration of travel retail and duty free services. Few shops were opened during the lockdown and a small number of flights were operational. As lockdown restrictions eased off, shops at airports have been remodeled to comply with safety regulations and opened for customers. Some of the stores have launched their duty free stores reopening programs. Shops relying on Chinese tourists would begin their operations as the number of tourists grows in the near future. Â Â Â Â
Japan has plans to allow visitors from different countries including Australia, Thailand, New Zealand, and Vietnam with only 250 visitors each day. These countries have been selected based upon the close connection and the situation of pandemic being under control in those countries. Government authorities have stated that more countries would be added to the list as situation improves in those countries. With hygienic and sanitization practices in place, travel retail stores at airports will be reopened with their full capacities in the coming months.
As the trend of reopening of duty free and travel retail stores at airports continues, there has been opening of new store in Italy. LagardÃ¨re Travel Retail opened a new Aelia Duty Free store at the Cagliari Elmas Airport (Mario Mameli), the island of Sardinia. This store had been opened with its flagship format and aims at providing shopping experience with all the safety and social distancing regulations into the place. Commenting on expansion of its store range with Cagliari airport, Lucio Rossetto, the CEO of LagardÃ¨re Travel Retail Italia, outlined that opening of new store can bring optimism to the sector and ensure sustainability of the companies. The Cagliari airport has been managed by SOGAER. David Crognaletti, the Chief Commercial Officer of SOGAER, commented that the opening of new store underlines the consolidated and strategic partnership between two companies. This step is crucial in the recovery of the sector amid the pandemic, and will help in bringing internationalization to the Cagliari airport. The stores at the airport would run with full capacity as the government eases off restrictions. Â Â Â Â Â Â
Chief editor of review team at FinancesOnline
Chief editor of review team at FinancesOnline Alex Hillsberg is an expert in the area of B2B and SaaS related products. He has worked for several B2B startups in the past and gathered a lot of first hand knowledge about the industry during that time.