China Duty Free Group (CDFG) is aiming to register DF&TR sales of approximately RMB15bn ($2.2bn) in full-year 2017, as the state-owned enterprise continues its impressive growth trajectory.

Confirming the revenue target to TRBusiness during day one of the Trinity Forum held in Bangkok, Thailand, yesterday, CDFG President Charles Chen commented:

“Next year is very interesting in terms of ecommerce and downtown and there a lot of opportunities, including on Hainan island, which we are preparing for.”

Should CDFG reach that figure, it would represent a hugely impressive +60% increase year-on-year on its $1.45bn 2016 sales haul, which at the very least would heighten competition with seventh-placed King Power International ($2.1bn) when next year’s TRBusiness Top 10 International Operator rankings are compiled.

[Figures quoted above according to DF&TR sales appearing in the latest report, which are based on estimates according to one-to-one interviews with senior retailer management and official data for 2016. Click here to subscribe].   

‘KEY’ GUANGZHOU WIN

The news continues a successful 18 months for CDFG, which has secured a number of sizeable coups.

These include scooping the liquor & tobacco licence in partnership with Lagardère Travel Retail (CDF-Lagardere) at Hong Kong International Airport (HKIA), winning Beijing Capital International Airport’s (BCIA) T2 and T3 duty free tender, and the 51% acquisition of rival Sunrise Duty Free.

As reported last month, CDFG cemented its position at Guangzhou Baiyun International Airport (where it holds licences to run all its duty free departures and now arrivals shops) by winning the eight-year duty free departures contract to operate at the new T2, which opens next year.

Covering 35,000sq m of commercial space – 3,000sq m of which is expected to be allocated to duty free –T2 represents an important development for an airport that now ranks in third place (59.7m) behind Beijing Capital (94.4m) and Shanghai Pudong (66m) in terms of passenger numbers.

“If we think about traffic numbers, it is more than Singapore and quite similar to Hong Kong; Terminal 2 is a very good opportunity with a very well-allocated area for duty free,” added Chen.

“We feel very confident with the contract. The price was very reasonable and we are quite sure we can manage the store very well in the future. It’s a key point for CDFG, because this makes it easier for us to realise our strategy in the future for downtown and ecommerce.”

To view session highlights from the Trinity Forum, follow TRBusiness on Twitter here. For a round up from day one, click here.