The European Travel Retail Confederation (ETRC) reports that duty free and travel retail sales in Europe continued to fall behind the growth in passenger traffic in the third quarter of 2005.

It stated today that this was in contrast to the improving trends that were registered in the second quarter Index.
The ETRC statement said: ‘The tobacco category remains disappointing, but liquor sales have retained their improving trend. The beauty sector continues to provide the best results with confectionery also maintaining a positive trend. There has also been an improvement in the ?others? category.
‘The ETRC believes that the results indicate that lower penetration continues to be the main problem in Europe, particularly with the increase in the frequency of travel and as a consequence, passengers not buying every time they fly.’
The statement adds that further enhancements are planned to the Index, including an analysis between sales to intra-EU and third country travellers, and it is anticipated that this data will confirm the ETRC?s belief that the growth in passenger traffic using low cost carriers on intra-EU routes is the principal reason for the trends being noted.
Data used for compiling the third quarter Index now covers approximately 90% of EU business and more information can be obtained by contacting Fulvio Fassone, ETRC?s Vice-President for Business Development, or Yngve Bia at Generation ([email protected]).