Julián Díaz, CEO of Dufry says the new structure will ‘deliver shareholder value’ via growth and digital transformation.

Quickening the decision-making process to deepen market connectivity and accelerating growth and profitability are key influencers behind a fresh organisational structure at Dufry, the Group announced today.

A new ‘Global Executive Committee’ replaces the former Group Executive Committee, affecting a more streamlined approach across its top management functions.

Meanwhile, a newly created Divisional Executive Committee includes divisional CEOs’ Pedro Castro, Andrea Belardini, René Riedi, Joe DiDomizio, Gustavo Fagundes and Jordi Martin Consuegra, who will all depart the former Group Executive Committee.

Julián Díaz, CEO of Dufry Group commented: “The new simplified group organisation will further improve the speed of decision making allowing us to be closer to the market. With the new organisation we want to drive efficiencies and to focus on delivering shareholder value, in particular through acceleration of growth and digital transformation.”

Dufry has revealed a new ‘Global Executive Committee’ as part of a fresh organisational structure.

Eugenio Andrades, the well-respected CEO Division UK, Central and Eastern Europe, Dufry Group, takes up a new role as CEO Operations and Strategy.

NEW APPOINTMENTS

Within the newly composed Divisional Executive Committee, Jo DiDomizio will report directly to Group CEO Julián Díaz, while all other members will report to Eugenio Andrades, who has been handed a new role as CEO Operations and Strategy.

In addition, Consuegra takes on a new position in Division North America, while Fred Creighton is promoted to Divisional CEO UK and Western Europe, which falls within Dufry’s Division 2 (which includes operations in the UK, Switzerland, and Scandinavia).

As part of the restructure, the businesses in Eastern Europe (Russia, Kazakstan, Armenia, Serbia and Bulgaria) will transfer from Division 2, UK and Central Europe to Andrea Belardini, responsible for Division 3, Eastern Europe, Middle East, Asia, and Australia.

Fred Creighton, General Manager UK & Germany, is promoted to Divisional CEO UK and Western Europe (Dufry Division 2).

EDITOR’S COMMENT

Despite a more promising climate, many in travel retail would be forgiven for airing their cautions on the year ahead given the challenging ride encountered in 2017.

This time last year, the picture wasn’t so rosy: stagnant global sales growth, market volatility espoused by currency turbulence, geopolitical pressures, threats of terrorism… not to mention the enduring and – what those in some quarters might say remains a – pervasive pressure on the current stakeholder model to rise to the ‘digital challenge’ with innovation and flair.

However, this latest structural move from the travel retail giant delivers an early show of confidence to other industry stakeholders, as the Group continues its relentless momentum.

As well-reported by TRBusiness, a nine-month sales surge to $6,298.8m (CHF6,2750.5m) in 2017 – which coincidentally coincided with ‘high organic and cash generation’ gains alongside buoyed gross margins – provided the ideal platform to capitalise on new projects such as its ‘New Generation’ stores in Melbourne and Madrid.

More recently in November, it refinanced its main bank credit facilities of $3.4bn, improved its terms and extended the maturity agreement until 2022.

A strong chord seems to have been struck in today’s announcement, with Group CEO Julián Díaz stating the new organisation will allow Dufry to be ‘closer to the market’. For the reasons mentioned above, all of travel retail will need to react in the same vein to ensure 2018 is the successful year it can be.