Lagardère Travel Retail Chairman and CEO Dag Rasmussen has praised his teams for a ‘game-changing’ moment at Paris airports after the travel retailer emerged victorious as the 49% stakeholder in a fresh joint venture with Groupe ADP.
As reported earlier today, Groupe ADP will own 51% of Extime Duty Free Paris that will manage around 140 beauty, gourmet, technical and fashion outlets across Paris’ airports (Charles de Gaulle, Orly and Le Bourget) following a tender.
The first ‘full’ Extime concept will debut at Paris-Charles de Gaulle Airport’s new Terminal 1, set to open in December this year.
In being named as co-shareholder of the Extime Duty Free Paris JV, Lagardère Travel Retail cements a nearly two-decade alliance with Paris Aéroport/Groupe ADP, having initially forged a JV partnership to manage travel retail and duty free stores in 2003 [the agreement extended to include travel essentials in 2011. The existing contract was due to expire in December 2022 – Ed].
TRBusiness caught up with the Lagardère Travel Retail chief to gauge his thoughts on the renewed alliance with Groupe ADP and the new retail and hospitality brand concept Extime.
TRBusiness: Firstly Dag, your reaction to consolidating Lagardère Travel Retail’s partnership with Groupe ADP following the public consultation on duty free activities at Paris’ airports…
This is fantastic news. We are proud that ADP have decided to continue to entrust us as co-shareholders of their retail operations for duty free and fashion in Paris airports and very excited to be opening a new chapter in our relationship, building on nearly two decades of close collaboration between our teams.
This has been possible thanks to the exceptional work of our teams in France and in Duty Free Global, and I’d like to take this opportunity to congratulate and thank them for a very important achievement.
You previously told TRBusiness that Lagardère Travel Retail would be in ‘fighting mode’ to defend its business in Paris after assessing the tender announced in November. What for you was key to securing this important victory?
Our teams’ ability to reinvent and challenge themselves, demonstrate innovation, come up with new ideas has definitely been a game changer. This isn’t necessarily easy after a two-decade long relationship. In travel retail, regular tenders mean we constantly have to change, and I believe this is a great opportunity we have compared to downtown retail.
It has been amazing to see our teams writing a completely new page for the retail offer at Paris airports, even though the starting point was already very satisfactory for both parties.
Indeed, it’s a new dawn for Lagardère Travel Retail and Groupe ADP as you now look to work collaboratively on the Extime hospitality and retail brand. Briefly, tell us what this new identity represents for Lagardère and how you plan to help develop it?
The overall hospitality strategy developed by ADP is very impressive. It is a holistic approach to hospitality across airports’ terminals, not just the commercial offer, and not just in France. So I’d rather leave it to ADP to comment on what their ambitions have been with the launch of Extime.
What I can say is that Lagardère Travel Retail is fully committed to contribute to realising these ambitions across duty gree and fashion outlets with our expertise and means.
Groupe ADP spoke in a recent interview about the evolution of spend per passenger in line with the Extime brand – producing a new, more comprehensive strategy for retail and hospitality airside to increase SPH from €25.3 per passenger in 2021, to a target of €27.5 per pax in 2025. How does Lagardère intend to draw on its experience across duty free and fashion to realise this aim?
ADP has presented its business plan for duty free and fashion to us, and we feel we are in a strong position to contribute to their objectives, and even exceed them.
This is because we have such in-depth knowledge of operations and passengers in Paris’ airports. ADP’s decision to choose us as its new joint-venture partner is testament to the confidence they have in Lagardère Travel Retail supporting its business ambitions, and taking them further.
Click here to read an exclusive interview with Groupe ADP Chief Retail Officer Aude Ferrand in the June/July TRBusiness e-zine for more on the tender and the operator’s ambition to develop the Extime retail and hospitality brand.