According to Lagardère Travel Retail’s Chairman and CEO Dag Rasmussen, by 2018 the travel retailer will be operating 12,300sq m across 28 stores, registering an anticipated US$320m sales per year in the Middle East.

 

Rasmussen made the forecast this morning just prior to revealing that the company had won yet another Saudi Arabian airport contract at Jeddah International Airport.

 

Last year Lagardère Travel Retail (globally) registered €3.1bn in proportional sales (€4bn in pro-forma sales) across 31 countries at 220 airports with 16,000 employees. Since 2011 the company has added €1bn in sales, +12 countries and +100 airports.

 

Click to enlarge all charts and images.

 

 

During a presentation Rasmussen made this morning at the Meadfa conference being held in Dubai, he took the audience through the evolution of the company’s business in the Middle East, from its entry into the market through Airest Middle East in 2008, up until present day.

 

‘GROUND-BREAKING’ IN SAUDI ARABIA

As reported, last month LTR announced its new ‘ground-breaking contract gain’ – with the award of a 2,040sq m duty free concession – at Riyadh’s King Khaled International Airport in Saudi Arabia.

 

“For Riyadh, we will create giant, sculptural architecture to enhance the city’s iconic emblems,” said Rasmussen during his presentation.

 

In November, the company announced that it had won another airport concession in Saudi Arabia, this time in Dammam at King Fahd International Airport.

 

And this morning Rasmussen confirmed that it had added yet another Saudi airport to its growing portfolio with the addition of Jeddah.

 

 

Moving back to business in the UAE, Rasmussen then shared some renderings of the new stores it will open at Abu Dhabi International Airport in 2018. LTR was awarded the contract for the liquor, tobacco and confectionery concessions last year and 25% of the foodservice outlets at the new Midfield Terminal Building (MTB) earlier this year.

 

PILLARS OF LOCAL BUSINESS COMMUNITIES…

The three pillars behind the strategy to be employed by LTR at AUH comprise the following: Local uniqueness; retail excellence and partnerships; particularly those with local operators.

 

 

“For Abu Dhabi, we will create four engaging and world premiere spectacular concepts enhanced by multi-sensory shopping experiences; iconic brands, entertainment and the latest technology,” he said.

 

This will be supported by ‘iconic local features and events’ (such as the Sheikh Zayed festival for Abu Dhabi).

 

Rasmussen insists that their retail offer will be able cater to every passenger typology. “We will offer the largest and latest range of brands and products; from the most accessible offer to the most luxury and limited edition products,” added Rasmussen.

 

As exclusively reported by TRBusiness earlier this month, during Lagardère Group’s Q3 results conference call, Rasmussen revealed that Lagardère Capital expects to generate around $3bn over the course of its 10-year Abu Dhabi Midfield Terminal Building (MTB) contract.

 

Towards the end of the Q&A session during the call, Rasmussen answered a question about ‘the size of the win’ at AUH and whether this business would be fully consolidated.

 

“For Abu Dhabi, we don’t disclose the details obviously of the tender because the sales you project are part of what you tender on…but to have a growth idea it’s around $3bn on the duration of the 10-year contract,” he said.

 

“It will not be fully consolidated because it’s a 50:50 JV. It will be consolidated under the equity method, which means that the raise up that you will see will be limited. I think there are some management fees, but it’s limited.”