World's Second-Biggest Airport Retailer Makes South African Breakthrough
Signed and sealed. From left: deputy president of South Africa, Paul Mashatile; CEO of Lagardère ... More Travel Retail, Dag Rasmussen; and chairman of Tourvest Group, Robert Gumede.
Global duty-free operator, Lagardère Travel Retail (LTR), has partnered with South African tourism company, Tourvest, to pursue travel retail opportunities across the African continent, starting with South Africa itself.
Paris-based LTR, which generated sales of $6.1 billion for its media-to-retail parent, Lagardere Group, last year, is looking to expand in Africa, where it already has a scattered presence in five west African countries (Benin, Gambia, Gabon, Mauritania and Senegal), and Tanzania in the east of the continent.
The strategic memorandum of understanding (MoU) it has signed with Tourvest will allow LTR to collaborate on retail, hospitality, and tourism development initiatives, initially in South Africa. Deputy president of South Africa Paul Mashatile was also present, adding some weight to the proceedings.
German rival Gebr. Heinemann already has an established joint-venture presence with Big Five Duty Free at South Africa's most important air gateways of OR Tambo in Johannesburg, Cape Town International, and Durban's King Shaka International. An all-women-owned investment consortium took a 28% stake in the retailer last October, but it is believed that Heinemann continues to retain its interest.
For LTR, there are multiple other opportunities in the country, and it will be going after travel retail, duty-free, and dining offerings in major airports and tourism hubs. Dag Rasmussen, CEO of Lagardère Travel Retail, said in a statement: 'This collaboration is fully aligned with our ambition to grow in the South African market and more broadly across the region—a strategic priority for us and an area full of promise. It also reflects our DNA: forging strong partnerships with locally rooted players who understand and anticipate local expectations.'
The French company says the South African travel retail market is valued at over $100 million while the wider Africa and Middle East travel retail market 'is worth in excess of $3.5 billion.' Generation Research puts the valuation significantly higher. It estimates African duty-free and travel retail sales in 2024 hit $841 million, with the Middle East raking in $6.54 billion.
Africa is a small, underserved, and difficult market for airport shopping, but last year it grew faster than all other regions at 7.6%. The MoU could deliver a powerful new player in the market thanks to some complementary skills adding up to more than the sum of their parts. Tourvest—with revenue exceeding Rand 20 billion ($1.1 billion) in FY24 (ending August 2024) and majority owned by the Guma Group—has a strong African operational presence, local market intelligence, and hospitality leadership. Lagardère Travel Retail also has some African experience, competence in delivering retail concepts, and a big international reach; some 5,000 stores in more than 50 countries.
Business tycoon Robert Gumede, chairman of Tourvest Group, commented: 'We are optimistic as we embark on this strategic journey. While this partnership begins in South Africa, it reflects our mutual ambition to pursue opportunities across the continent. Together, we aim to set new benchmarks in travel retail.'
Currently, despite LTR being in six African markets, the retailer does not break out the revenue from the continent when announcing its quarterly results. This partnership, if successful, could change that, but it might take some time.
On Monday this week, Lagardère Travel Retail also announced it had secured a long-term master concession at Singapore Cruise Centre (SCC) and the Tanah Merah ferry terminal close to Changi Airport, as luxury retailer DFS Group departs.
From July, Lagardère Travel Retail will begin store renovations at the Singapore Cruise Centre and ... More other locations.
The duty-free and general merchandise contract covers all three of LTR's business lines (duty-free, travel essentials, and dining) and starts in July, when LTR will begin a phased renovation that promises 'to deliver a bespoke concept that resonates with the landlord's vision.'
Jacqueline Tan, CEO of Singapore Cruise Centre, said: 'We are excited to realize the terminals' upgrade, making it more appealing to both leisure and business travelers.' SCC is a gateway to Indonesia's Batam and Bintan islands as well as Desaru in Malaysia. The center is also a turnaround port for luxury and expedition cruise ships on world voyages.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Bloomberg
31 minutes ago
- Bloomberg
Tanzanian Currency Rises Most Since January
Tanzania's shilling strengthened the most since mid January, paring one of the world's biggest yearly losses. The shilling rose 1% to 2,588.12 per dollar on Wednesday, bringing gains for the month to 3.7%. That's pared its loss for the year to about 7%.
Yahoo
an hour ago
- Yahoo
China, Africa ask US to return to 'right track' on trade differences
HONG KONG (Reuters) -China and 53 African countries called on nations, especially the United States, to return to the "right track" of resolving trade differences, the official Xinhua news agency reported on Wednesday. The statement came after China's Foreign Minister Wang Yi met with African officials in the city of Changsha located in southern Hunan province. The White House, in its April 2 "Liberation Day" tariff announcement, imposed some of the highest tariffs on several African countries. That included levies of up to 50% on goods from Lesotho, 47% for Madagascar, 40% for Mauritius, 38% for Botswana and 31% for South Africa, the continent's biggest exporter to the U.S. The China-Africa statement, made on behalf of China, 53 African countries and the African Union Commission said it "firmly opposed any party reaching a compromise deal at the expense of the interests of other countries." "We call on all countries, especially the United States, to return to the right track of resolving trade differences through consultation on an equal, respectful and reciprocal basis," the statement said. China is willing to implement zero-tariff measures for the 53 African countries that it has diplomatic relations with, the statement said, apart from Eswatini, the only African country that supports Taiwan. China's relations with African countries have strengthened as its own economy slows and it has emerged as Africa's biggest lender. In recent years, China has stepped up cooperation in areas from agriculture to infrastructure. The continent offers a much needed avenue for Chinese state-owned infrastructure firms struggling for projects as indebted local governments hold off on spending, and as a market for its electric vehicles and solar panels, areas where the U.S. and EU say China has over-capacity.
Bloomberg
2 hours ago
- Bloomberg
Royal Air Maroc Set to Place Major Boeing, Airbus Aircraft Order
By , Siddharth Vikram Philip, and Julie Johnsson Save Royal Air Maroc is in the final stages of a major order from Boeing Co. and a smaller deal for Airbus SE jets as part of the North African carrier's expansion plans, according to people familiar with the matter. The state-owned airline is considering about two dozen Boeing 787 Dreamliners for its long-haul fleet and as many as 50 Boeing 737s for short-haul destinations, said the people, asking not to be identified as the discussions are confidential. The carrier is also looking at purchasing about 20 Airbus A220s for regional travel, they said.
