Latest news with #Tourvest
Business Insider
23-05-2025
- Business
- Business Insider
The world's second biggest airport retail operator expands presence to 7th African country
Partnering with South African tourism company Tourvest, LTR aims to capitalize on Africa's growing airport travel market, building on its existing presence across West and East Africa. The company already operates in six African countries which includes Benin, Gambia, Gabon, Mauritania, Senegal and Tanzania. Forbes reports that the Paris-based Lagardère Travel Retail which operates a global network of 5,000 stores in more than 50 countries, generated $6.1 billion in sales last year for its media-to-retail parent, Lagardère Group. CEO Dag Rasmussen said in a statement, ' This collaboration i s 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 strategic memorandum of understanding (MoU) signed with Tourvest will enable LTR to collaborate on retail, hospitality, and tourism development initiatives, starting in South Africa. The presence of South Africa's Deputy President Paul Mashatile added significant weight to the announcement. Africa's growing aviation retail market Africa's air travel retail sector is booming, driven by rising passenger traffic, airport expansions, and growing demand for duty-free and convenience shopping. As the continent's middle class expands and tourism flourishes, airports are becoming key destinations for retail brands. With the Africa and Middle East travel retail sector valued at over $3.5 billion, South Africa's market is estimated to be worth over $100 million, while African duty-free and travel retail sales are projected to reach $841 million in 2024 as per Forbes. Notably, Africa's airport shopping sector grew 7.6% last year, outpacing all other regions despite its challenges.
Forbes
22-05-2025
- Business
- Forbes
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.
