“Remarkable performance”: ARI experiences strong growth, significantly higher turnover in 2023
'Joy on your way': The ARI brand expression launch was one of the highlights of 2023
Leading travel retailer ARI has released is 2023 Annual Results, with strong growth underpinned by higher passenger volumes and record passenger spends, post the lean COVID years.
ARI recorded a managed turnover of €1.24 billion (approximately US$1.34 billion), marking a 13.9% increase on 2022 performance.
Ray Hernan, ARI Chief Executive Officer, commented, "2023 has been a very successful year for ARI, with significant growth across our global estate. The remarkable performance across all our locations, many of which achieved record-high sales, is a testament to our colleagues and teams in each location. It is their continued dedication to improving the passenger journey and providing exceptional retail experiences for travelers that has led to such a resounding success.”
Compared to previous years, 2023 was a year of continued growth and recovery in all key markets for ARI. The year was exceptional as many business units achieved historically high turnover and levels of profitability.
The implementation of the state-of-the-art new store at Zayed International Airport in Abu Dhabi was completed in November 2023
ARI has a broad span of retail activities, with direct or indirect interests in 14 countries across North America, Europe, the Middle East, and minority shareholdings in Düsseldorf Airport in Germany, and Larnaca and Paphos airports in Cyprus, and are also responsible for running the retail operations in Ireland’s Dublin and Cork airports.
“We remain focused on developing plans for future growth”, said Hernan. “Our performance in 2023 signals our intention to seek growth in key markets in the coming year, while also maximizing and delivering on our commitment in our current operations.”
Dublin and Cork Airports in Ireland enjoyed record numbers of passengers, delivering strong growth for ARI across all categories, and with sustained development of airport exclusives and first-to-market offerings in liquor, beauty and confectionery.
ARI’s joint venture with ANA, at Portugal Duty Free exceeded expectations with the business trading ahead of plan in its first full year of operations for ARI. According to ARI, the focus for 2024 is now on the completion of an extensive capital refurbishment program to improve the retail experience in the stores.
ARI Middle East (ARIME), which comprises businesses in Bahrain, Cyprus, Lebanon, Oman, Saudi Arabia and UAE had a strong year despite challenges in the region in the last quarter.
The implementation of the state-of-the-art new store at Zayed International Airport in Abu Dhabi was completed in November 2023 and saw the opening of a world-class store for ARI featuring beauty, jewelry, and sunglasses.
The company noted its business in Riyadh performed solidly, while Muscat had another year of very robust performance in 2023, with trading boosted by good liquor and tobacco allowances in arrivals. Bahrain Duty Free also showed a strong performance in 2023, with prevailing market conditions attributing to the solid performance across all sectors.
ARI noted its strong performance in Cyprus, with a record turnover
ARI’s retail operations at Larnaca and Paphos airports in Cyprus performed significantly ahead of 2019 levels with turnover exceeding €100 million for the first time. The business returned a healthy profit, benefiting from strong performance in the peak season period of the year. The business continues to benefit from the spend from UK passengers following the re-introduction of duty free, post Brexit.
Recovery in ARI’s retail operations in Canada gathered pace and performed in line with 2019 levels despite the lack of high-spending Chinese passengers. ARI North America celebrated its milestone 25th anniversary in 2023. The retail area at YUL Montréal-Trudeau International Airport was rebranded as Montréal Duty Free during the year. A stand-alone duty paid store in partnership with Chanel was opened in September 2023 at Vancouver International Airport, and Edmonton, a new contract won in 2023, opened in mid-January 2024.
ARI’s joint venture operation at Indira Gandhi International Airport Delhi, India, where ARI holds a 33.1% stake, had “another exceptional year” while the company’s operations at the two airports in Montenegro, Podgorica and Tivat, continued to trade profitably despite the lack of Russian and Ukrainian passengers.
“We began 2023 in a strong position, and with the launch of the revitalized ARI brand, and our new brand expression, ‘joy on your way’, our team were able to build on a solid foundation,” Hernan said. “We are delighted to be in a strong position for 2024, with ambitious growth plans and the anticipation of another successful year ahead. We will continue to enhance our current bespoke offerings and customer experience, nurture existing partnerships, and are excited by the prospect of exploring new territories.”
ARI said its strong financial performance is driven by the company’s strategic commitments, including a sustained focus on strengthening its leadership position in ESG and reinforcing its DE&I assurances. Together with ARI’s improved Customer Value Proposition, these programs reinforce the brand’s reputation as a pioneer in the industry.
