Duty Free Global's Barry Geoghegan warns the industry must radically reinvent itself to capture Gen Z
Barry Geoghegan, Founder Duty Free Global
In the busy travel retail industry, each year flows seamlessly into the next. We find ourselves moving from one trade show to another – Miami, then Singapore, then possibly a Latin American venue – with countless “See you in Cannes” farewells punctuating our calendar. While this familiar rhythm feels reassuring, we’re avoiding a critical discussion at our industry events: our failure to attract younger consumers to our stores. Most don’t even pause for a quick browse.
This has to change.
The industry’s troublingly low penetration rate at airport stores – hovering around 15% according to research – demands immediate attention. We need urgent action to reverse this downward trend.
Generation gap
I belong to a generation that embraced duty free shopping as an essential part of international travel. No journey abroad felt complete without maximizing our duty free allowance. However, this cultural practice hasn’t transferred to subsequent generations in many regions. For Europeans born after February 1999, the traditional concept of duty free largely disappeared when the European Union abolished tax and duty free sales for travelers within the Union.
In the United States, meanwhile, where domestic travel predominates, duty free opportunities are limited and airports are primarily associated with dining rather than shopping.
Reshaping how younger travelers view airport retail is a goal that can be met as airport stores have the perfect stage to surprise them with exclusive and unique product offers
This mindset isn’t fixed. We can reshape how younger travelers view airport retail. While they may not currently think of airports as shopping destinations, we have the perfect stage to surprise them. To do this, we must clearly communicate – and prove – to younger travelers that airports offer unique discoveries, products not readily available in domestic markets, including exclusive items. Visual merchandising alone isn’t sufficient; since this demographic is not entering our stores, we need to engage them earlier in their journey.
Communicate, connect and follow through
Our industry must collaborate to develop channel-specific mobile applications and harness artificial intelligence effectively, ensuring we connect with the right audiences at optimal times through genuinely appealing offers. But this communication will only drive conversion when operators courageously realign their product selection with this generation’s interests. While established brands will invest substantially to maintain their market positions, those embracing necessary change will ultimately succeed.
Geoghegan says we must prove to younger travelers that airports offer unique discoveries and products that aren’t readily available in domestic markets
Despite current challenges, including geopolitical tensions and economic uncertainties, our industry maintains enviable advantages over other retail channels. According to Fortune business magazine the travel retail market is projected to more than double its revenue to US$145.46 billion by 2032. This growth will be driven by emerging market middle classes robust airline order books and humanity’s enduring passion for travel and discovery. While traditional retail and e-commerce struggle to forecast such positive growth we possess a unique advantage: guaranteed customer traffic through our airports and cruise ships. However if we want to attract younger passengers and secure long-term customer relationships rather than rely solely on our traditional duty-free-savvy clientele we must embrace bold change. The opportunity exists – we simply need to seize it.
