Lagardère Travel Retail on how its integrated approach has become a key differentiator in the MEA
For its H1 2024 results, Lagardère Travel Retail reported revenue increased sharply by 13.5%, with growth driven in part by strong passenger numbers across Europe, the Middle East and Africa
The mix of retail and food and beverage (F&B) concepts at Zayed International Airport in Abu Dhabi represented a milestone opening for the group in the last year. For its H1 2024 results, Lagardère Travel Retail reported revenue increased sharply by 13.5%, with growth driven in part by strong passenger numbers across Europe, the Middle East and Africa, said the company.
“Our operations in the Middle East and Africa are performing vey well, marked by a strong recovery, increasing passenger traffic, and emerging opportunities in both regions,” says Vincent Romet, CEO and Regional COO Middle East & Africa.
In the Middle East, particularly at major hub airports like Dubai and Abu Dhabi, Romet says the recent improved performance has been buoyed by robust international travel demand, driven by both leisure and business sectors. “The region's strategic position as a global transit hub continues to be a significant factor in our performance,” he states.
In Africa, Romet is expecting the same positive outlook, with 2025 set to be a big year for expansion in strategic, emerging market locations. “Our operations in key African markets are benefiting from ongoing infrastructure improvements and growing spending power among African travelers,” he adds.
Vincent Romet, CEO and Regional COO Middle East & Africa at Lagardère Travel Retail
Retail and dining transformed
Lagardère’s retail and dining offers at Abu Dhabi’s Zayed International Airport have been performing strongly since it opened its collection of 18 regionally nuanced, unique traveler locations in Terminal A in November 2023. In addition to redesigning the Abu Dhabi Duty Free stores, Lagardère Travel Retail has created four bespoke duty free concepts that are exclusive to its Terminal A operation. These comprise a fine food outlet Le Gourmet, which specializes in the best of Arabian hospitality; Le Club and Little Le Club, described as “havens for the enthusiasts of champagnes, wines, spirits and tobaccos sourced from all corners of the globe”; plus a luxury fragrances and cosmetics offer called Scent.
“We've strategically enhanced both the retail and dining experiences, continuously adapting to passenger behavior and preferences,” says Romet. As an example, he highlights how the retailer transformed the small liquor store, Little Le Club, while integrating the liquor offer within its Abu Dhabi Duty Free shop. “This agile approach allows us to optimize the overall traveler experience and drive commercial success,” he says. According to him, the location-specific liquor store also features a strong gifting theme.
Romet describes Lagardère’s retail offering in Abu Dhabi, a major Middle Eastern hub as spanning a broad range, from value-focused items to exclusive, high-end products, with a special emphasis on local brands. “This creates a diverse and multi-sensory experience that appeals to the varied passenger profiles at the airport,” he says.
On the dining side, Lagardère has introduced destination-worthy concepts such as Todd English Global Food Hall & Pub, developed with the renowned chef, alongside options like The Meat District for craft burgers and Yasamin Kitchen and Bar. “These unique offerings ensure that both retail and dining at Abu Dhabi Airport deliver an immersive, engaging experience that goes beyond the traditional airport shopping model,” Romet explains.
In February, Lagardère Travel Retail opened an F&B specialist outpost for department store, Fortnum & Mason, in Dubai
Plans for the future
Looking ahead to 2025, Romet is excited about several developments in West Africa. “In Africa, we're expanding into Benin, where our strategic focus will be on introducing a tailored mix of retail and F&B concepts that align with local market needs. We are also focusing on enhancing our operations in Dakar with the refurbishments of all our stores there,” he says.
At the core of Lagardère’s expansion plans for the region is the continuation of its pioneering three-business lines strategy, which has already been implemented across the Middle East and Africa in key locations, resulting in a seamless and holistic customer journey, according to Romet.
“This integrated approach has become a key differentiator for us in these markets. Over the past months, we've seen significant success, particularly at major airports like Dubai International Airport, where we've created a bespoke retail environment that combines these three divisions. This model has not only enhanced the passenger experience but also contributed to substantial sales growth.
“Looking ahead, we continue to focus on delivering innovative and locally tailored retail solutions. By combining duty free, travel essentials, and F&B, we ensure that travelers can enjoy a comprehensive and engaging experience, with each division complementing the other to meet evolving traveler needs. This strategy will remain at the heart of our development plans as we expand further into the region,” Romet adds as the company eyes what’s next.
The concept store Scent offers a wide range of fragrance and cosmetics brands with a dynamic contemporary look
