Duty Free Holdings has been undergoing a luxury upgrade over the past year, taking its business from its traditional border store history, to opening a new duty free store in California’s John Wayne Airport, and setting its sights on the high-net worth passengers at private airports. Travel Markets Insider spoke with James Mullaney, the new president of Duty Free Holdings, who highlighted the three tiers of the company’s business, and discussed how his background in the fashion industry will bring a luxury experience to the duty free market.
Mullaney, former CEO of Furla USA, joined Duty Free Holdings as president in September. He tells TMI he has ambitious plans for his new company, and hopes to bring his strategic vision to Duty Free Holdings as it embarks on a significant global expansion. His goal is to make Duty Free Holdings the top choice for travelers seeking high-end shopping experiences.
The company first opened its flagship border store, Duty Free City, near San Diego in 2012, and has since expanded throughout California and Arizona.
“I have a strategic plan to scale the company’s revenue from $200 million to $500 million by the end of 2027. We’re trying to bring that fashion luxury experience to the duty free world. We have a three tier approach. We have the commercial airports, the border shops along the U.S./Mexican border, and then we’re going into the private airports, which we’ve been pretty successful with today,” says Mullaney.
Commercial Airport Opportunities
In May, Duty Free Holdings opened the first duty free store at John Wayne Airport in California. La Boutique, a joint venture of Duty Free Holdings and DF Express, is designed to offer travelers access to an expansive collection of high-end products, as well as a range of unique products that cater to John Wayne Airport’s high-end travelers.
The store enhances the shopping experience for national and international travelers with its “Click and Collect” program allowing customers to pre-order items online at laboutiqueairports.com and pick them up at the gate before their flights.
Mullaney says the La Boutique store has been a success since opening, and that Duty Free Holdings will continue to look for the right opportunities at commercial airports, although he admits that these opportunities “are harder, and few and far between, given the climate and the politics.”
Photos: Concept drawings and renderings courtesy of Duty Free Holdings.
Executive Retail Shops at Private Airports
The primary opportunity for Duty Free Holdings is with its Executive Retail Shops at private airports, says Mullaney.
The company plans to establish additional Executive Retail Shops in Private Jet Terminals (FBOs), tapping into a premium market that remains largely underserved.
These exclusive retail spaces will cater to VIP travelers with an elevated product selection and tailored services that align with the luxurious nature of private jet travel.
“We’ve already gained a lot of traction through our Executive Retail Shops at the private airports, and that is where we’re really focusing.”
These Executive Retail Shops are where Mullaney sees most of the growth for Duty Free Holdings.
“We have four distribution points in Opa Locka, seven in Fort Lauderdale. We have another two with Sheltair that are being built out as we speak. For next year, we have another ten scheduled,” says Mullaney.
“We’re particularly targeting the San Diego area. We have a bonded warehouse here in Miami, and we have a bonded warehouse in San Diego. Logistically that is the easiest. We’re also looking at the FBO in Colorado, right in Aspen.”
The space available for the Executive Retail Shops varies at these private airports, and Mullaney says Duty Free Holdings has multiple options available to fit the space and attract these high-net worth passengers.
Mullaney detailed three concepts for private airports: a kiosk-type, a smaller store, and a flexible fixturing option.
“The first concept is our valise, a kiosk type of a concept for where the space is limited.
“We have another full store concept, but it’s a smaller store concept, anything from 300 to 700 square feet. It is a mini-store.
“And then we’re coming up with a third concept where the FBO doesn’t want a full build out, but they want fixturing. We can advertise with our vendors, whether it is Christian Dior or Grey Goose, we can prominently display their brands.”
Duty Free Holdings offers Click and Collect service for these Executive Retail Shops at executiveretailshops.com
Mullaney sees huge potential for these Executive Retails Shops.
“We’re seeing a lot of people flying to the Caribbean out of the Miami area in private jets. We see bachelor parties, birthday parties, bachelorette parties.”
International Expansion
Duty Free Holdings is also expanding internationally, with hopes of adding border stores, Executive Retail Shops, and commercial duty free stores outside the U.S., says Mullaney.
“We’re looking at a border store in Rivera, Uruguay, on the Brazil border. We are setting up a warehouse in Uruguay, so we’ll be able to distribute to Brazil, Argentina, Chile, Peru, and Paraguay,” he says.
“We’re expanding into the Caribbean, and Central and South America. Uruguay is the main target, because there’s just a lot of potential of distribution from that area.”
Duty Free Holdings is hoping that through its targeting of high-net worth individuals, the company is seen as more upscale.
“It’s going to be a constant evolution, and we’re going to have to keep innovating, whether it be with our store concepts, with our distribution, with our logistics, technology, websites. We are trying to bring it all to the next level to really be able to cater to the luxury market.
“I would say that we are the next big player. Everybody should want to do business with us, from a branding and a distribution standpoint. We’re the up and coming company. We’re very serious about expanding. We’re very serious about being competing with the big guys.”
