Travel Markets Insider Newsletter Vol. 21 No. 14

The COVID-19 pandemic is taking a devastating toll on the travel retail businesses globally and in this week’s issue two of the industry’s major players, Dufry (along with its Hudson division) and Gebr. Heinemann detail steps they are taking to survive and prepare for recovery, although no one can predict exactly when that will happen.

In North America, Hudson Group, a Dufry company, has temporarily closed 700 of its travel retail doors, reports the company. Page 1.

Parent company Dufry has announced a comprehensive set of initiatives that it has taken to strengthen its capital structure and liquidity position to enable it to sustain a prolonged “period of significant disruptions,” says the company. Page 1.

Dufry has also issued a trading update on its first quarter 2020 performance in light of the coronavirus pandemic; and completed the placement of 5.5 million new shares in the company; as well as successfully placing CHF 350 million in new convertible bonds due 2023. Page 5.

Venerable travel retail group Gebr. Heinemann is taking the long view, even as it works diligently to support the company and its employees in this time of “high financial losses.” Page 2.

Amidst all the unpredictability and drastic drop in travel, companies are doing what they can to prepare for the future and some, those providing “essential services,” are continuing to work.

WTDC, Miami’s respected family-owned Foreign Trade Zone company that normally specializes in logistics for spirits for the duty free/travel retail channel, speaks with TMI about how it has adapted by providing its services to help transport vital supplies against the coronavirus. WTDC President Sean Gazitua talks about the impressive steps it is taking to safeguard its staff along the way. Michael Pasternak reports, page 3.

Two other familiar North America-based travel retail agents/distributors – World Class Brands and Travel Retail Global – have collaborated to create a new concept for disinfectant and protective products – a kit filled with face masks, gloves, sanitizer and wipes that will be essential for travel going forward.

“This is going to be the new normal,” explains World Class Brands’ Lenny Di Cristofano, about the need for such an item and the efforts that the two companies have taken to put together the best product they could for a very accessible price. See full interview on page 4.