World's Second-Biggest Airport Retailer Makes South African Breakthrough
Signed and sealed. From left: deputy president of South Africa, Paul Mashatile; CEO of Lagardère ... More Travel Retail, Dag Rasmussen; and chairman of Tourvest Group, Robert Gumede.
Global duty-free operator, Lagardère Travel Retail (LTR), has partnered with South African tourism company, Tourvest, to pursue travel retail opportunities across the African continent, starting with South Africa itself.
Paris-based LTR, which generated sales of $6.1 billion for its media-to-retail parent, Lagardere Group, last year, is looking to expand in Africa, where it already has a scattered presence in five west African countries (Benin, Gambia, Gabon, Mauritania and Senegal), and Tanzania in the east of the continent.
The strategic memorandum of understanding (MoU) it has signed with Tourvest will allow LTR to collaborate on retail, hospitality, and tourism development initiatives, initially in South Africa. Deputy president of South Africa Paul Mashatile was also present, adding some weight to the proceedings.
German rival Gebr. Heinemann already has an established joint-venture presence with Big Five Duty Free at South Africa's most important air gateways of OR Tambo in Johannesburg, Cape Town International, and Durban's King Shaka International. An all-women-owned investment consortium took a 28% stake in the retailer last October, but it is believed that Heinemann continues to retain its interest.
For LTR, there are multiple other opportunities in the country, and it will be going after travel retail, duty-free, and dining offerings in major airports and tourism hubs. Dag Rasmussen, CEO of Lagardère Travel Retail, said in a statement: 'This collaboration is fully aligned with our ambition to grow in the South African market and more broadly across the region—a strategic priority for us and an area full of promise. It also reflects our DNA: forging strong partnerships with locally rooted players who understand and anticipate local expectations.'
The French company says the South African travel retail market is valued at over $100 million while the wider Africa and Middle East travel retail market 'is worth in excess of $3.5 billion.' Generation Research puts the valuation significantly higher. It estimates African duty-free and travel retail sales in 2024 hit $841 million, with the Middle East raking in $6.54 billion.
Africa is a small, underserved, and difficult market for airport shopping, but last year it grew faster than all other regions at 7.6%. The MoU could deliver a powerful new player in the market thanks to some complementary skills adding up to more than the sum of their parts. Tourvest—with revenue exceeding Rand 20 billion ($1.1 billion) in FY24 (ending August 2024) and majority owned by the Guma Group—has a strong African operational presence, local market intelligence, and hospitality leadership. Lagardère Travel Retail also has some African experience, competence in delivering retail concepts, and a big international reach; some 5,000 stores in more than 50 countries.
Business tycoon Robert Gumede, chairman of Tourvest Group, commented: 'We are optimistic as we embark on this strategic journey. While this partnership begins in South Africa, it reflects our mutual ambition to pursue opportunities across the continent. Together, we aim to set new benchmarks in travel retail.'
Currently, despite LTR being in six African markets, the retailer does not break out the revenue from the continent when announcing its quarterly results. This partnership, if successful, could change that, but it might take some time.
On Monday this week, Lagardère Travel Retail also announced it had secured a long-term master concession at Singapore Cruise Centre (SCC) and the Tanah Merah ferry terminal close to Changi Airport, as luxury retailer DFS Group departs.
From July, Lagardère Travel Retail will begin store renovations at the Singapore Cruise Centre and ... More other locations.
The duty-free and general merchandise contract covers all three of LTR's business lines (duty-free, travel essentials, and dining) and starts in July, when LTR will begin a phased renovation that promises 'to deliver a bespoke concept that resonates with the landlord's vision.'
Jacqueline Tan, CEO of Singapore Cruise Centre, said: 'We are excited to realize the terminals' upgrade, making it more appealing to both leisure and business travelers.' SCC is a gateway to Indonesia's Batam and Bintan islands as well as Desaru in Malaysia. The center is also a turnaround port for luxury and expedition cruise ships on world voyages.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Forbes
an hour ago
- Forbes
Pack Smarter, Travel Right: Sustainable Essentials For Summer Getaways
Summer vacation Summer is here! While wanderlust and all the parties and excursions fuel unforgettable memories, it can also leave a lasting mark on the planet. According to the International Air Transport Association, aviation contributes roughly 2.5% of global CO₂ emissions, and when you factor in ground transportation, accommodation, food, and shopping. Furthermore, Sustainable Travel International estimates that tourism accounts for up to 8% of global greenhouse gas emissions. However, sustainable travel is about traveling with intention and begins before you even leave your house with how you pack. Sustainable Summer Swaps: Reusables That Outlast Disposables The majority of travel waste stems from single-use plastics and overconsumption. Six million tons end up in our coastlines and rivers annually, much of it from everyday items like shampoo bottles, food packaging, and water bottles. One of the simplest switches is to pack a low-waste travel kit which would include solid shampoo bars, your favorite bar soap, reusable razors, and refillable silicone bottles. Stylish and Sustainable: Summer Sunglasses That Do More Cheerful young couple walking on sidewalk. Sunglasses are a summer staple, but most are made from petroleum-based plastics that can take hundreds of years to degrade. According to the Ellen MacArthur Foundation, only 14% of plastic packaging is collected for recycling globally. This summer, opt for brands like Sunski, which makes frames from recycled plastic. An additional option is Timberland's recycled sunglasses offer a stylish, low-impact option made with at least 35% bio-based content derived from renewable sources like castor oil plants. Smarter Summer Packing Lighter Impact Happy young tourists with suitcases Your travel gear could be negatively affecting the planet. According to a UNEP report, over 90 million tons of textiles are discarded globally each year, and yes that would include textiles from discarded luggage and travel gear. Brands like Paravel offer carbon-neutral luggage made from recycled polycarbonate, while Solgaard's Carry-On Closet is crafted from ocean-bound plastic and comes with a built-in shelving system, making sustainable organization stylish. For additional gear that performs and protects the planet, consider the Mission Workshop Control EPX Pack, a weatherproof backpack made in the USA with 100% recycled ECOPAK™ fabric and it also offers 5 times more UV resistance than standard materials hence extending product life. Greener Summer Road Trips: Lower-Impact Miles, Higher Intentions Let's face it not everyone is catching flights. If you are hitting the road this summer, you are in good company, especially in North America. According to projections from AAA, an estimated 61.6 million people in North America will travel by car, marking a 2.2% increase over last year and setting a new record for road trip volume. The Independence Day holiday period alone is expected to see 1.3 million more drivers on the road compared to 2024, underscoring the continued rise in vehicle-based travel. Carpool when possible, especially for family or friend group trips especially because shared rides reduce per-person emissions. If you are renting vehicles, opt for hybrid or electric vehicles, increasingly available through major agencies. According to the U.S. Department of Energy, EVs produce fewer emissions over their lifetime compared to gasoline vehicles. For your road trips, when possible, pack light to reduce fuel consumption and map out charging or refill stations to avoid unnecessary detours. Stock the car with reusable containers, snack bags, and a travel mug, since single-use water bottles are one of the biggest culprits in travel waste. Swap them out especially since road trips are notorious for convenience store stops and the resultant waste, but a little preparation goes a long way. Additionally, travel tech doesn't have to be energy-intensive. Solar-powered gadgets like Reveal Solar Bluetooth Speaker let you stay charged without finding an outlet. Smart plugs and fridge timers also help you track and reduce electricity use when you're home or away. Close up of a young family packing up for a road trip So whether you are jetting off to a tropical escape like Aruba or cruising the coastline with your windows down, what you pack matters, not just for your experience but for the planet. From recycled luggage to refillable beauty to solar-powered tech, every small shift in your suitcase or backpack is a statement about the kind of traveler you want to be. This summer, pack smarter and be the kind of traveler who moves the world forward, one trip at a time.
Bloomberg
an hour ago
- Bloomberg
In a Global Storm, Markets Reward Indifference
Amid the geopolitical and economic maelstroms of 2025, diversified investors may end up remembering the first six months for something altogether less dangerous or dramatic. In the face of bloody conflicts stretching from Europe to the Middle East and Africa, a chaotic trade war and America's deepening domestic crises, the year has still managed to see the strongest stretch of synchronized market gains in years. Rather than spelling a slow-motion disaster for bulls, months of whiplash across equities, fixed income and commodities have rewarded strategic indifference while punishing overconfidence. Strategies that spread risk across assets are outperforming by near-historic margins, a shift from the concentrated bets that favored the likes of Big Tech stocks in recent years.
Bloomberg
an hour ago
- Bloomberg
America the Avoidable: Why Trump's Policies Could Cost US Tourism Billions
On today's Big Take podcast: How President Trump's 'American First' policies have kept international tourists away, forecasted to cost the US travel industry billions. Save Never miss an episode. Follow The Big Take daily podcast today. Global tariff wars, multi-country travel bans, detentions and phone-seizures at the border. President Trump's 'America first' policies create a grim picture for one group in particular: international tourists.
