Page 24 - TFWA World Exhibit 2022 Special Edition

INSIDER

that should be completed in December or
January.”

U.S. Northern Border
DFA’s border business also delivered Miami International
very solid returns, says Falic. Airport and DFA opened
“We have been quite fortunate here as a joyous free-standing
well, on our side of the border,” he says. LEGO store in the
DFA operates more than 30 stores on the North Terminal this
U.S. side of the border with Canada. summer.
“When the U.S. and Canada re-opened
the border after closing for COVID, we
have seen our business growing every day.
I hear how difficult it is on the Canadian
side, but our business is coming back quite Airports
strong.” DFA is the duty free concessionaire concessionaire. DFA has received an
at Miami International Airport (MIA), extension on its concession contract in
U.S. Southern Border Hartsfield-Jackson Atlanta International Atlanta, as well as Miami.
The DFA duty free stores on the Airport (ATL) and New York JF Kennedy “We are very happy with all of our
Southern border never even shut down, International Airport, Terminal 7, among airports. Every one of our U.S. airports
confirmed Falic, since they catered to the others. has their own dynamic and way of doing
large number of students and essential business. We also have a lot of airports
workers who cross over between the Miami that never get reported on, but they are
U.S. and Mexico every day. And since “Miami has been fantastic for us. And very important in our portfolio—like
the border re-opened fully in 2021, Falic this business is growing every day. We Panama and Punta Cana in the Dominican
reports that business has been much opened a Lego store in MIA a couple of Republic, for example.
stronger. months ago – and it has been doing great. “We have a large presence in
“We never closed. We stayed open We opened a new Montblanc shop also. Panama, and Punta Cana Airport has been
everywhere on the Southern border and During most of the past two years we never a wonderful airport for us, especially
business was pretty good. It never really stopped. We are always building, always throughout the pandemic. Once people
stopped.” fixing the stores. We had just remodeled started to travel and they wanted to go to
Following the closure of the DFA/ one of the shops before COVID, and now a resort destination, many came to Punta
UETA San Ysidro flagship in 2016 due to we plan to remodel more of them. Miami Cana. We have done, and continue to do,
modernization and expansion of the port of continues to grow for us,” says Falic. some important changes in Punta Cana.”
entry between the U.S. and Mexico, DFA The DFA concession contract at MIA
has obtained a new property that will house still has several years to go, and qualifies Challenges & Opportunities
a multi-story, multi-use facility. Although for extensions. As a result of the COVID Even as Falic feels that the DFA
the company had originally planned to have disruptions, a ruling by the Miami-Dade business is getting back to normal, he
the new facility completed sometime in Board of County Commissioners and admits there is still a ways to go, especially
2020, Falic tells TMI that it will probably the Mayor added an additional four-year as travel picks up more and more.
still be a few years before that project will extension to the current contract, which “I see a lot of growth opportunities
go forward. will have it run through 2029. ahead. And we are constantly making
changes within our shops, always
Latin America New York JFK Terminal 7 upgrading, looking for new opportunities
DFA has had a long-time presence “Terminal 7 continues to do quite and new brands to bring in to the shops,
operating major stores on the Uruguayan well,” says Falic. “We have the Macallan new offerings.”
border and was in the process of opening Boutique there, one of only four in the Looking at short-term challenges,
new locations on the Brazilian border when world. We are always looking to see where Falic, like many other airport operators,
COVID sidetracked the progress. we can add something different to our says that staffing continues to be an issue.
Falic confirmed that the new store shops, and we have something very special “We use job fairs wherever we
DFA had planned to open on the Brazilian for Terminal 7 coming up, which we can possibly can. Wages have become very
border in Foz do Iguaçu is taking longer discuss at a later date.” competitive and it is much more costly to
than expected, although several of its stores As part of JFK’s modernization plans, run the business,” he says.
on the Uruguay side of the border are open Terminal 7 is scheduled to be demolished Operators are also experiencing
and had stayed open during much of 2020. as other terminals are expanded. “This is supply side issues and product shortages.
It also operates a store in the Iquique Free still about three years away, though,” notes “We could be selling even more, and
Zone in Chile. Falic. recover even faster, if we had higher fill
“We are very strong on the Uruguay rates. As much as business is back, this is
side of the border but opening stores on the Atlanta, Panama, Punta Cana where we feel we could be much stronger,
Brazil side is a much slower process,” he Atlanta is another major U.S. airport if our purchase orders were fulfilled
says. where DFA is the exclusive duty free 100%.”

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