Page 28 - The Summit 2021 flip book

INSIDER

The Neutral by Luryx flagship store in Rivera, Uruguay
One on One with Marcelo Montico, CEO, Neutral by Luryx

Neutral under new ownership looks ahead with confidence

One of the most important news Montico joined Neutral as CEO The Neutral by Luryx stores were merging
stories in Latin America in 2019 was in January 2020, as the company was nicely with the two original Luryx stores,
when Panamanian company Top Brands completing the final stages of the the new structure was falling into place and
International acquired Neutral Duty Free, restructuring process after its acquisition by the outlook was positive,” he said.
the largest duty free chain in Uruguay, that Top Brands. Montico’s brief was to review The first case of COVID-19 in
July. the whole Neutral operation, located in Latin America was discovered in Brazil
The acquisition made Top Brands the six Uruguayan cities where duty free at the end of February and the Uruguay
one of the largest duty free players in the sales are permitted, and merge it with Top government closed most of the country’s
region, with 80 stores throughout Latin Brands’ existing Luryx stores. borders in mid-March. Montico notes
America and the Caribbean. The year started well, with good sales that the land borders were partially open
“This is a very strategic move for at Neutral in January and February. The but that vehicle traffic and tourism fell
us,” Top Brands International President economic situation in Brazil was improving drastically.
Danny Yohoros told TMI at the time of the and in spite of new duty free stores on “Our stores closed at the time but
acquisition. “We see tremendous potential the Brazilian side of the border, industry reopened in June and people from our
ahead for the Neutral stores on the border. players were feeling more optimistic than sister towns on the Brazilian side of the
The economy in Brazil is getting better and in previous years. border were able to shop with us. But as
with the synergies that will accrue with our Montico recalls the buoyant the situation in Brazil got worse, traffic
existing companies, we will bring greater expectations: “Sales in all categories numbers fell further. We kept 7 of our 9
strength and value to the business.” were doing well and we exceeded our stores open, although we adjusted opening
Top Brands had already been objectives in the first two months of 2020. times and staff levels according to traffic
operating duty free shops on the border flows,” he explains.
between Uruguay and Brazil, and had the The drastic fall in traffic at the border
experience needed to make the business prompted the Neutral management to
go forward. The border business had been undertake a major review of the business in
challenged in recent years by the weakness order to reduce costs as much as possible.
of the Brazilian economy and its currency, The duty free business throughout the
but Yohoros brought in experienced and region was suffering immensely as a result
respected executive Marcelo Montico of the pandemic.
as CEO to run the merged Neutral by “We estimate that the total travel
Luryx stores. Then came the COVID-19 retail business in Uruguay fell by about
pandemic and subsequent border closings. 70% last year,” comments Montico.

The Virtual Summit of the Americas Issue April 2021 28