A challenging global environment.
Tobacco retailing in duty free
Tobacco continues to be an integral part of the duty free and travel retail industry’s product offer. At 8% of global duty free and travel retail turnover, tobacco sales are an important source of revenue for airports, airlines and ferries. Tobacco also performs an important role as a major footfall driver to bring customers into our shops.
It is generally accepted in the industry that a consumer that purchases tobacco products will spend an average of the same amount on additional products. This feature of tobacco to generate additional sales makes it stand out as unique amongst products on offer in duty free shops.
Tobacco, like the duty free industry itself, is a heavily regulated product. Countries around the world enact various forms of tobacco control legislation which affects how duty-free retailers sell tobacco products from region to region.
ETRC believes that through proactive and constructive engagement with policy makers it is possible to identify practical solutions that meet policy requirements while supporting the duty-free sector.
Innovative approaches such as the emergence of tobacco display areas for duty-free shops in the United Kingdom, which allow customers to view and purchase tobacco in a separate enclosed area, demonstrate the ability of the industry to work with policy makers to find workable solutions.