World Duty Free Group (WDFG) and HMSHost Corp., both owned by Autogrill Group, have reached an agreement whereby WDFG will operate 240 retail outlets, currently operated by HMSHost, in 32 airports across the US. The transition is expected to take about one year.
Padraig Drennan, the newly appointed president of WDFG North America, says the move allows each division to focus on distinctive areas of the business.
“Quite simply, it means that the retail operations in the airports in North America will be managed and developed by the company with the best expertise in travel retail – World Duty Free Group – and the food and beverage operations in the American airports will be managed and developed by HMSHost, who are the recognized industry leader, best able to deliver quality, variety and great dining concepts for the traveling public,” Drennan says.
“This is actually a logical move for both businesses,” Drennan adds, noting that the shift “allows us to coordinate best practices, and for each company to provide greater focus for its airport partners in its respective industry.”
With the addition of the 240 stores, WDFG will have a total of 565 retail outlets worldwide. The company called it a “major step forward” in its international expansion, after its integration of the retail businesses of Aldeasa and World Duty Free to form WDFG.
Staffing changes aren’t planned, Drennan says. “World Duty Free Group’s intention is to bring all HMSHost employees from the retail operations into our company,” he says. “They have done an excellent job and we know they will continue to do so.”
