Annual Review 2011 - The Nuance Group

The Nuance Group
Annual Review 2011
Elsewhere, we focused on a number of key projects set
to land in 2012, with considerable work and preparation
taking place. In June, we will unveil a major expansion of
our Las Vegas operation when the new Terminal 3 at
McCarran International Airport opens, adding a further
1,100 square metres of retail space. When complete, it
will offer one of the largest duty free stores in the country
and showcase an extensive product range, as well as
several exciting retail concepts new to the American
market.
Towards the end of 2011, our bid for the Duty Free/Duty
Paid concession contract for Orlando International
Airport was recommended by the Airport Authority and
was formally approved in January 2012. This seven year
contract covers two stores, located in Airside 1 and
Airside 4 and totalling 711 square metres of retail space.
Plans are well underway to unveil an improved and
expanded Duty Free/Duty Paid offer for domestic and
international travellers by the second half of 2012.
The addition of this, our eighth North American airport
location, further strengthens our business and firmly
establishes us as one of the region’s leading travel
retail operators.
Asia
Alessandra Piovesana
Nuance-Watson
Managing Director Asia
Locations Shops
4 71
Sales area (square metres) Team members
14,669 929
“ This year, our operations across Asia have delivered
a standout performance, which whilst reflective of
the positive economic conditions across the region,
was aided by our own commitment to further
develop and add value to our retail offer. This has
without a doubt helped us secure another year of
tremendous growth.”
Secured for Singapore P&C
+3.5 years
25
In Asia, we operate a joint venture in partnership with
A.S. Watson under the Nuance-Watson banner, running
airport retail operations at Hong Kong, Singapore and
Zhuhai, China, as well as the leading department store
at the well-known Venetian resort in Macau.
This year, our performance continued its upward trend,
with PSR outpacing passenger growth and leading to
record sales for the second consecutive year. This robust
performance was helped by the successful integration
of our Hong Kong and Singapore ventures at the end
of 2010, which enabled us to further leverage our Asian
airport operations and harness this collective experience
to fully maximise business prospects across the markets
over the course of the year.
In 2011, we marked a decade of operations at Singapore
Changi Airport, successfully negotiating a contract
extension for the core P&C concession, as well as
expanding and enhancing our portfolio. This included
three Samsonite shops and two new P&C stores, taking
our offer to 27 stores stretched across all four terminals.
At Hong Kong, we relocated and redesigned our ‘Fortress’
electronic shop at Terminal 2 and opened two shops for
airport staff communities. In November, we were also
pleased to be chosen to debut the Tommy Hilfiger brand
in our General Merchandise stores – the first in an Asian
airport. In total, we added and refurbished close to 653
square metres of space at the key Asian hubs.
Since establishing our Asian operations in 1998, we have
built a reputation as a leading retailer across the region.
Throughout the year, we brought a number of fragrance
exclusives and ‘firsts’ to the continent’s airport retail
market, supported by a programme of regular customer
experience events. For example, we partnered with
leading beauty, electronics and general merchandise
brands, to offer customers a truly innovative offer that
included advice from expert specialists. Both Hong Kong
and Singapore were chosen to spearhead several global
airport retail debuts for various product categories.
These activities and initiatives all helped reinforce our
reputation and commitment to continuing to deliver a
superior retail experience for consumers.
In 2011, we were pleased to retain the P&C concession
at Changi Airport for a further 3.5 years. At Hong Kong,
we re-tendered our two core licences – for P&C and
Airside General Merchandise – and also participated in
the Duty Free & Tobacco licence tender. At the time of
going to print (April 2012), we are awaiting the outcome
of these tenders.
Financial statements Review of 2011 Overview