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I n today’s workshop, exclusive findings will be shared from a bespoke report commissioned by TFWA and authored by leading global consultancy Kearney. The report delivers a forward-looking analysis of the forces currently reshaping the travel retail ecosystem. “One of the central messages of this new Kearney study is that volatility is no longer an occasional shock but the new operating reality for travel retail,” says Alex Liu, Chairman Emeritus and Partner, Kearney. “Passenger traffic has surpassed pre-pandemic levels, yet spend per traveller remains structurally lower – about 17% below 2019. This is something. And this disconnect is not temporary; it reflects deep shifts in consumer behaviour, geopolitical disruption, and the economics of travel retail.” As a consequence, ‘waiting out’ volatility is no longer an option. Instead, success will belong to those who operate through uncertainty by building agility, leveraging live traveller data, and reshaping the value proposition around clarity, trust, and relevance. “Volatility is no longer an occasional shock but the new operating reality for travel retail” This morning’s workshop – ‘World in flux: Travel retail amid today’s geopolitical realities’ – will hear from Kearney Partner and Chairman Emeritus Alex Liu and Senior Partner Victor Dijon, who will present exclusive findings from a bespoke report. They shared a preview with the TFWA Daily. “Volatility is now structural, indeed,” says Victor Dijon, Senior Partner, Kearney. “In 2024, global passenger numbers hit a record 9.5 billion – 3% above 2019 – but travel retail sales reached only $74.1 billion, still 13% below pre-pandemic levels. This reflects two profound shifts: first, shopping frequency has fallen by four percentage points year- on-year; second, the long-held ‘cheaper than downtown’ proposition no longer closes the sale – almost 40% of passengers doubt the savings are real. Companies cannot continue to rely on traffic volume alone if they want to return to sustainable growth. All operators must adapt to a world where relevance and trust determine conversion.” TFWA World Exhibition & Conference provides a unique platform to engage directly with the world’s travel retail leadership. “We look forward to sparking candid discussions on how to reset assumptions, share cross-regional lessons, and challenge ourselves to innovate faster,” Dijon. “Most importantly, we are excited to collaborate with a community that, despite headwinds, has always proven its ability to reinvent itself when it matters most.” Liu adds: “This is the best place in the world to engage with all actors of the travel retail industry on those strategic topics, share best practices, hopes – and also vulnerabilities – to create better collective purpose. Make no mistake: we all need each other to make this pentagonal ecosystem thrive.” Alex Liu, Chairman Emeritus and Partner, Kearney: “One of the central messages of this new Kearney study is that volatility is no longer an occasional shock but the new operating reality for travel retail.” Victor Dijon, Senior Partner, Kearney: “We look forward to sparking candid discussions on how to reset assumptions, share cross-regional lessons, and challenge ourselves to innovate faster.” Tuesday 30 September 2025 22 T F W A D A I L Y