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activation, pricing and assortment agility, and execution excellence. “These capabilities, underpinned by AI-ready data, commercial flexibility, and resilience, are designed to help operators move faster than conditions change,” Dijon explained. “This forward-looking approach helps the sector pivot from reactive resilience to proactive competitiveness.” Building resilience and relevance in an era of uncertainty Following the Kearney presentation, the session transitioned into a discussion moderated by Michele Miranda, Conference Director. Leon Falic, founding member of the Falic Group, joined the panel, discussing geopolitical risks, emerging market dynamics, and the strategies being deployed to build resilience and relevance in an era of uncertainty. Together, they offered a candid and forward-looking exploration of how travel retail must evolve across geopolitics, pricing, consumer behaviour, and technology. Michele Miranda opened with a stark observation: volatility is no longer episodic – it’s systemic. Liu echoed this, noting that adaptability is now the defining trait of successful businesses. “There is no normal,” he said. “Every organisation – from brands to governments – must embrace experimentation and agility.” Victor Dijon cited recent cyberattacks on European airports as a case in point, underlining the need for built-in resilience and operational flexibility. “Decisions must be made with agility in mind, because the context can change overnight,” he said. Leon Falic offered real-world examples of how political tensions directly impact retail operations. Fromwhiskey tariffs at the Canadian border to sudden route cancellations between Latin American nations, “you can’t plan for everything,” he admitted. Yet longevity and adaptability remain the best defences. “You just have to be in the business long-term and understand that things are going to change.” When asked whether airports and landlords are doing enough to share the risk, Falic offered a nuanced view: “Every airport is different. But ultimately, our fortunes are tied – they see it in our revenue too.” As the conversation turned to consumer behaviour, Dijon described today’s shopper as fragmented, sceptical, and harder to predict – particularly among Gen Z, who travel frequently but spend cautiously. “The perception of value varies wildly,” he noted, “with confidence in duty free pricing dropping in mature markets like the UK, but remaining strong in places like India.” On the role of AI, the panel was optimistic but pragmatic. “We’re still in the early stages,” said Falic, though he acknowledged its promise in consumer recognition and behaviour prediction. Dijon highlighted personalisation at scale as a future capability, urging brands to build for pre-trip engagement and tailored offers. The conversation also addressed how legacy habits are holding the industry back. Falic cited an overreliance on static floor plans and underused retail space, while Liu called for a shift from chasing footfall to smarter, more efficient collaboration across the value chain. Dijon summed it up by referencing Kearney’s four-part roadmap: Sensing, Activation, Value Pricing, and Execution. “Execution is where we’re falling short,” he said. “We know what needs to be done, but we’re often slow to act.” In a lightning round, the panellists shared one belief the industry must unlearn. Falic challenged the idea that layout alone drives sales, while Dijon warned against assuming passenger growth guarantees spend. Liu closed with a call to abandon the idea that speed alone creates success. “We need to work smarter, share more, and think collaboratively.” As Liu aptly concluded, “If I were building a travel retail operation from scratch for 2026, I’d start with personalisation powered by data. That’s the future.” Wednesday 1 October 2025 5 T F W A D A I L Y