Strategic reactions to the abolition of duty free:

The commercialisation of European airports: successful strategies in a decade of turbulence?

“…The need to preserve the remaining duty-free business has had to be balanced against the opportunity to sell duty paid products. As Freathy and O'Connell (2000) note, this has led to a variety of different strategies being pursued across the sector. Some retailers have reconfigured their store layouts to accommodate changing product demand and provided a separate set of retail facilities for non-intra EU passengers.…”

“…One consequence of this has been new patterns of consumer behaviour and the demand for alternative product categories. Partly in response to this development, a number of airport authorities have developed a commercial strategy that further segments the airport's customer base (Freathy and O'Connell, 2000). In addition, to improve customer service and better communications, this strategy provides a more tightly focused merchandise range, eliminates inappropriate product groups and allows the better utilisation of in-store space.…”

“…The rationale for a distinct EV market is based upon the specific nature of trade conducted with its customers. It is maintained that a number of intrinsic factors directly related to the nature of the retail environment, (not the fact that the goods are duty free) provide a basis for differentiation -Freathy and O'Connell (2000) discuss these factors.…”