Latest news with #travelretail
Yahoo
2 days ago
- Business
- Yahoo
WH Smith to sell Funky Pigeon business to Card Factory
British travel retailer WH Smith has agreed to sell its online personalised greeting card subsidiary, Funky Pigeon, to UK-based retailer Card Factory for £24m ($32.1m) in cash. The consideration is based on an enterprise value of £26m. The company expects to generate £21m in net cash proceeds after accounting for transaction expenses. These funds will be allocated to reducing WH Smith's overall debt. The transaction aligns with WH Smith's strategy to concentrate on travel retail. Having transformed into a 'pure play global travel retailer', the company is poised to seize significant growth prospects in its primary markets and boost shareholder value. The transaction is expected to be completed by the end of 2025. The acquisition will strengthen Card Factory's digital strategy, positioning it as the second-largest online card and gift retailer in the UK. It is expected to be earnings-enhancing for Card Factory in the financial year ending 31 January 2027, with anticipated synergy benefits exceeding £5m. These will be realised through optimised manufacturing and fulfilment, technology platforms and product ranging. Card Factory plans to fund the acquisition through a drawdown of up to £35m under its accordion facility, with a modest expected increase in leverage. Funky Pigeon's established online presence and customer base, supported by its teams in Bristol and Guernsey, have generated £32m in annual revenue and £5m in earnings before interest, taxes, depreciation, and amortisation (EBITDA) in the financial years 2023 and 2024. Cardfactory aims to integrate Funky Pigeon's digital platform with its current omnichannel capabilities, using its 24 million unique in-store customers to establish a robust online presence in the celebration occasions market. The digital strategy includes enhancing the online customer experience and extending the in-store party and celebrations offer through an omnichannel approach. Card Factory aims to integrate Funky Pigeon's technology platform as the core digital platform for its UK and Ireland business, driving operational efficiencies and improving customer experience. Card Factory CEO Darcy Willson-Rymer stated: "This acquisition marks a significant step forward in cardfactory's strategy to build a scaled, competitive digital presence in the celebration occasions market. It brings a high-quality platform and proven technology, accelerating our ability to compete in the direct-to-recipient card and gifting segment, so supporting our ambition to become the leading omnichannel retailer in our sector. "Together, the enlarged customer base will benefit from a richer, more convenient customer proposition, combining the strength of our nationwide store estate and wider celebrations offer with Funky Pigeon's exceptional digital experience. Operational efficiencies, fulfilment synergies and a unified technology platform will provide the data needed to develop deeper insights into the customer journey, enabling us to build a stronger, more integrated omnichannel business.' "WH Smith to sell Funky Pigeon business to Card Factory" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Forbes
14-07-2025
- Business
- Forbes
Travel Food Retailer SSP Sees Debut Indian IPO Decline In Value
Travel Food Services Limited (TFS), an SSP Group JV, debuted on two Indian exchanges today. The share price of U.K.-listed global food and beverage (F&B) travel retailer SSP Group, has been flat today (at 3 p.m. BST), following the first day's trading of its Indian joint venture—Travel Food Services Limited (TFS)—on two Indian exchanges; the BSE (formerly the Bombay Stock Exchange) and the National Stock Exchange (NSE). The share price of the JV with India's K Hospitality Corp, a brand of the Kapur Family Trust, opened at 1,125 Indian Rupees ($13.08) and closed at 1,075 ($12.50), down 4.5% (source: NSE). It means the company's valuation (market capitalization) dropped by about $78 million to $1.7 billion at the closing bell. Despite being almost three times oversubscribed, TFS saw soft retail interest today, even with the claim of being 'the leading player' in the airport travel quick-service restaurant and lounge sectors in India. However, just five airports account for over 85% of TFS's revenue from these two sectors, pushing up the risk factor. While institutions might like the strategic positioning in India's burgeoning aviation market, retail investors are perhaps waiting to come in at a lower price. Until last summer, the company operated just under 400 outlets across 14 airports in India—mostly at its largest gateways—and three airports in Malaysia. In addition, a new lounge was opened in Hong Kong in July 2024. SSP prepares for next stage of Indian growth SSP first took an approximate one-third stake in TFS in March 2017 before raising it to 49% pre-pandemic, and at IPO, 50.01%. Varun Kapur, managing director and CEO of TFS, said that, since the JV was established, it had built up 'a significant position' in the fast-growing Indian travel market. Downwards: TFS's share price on opening day. Domestic air traffic last year soared to over 161 million passengers, up 6% according to India's Directorate General of Civil Aviation, which might have been reason enough in some quarters to make this a worthwhile investment. The first-day setback did not faze Kapur, who said: 'The IPO today sets us up for our next stage of growth… as we begin a new chapter for the company.' SSP, which runs restaurants, bars, and cafes in travel locations across 38 countries, utilizing a mix of international, national, and local brands, is committed to TFS for a while yet, and probably in the longer term, given the unrealized potential of the Indian market. India is key to SSP's profitability Patrick Coveney, CEO of SSP Group, said: 'We look forward to continuing to partner with K Hospitality to support TFS post-listing. We believe that the market potential in India, combined with TFS's economic model and market leadership, provides a compelling opportunity to deliver growth and returns for the group.' The group has made India one of four target markets, the others being Australia, the United Arab Emirates, and Saudi Arabia, as continental Europe has performed below expectations. SSP, which is opening the first Popeyes at British airports this summer, operates across six formats: sit-down and quick-service restaurants, bars, cafés, lounges, and food-led convenience stores. The company's geographical split would benefit from more Indian involvement. Based on the 2024 financial year, the Indian rupee made a 5% currency contribution to sales and a whopping 22% share of operating profit. This compares with the biggest sales contributor, the Euro at 29%, but only delivering 10% of operating profit. For more stories on SSP, follow this link.
Zawya
14-07-2025
- Business
- Zawya
Dubai Duty Free signs MoU with Crypto.com for crypto payments
Dubai Duty Free has signed a Memorandum of Understanding (MoU) with a global leader in cryptocurrency services, to explore enabling crypto payment and develop collaborative initiatives. The MoU paves the way for exploring crypto payments at Dubai Duty Free both in-store and online, offering travellers more diverse and innovative payment options. The agreement was signed at the Emirates Headquarters by Ramesh Cidambi, Managing Director of Dubai Duty Free, and Mohammed Al Hakim, President of UAE Operations at The signing took place in the presence of Sheikh Ahmed bin Saeed Al Maktoum, President Dubai Civil Aviation Authority and Chairman of Dubai Duty Free. Dubai Duty Free's plan to accept cryptocurrency marks a bold step toward redefining the future of travel retail, catering to a wider spectrum of customer preferences while staying firmly aligned with the UAE's vision of fostering innovation and driving digital transformation across both retail and financial sectors. Both parties will begin feasibility studies and detailed planning to bring crypto payment solutions to life and roll out collaborative initiatives under the MoU. Commenting on the MoU signing, Cidambi said, 'This MoU underscores our commitment to innovation and to providing greater convenience and choice for our customers. As a global hub welcoming millions of travellers, Dubai Duty Free continually seeks to enhance the retail experience. We believe that embracing digital currency payments, such as cryptocurrency, is a forward-looking step that will add significant value for our diverse customer base and support our vision for sustained growth.' Eric Anziani, President and COO, said, 'We're delighted to complete the signing of this important MoU with Dubai Duty Free. As we continue to expand the everyday use case for crypto, integration with exceptional partners such as Dubai Duty Free will bring real momentum to the digital asset industry and enable both companies to offer genuine innovative finance solutions for our customers. We look forward to working together as we continue to build our crypto offering in the GCC.' Alain Yacine, President of Middle East, added, 'Our focus is on developing a comprehensive and exceptional suite of products for our customers, which leverage the potential of digital finance and drive expansion of this critical sector. Signing an MoU with Dubai Duty Free will provide us a platform to achieve this with an exceptional partner in the region and we're thrilled at the prospect of working with them on this venture.' Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
Forbes
02-07-2025
- Entertainment
- Forbes
Absolut Chooses Travel Retail Channel For Keith Haring Launch
Absolut Haring launches from Monday, exclusively in travel retail stores until October. Following the success of the Absolut Warhol launch last year—said to be the biggest artist edition yet from the brand—Pernod Ricard's Absolut Vodka has, today, launched Absolut Haring, honoring another pop-artist icon from the same 1980's era: Keith Haring. And this time the drinks multinational is introducing the product exclusively into the travel channel ahead of global domestic markets. Haring's mission was to take art off the museum walls and make it accessible to everyone, be it through graffiti or street art. He forged his own path by using social activism to tackle issues like AIDS, which was becoming a killer epidemic at the time; apartheid; and gay rights. Pernod Ricard has aimed to capture Haring's spirit of adventure and creativity in the new Absolut artist edition bottle. It reworks his original Absolut artwork from 1986 with a modern twist, blending some of Haring's signature elements—bold 'action' lines, electric colors, and dancing figures—into the design. At the recommendation of his friend Andy Warhol, Haring became the second artist to work on the Absolut bottle, some 40 years ago. He placed its silhouette center stage and the Haring piece became a 1986 Absolut campaign classic. The core promo design and bottle harks back to this, featuring Haring's vibrant red lines and a dancing crowd of figures, set against a yellow canvas. The energetic imagery is offset by the deep blue of the Absolut logo. Keith Haring: a celebration of movement David Stark, founder and CEO of global licensing and creative agency Artestar which represents the Keith Haring Studio, commented: 'Our mission is to keep Keith Haring's spirit alive by continuing to expand access to his art and the important messages within it. This project with Absolut revives a moment that meant so much to Keith—not just creatively, but symbolically. It's a wonderful tribute that allows anyone to engage with this special story that started back in 1986.' From left: Artist Andy Warhol (1928-1987), model and singer Grace Jones, and artist Keith Haring ... More (1958-1990) attending an American Foundation for AIDS Research fundraiser in New York City, May 1st, 1986. (Photo by) The Absolut brand, which has collaborated with 500 different artists over the years, describes the new bottle and design as 'a piece of 3D kinetic art that transforms the original painting into something you can hold, admire, and toast with friends.' Naturally, there is also a signature cocktail to go with the launch: the Absolut Haring Fizz which is an east-meets-west fusion of ingredients: crisp apple, zesty orange, toasted sesame, and a kick of ginger. Deb Dasgupta, VP global marketing at Absolut Vodka, commented at a press conference for the launch: 'It was always going to be difficult to top our last artist edition from Andy Warhol. But who better to follow him than his friend and fellow pop artist Keith Haring. He was literally democratizing art before Instagram and Pinterest.' London's Gatwick among first to have Haring Absolut Haring will land at several airport locations from July 1.. Among them will be London's Gatwick Airport through Avolta's large duty-free stores where a pop-up vending machine will serve up some exclusive Absolut Haring merchandise for buyers with a receipt. The brand is also promising eye-catching 3D billboards at major air hubs like London Heathrow and Sydney. At Heathrow, Absolut is teaming up with Uber for an add-to-wallet campaign that will allow travelers to get a gift voucher en-route to the airport that can be used towards a bottle purchase. Exclusivity in the airport channel will last until around October when Absolut Haring will land in more than 40 markets including Germany, the UK, Mexico, Canada, Australia, China, Italy, Spain, and Poland, but for a limited time only. The decision to launch at airports first is because of the combination of commercial impact, with so many travelers passing through the stores; and the space for brand storytelling in a premium, high visibility environment where potential shoppers are already in a discovery mindset and ready to part with their cash. Absolut is expecting its Keith Haring launch to be its biggest yet. Here the artist is photographed ... More with one of his paintings in April 1984. Photo by. Pernod Ricard GTR brand director Rae Gibson told me: 'Commercially, the Absolute Warhol edition did better than previous editions. A lot of that was due to the amount of support we gave to the launch; it was a major step change in how we activated and drove cultural relevance, not just being another vodka promotion. And I think Absolute Haring will do better because we have taken learning from past launches.' Dasgupta added: 'Success for us is not just commercial. Our Absolut artist editions are a way to keep the brand relevant, contemporary, and engaging for our audience and ensure the brand stays at the forefront of culture.'
Yahoo
01-07-2025
- Business
- Yahoo
WH Smith closes UK high street business sale to Modella
British travel retailer WH Smith has complete offloading its UK high street business for a sale price £12m ($16.4m) less than previously disclosed. The retailer closed the sale to investment company Modella Capital to focus on expanding its global travel retail presence. The transaction, initially valued at £52m, has been revised to a maximum of £40m, including an up-front payment of £10m in the fiscal year 2025, an additional £20m tied to the business's cash flow until August 2026 and the remainder as deferred tax assets become payable. A further £10m may be realised based on the timing and realisation of tax assets. Despite the reduced sale value, transaction and separation costs are reported to remain at £27m. Post-transaction, WH Smith anticipates its headline net debt to be £425m as of 31 August 2025. As the peak summer trading period approaches, the travel divisions are expected to perform in line with market expectations. WH Smith stated: 'This transaction is consistent with the group's strategic focus on travel retail and creates a pure play global travel retailer which is well positioned to capture the substantial global growth opportunities in its key markets and drive enhanced shareholder value.' The revised terms were agreed upon after Modella Capital sought amendments due to the changed outlook and trading performance. WH Smith negotiated these terms to ensure a successful completion of the sale, since the original agreement was no longer viable. The retailer reported a 7% increase in global travel revenue on a constant currency basis for the 13 weeks leading up to 31 May 2025. "WH Smith closes UK high street business sale to Modella" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
