Retail / news
ARI chief Ray Hernan says travel retail must sharpen its pitch on value
ARI Chief Executive Ray Hernan tells Dermot Davitt that travel retail has to communicate value more convincingly, champion local products with authenticity and stay relevant to travelling consumers. The interview appears in the September/October Cannes edition.
Speaking at The Trinity Forum in Doha in February, Hernan put the industry's conversion record under the spotlight, observing that only one in four passengers actually makes a purchase in its stores. He said that figure has barely shifted during his eight years in the business, despite substantial change across the sector.
For Hernan, sustainable growth is not simply a matter of lifting average transaction value. He frames it instead as a penetration problem, arguing that getting more travellers to buy is the more meaningful measure of progress.
Returning to the theme, he said relevance and alignment with consumer values remain uneven from operator to operator, and that the channel needs to confront larger structural questions if it is to advance collectively and profitably.
The conversation also covers how effectively travel retail conveys value to shoppers and how retailers can promote local products with authenticity rather than as a surface-level gesture.
Ray Hernan is Chief Executive of ARI, the Irish travel retail group with an international footprint. He was interviewed by Dermot Davitt.