Holidaymakers hoping to take advantage of Duty Free shopping this summer could be left disappointed, according to a finance expert. Molly Monks, an insolvency specialist at Parker Walsh, has warned that a combination of falling sales and a decline in international travel is causing Duty Free stores to change their approach. They are stocking fewer items and, in some cases, reassessing the value of airport retail, while prices are expected to rise significantly.
WHSmith Issues Profit Warning
This comes as stationery chain WHSmith recently warned of a reduction in its annual profit outlook. Concerns over jet fuel prices and flight cancellations earlier this year have led to reduced footfall in airports worldwide, impacting sales.
Molly explained: “Retailers are beginning to sound the alarm when it comes to Duty Free and airport shopping. As the cost of living rises, even those who can afford a holiday abroad are more cautious with their spending, and the impulse to splurge at the airport is one of the first things to go.”
She added: “Ongoing concerns about fuel prices and flight disruption mean fewer Brits are heading to the airport this summer, which is hitting terminal-based businesses hard.”
Savings May Shrink
For those who do make it through departures, Molly warns that the savings on Duty Free products may have diminished since their last trip abroad. With retailers already under pressure from rising costs and weaker footfall, businesses have less room to absorb tax savings and pass them on to shoppers. This means that previously ‘bargain’ products could end up being priced no better than those found at home.
So, if you were planning to buy your favourite perfume at a discount, or hoped to pick up forgotten suncream or a must-have makeup product before boarding, it might not be as straightforward as it once was.
Empty Shelves and Deeper Consequences
It is not just about empty shelves. Molly warns that the financial pressure on airport retailers has deeper consequences. “With sales falling, retailers simply cannot justify holding the same levels of stock they once did. What was once considered a shoppers' paradise is under real strain, and the current economic climate could change it beyond recognition,” she said.
She added that if the situation does not improve, airports themselves could begin to reduce their retail offerings entirely. “If it continues to become financially unviable for businesses to operate in these spaces, we could start to see more units sitting empty. Airports may have no choice but to slim down what is on offer.”
Advice for Summer Travelers
For anyone jetting off this summer, Molly’s advice is clear: do not leave your shopping to the last minute at the airport. Stock up before you go, compare prices online in advance, and treat anything you find airside as a bonus rather than a given.
