Estée Lauder has opened a new distribution centre in the Swiss town of Galgenen. According to the group, it aims to use the 30,000 square metres to meet the increasing demand from travel retail stores. The centre is designed to complement existing distribution capacities in Switzerland and enable the group to react flexibly to the ever-changing needs of this retail sector, as well as better utilising opportunities for growth. Estée Lauder says it intends to double its production capacity for this channel due to the new facility.

Fastest-Growing Sales Channel

So-called "Travel Retail'' mainly consists of duty-free shops at airports and on cruise ships. Estée Lauder is the market leader in this sector, which numbers among the group's fastest-growing sales channels with a reach of three billion consumers per year, it adds. According to Estée Lauder, travel retail accounted for 28 percent of sales revenue in the 2021 financial year.

Belief in Long-Term Potential

The group describes the investment as proof of its trust in the long-term growth potential of travel retail. Estée Lauder has been active in this sector for 30 years. Travel retail has demonstrated its resilience, the company explains. "We continue to remain confident, especially since travel restrictions have been lifted and people are travelling again", CEO Fabrizio Freda said at the opening ceremony in Galgenen.

Source: Estée Lauder Companies